The course concentrates on probability models and their applications in a variety of fields. Probability underpins both statistics and (stochastic) operations research. As such, this is a core course for students in the Statistics and Probability pathway or a Data Science Specialisation, and optional for those pursuing the Applied Statistics pathway or a Statistics major. Probability models are also used in disciplines as varied as Commerce and Biology (e.g., calculating the probability that a share price will exceed a certain level or the probability that a population will become extinct). This means the course is useful for students with varied interests, as well as those who have Maths or Statistics as their main interest. STATS 125 is a prerequisite for STATS 210. Students with a weak mathematics background will need to pass MATHS 102 before taking STATS 125 and MATHS 108.
The course covers four broad areas (roughly one quarter each): Probability, Discrete distributions, Joint and conditional distributions, and Markov chains. Illustrations will be drawn from a wide variety of applications including finance and economics, genetics, bioinformatics and other areas of biology, telecommunication networks, games, gambling and risk, and forensic science.