What is Review of Probability?| Quantitative Analysis-Part 1| FRM Online Training Video Lecture | Risk Management: An Essential Training - Management

simply learn your pace your place
financial risk manager frm pub one of
the frm exam covers the fundamental
tools and techniques used in risk
management and the theories that
underlie their use review of probability
welcome to the first lecture in
quantitative analysis this is a very
important module and will be the
backbone of the entire frm course it
will find application in both the part 1
and the part 2 exam your advice to
understand the concepts and practice
them as much as possible a few concepts
will be new and quite complex so be
prepared for some calculation intensive
sessions ahead we will try to make the
concepts interesting and relate them
with practical case scenarios wherever
possible agenda now we proceed towards
understanding the basics of probability
we will start by learning about some
concepts such as random variables
distribution samples etc probability is
expectation founded upon partial
knowledge the principles of probability
are based on statistics and are now used
in numerous fields of finance will
discuss unconditional and conditional
probabilities and evaluate how to handle
joint probability some tools which are
used for evaluating the probability are
random variables events sample
distribution and several tools of
Statistics then we will describe the key
properties of the normal standard normal
multivariate normal chi-squared students
T and F distributions during the
presentation we will also proceed
towards other sections such as expected
value variance kurtosis skewness of the
distributions and finally central limit
theorem before wrapping up the session
random variables as the name suggests
random variables can take any random
value between a set of values for
example if a variable denotes the
observed value on rolling a die then
this variable can take any number
between one and six as such it is a
random variable and the observed value
of this variable is the outcome in this
case a single outcome of rolling the die
and observing a number is called an
event also if in one attempt we get a
number say three then on rolling the
second time we can again get any number
between one and six in other words the
outcome of an event is not the