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	Problem Set 3 due
11	Binomial random variables, repeated trials and the so-called modern portfolio theory
12	Poisson random variables
13	Poisson processes	Problem Set 4 due
14	More discrete random variables
15	Review for midterm exam 1
16	Midterm exam 1
17	Continuous random variables
18	Normal random variables	Problem Set 5 due
19	Exponential random variables
20	More continuous random variables
21	Joint distribution functions	Problem Set 6 due
22	Sums of independent random variables
23	Expectation of sums
24	Covariance and some conditional expectation exercises	Problem Set 7 due
25	Conditional expectation
26	Moment generating functions
27	Weak law of large numbers	Problem Set 8 due
28	Review for midterm exam 2
29	Midterm exam 2
30	Central limit theorem
31	Strong law of large numbers and Jensen’s inequality
32	Markov chains	Problem Set 9 due
33	Entropy
34	Martingales and the optional stopping time theorem
35	Martingales and risk neutral probability
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