1. What is Statistics ?

How Are Statistics Used in Economics and Finance?

Economists collect and look at all sorts of data, ranging from consumer spending to housing starts to inflation to GDP growth. In finance, analysts and investors collect data about companies, industries, sentiment, and market data on price and volume. Together, the use of inferential statistics in these fields is known as econometrics. Several important financial models from CAPM to Modern Portfolio Theory (MPT) and the Black-Scholes options pricing model, rely on statistical inference.

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