Concepts

• Conditional and joint probability: different denominators

  Distinguish the share of all outcomes from the share within a conditioning event.

  Concepts

• A level perpetuity and its convergence condition

  Use the infinite-stream formula only with the required timing and positive discount rate.

  Concepts

• Loss given default: understanding conditional severity

  Distinguish LGD, recovery and expected loss in a simple credit example.

  Concepts

• Macaulay duration: the present-value-weighted payment time

  Understand duration as a weighted average of cash-flow arrival times.

  Concepts

• MOIC: investment value relative to contributed capital

  Understand a value multiple and why it does not describe timing.

  Concepts

• Discounting with a negative periodic rate

  Explain why a future fixed payment can have a present value above its amount.

  Concepts

• Prior, likelihood and posterior probability

  Identify the probability before evidence, the evidence model and the probability after conditioning.

  Concepts

• Retained earnings and cash are different balances

  Distinguish an accumulated equity component from a liquid asset.

  Concepts

• Uncorrelated does not always mean independent

  Use a finite non-linear model to show zero covariance alongside dependence.

  Concepts

• Universal owners and market-wide risk

  Understand why a diversified investor may examine effects beyond one holding.

  Concepts

• Random variables, outcomes and events

  Distinguish a model scenario, a numerical return mapping and an event set.

  Concepts

• Family-wise error and false discovery rate

  Identify whether a method controls any error or an expected fraction among rejections.

  Concepts

• P-values and the null model

  Read the conditioning statement before interpreting a small probability.

  Concepts

• Sample standard deviation versus standard error

  Explain which variation each statistic describes before comparing magnitudes.

  Concepts

• Statistical significance and effect size

  Read magnitude and uncertainty before assigning practical meaning to a threshold crossing.

  Concepts

• Sampling coverage and nonresponse

  Separate units absent from the selection frame from selected units that do not supply data.

  Concepts

• Correlated observations and effective information

  Inspect a simple common-correlation model before using a row count as independent sample size.

  Concepts

• Sampling with and without replacement

  Define whether the same population unit can be selected more than once.

  Concepts

• Random design and sample balance

  Distinguish a probability mechanism from the observed composition of one sample.

  Concepts

• What defines a simple random sample?

  Inspect the probabilities of complete samples as well as individual-unit chances.

  Concepts

• Systematic sampling: random start and list order

  Inspect the interval, start rule and ordering before treating a sample as random.

  Concepts