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

simply learn your pace your place
financial risk manager frm par one of
the frm exam covers the fundamental
tools and techniques used in risk
management and theories that underlie
their use review of statistics welcome
to the 14th lecture in the preparation
for the frm part 1 exam this is the
second lecture in the quantitative
analysis section we have learned about
the basic concepts of probability mean
variance analysis and the types of
probability distributions in this topic
we will learn to estimate parameters of
the population through samples the
concept of hypothesis will also be
introduced which is used to test whether
the value estimated can be accepted for
the estimate of the given population let
us begin our discussion agenda the
agenda of the presentation is given in
the slide will begin with the concept of
samples and the estimators that are used
to determine population parameters such
as mean variance and standard error
before starting on the subject of
hypothesis we will briefly discuss the
types of confidence intervals and which
type of interval to use under different
scenarios such as large and small
samples or with varying distributions
such as chi-square or f distribution the
concept of hypotheses will then be
discussed in detail we have learned the
use of standard normal tables in the
previous lecture it is recommended that
you review that slide before proceeding
as we will regularly need the use of
standard normal table as well as f
tables which will be introduced in this
lecture
estimates let us begin our discussion
with learning the concept of estimates
at many times we need to know the
parameters for the population for
example we need to know the average
height of an Indian male in this case it
will not be possible to measure the
height of each Indian male individually
usually we take a sample population of
say 100 randomly selected people and
find the average height this sample of
100 is assumed to represent the larger
population and the mean of the sample is
the estimate of the population mean
similarly we usually gauge the
performance of the stock market through
the performance of the broader market
index such as sensex in india or S&P 500
in the USA there are a few properties
that we want in an estimator first the
estimates