The seminar first introduces the concept of probability and the rules that govern it. Then some common probability distributions for discrete and continuous random variables are described, along with their expectation and variance and various concepts relating to joint distributions, such as covariance and correlation, and the expected value and variance of a linear combination of random variables.

 

At the end of Intrinsic Value's training seminar in probability theory the participant should be able to:

􀂅  Explain the concept of probability.

􀂅  Describe the different approaches to defining and measuring probability.

􀂅  Demonstrate the rules of probability.

􀂅  Define the discrete and continuous random variable.

􀂅  Describe the probability distributions of a random variable.

􀂅  Describe Probability density functions and histograms.

􀂅  Describe the Algebra of Random variables.

􀂅  Define the Expected Value and Variance of a discrete random variable.

􀂅  Describe the Algebra of Continuous Random Variables.

􀂅  Demonstrate Joint Probability Distributions.

􀂅  Discuss covariance and correlation.

􀂅  Discuss linear combinations of random variables.

􀂅  Discuss the Binomial Distribution.

􀂅  Demonstrate the Poisson Distribution.

􀂅  Describe the Uniform Continuous Distribution.

􀂅  Discuss the Normal Distribution.

􀂅  Discuss the Lognormal Probability Distribution and its use in derivative

     pricing.

􀂅  Discuss the Student’s t Distribution.

􀂅  Discuss the Bivariate Normal Joint Distribution.