18.440 | Spring 2014 | Undergraduate

Probability and Random Variables

Calendar

SES # TOPICS KEY DATES
1 Permutations and combinations  
2 Multinomial coefficients and more counting  
3 Sample spaces and set theory  
4 Axioms of probability  
5 Probability and equal likelihood Problem Set 1 due
6 Conditional probabilities  
7 Bayes’ formula and independent events  
8 Discrete random variables Problem Set 2 due
9 Expectations of discrete random variables  
10 Variance  
11 Binomial random variables, repeated trials and the so-called Modern Portfolio Theory Problem Set 3 due
12 Poisson random variables  
13 Poisson processes  
14 More discrete random variables Problem Set 4 due
15 Continuous random variables  
16 Review for Midterm Exam 1  
17 Midterm Exam 1  
18 Uniform random variables  
19 Normal random variables  
20 Exponential random variables Problem Set 5 due
21 More continuous random variables  
22 Joint distribution functions  
23 Sums of independent random variables Problem Set 6 due
24 Expectation of sums  
25 Covariance and correlation  
26 Conditional expectation Problem Set 7 due
27 Moment generating distributions  
28 Review for Midterm Exam 2  
29 Midterm Exam 2  
30 Weak law of large numbers  
31 Central limit theorem Problem Set 8 due
32 Strong law of large numbers and Jensen’s inequality  
33 Markov chains  
34 Entropy Problem Set 9 due
35 Martingales and the Optional Stopping Time Theorem  
36 Risk Neutral Probability and Black-Scholes  
37 Review for Final Exam Problem Set 10 due
38 Review for Final Exam (cont.)  
39 Review for Final Exam (cont.)  
40 Final Exam  

Course Info

Departments
As Taught In
Spring 2014
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Problem Sets
Exams with Solutions
Lecture Notes
Online Textbook
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