Abstract
Thanks to Newton’s laws, dropping a stone from a latitude of 10 m, the point of time of its impact on the ground is known before executing the experiment. Quantities in complex systems (such as stock prices at a certain date, daily maximum temperature at a certain place) are however not deterministically predictable, although it is known which values are more likely to occur than others. Contrary to the falling stone, data which cannot be described successfully by deterministic mechanism, can be modelled by random variables.
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Recommended Literature
Ross, S. (1994). A first course in probability, Macmillan, New York.
Pitman, J. (1997). Probability, Springer-Verlag, Heidelberg.
Krengel, U. (2000). Einführung in die Wahrscheinlichkeitstheorie und Statistik, Vieweg, Braunschweig.
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© 2004 Springer-Verlag Berlin Heidelberg
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Franke, J., Härdle, W., Hafner, C.M. (2004). Basic Concepts of Probability Theory. In: Statistics of Financial Markets. Universitext. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-10026-4_3
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DOI: https://doi.org/10.1007/978-3-662-10026-4_3
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-21675-9
Online ISBN: 978-3-662-10026-4
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