Statistical and financial techniques are used as an aid to decision-making in areas such as financial analysis, forecasting and market research. A good understanding of these techniques is essential to enable the graduate to communicate with other professionals and to discuss and interpret their findings.
The aim of this module is to cover the financial mathematics necessary to enable students perform business interest calculations and evaluate investments. It also introduces various statistical techniques which are available to help organise, analyse and evaluate information effectively.
Interest
Simple and compound interest. Depreciation.
Annuities
Amortisation and sinking funds.
Investment appraisal
Payback and accounting rate of return.
Discounted cash flow techniques
Net present value and internal rate of return.
Correlation and regression
Correlation coefficient. Rank correlation. Simple regression.
Time series analysis
Trend and seasonal variation. Seasonally adjusted series.
Index numbers
Price relatives. Laspeyres and Paasche indices.
Explanation of material, with notes and examples, will be by means of lectures. Assistance with problem-solving exercises will be given in tutorial sessions. Spreadsheets will be used to assist in solving practical problems.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |