Probability, And Statistics For Finance(1)
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The natural sciences (chemistry, physics, life sciences/biology, astronomy, earth sciences, and environmental sciences) and engineering are fields that rely on advanced deterministic quantitative methods. One of the toolsets used by professionals in these fields is from the branch of mathematics known as probability and statistics. The social sciences, such as psychology, sociology, political science, and economics, benefit from using probability and statistics to varying degrees.
Within each discipline of the natural sciences and social sciences there are several branches that use probability and statistics more than others. Experts in these fields not only apply the tools of probability and statistics, but also contribute to the field of statistics by developing techniques for organizing, analyzing, and evaluating data.
We see examples in physics and engineering (the study of natural phenomena in terms of fundamental laws and physical quantities and the design of physical models) and biology (the study of living things) in the natural sciences, and psychology (the study of phenomena). human mind) and economics (the study of production, allocation of resources, and consumption of goods and services) in the social sciences. Statistical physics is the branch of physics that applies probability and statistics to problems involving large populations of particles.
It was an extraordinary scientific achievement that had far-reaching consequences. In the field of engineering, risk analysis, whether natural or industrial, is another area that uses statistical methods.
The discipline has contributed important innovations, particularly in the study of rare extreme events. Electronic communications engineering pioneered the application of statistical methods, which contributed to the development of fields such as queuing theory (used in communication switching systems) and introduced fundamental innovations in information measurement.