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Warwick MORSE Regulation

This document provides information about MORSE degrees offered by the Department of Statistics at the University of Warwick. It outlines the general structure and aims of the BSc in MORSE (three years) and integrated Masters degree in MORSE (four years). Both degrees involve courses in mathematics, statistics, economics, and business. The document also describes the teaching methods, personal tutor system, mentor system, and student monitoring scheme.

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0% found this document useful (0 votes)
1K views144 pages

Warwick MORSE Regulation

This document provides information about MORSE degrees offered by the Department of Statistics at the University of Warwick. It outlines the general structure and aims of the BSc in MORSE (three years) and integrated Masters degree in MORSE (four years). Both degrees involve courses in mathematics, statistics, economics, and business. The document also describes the teaching methods, personal tutor system, mentor system, and student monitoring scheme.

Uploaded by

arcanum78
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

GENERAL INFORMATION

This booklet is a guide prepared by the Department of Statistics for students on the
MORSE degrees (Y602, and G300). The official statement of degree regulations is
set out in the current issue of the University of Warwick Course Regulations
Handbook which is available for consultation in the Library. A further extremely
valuable source of information is the Universitys online information site (insite)
available at: http://www2.warwick.ac.uk/insite/. From here there are links to all
student information and specifically to my.warwick where you can access
information and resources that are personal to you.

Further information is available from the departments web page at:


http://www2.warwick.ac.uk/fac/sci/statistics/

You should retain this booklet, as you will need to consult it from time to time
throughout the year. You may also need it when you apply for exemptions from
various professional examinations. It is expensive to produce and if you require a
replacement you will have to download it from the web page at your own expense.

1.1 Background

Over the past thirty years mathematics has begun to realise some of its enormous
potential, for application in management, finance, industry, government, education,
medicine and other areas. Consequently, the demand for people skilled in
mathematics and its applications has accelerated rapidly. It was in response to this
demand that MORSE was created and more recently, the 4-year integrated Masters
degree.

MORSE and the integrated Masters degree are honours degrees involving four
departments: Mathematics, Statistics, Economics, and the Warwick Business School.
Students following these degrees are exceptionally fortunate in that all four
departments have been consistently graded very highly in the exercises undertaken by
HEFCE to assess the quality of university research.

The degrees are administered by the Statistics Department. They provide fully
integrated courses leading to a solid grounding in the four component subjects and
offer an excellent basis for a multitude of careers.

1.2 Aims

The MORSE and the integrated Masters degrees set out to provide three things.
Firstly, courses which will stimulate interest in mathematical concepts, with
particular reference to the major application areas. Secondly, to improve the quality
and quantity of mathematically skilled people working, researching and teaching in
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these areas and thirdly, to satisfy the needs of those students who seek a continuous
development of mathematics from school through university to postgraduate
application.

In common with other mathematical science degree courses at Warwick we aim to:

Attract well-qualified students.


Provide an intellectually stimulating environment.
Help students develop key intellectual skills.
Provide a challenging education in mathematics/statistics and their applications.
Produce high quality graduates who are well prepared for the next step of their
professional lives whether this involves further research training or moving
directly into a career.

Specific aims of these degree courses are to:

Provide courses based on mathematics and its applications in statistics,


operational research and economics suitable for students aiming for a career
involving one or more of these areas.
Enable students on the integrated Masters degree to study these areas more
deeply.

Detailed objectives for each year are to be found at the start of the relevant section.

1.3 BSc in MORSE

The first two years of this three year MORSE degree follow a (mainly) fixed set of
courses, laying the foundations of the four main subjects. For part of the first two
years, and the whole of the third, students are free to choose from a wide range of
topics. Final year students can elect to specialise in one or two of the main subject
areas or can continue a balanced programme by selecting topics from all four
departments.

1.4 Integrated Masters Degree in MORSE

The first two years of this four year integrated Masters degree follow that for the BSc
degree. From the third year onwards, students specialise in one of the following four
areas:

Actuarial and Financial Mathematics.


Operational Research, Systems and Statistics.
Econometrics and Mathematical Economics.
Statistics with Mathematics.

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1.5 Careers
Naturally, there is a correspondingly wide choice of career opportunities for MORSE
graduates in the spheres of application described above. See Section 6 of this Course
Guide for detailed information on Careers. Students interested in the possibility of
pursuing a career as an actuary should note that the MORSE/integrated Masters
degrees are well received and can exempt them from a number of examinations (see
section 6.9).

2. TEACHING AND LEARNING


2.1 Lectures and Tutorials

The main form of teaching is the traditional lecture course. (No one has yet come up
with a better alternative, although a few students do work better from books).
Lectures are usually very condensed and you are unlikely to understand everything
the lecturer does at the time. As a result, most lecture courses in the first two years
are supplemented by tutorials, supervisions, seminars or classes (the name varies
according to the department concerned). Because the number of students in each
group is usually quite small, these tutorials form your main opportunity for asking
questions and clearing up difficulties. If you are not satisfied with your subject tutor
then arrange with the appropriate Undergraduate Support Officer to change groups.
Most lecturers hand out question sheets; if there are any questions you cannot answer,
you should use the tutorials to ask about these as well.
For first year students the Mathematics Department arranges supervisions of one hour
per week with a research student. These supervisions cover all Mathematics courses.
For other courses and departments, the arrangements are usually made by individual
lecturers. The lecturing style in Economics is somewhat different from that of other
departments. Background reading and the preparation of additional notes which
amplify and explain the lectures are usually essential.
Of course, you are not forced to attend lectures or tutorials. However, if a candidate's
examination mark is near a borderline between two grades, evidence that they have
worked hard and consistently throughout the year can affect the outcome of an
examiners meeting.

2.2 Our Contract

Our duty as a department is to deliver a coherent degree course with well-presented


lectures backed up by support, usually in the form of small classes. Your duty is to
try hard to learn, and not to impede the attempts of others. In particular this means
that you should attend lectures and support classes, having prepared for them by
revising prerequisite material and by attempting all example sheets promptly. A
failure to do this usually leads to boredom (through lack of understanding) and an
inadequate performance.
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2.3 The Personal Tutor System

Every student has a member of staff assigned as their personal tutor. Your tutor is
there to help sort out any problems connected with your university career, and you
must make a point of seeing them at least twice a term, (the first week and last
week) so that they know how you are getting on. You must respond promptly if they
ask to see you and it is advisable to keep your personal tutor informed of any
academic or personal problems.

Some specific ways in which your personal tutor can help are:

Providing general academic advice on progress and development, including


discussing possible option choices and disclosing exam marks and their
implications.
Giving you help and advice about pastoral and non-academic matters insofar as
they are able and advising you about where to find further help on the campus if
you need it.
Writing a letter of reference when you apply for jobs or grants.

Personal Tutors should:

Advertise two office hours each week, starting on the half-hour, when students
can consult them.
Communicate with their students regularly, including via email.
Be available in the event of an emergency.

In addition your personal tutor has certain formal duties to represent you at exam
boards and in disciplinary matters.
Should you wish to change your personal tutor for any reason, please email the
Academic Administrator, Mrs Hilda Cooper ([email protected]) who will
arrange a meeting to discuss this with you.

The Mentor System

The Statistics SSLC administers a mentor system, where older students help first year
students settle in to their university life. A mentor provides an informal point of
contact to students where they can ask questions about their course, modules and
wider university issues such as nights out, accommodation, societies and sports.

The mentor system in no way replaces the Personal Tutor system. Students must
meet with their personal tutors at least twice a term and keep their personal tutors
informed of any academic or personal problems.

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Student Monitoring Scheme

We are required by the University to monitor twelve separate points of engagement


each year for all undergraduate and post-graduate students in the Department. Details
are posted on the student notice boards. We have deliberately chosen the points of
engagement to be activities which it is in your interest to do anyway (seeing personal
tutors at start and end of each term, attending classes at certain core modules, etc).
You should therefore aim to comply with all of these without fail. Should difficulties
arise (for example, illness preventing you from attending at a particular time) then
contact your personal tutor with an explanation.

2.4 Personal Transferable Skills

As well as supporting your academic studies, the preparation of assessed work and
your active participation in seminars and tutorials will also help you develop skills
which will be invaluable in your later career and in job applications and interviews.
These, "personal transferable skills'' include the ability to write clearly and concisely,
to explain your work clearly to others and to present your work in a professional
manner through the use of word processing and other computer packages.
After completing your degree you will have:

Acquired basic skills in IT and had the opportunity through the choice of options
and other activities to develop these further.
Acquired independent study and working skills.

2.5 Personal Development Plan (PDP)

The university is currently encouraging Personal Development Plans as an integral


part of the learning process. PDP is a structured process undertaken by an individual
to reflect upon their own learning performance and achievement and to plan for their
personal, educational and career development.

PDP is essentially designed to help students to become more effective, independent


and confident self-directed learners; understand how they are learning and relate
their learning to a wider context; improve their general skills for study and career
management; articulate their personal goals and evaluate progress towards their
achievement; and encourage a positive attitude to learning throughout life. To find
out more about PDP: http://go.warwick.ac.uk/pdp

2.6 Study Skills

It is important to understand that university education is based on independent study.


Lecture courses are very compressed. You will not learn everything from the
lectures. You will need to spend time supplementing the lecture material, filling in
the gaps, working through examples, and studying textbooks. Each module has an
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associated CATS weighting which you can use as a guide: a CAT represents 10
hours notional work so a 12 CAT course may contain 30 hours of lectures, 60 hours
of independent study and 30 hours of revision.

Here are some specific recommendations to think about:


 Plan to spend 35-40 hours per week on academic work in term-time. However be
flexible in order to give more time to any core modules which you are finding
difficult.
 Be prepared! Ensure that lecture notes are re-read/understood before the next
lecture. Always consult textbook(s).
 Attempt example sheets as soon as possible - easy questions check/aid
comprehension, harder ones deepen it.
 Attempt to understand the direction of a course (read the Aims and Objectives) -
try to write a brief narrative or commentary on your notes at the halfway mark and
again at the end.
 Praise and reward yourself when you perform well or understand something
difficult.
 In accounting for study time, each hour between 10pm and 8am should only count
as 30 minutes!

If you feel in any doubt about your study skills you should consult your personal
tutor, seek advice from the University Senior Tutor's office, and look out for notices
advertising special study skills sessions which are posted on departmental notice
boards.

If English is not your first language, it is important to practice at every opportunity.


This department encourages the use of English at all times. If you wish to improve
your skills, you should visit the English Language Teaching Unit who offer both Pre-
sessional and In-sessional courses in English

http://www2.warwick.ac.uk/fac/soc/al/learning_english/

2.7 Undergraduate Skills Programme

You might like to consider using the Undergraduate Skills Programme (USP) to
develop your personal, academic and career management skills, improve your marks,
impress potential employers and network with other Warwick students. The USP is
free and available to all Undergraduates at Warwick.

The Warwick Skills Workshops (WSW) are a series of skills specific workshops
designed to enable you to develop your personal, academic and career management
skills. Each workshop will focus on a specific skill area and help you to enhance
your confidence and competence in that area. At the end of the academic year you
will receive a certificate of attendance listing each workshop you have attended. For
further information see: http://www2.warwick.ac.uk/services/skills/usp/workshops/

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2.8 The Library

8 THINGS TO DO TO HELP WITH YOUR STUDIES

1. Register with IT Services to use the University computer network. Registration


also enables you to access a range of electronic resources to assist with your
studies.
2. Explore the Library Web site, where you will find the Library Web Catalogue,
your subject pages, details of Library services and a wide range of electronic
resources, including online journals and databases.
3. Find out what study resources and facilities the Learning Grid offers.
4. Find out the name of the Librarian responsible for your subject area and the
location of the Service Desk for general Library enquiries. Your Subject Team
will be happy to help with any subject research queries you have.
5. Find out where the journals and books for your subject are in the Library, and
how to borrow material.
6. Find out how many Library books you may borrow at any one time and how
long they can be borrowed for.
7. Find out where the Short Loan Collection is situated in the Library and how it
can help you with material on your course reading lists.
8. Learn how to use the Library Web Catalogue so that you can find out whether
a book or journal is available in print or electronically, can access our electronic
resources and can renew and reserve Library books online.

2.9 Information Technology

The department expects to be able to communicate with you via your University
email - and you should check your account regularly. Please go to the University's
Information Services to find out more. You should also check your pigeonhole and
Departmental notice board at least once a day.

2.10 Staff Student Liaison Committee (SSLC)

The Department of Statistics has a Staff Student Liaison Committee covering its
entire undergraduate programme. The committee brings together a group of
academic staff with approximately fifteen elected student representatives selected
from each year of each degree course. The electoral process is designed to ensure
that the views and interests of male and female students, from both the UK and
overseas, are fairly represented. The SSLC meets twice a term to discuss a variety of
academic issues, student welfare and social activities.

The SSLC is one of the most important places for staff and students to evaluate and
comment on the teaching, the resources, the student guidance and support, and the
social environment provided to undergraduates by the department. Its key functions

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include:

Monitoring and receiving comments on the strengths and weaknesses of


modules offered to undergraduates in the department.
Contributing to the discussions concerning module and course development.
Commenting on relevant aspects of department policy developed and discussed
by the Undergraduate Teaching Committee. Recent examples include major
course revisions, guidelines on timetables for the return of assessed work and
the procedures surrounding cheating in assessed work.
Providing feedback on all Statistics modules (see notes below)
Looking at the computing, library and other resources and discussing ways of
improving student familiarity with and access to these.
Helping to arrange social events.

The effectiveness of the SSLC depends largely upon the ability of student
representatives to reflect the problems and interests of all students, but also upon the
willingness of students to approach their representatives. We hope that you will be
prepared to identify problems and make suggestions that your representatives can
raise at meetings of the SSLC, and that you want to find out about the committees
discussions and activities (see SSLC notice board).

2.11 Student Feedback

Introduction
Student feedback is important to the department. Lots of feedback is given
informally to personal tutors and lecturers (and this is very useful to us), but there is
also a formal mechanism for collecting it.
Halfway through, and at the end of the lecture courses taught by Statistics staff, you
will be asked to complete a questionnaire (feedback form). This gives you the
opportunity to express your view on various aspects of the course. However,
feedback is only useful if it is provided in a considered and thoughtful way. These
notes have been prepared to answer some of the questions students often ask about
the feedback process, and to help ensure that the feedback you give provides a really
helpful input to the Statistics Departments teaching. Please take a few minutes to
read them.

Why is feedback collected?

The Department is constantly looking for ways to improve the learning experience
we provide for our students. We can only do this if you let us know your reactions to
our courses not only to identify problems, so that members of staff can take steps to

8
eliminate them, but also to learn about the things you find helpful, so that we can
disseminate best practice in teaching and learning throughout the Department and
further.

What constitutes useful feedback?

You are accustomed to being on the receiving end of feedback when your work is
returned with comments from the marker. If you think about what you do like and
dont like as feedback on work, you will be in a good position to provide helpful
feedback on courses. Here are some points to start you thinking:

Be specific be constructive: For example, a bare mark on a piece of work is not


very helpful, since it gives no guidance as to what was wrong with it. In the same
way, just saying that you did not like a course does not give any indication to the
lecturer as to what steps he/she should take to improve the course. Was the pace too
slow? Too fast? Did you find it hard to see the relevance of the material? Or is the
fact that you didnt enjoy the course perhaps nothing to do with the teaching, but
rather means that you made a mistake in an option choice and chose a course which
turned out not to fit in with your personal interests? Make good use of opportunities
for open-minded comments to explain these points.

Mention the positive as well as the negative: It is always good to know what you
got right and discouraging to read comments on work which only mentions what
went wrong with it. When a lecturer is doing something well, and you let them know
that, then it gives them encouragement to do it again. So when you comment on a
course, try to mention any features which you particularly enjoyed or found helpful.
Be honest with yourself: People often talk about teaching and learning to show
that the educational process requires participation from two people the teacher and
the student. You cannot expect to get full benefit from a course if you simply attend
lectures and do the assessment you need to do the course reading, participate fully
in example classes, etc. So before you indicate that you did not get much out of a
course, ask yourself honestly what you put in.
Try to separate personality from content: During your time at Warwick you may
be taught by several dozen members of staff. It would be surprising if you liked all
of them equally as people, or if there werent some who had habits and mannerisms
which irritated you! But try to keep your reaction to lecturers personalities separate
from your reaction to their teaching. Its possible for you to regard someone as
extremely irritating but still get a lot out of their teaching.
Be considerate: Lecturers are people with feelings just like students. Sometimes
you may need to be critical of aspects of a course, but you should try always to offer
criticism in a sensitive way. Comments such as X is the worst lecturer Ive ever
had are neither useful nor constructive.

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Be conscientious: PLEASE complete feedback forms for all your courses. If we
only get a small number of forms returned, then we may well get a biased idea of
students views and that idea may not coincide with yours. So dont lose your
opportunity to be heard!
What happens to the feedback?

1. Questionnaires are distributed by a member of the Staff Student Liaison


Committee (SSLC). They collect completed questionnaires and produce a one-
page summary.
2. The summary and questionnaires are passed to the Undergraduate Support
Officer who forwards them for comment to the relevant lecturer(s).
3. The lecturer writes a response and returns everything to the Undergraduate
Support Officer who forwards it to the Head of Department.
4. The Head of Department checks the questionnaires and response, noting for
wider dissemination particular compliments or suggestions and returns
everything to the Undergraduate Support Officer.
5. The response is copied to the SSLC, and then filed.
6. The SSLC considers the response and passes unresolved items to the
Departments Teaching Committee for further action/assessment.

Thus your constructive feedback is seriously considered and is essential to


monitoring and improving teaching.

2.12 Choice of Optional Modules

MORSE offers an enormous range of optional modules. Compulsory modules and


some of the optional modules are described in the body of this handbook. However,
in principle, it is possible to take most modules available anywhere in the University
as an unusual option.

In considering which options to take, the following points may help:

Think about where your interests lie and what the module might lead to later.
Check the prerequisites.
You can try a module and deregister later if you decide not to offer it for
examination.
Talk to your personal tutor and to your friends (especially those who have taken
the module before!).
The method of calculating the overall examination mark (see below) gives credit
for taking extra options - but an extra module is a big commitment and you must
be careful not to take on too much.
Final year students are not allowed to register for first and second year modules.

10
Some specific advice for second year MORSE students on the integrated
Masters:
Every stream will require the use of the statistical language S in the third year
(and for many projects in the fourth year). The language is taught in the
optional second year course ST215 Forecasting and Control. If you do not do
this course, then you will have to become familiar with language S on your
own. There will be notes available from the department; also the programme is
on the campus network and can be purchased from IT services for a token
amount.
The mathematical models used in Financial Mathematics make very extensive
use of stochastic processes. Indeed the whole subject is a combination of
knowledge about finance and financial instruments, probability theory and
stochastic processes (for the mathematical models) and statistics (for fitting
models to data). It follows that if you are contemplating a career in this area,
then you should take the second year optional course on ST202 Stochastic
Processes.
The second year module MA244 Analysis III is useful preparation for certain
theoretical modules in the final two years of the integrated Masters.

Unusual Options:

To take a module as an unusual option you need to fill in an Unusual Option form
available from outside the Statistics Undergraduate Office. You will need the
agreement (and signatures) of the module organiser, your personal tutor and the
Undergraduate Course Director. Don't be put off by this - it's quite straightforward.
In most cases there are no problems in obtaining everyone's agreement however there
are some restrictions that you should note:

1. First and second year modules may not be taken by final year students with the
exception of Language Centre modules or when the regulations give explicit
permission to do so.
2. In the final year of a degree (year 3 of a 3 year degree and year 4 of a 4 year
degree) students may not take a language option intended for a complete
beginner.
3. No more than 24 CATS credit of unusual options may be taken in any one year.
4. The CATS credit for a module taken as an unusual option may differ from the
credit awarded when the option is taken as a normal option. The amount of
credit you will be awarded is decided when you are granted permission to take
the option.

2.13 Foreign Languages

In their first two years, students may take most modules offered by the Language
Centre which are listed with CATS credits in the University Programme Regulations.
A few of these modules count as usual options and are listed in the Regulations,

11
many count as unusual options and you must follow the procedure described above to
register for them. Take particular note of those rules which restrict unusual language
options during the final years of the degree.

LANGUAGE CENTRE:

The Centre offers academic courses for exam credit in French, German, Russian, and
Spanish at a wide range of levels. Pick up a leaflet listing the courses from the
Centre, on the ground floor of the Humanities Building. Full course descriptions are
available on request.
There is also a full programme of leisure courses for which, after 6 terms of
successful study, students may be eligible for the award of an Open Studies
Certificate. There is a discounted fee for undergraduates on these leisure courses.
These leisure courses carry no exam credit.
The Centre also offers language laboratory audiovisual and computer assisted self-
access facilities with appropriate material for individual study (carrying no exam
credit) in Arabic, Chinese, Dutch, English, French, German, Greek, Italian, Japanese,
Portuguese, Russian and Spanish.

Important note for students who pre-register for Language Centre modules: It is
essential that you confirm your module pre-registration by going to the Language
Centre as soon as you can during week one of the new academic year. If you do not
confirm your registration, your place on the module cannot be guaranteed. If you
decide during the summer NOT to study a language module and to change your
registration details, please have the courtesy to inform the Language Centre of the
amendment.

The Italian Department offers modules in Italian language for all university students,
whether they intend to take up Italian from scratch or to continue learning the
language (and culture) at intermediate and advanced level. All modules are taught
over three terms and fully accredited. Assessment consists of regular tests as well as
oral and written examinations at the end of the year.

3 WELFARE http://www2.warwick.ac.uk/insite/topic/healthsafety/welfare/

3.1 Illness

If your work is affected by illness get a sick note from your doctor; ensure that your
personal tutor is informed; that lecturers expecting assessments know; and that a copy
of the sick note is given to the Undergraduate Support Officer. This is most
important in relation to Boards of Examiners who require legitimate evidence
before making due allowance for adverse circumstances.

3.2 The University Senior Tutor and Counsellors


12
The University Senior Tutor and University Counsellors provide help and advice to
students from all departments. The help and advice can take the form of both
individual counselling and group sessions on topics ranging from study skills to
relaxation. These services are entirely confidential and nothing is passed to any third
party (e.g. your department) without your permission. The Senior Tutor (telephone
extension 23761) and the Student Counsellors, are both located in the Student
Development and Support Section of University House.

3.3 Sexual and Racial Harassment

Sexual and racial harassment are totally unacceptable, we will support those
subjected to it and, when appropriate, will take disciplinary action against offenders.
Within the department help and support will be provided by all members of staff.
Outside the department you may seek help from the University Senior Tutor, the
Student Counsellors and the Student Union Welfare Staff.

The University and the Students Union have prepared Guidelines on Sexual, Racial
and Personal Harassment (which can be seen on insite in the Campus Life [Health
and Welfare] section). The guidelines include advice on identifying and addressing
harassment, formal procedures which can be followed and details of sources of
support. The guidelines are also available from the office of the Director of Student
and Ancillary Services.

If you feel able to make it clear to the person causing you offence that their behaviour
is unacceptable that may be enough to stop it. But if you do not feel able to tackle the
person, you should feel free to seek assistance from those listed above or from fellow
students to put an end to it.

3.4 Special Examination Arrangements

If, as a first year student you are aware that you will require special arrangements
during the examination period, e.g. extra time to compensate for a particular
condition, would you please contact the Undergraduate Support Officer as soon as
possible. The University has a system for requesting special arrangements for
eligible students while taking their examinations.

These arrangements are only for students whose requirements are due to a medical
condition or other significant reason. In all cases, any requests needing approval
for the first time must be supported by properly documented and appropriate
medical/psychological evidence. Once accepted this arrangement will continue for
the duration of your degree course.

Cases of temporary illness or injury will be granted a temporary arrangement at the


time, which will not carry over to the following year. If you have any questions
relating to this please contact the Undergraduate Support Officer.
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For referral to the Universitys Disability Coordinator, please speak to your Personal
Tutor or the Undergraduate Support Officer.

3.5 Health and Safety

The Departmental Safety Officer is the Departmental Secretary, Mrs Lynn Clarke,
and any matters relating to safety within the department should be referred to her at
the following email address: [email protected].

4 COURSE REGULATIONS

4.1 Transferring to Another Degree

It is possible, with the permission of the relevant department, to transfer from the first
year of MORSE to closely related degree schemes such as Mathematics, Mathematics
and Statistics, Mathematics and Economics, and so on. In every case it is necessary
to fill in and sign an official change of course form. Course transfers are only
permitted during term 1, the first week of term 2 and at the end of the academic year
when examination results are known.

Transfers from MORSE to the integrated Masters or vice versa can take place at any
time during the first two years. However where Student Finance England (SFE) or
Local Authority (LA) funding for the fourth year is a consideration, it is advisable to
make this decision earlier rather than later. During the third year of study, we will
not permit any changes between degrees after the end of the first term.

4.2 Intercalated Year

Statistics students may apply to take a degree course entitled MORSE (with
Intercalated Year)(Y603), which entails four years of study, rather than the usual
three or the integrated Masters degree (with Intercalated Year) (G301), which entails
five years of study instead of the usual four. Registration for these degrees should
take place as early as possible in the previous year, otherwise local authorities may
object to giving financial support for the final year. For MORSE students the
intercalated year takes place at the end of the second year and for integrated Masters
students the intercalated year takes place at the end of the third year. On their return,
students join the final year of study. The intercalated year entails either working in
industry, or studying at a university abroad and must be approved by the students
Personal Tutor and Head of Department. Approval is not guaranteed and largely
depends on current academic achievement (no less than 2:1). A Course Transfer
form will have to be completed. Please also be aware that, as this intercalated year
forms part of your formal degree programme, half home student fees are payable.
For further information about this contact Student Finance in University House.

14
Undergraduates who have in the past succeeded in finding a job in industry have
found this a very helpful experience. There is unfortunately no help available from
the department in finding a job, and students who are interested in this are
recommended to seek help from the Careers Office. The main criterion is that the job
should provide learning experiences which are related to the degree course. After
your return from the Intercalated Year, you will be required to file a report with the
Department during the first week of the first term on this learning experience.

ERASMUS, a European Union educational scheme, provides an opportunity for


Warwick students to spend a year at a partner university in another European country.
If you are interested in the ERASMUS scheme, you will get advice and help from the
International Office in University House, see:
http://www2.warwick.ac.uk/services/international/prospective/visiting-exchange

5 EXAMINATIONS AND PROGRESSION

5.1 Registration of Modules

We use the University Online Module Registration System (eMR) which is accessed
via my.warwick on the Universitys intranet, insite. First year students will find that
their core subjects are already registered on eMR, only requiring the addition of any
chosen optional modules. Adjustments can be made to this initial list of modules at
key times during the academic year. As a student it is your responsibility to ensure
you are registered for the correct modules and assessment methods and that you do
this at the correct specified times. Details of registration procedures will generally be
sent to you via the department at the appropriate points in the academic year. You
must check your pigeonhole, your Warwick email address and the department UG
notice boards regularly and follow the instructions provided.

The initial information you supply to eMR does not involve you making a permanent
commitment to take the selected modules, nor stop you from following other
modules. However, you must ensure that all details held on eMR are correct at the
time of the final deadline for registration as these details constitute your final
examination timetable. Full details will be circulated at the start of the academic year
and at the beginning of each term.
Pre-registration of modules for the following year: At the beginning of Term 3, both
the Economics Department and Warwick Business School (WBS) run online pre-
registration for their modules. This encourages you to start planning and choosing
your options in advance and also assists these departments with timetabling. Some
departments will cap a module if the numbers reach capacity, so pre-registration on
popular modules is recommended. As WBS and Economics also run their own
registration systems alongside eMR, they request that if you decide to register or
deregister from a module at some stage mid-term, you advise them in person as well
as changing your registration on eMR.
15
The WBS deadline for changing registering modules is Week 3, Term 1 for Autumn
Term or full year modules, and Week 2, Term 3, for Spring Term modules. Please
note that if you register on eMR but not on my.wbs, you will not be considered to
have registered for the module.
You must adhere to the deadline for registering for modules otherwise we may
ignore any marks awarded for that module. You must adhere to the deadline for
deregistering - absence from any examination for which you are registered means a
credit of zero. Students are advised not to leave finalizing the registration until
the last day.

5.2 Module Codes by Department

ST Statistics CS Computer Science


MA Mathematics PX Physics
IB Warwick Business School PH Philosophy
EC Economics LL Language Centre

5.3 Examinations

University examinations are mostly held in Term 3 in all three years. The University
webpage at
http://www2.warwick.ac.uk/services/gov/calendar/regulations/examregs/
contains important information on examination regulations and academic appeals.

Personal Tutors are allowed to disclose to their tutees provisional marks (as a
percentage) for each exam/assessment taken by that tutee. Please note that such
marks are provisional and are subject to ratification/amendment by the Senate of the
University and by External Examiners.

Students should also be aware that in deciding a degree classification Boards of


Examiners will take note of circumstances other than the candidates' overall mark
such as, for example, health of the candidate and exceptional performance on
individual courses. In particular students should note that in awarding one of the BSc
degree classes (see below 5.7 a), b), c) and d)) a candidate must achieve marks in that
class or higher in whole modules from lists A and B taken in the final year equating
to at least 48 CATS points in total. Similarly in awarding a first class integrated
Masters degree the board of examiners expect to see good first class marks in at least
75 CATS (over the 2 years) from (a) modules from core or Lists (A) through (F)
taken in Year 3 and (b) modules from core or List (A) through (E) taken in year 4. A
student who achieves a final credit higher than 70% but who does not satisfy this
requirement or whose overall performance is not of a first class standard, will not
usually be awarded a first class degree.

16
Please note: no student is allowed to take courses so that more than 50% of their
possible overall degree mark is obtained from assessed work (assessed work means
credit obtained by a means other than a conventional university-supervised
examination).

5.4 Calculation of Examination Credits

The first year counts 10%, the second year 30% and the third year 60% towards the
final BSc degree mark; i.e. if S1, S2, S3 denote the % credits obtained at the end of
years 1, 2 and 3 respectively, then the overall degree % mark is:

C = (10 S1 + 30 S2 + 60 S3) / 100

The credits S1, S2, S3 are calculated by using the Seymour Formula (see below),
which is a scheme designed to give fair credit for students taking additional loads. A
corresponding formula is used for the Masters degree with the first, second, third and
fourth year programmes carrying weightings in the ratio 10:20:30:40.

Now for each year k the % credit is calculated from the Seymour Formula as follows:

x c
i
i i
Sk =
1
N + ( ci N )
2 i
where:

x i is the score in the year on module i with CATS load c i and


N is the normal annual load (usually 120 CATS)
An example for a first year student:
x 1 = 54% on MA106 with c 1 = 12 CATS
x 2 = 44% on MA131 with c 2 = 24 CATS
x 3 = 62% on EC106 with c 3 = 24 CATS
x 4 = 44% on ST115 with c 4 = 12 CATS
x 5 = 58% on IB104 with c 5 = 12 CATS
x 6 = 63% on ST104 with c 6 = 12 CATS
x 7 = 61% on ST108 with c 7 = 7.5 CATS
x 8 = 51% on ST113 with c 8 = 7.5 CATS.
This gives x ci
i i = 6012, N is 120 and the Students CATS load is c
i
i = 111.

Therefore, S 1 = 6012/(120 4.5) = 52.1%


17
Compare this with a straight mean which is 6012/111 = 54.2%.
This applies only provided the actual load taken does not exceed the maximum load
permitted in the year (140 CATS in Year 1; 150 CATS in other years). If you exceed
these maximums then the capped Seymour Formula applies instead.
In general, a candidate only improves his Seymour percentage by taking an extra
paper if his mark on that paper is more than half his average mark on all other papers.
Experience has shown that students who greatly exceed the normal load often
regret doing so. Also, Boards of Examiners pay more attention to performance
on the important compulsory courses, so make sure you can cope with all the
courses you attend.

Of course, when deciding on the class lists, Boards of Examiners take into account
considerations other than the straight examination mark. For example, the difficulty
of a particular examination, the opinion of the External Examiner, and the number of
completed questions can all affect their decision.

5.5 First Year Examinations


The following are designated as the 5 main core subjects for MORSE:
MA131 - Analysis.
MA106 - Linear Algebra.
EC106 - Introduction to Quantitative Economics.
ST115 - Introduction to Probability.
IB104 - Mathematical Programming I.

Failing one of these subjects in June will almost certainly entail a September resit.
The possible outcomes of the first year examinations in June are as follows:
a) Class one - First
b) Class two (division one) II.I
c) Class two (division two) II.II
d) Class three Third III
e) Required to resit
f) Recommended to withdraw.
Students in group (e) have either failed to achieve an Honours mark overall (i.e. an S1
of about 40%) or have failed at least one main subject, and are required to resit
certain papers in September (see 5.8 Examinations RESITS (First Year only))
Students in group (f) have performed so badly that the Board of Examiners feel they
have little chance of reaching the required standard in the September resits. Their
names are not listed on the official class list; instead they receive a letter from the
Registry recommending them to withdraw from the University. However, this is only

18
a recommendation and any students in this category can exercise their right to resit in
September.
There are three possible outcomes of the September resits:
a) Permitted to proceed to the second year of an Honours degree course.
b) Permitted to proceed to the second year of a Pass degree course.
c) Required to withdraw
Students in group (b) take a reduced load of exactly 84 CATS points in their second
year. (Deviations from the second year Pass load are not usually allowed. The
normal load for second year Honours is 120 CATS points). However, a Pass student
who performs sufficiently well on the second year examinations may still be allowed
to return to the Honours course for the third year.

For students in both groups (a) and (b) the cumulative credit carried forward (i.e. the
value of S1 used in the calculation of C) is the credit obtained in June and not that
obtained in September.
5.6 Second Year Examinations
For any second year student (whether on Honours or Pass) the possible outcomes of
the second year examinations are as follows:
a) Class one First I
b) Class two (division one) II.I
c) Class two (division two) II.II
d) Class three Third III
e) Permitted to proceed to the final year of an Honours course.
f) Permitted to proceed to the final year of a Pass course.
g) Fail.

In order to proceed to the third and fourth years a Masters student needs to obtain a
class one or a class two (division one) result.

Any second year Pass student who achieves a Seymour percentage which is greater
than 40% (based on the normal load of 120 Cat points) is awarded Honours in the
appropriate class and carries forward this Seymour percentage as S2. The decision on
whether or not a Pass student fails is based on the arithmetic mean of his marks and
not S2.

Students in group (e) have failed to obtain overall Honours classification but have
been permitted by the examiners to continue with an Honours course. Students in
Group (f) take a reduced load of exactly 90 CATS points in their third year.
(Deviations from the third year Pass load are not normally allowed. The normal load
for third year Honours is 120 CATS points).

19
Students in group (g) have the right to resit the second year examinations the
following June without residence at the University. Special papers are not usually
set, but examiners treat resit students as special cases. The value of S2 carried
forward for the calculation of C is the mark obtained at the first examination and not
the resit.

5.7 Final Year Examinations

For any final year student (whether on Honours or Pass) there are 6 possible
outcomes of the final examinations. These outcomes are based on the weighted
average C of the final years Seymour percentage together with the Seymour
percentage(s) of previous years (see earlier).

The outcomes are:

a) Class one First I


b) Class two (division one) II.I
c) Class two (division two) II.II
d) Class three Third III
e) Pass.
f) Fail.
The award of a first class degree depends not only on the value of C but also on
marks obtained in individual examinations - see paragraph 5.3 above.
Students in group (f) have the right to resit the final year examinations the following
June without residence at the University. Special papers are occasionally set and
examiners treat resit students as special cases.

A third year Pass student who achieves a credit C that is greater than 40% (based on
the normal loads in year 2 and 3) is awarded BSc Honours in the appropriate class.
The decision on whether a Pass student fails is based on his mean mark over the 90
CATS points taken.

5.8 Examination results

It is your responsibility to ensure that you understand what actions are required from
you when your results become available.

Examination results are released after the relevant Board of Examiners has finished
meeting in week 10 of the summer term.

These are usually as follows:


20
Day Year Approx time available
rd th
Wednesday 3 & 4 year, MSc 5.00 pm
st
Thursday 1 year 1.30 pm
nd
Friday 2 year 5.00 pm

It is a University regulation that your examination results may only be released to you
in person, by your personal tutor. Therefore you should make suitable arrangements
with your tutor to collect your marks, in good time, before the last week of the
summer term.

Students leaving University before the end of term

You should note that you are expected to be present at University for the full duration
of term. Therefore you will not receive your marks if you choose to leave University
before the end of term. You may collect your marks from your personal tutor at the
beginning of the next term in October.

Your results will not be posted to your home address. All letters (in particular, letters
informing you of any resits you may be required to take) during the vacation will be
sent to your permanent home address unless a "vacation address"
form is completed at the Enquiry Desk in the Academic Office. It is your
responsibility to make sure that any correspondence sent to you during the vacation
is directed to the correct address.

You should note that Pass Lists will be displayed on notice boards on the ground
floor of University House, and, for non-first years, in departments, as soon as
possible after the marks are released. You may therefore make arrangements for a
friend to check the Pass Lists and inform you of your classification (unless, of course,
you have exercised your right not to appear on the Pass Lists).

You should be aware that staff dealing with examination results may not always be
present at University in the vacations. You should not expect to be able to contact
your Personal Tutor in the vacations, nor that requests or enquiries will be responded
to within a matter of days, as might be expected in term-time.

RESITS (FIRST YEAR ONLY)


First year students who have failed to meet the required standard in any one of the 5
main core (modules) exams will normally be offered the opportunity to resit
examinations before the start of the next academic year. These resits are usually
around the first week of September. You will be informed by your personal tutor of
any resits you are required to take when you collect your examination results in the
last week of the summer term.

21
University requirements are that all students must return to Warwick University to sit
their examinations. The only students who are allowed to choose to sit overseas are
those students whose registered home address is in India, in which case they are able
to sit in New Delhi only, or those whose home address is registered in China or Hong
Kong who will be able to resit examinations in Hong Kong. The Exams Office
identifies these students and sends a resit letter offering them the option of taking
resit exams abroad.

All students who are required to take resits will be notified by post, so if you have left
University before the end of term and your contact details are incorrect you may not
receive a resit letter in time.
Unless your resit is a first attempt (see below) you will carry forward the fail mark
from your first sitting to the final calculation of your degree result. You are,
however, required to pass the resit before you are allowed to proceed to the next year
of your degree. If you fail your resit examinations you will then be Required to
Withdraw.

RESITS AS A FIRST ATTEMPT


In certain circumstances (for example, illness on the day of an exam) you may be
permitted to resit as a first attempt. In this case your resit will be treated as the
first instance of your sitting that exam, and it is that mark that you will carry forward.
EXTENUATING CIRCUMSTANCES
Circumstances which may have affected your performance in an exam (eg, illness on
the day of an exam) are reviewed by the Board of Examiners when considering your
exam results. You should, therefore, take care to keep your Personal Tutor informed
of anything which may affect your exams, and provide appropriate independent
evidence (e.g., a note from your doctor) of any such circumstances if at all possible.
Written evidence must be in English.

Such information must be provided as soon as it is available, and if possible before


the Board of Examiners meets to consider your results in week ten of the Summer
Term.

Special Examination Arrangements See Section 3.4

5.9 Assessed Work

Please note: no student is allowed to take courses so that more than 50% of their
possible overall degree mark is obtained from assessed work (assessed work means
credit obtained by a means other than a conventional university-supervised
examination).

22
Deadlines

Assessed work usually comes with a deadline for completion. The department and
SSLC consider these essential to ensure fairness to all the students doing the work
and to the markers. Deadlines are enforced by penalising late work. Different
departments have different conventions.

In the Statistics Department the lecturer giving the assessment will name a date as the
deadline (this will not be a Friday). Work should be submitted by posting it into the
appropriate drawer of the cabinet (situated in the corridor next to the undergraduate
pigeonholes) on or before the deadline date. The cabinet will be emptied at 09.00 am
on the day following the named date.

A student who misses the deadline must personally hand their work to the
Undergraduate Support Officer who will record the date it was received. The lecturer
will automatically enforce a penalty of 5% per day late reduction in the credit
awarded calculated as follows:

Penalty = N x 0.05 x un-penalised mark where N = number of days (including


weekends).

The only circumstances in which this will be waived is if the lecturer has received
documented evidence of medical or similar extenuating circumstances which will be
communicated to the Statistics Chief Examinations Correspondent.

The penalty will not be waived for bad time management, so plan ahead and make
allowances for the possibilities of unforeseen demands on your time, such as job
interviews. If you write your work on your computer make sure you regularly save
your files. No excuses will be accepted due to problems you may suddenly have with
your computer or printer.
Cheating (including Plagiarism)
1. What constitutes cheating?
In the University Regulations cheating is defined as an attempt to benefit oneself or
another by deceit or fraud. The department recognises that discussing ideas about
how to tackle questions is a valuable part of the learning process. However, the
work you submit must be your own and written in your own words. Work
produced by someone else may be included provided it is appropriately
acknowledged or referenced. Unacknowledged copying from either another student
or from published sources including the internet threatens the integrity of the
assessment procedures and is treated very seriously by the University.

Cheating also covers more obvious sins such as copying in tests, sharing calculators
in tests and examinations, stealing work from other students, or taking your mobile

23
phone into an examination. You are also guilty of cheating if you assist another
student to do so, for example by allowing them to copy your work.

Cheating is unacceptable and often easily spotted. Lecturers have been


instructed to report students to the chair of the department who will give you the
opportunity to explain yourself before deciding on a penalty. You have the
option of appealing against the decision to the University authorities.
We keep records! Personal Tutors may be required to write references to
prospective employers testifying to honesty and integrity, if your file records
that you are guilty of the offence of cheating, then this could lead to serious
difficulties for you.
If the matter goes to an Investigating Committee (and second offences will!)
then you could end up thrown out of the university.
Cheating by students from the Statistics department in modules taught by other
departments will be dealt with within that other department and reported back to
the Statistics Exam Board. It works the other way round too as the
Statistics.Department will deal with all cases of suspected cheating in Statistics
modules and report the outcome to a students home department.

2. Formal procedures followed in cases of suspected cheating in coursework.

The University sets out the formal procedures in Regulation 11 of the University
Calendar. These are briefly described in the following paragraphs:

No incident of suspected cheating should be dealt with informally by the


lecturers or examiners. All incidents should be reported to the Chair of the
Department. In particular no penalty should be imposed on a student outside the
formal procedure laid out below.
The Chair of the Department shall inform the student of the allegations and
provide the student with reasonable opportunity to make representation on
his/her behalf before determining whether an offence has occurred and, if so,
determining the appropriate penalty. In the absence of mitigating circumstances
this shall normally be a mark of zero in the piece of work concerned.
The student may accept the penalty determined by the Chair as a final decision.
Then a report of the circumstances of the case and the penalty imposed shall be
lodged with the appropriate Board of Examiners and be recorded in the students
file.
The student may seek the jurisdiction of an Investigating Committee of the
Senate as detailed in Regulation 11 of the University Calendar.
Should the Chair of the Department consider it appropriate then he/she may
refer any case to an Investigating Committee of the Senate. Second offences of
misconduct shall normally be so referred.

24
Marks and Marking
The marks given for assessed work are always provisional and may be changed by
the Board of Examiners. Students should retain all of their assessed work because it
may have to be resubmitted to the department just before the Board of Examiners
meeting.

Students may choose to have their major projects and essays marked anonymously,
just quoting their University number. However, anonymous marking leads to
difficulties in quickly returning marked work. Such work cannot be returned via
students pigeonholes and there are further problems when numbers are incorrectly
quoted. Consequently, following SSLC and Science Sub-Faculty discussions,
students must quote their names on all individual Statistics, Mathematics and other
Science Faculty assessments which account for less than 30% of that particular
course's credit.

5.10 Pass Degrees

Students on Pass Degrees may only vary the number of courses from the limits
specified above if they obtain permission in writing from the Department of
Statistics. You must submit a case in writing to the Chief Examinations Secretary by
Friday of Week 10 of the Autumn Term (Term 1). In order to submit a case you must
have the support of your Personal Tutor. Marks obtained for assessments during the
Autumn Term will be an important deciding factor.

5.11 Use of Calculators in Examinations

Concerning the use of calculators in examinations the Department of Statistics


follows the University rule which states that except for the display of error or
function messages, calculators with non-numeric displays are not allowed. In other
words prohibited calculators are those which can accept alphabetical data. Note that
this includes most graphical calculators of the type acceptable in GCSE and A-level
examinations. It is your responsibility to ensure that your calculator fulfils the
Universitys criterion and that your calculator is not of the prohibited type.
Otherwise you may find yourself denied the use of your calculator and be involved in
disciplinary proceedings.

Suggested suitable calculators for incoming students which are in line with
recommendations from the Computer Science Department:-

Casio fx 82, fx83 or fx85.

All of these are available from SU and most well known retailers e.g. Tesco, Amazon
and WH Smith. They are also reasonably priced.

25
Please remember:
(i) Calculators may not be passed from candidate to candidate during the
examination;
(ii) Responsibility for the calculators proper functioning is entirely that of the
student;
(iii) Students taking examinations other than those of the Department of Statistics
must ascertain the regulations governing the use of calculators from the
Department concerned.

In particular, calculators are not allowed in ST115 or examinations organised by the


Mathematics Department (these are all MA*** module exams). In general, the same
rule applies to tests for credit in MA*** modules, unless students are otherwise
informed by the lecturer running the test.

6 CAREERS

6.1 What do Statistics Graduates Do?

Graduates from the Statistics Department enter a diverse range of careers. Many opt
to work within the Financial Services sector with the Actuarial, Accounting and
Investment Banking opportunities being particular favourites. These roles often
involve the study for professional qualifications such as ACA, CIMA, CFA and the
actuarial examinations. Alternative career choices include Operational Research,
Marketing and IT related fields. Statistics graduates develop a strong range of
transferable skills including excellent numerical, problem solving and analytical
abilities. These along with your ability to communicate complex ideas effectively are
highly sought after by employers.

A number of students decide to continue in academia, studying for either a Statistics-


related Masters or PhD. Alternative study routes have included the study of
Management Science & Operational Research or the PGCE teaching qualification.

6.2 Careers Guidance

Making good career decisions involves thinking about your interests and qualities and
also spending time researching possible occupations. If you would like to discuss
your ideas or feel you need support with working through your options and
developing ideas then please contact Andy Lloyd who is your personal Careers
Consultant. Book an appointment online by visiting http://go.warwick.ac.uk/careers.

6.3 Careers Information Resources

A wide range of materials is available in the Careers Hub, based in the Learning Grid
at University House. Their website also gives you access to masses of information on
career planning, job seeking, interview skills, and much more. You can register
26
online to receive personal news, jobs and events information through My Careers
http://go.warwick.ac.uk/mycareers. Dont forget to check out the vacancy database
which provides access to hundreds of opportunities for work experience, internships,
as well as graduate vacancies.

6.4 Careers Events

An extensive programme of events including skills development workshops,


presentations on particular sectors and mock interviews are available throughout the
year. Statistics students are advised to keep an eye on the Student Careers & Skills
events calendar and e-mails publicising upcoming activities.

Dont miss the valuable opportunity to meet employers face to face. Explore your
options, compare organisations and find out what skills employers are looking for by
visiting the Careers Fairs, employer presentations and alumni evenings. You will
need to book online for most events as places are limited.

6.5 Make the Most of Your Time at University

Alongside the achievement of a good degree, employers are looking for students who
have maximised the use of their time at university and got involved in a wide range
of extracurricular activities. Many students help in the running of societies which
helps to build personal skills such as communication, leadership, problem solving and
team working. Some students work toward the Undergraduate Skills Programme or
take part in Business Challenges. Find something you enjoy and get involved!

Securing work experience and/or internships will also help to develop your
employability. The Careers Centre has a team dedicated to identifying work
experience opportunities for all students. The team also offer work experience
bursaries for students undertaking short-term unpaid placements.

See http://www2.warwick.ac.uk/services/careers/workexperience.

Both employers and postgraduate course providers will expect you to be


knowledgeable and assertive about the intellectual and personal skills which you have
gained during your degree course. They are concerned about what you can do, in
addition to what you have studied, and will require you to substantiate the claims you
make when making applications. They will look at your past experiences, choices
and behaviour to find evidence of these skills.

6.6 International Students

If youre hoping to find employment in the UK after graduation, and English isnt
your first language, think about ways in which you can improve your conversational
English. To be successful at an interview you will need very good verbal
27
communication skills, and sometimes our international students despite having
excellent academic results will not be able to progress beyond this point because
their spoken English isnt good enough.

The Centre for Applied Linguistics (CAL) runs classes for our non-native speaking
students, http://www2.warwick.ac.uk/fac/soc/al/learning_english/ and you can apply
what you have learnt by joining clubs and societies and regularly mixing with
students who are native English speakers.

6.7 Final Thoughts

Make sure you enjoy your time at Warwick and take advantage of the vast array of
opportunities on offer. Visit the Careers Centre sooner rather than later. If you have
any queries or concerns relating to your career do contact Andy Lloyd at
http://go.warwick.ac.uk/careers. The Careers Centre looks forward to welcoming
you.

6.8 STUDENT ASSOCIATES SCHEME


If you are intending to take a PGCE (Post Graduate Certificate in Education) after
your degree or, have SECONDARY teaching as one of your career options but you
are unsure or, if you are a high flyer and want to know if teaching can offer
opportunities for you the SAS could be for you!

As one of the leading providers of Initial Teacher Training, the Universitys Institute
of Education is once again offering undergraduates the opportunity to try a taster of
teaching. If you join the Student Associates Scheme (SAS) you will receive bursary
funded training which will prepare you for the expectations of a professional
environment. You will look at some of the issues concerned with effective teaching
and learning, and you will be given help and support to prepare for your school visits.
If you do your PGCE at Warwick, you would achieve a training credit which would
mean that you could complete the course earlier in the year than normal.

Teaching Maths in Johannesburg


For the last two years Warwick has provided the funding to send SAS students (26
last year) to teach maths in Johannesburg and surrounding townships during the
Summer.

Who can apply?


Statistics students in their penultimate or final year who are able to show that
they have a genuine interest in looking at teaching as a career.
Students planning to opt for the module Introduction to Secondary Teaching
IE2A6 which carries 24 CATS.

28
How to Apply
Online applications open at the beginning of the autumn term (Term 1) and can
be accessed from the SAS website www.go.warwick.ac.uk/student_associates
for further information, contact: [email protected]

6.9 Actuarial Examinations

Exemptions from the professional actuarial examinations are not given automatically.
The Actuarial Profession only awards exemptions if a student has achieved a
satisfactory overall percentage as well as a satisfactory percentage on the relevant
University courses. Our current syllabus enables exemptions as follows:

CT1 Financial Mathematics through ST334 Actuarial Methods


CT2 Finance and Financial Reporting through ST335 Finance and Financial
Reporting
CT3 Probability and Mathematical Statistics through ST217 Mathematical
Statistics (A & B)
CT4 Models through ST338 Actuarial Models
CT6 Statistical Methods through ST402 Risk Theory
CT7 Economics through EC106 Introduction to Quantitative Economics and
EC220 Mathematical Economics (A and B) or
CT7 Economics through EC106 Introduction to Quantitative Economics and
EC204 Economics 2
CT8 Financial Economics through ST401 Stochastic Methods in Finance

Recommendations for exemptions from CT1, CT2, CT4, CT6, and CT8 will be made
following the third and fourth year examinations. CT3 and CT7 have to be applied
for independently. Further information about the actuarial examination system can
be found at http://www.actuaries.org.uk .

7. PEOPLE AND DATES

7.1 Dates of Terms

Academic year 2010-2011


Term 1 (weeks 1-10): Monday 4 October 2010 to Saturday 11December 2010
Lectures commence Tuesday 5 October

Term 2 (weeks 11-20): Monday 10 January 2011 to Saturday 19 March 2011


Lectures commence Monday 10 January

Term 3 (weeks 21-30): Wednesday 27 April 2011 to Saturday 2 July 2011


Lectures commence Wednesday 27 April

Academic year 2011-2012

29
Term 1 (weeks 1-10): Monday 3 October 2011 to Saturday 10 December 2011

Officers 2010-2011

U/G Course Director Dr Jon Warren


U/G Senior Tutor Dr Ewart Shaw
First Year U/G Course Director Dr Larbi Alili
Second Year U/G Course Director Dr David Croydon
SSLC Academic Convenor Dr Ewart Shaw
Undergraduate Admissions Officer Dr Robin Reed/Dr Julia Brettschneider
Undergraduate Publicity Dr David Croydon
Head of Department Professor Saul Jacka
Chief Examinations Correspondent Dr Sigurd Assing
Second Year Examination Secretary Dr David Croydon
First Year Examination Secretary Dr Larbi Alili
Timetable Officer Mrs Paula Matthews
Academic Administrator Mrs Hilda Cooper
MSc Tutor Dr Barbel Finkenstadt
Postgraduate Tutor: Professor David Hobson
Undergraduate Support Officer: tbc
Tel +44 (0) 2476 523066 (internal 23066)
Postgraduate Support Officer: Miss Kristine Prismall
Tel +44 (0) 2476 150886 (internal 50886)

30
COURSE REGULATIONS

for the

MORSE DEGREES

31
8 FIRST YEAR

After completing the first year the students will have:


Made the transition in learning style and pace from school to university
mathematics.
Been introduced to the basic concepts in university mathematics, including the
notion of proof, and the applications of mathematics to problems outside
mathematics.
Been introduced to basic concepts in economics and operations research.
Laid the foundations of knowledge, understanding and techniques necessary to
proceed to the second year.

The normal load in the first year is 120 CATS points (12 CATS points correspond to
the equivalent of one 30 hour lecture module). The maximum load is 140 CATS.

You must take the Core modules listed in the following table, (which gives for each
module, the code, the title, the CATS credit and the term in which it is taught) and an
appropriate number of optional modules.

Core modules CATS Term

EC106 Introduction to Quantitative Economics 24 1 and 2


IB104 Mathematical Programming I 12 3
MA106 Linear Algebra 12 2
MA131 Analysis 24 1 and 2
MA132 Foundations 12 1
ST108 Applications of Algebra & Analysis 7.5 2 and 3
ST113 Statistical Computing 7.5 1
ST115 Introduction to Probability 12 2

Optional Modules
ST104 Statistical Laboratory 12
ST114 Games and Decisions 7.5
CS126 Design of Information Structures 15
MA113 Differential Equations A 6
MA117 Programming for Scientists 12
MA125 Introduction to Geometry 6
MA134 Geometry and Motion 12
MA246 Number Theory 6
PH123 Elements of Scientific Methods 6
PH126 Logic 1 : Introduction to Symbolic Logic 12
PH128 Descartes and Mill 12
PX101 Quantum Phenomena 6
PX121 Thermal Physics 1 6
32
PX144 Introduction to Astronomy 6
PX147 Introduction to Particle Physics 6
PX148 Classical Mechanics and Relativity 12

The above lists contain all the options available to First Year students on the
Y602/G300 degrees. These are consistent with the University Course Regulations.
Any modules not listed (including Languages) are classed as Unusual Options' and
permission to take these modules must be obtained by filling in an Unusual Option
form available from the Undergraduate office.

Full descriptions of all core modules and some optional modules are given in the
section of this handbook entitled: Module Descriptions: first year. Descriptions for
other modules can be obtained from the appropriate teaching department, usually via
their web pages.

ASSESSMENT AND EXAMINATIONS


Some modules are assessed wholly or in part on written work submitted during the
academic year. The deadlines for submission of such work will be announced by the
lecturers and tutors responsible for teaching such modules. Failure to obey these
deadlines will entail loss of marks. Most examinations are held in Term 3.
Exceptions are MA131 and MA132 which are partially examined at the start of
Term 2, and the option ST104 Statistical Laboratory which is held in the last week of
Term 1.

33
9 SECOND YEAR

After completing the second year the students will have:


Covered a range of material in mathematics, statistics, operations research and
economics and studied some of it in depth.
Acquired sufficient knowledge and understanding to be in a position to make an
informed choice of options in their final years and to have covered the
background necessary to pursue these options.

The normal load in the second year is 120 CATS points. The maximum load is 150
CATS.

Candidates for Honours are required to take 60 CATS of core modules, 48 CATS
from lists (A) to (E), as directed below, and appropriate number of optional modules.

Core Modules CATS


EC220 Mathematical Economics 1A 12
IB207 Mathematical Programming II 12
ST213 Mathematics of Random Events 12
ST217 Mathematical Statistics (Part A & Part B) 24
Candidates for Honours must take
Either: 12 CATS points from List (A), at least 12 CATS points from List (B) and at
least 24 CATS points from List (C),
Or: 24 CATS points from List (D) and at least 24 CATS points from List (E).

Candidates for Pass degrees are required to take all modules in List (A) plus 12
CATS from Lists (B) and (C) combined. If candidates are allowed to increase CATS
load at the end of Term 1 they must ensure they meet the regulations.

List (A) CATS


ST208 Mathematical Methods 12

List (B)
MA244 Analysis III 12
ST202 Stochastic Processes 12

List (C)
EC204 Economics 2 30
EC221 Mathematical Economics IB 12
IB211 Simulation 12
ST215 Forecasting and Control 12

34
List (D)
MA225 Differentiation 12
MA244 Analysis III 12

List (E) CATS


EC221 Mathematical Economics IB 12
IB211 Simulation 12
MA222 Metric Spaces 12
MA250 PDE 12
ST202 Stochastic Processes 12
ST215 Forecasting & Control 12

Optional Modules

Any module from Lists (A)-(E) is available as an optional module.


Other optional modules are listed below.

Any modules not listed (including Languages) are classed as


Unusual Options and permission to take these modules must be
obtained by filling in an Unusual Option form available from the
Undergraduate Office.

Optional Modules CATS

CS242 Formal Specification and Verification 15


CS243 Data Structures and Algorithms 7.5
CS244 Algorithm Design 7.5
CS245 Automata and Formal Languages 7.5
CS246 Further Automata and Formal Languages 7.5
IB109 Foundations of Accounting and Finance 24
IB206 Introduction to Business Studies 6
IB217 Starting a Business 6
IE2A6 Introduction to Secondary School Teaching 24
IE419 Development of Mathematical Concepts 12
IE420 Problem Solving 12
MA117 Programming for Scientists 12
MA209 Variational Principles 6
MA228 Numerical Analysis 6
MA231 Vector Analysis 12
MA235 Introduction to Mathematical Biology 6
MA240 Modelling Natures Nonlinearity 12
MA241 Combinatorics 12
MA243 Geometry 12
MA246 Number Theory 6
MA249 Algebra II: Groups and Rings 12
35
MA251 Algebra I: Advanced Linear Algebra 12
MA252 Combinatorial Optimisation 12
MA253 Probability and Discrete Mathematics 12
PX268 Stars 7.5
PX269 Galaxies 7.5
PX272 Global Warming 7.5
Full descriptions of core modules, all Lists (A) through (E) modules and some
optional modules are given in the section of this handbook entitled: Module
Descriptions: second year: Descriptions for other modules can be obtained from the
appropriate teaching department, usually via their web pages.

36
10. THIRD YEAR of B.Sc. MORSE
After completing the third year of the BSc degree the students will have:
Developed skills in formulating and solving both abstract and applied problems,
and in presenting cogent and logical arguments.
Developed a strong background in at least one specialism, thus providing a basis
for further study or employment in related fields.
The normal load in the third year is 120 CATS points. The maximum load is 150
CATS.
Candidates for Honours must take at least 90 CATS credits from List (A) and at most
30 CATS from List (B).
Candidates for Pass degrees are required to take modules totalling 90 CATS credits
from List (A). At the discretion of the Chair of the Statistics Department, the
total load for such students may be increased up to a maximum of 120 CATS.

List (A) CATS


EC301 Mathematical Economics 2 15 or 30
EC306 Econometrics 2 30
EC307 Macroeconomic Policy in the EU 15
EC312 International Economics 15
EC314 Topics in Economic Theory 15
EC331 Research in Applied Economics 30
EC333 Topics in Financial Economics: 15
Theories and International Finance
EC334 Topics in Financial Economics: 15
Corporate Finance and Markets
IB3A7 The Practice of Operational Research 12
IB320 Simulation 12
IB321 Forecasting 12
IB349 Operational Research in Strategic 12
Planning
IB352 Mathematical Programming III 15
IB391 Decision Analysis 15
MA359 Measure Theory 15
MA371 Qualitative Theory of ODEs 15
MA377 Rings and Modules 15
MA390 Topics in Mathematical Biology 15
MA398 Matrix Analysis and Algorithms 15
MA3A6 Algebraic Number Theory 15
MA3B8 Complex Analysis 15
MA3D1 Fluid Dynamics 15
MA3D5 Galois Theory 15
MA3D4 Fractal Geometry 15
37
MA3D9 Geometry of Curves and Surfaces 15
MA3E1 Groups and Representations 15
MA3E5 History of Mathematics 15
MA3F1 Introduction to Topology 15
MA3F2 Knot Theory 15
MA3G0 Modern Control Theory 15
MA3G1 Theory of PDEs 15
MA3G6 Commutative Algebra 15
MA3G7 Functional Analysis I 15
MA3G8 Functional Analysis II 15
MA3H0 Numerical Analysis and PDEs 15
MA3H1 Topics in Number Theory 15
MA3H2 Markov Processes and Percolation 15
Theory
MA3H3 Set Theory 15
MA3H4 Random Discrete Structures 15
ST301 Bayesian Statistics and Decision Theory 15
ST305 Designed Experiments 15
ST318 Probability Theory 15
ST323 Multivariate Statistics 15
ST329 Topics in Statistics 15
ST332 Medical Statistics 15
ST333 Applied Stochastic Processes 15
ST337 Bayesian Forecasting and Intervention 15

List (B) CATS


ST335 Finance and Financial Reporting 15
EC208 Industrial Economics 1 12
EC303 The British Economy in the Twentieth 15
Century
EC304 The Making of Economy Policy 30
EC310 Topics in Development Economics 15
EC313 The International Economic System 30
since 1918
EC320 Economics of Public Policy 15
EC326 Industrial Economics 2: Practice and 15
Strategy
EC336 International Trade 15
EC337 Industrial Economics 2: Market 15
Economics, Competition and
Regulation
IB253 Principles of Finance 1 12
IB254 Principles of Finance 2 12
IB327 Personnel Management 24
IB337 Business Taxation 12
38
IB357 Investment Management 12
IB359 Derivatives and Financial Risk 12
Management
IB361 Equality and Diversity 12
IB362 Managing Human Resources 12
IB365 Marketing Communications 12
IB368 International Business Strategy 12
IB370 Strategic Business Management 12
IB382 Project Management 12
IB384 Supply Chain Management 12
IB385 Marketing Analysis 12
IB394 International Financial Management 12
IB395 Finance in New Ventures 12
IB396 Financial Statement Analysis 12
IB3A5 Marketing Management 12
IB3B0 E-Business and Value Chains 12
IB3F0 Auditing, Governance and 12
Accountability
IB3F1 International Corporate Tax Planning 12
MA222 Metric Spaces 12
MA225 Differentiation 12
MA231 Vector Analysis 12
MA241 Combinatorics 12
MA243 Geometry 12
MA244 Analysis III 12
MA249 Algebra II: Groups and Rings 12
MA250 PDE 12
MA251 Algebra I:P Advanced Linear Algebra 12
MA252 Combinatorial Optimisation 12

No student is allowed to take courses so that more than 50% of their overall
degree mark is obtained from assessed work.
Recall the advice from 5.3 Examinations: In particular students should note that
in awarding one of the BSc degree classes (see 5.7 a), b), c) and d)) a candidate
must achieve marks in that class or higher in whole modules from lists A and B
taken in the final year equating to at least 48 CATs in total. Economics Modules
do not run if there aren't sufficient numbers. Check with Economics
Department.
Certain third and fourth year options have prerequisites which are not in the
compulsory component of previous years. It is the responsibility of each student
to be in a position to understand the chosen modules.
It is a student's responsibility to ensure that the modules they are following are
permitted- either because the modules are given explicitly as options by the
regulations or because permission has been sought and granted by filling in an
unusual option form. Recall: Final year students are not allowed to take
39
first and second year modules. Exception: Final year can take 2nd year
modules which are listed in either List A or B.
In year 3 of the BSc MORSE degree the credit for any unusual options taken
counts towards the maximum 30 CATS allowed for List (B) options.
If you break a rule such as at most 30 CATS credit from List (B) then the
credit for each List (B) module taken will be multiplied by a scaling factor in
order to reduce the total credit to 30 CATS.

40
11. THIRD YEAR of INTEGRATED MASTERS
G300 (BSc Masters MORSE) allows students to take a degree whose title makes
explicit the fact that they have covered the material which leads to a Batchelor degree
as well as material at Masters Level.
The first two years are in common with the BSc degree in MORSE.
Students at the end of the second year must choose one of 4 possible streams:
Actuarial and Financial Mathematics.
Econometrics and Mathematical Economics.
Operational Research and Statistics.
Statistics with Mathematics.
Students must follow the same stream in the third and fourth year.
For all streams the normal load is 120 CATS. The maximum load is 150 CATS.
Recall: Final year students are not allowed to take first and second year
modules.
Students registered for G300 must take, over their third and fourth years, at
least120 CATS of level 4+ modules given by the Departments of Economics,
Mathematics, Statistics and Warwick Business School. At least 90 CATS of
level 4 should be taken in the fourth year.
No student is allowed to take modules so that more than 50% of their overall
degree mark is obtained from assessed work ("assessed work" means anything
other than a conventional University-supervised examination). If you break this
rule you will get a mark of zero for assessed work in excess of the 50%
maximum.
Certain third and final year options have prerequisites which are not in the
compulsory component of the second year. It is the responsibility of each
student to be in a position to understand the modules chosen.
Recall the advice from 5.3 Examinations: in awarding a first class integrated
Masters degree the Examination Board expect to see good first class marks on at
least 75 CATS
from: (a) modules from the core or Lists (A) through (F) taken in year 3 and (b)
modules from core or Lists (A) through (E) taken in year 4. A student who
achieves a final credit higher than 70% but who does not satisfy this requirement
will not usually be awarded a first class degree.
It is a student's responsibility to ensure that the modules they are following are
permitted - either because the modules are given explicitly as options by the
regulations or because permission has been sought and granted by filling in an
unusual option form.
You will want to consider possible choices of fourth year options when choosing
your third year options. You should bear in mind that the module positions

41
(whether they are in Term 1 or 2) do vary slightly from year to year and the
positions published in this book will not necessarily be the same next year.
You are not allowed to take both the level 3 and level 4 version of the same
module, eg ST323 Multivariate Statistics in Year 3 and then ST412 Multivariate
Statistics with Advanced Topics in Year 4. So, again, when choosing your 3rd
year options it is advisable to consider your 4th year options at the same time,
except 2nd year modules listed in List A or B of the 3rd Year Y602/G300 degree
course.

42
ACTUARIAL AND FINANCIAL MATHEMATICS STREAM

Objective: to provide students with a sound theoretical and practical basis for careers
and research in financial mathematics and to prepare students for an actuarial career
by covering around 7 of the 9 papers in the diploma in Actuarial Techniques of the
Institute of Actuaries.

Syllabus: This comprises three interlocking strands:


Background knowledge on financial institutions and financial instruments.
Construction and analysis of financial models - these models are predominantly
stochastic so that the key techniques are probability, time series modelling and
stochastic processes.
Analysis of financial data: the key techniques are regression and linear models,
multivariate data analysis, time series & forecasting, and risk analysis.

Students must take the core modules, at least 15 CATS from List (A), at least 15
CATS from List (B) and an appropriate number of optional modules.
Core Modules CATS
ST318 Probability Theory 15
ST404 Applied Statistical Modelling 15

IB253 Principles of Finance 1 12


IB254 Principles of Finance 2 12
List (A) CATS
EC306 Econometrics 2 30
IB352 Mathematical Programming III 15
ST334 Actuarial Methods 15
ST335 Finance and Financial Reporting 15
ST338 Actuarial Models 15

List (B) CATS


ST301 Bayesian Statistics and Decision Theory 15
ST323 Multivariate Statistics 15
ST333 Applied Stochastic Processes 15
ST337 Bayesian Forecasting and Intervention 15
ST405 Bayesian Forecasting and Intervention with Adv Topics 15
ST406 Applied Stochastic Processes with Advanced Topics 15
ST412 Multivariate Statistics with Advanced Topics 15
ST413 Bayesian Statistics and Decision Theory with Adv Topics 15

Optional Modules
Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602.
43
ECONOMETRICS AND MATHEMATICAL ECONOMICS STREAM

Objective: To prepare students for careers in econometrics, economic consultancy,


and research in quantitative economics.

Syllabus: A combination of courses on economics, mathematical models in


economics, and the analysis of economic data. The key techniques are differential
equations, optimisation, probability, game theory, stochastic processes, regression,
time series and forecasting, and multivariate data analysis.

Students must take the core modules, at least 45 CATS from List C and an
appropriate number of optional modules.

Core Modules CATS

ST318 Probability Theory 15


ST404 Applied Statistical Modelling 15
ST323 Multivariate Statistics or 15 OR
ST412 Multivariate Statistics with Advanced Topics
15

List (C) CATS


EC301 Mathematical Economics 2 15 or 30
EC303 The British Economy in the 20th Century 15
EC304 The Making of Economic Policy 30
EC306 Econometrics 2 30
EC307 Macroeconomic Policy in the EU 15
EC310 Topics in Development Economics 15
EC312 International Economics 15
EC314 Topics in Economic Theory 15
EC331 Research in Applied Economics 30
EC333 Topics in Financial Economics: Theories and 15
International Finance
EC334 Topics in Financial Economics: Corporate 15
Finance and Markets
EC208 Industrial Economics 1: Market Structure 15

Optional Modules

Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602.

44
OPERATIONAL RESEARCH AND STATISTICS STREAM

Objective: To prepare students for employment as management scientists and for


research in Operational Research (OR).

Syllabus: This covers mathematical techniques in OR, the design and organisation of
information systems, and the analysis of production and management information.
The key techniques include mathematical programming, simulation, applied
probability, decision theory, regression, time series and forecasting, multivariate data
analysis, and the design and analysis of experiments.

Students must take the core modules, at least 12 CATS from List (D) and an
appropriate number of optional modules.

Core Modules CATS

ST301 Bayesian Statistics and Decision Theory 15


Or
ST413 Bayesian Statistics and Decision Theory with Adv Topics 15

ST323 Multivariate Statistics 15


Or
ST412 Multivariate Statistics with Advanced Topics 15

ST404 Applied Statistical Modelling 15


IB320* Simulation 12
IB352 Mathematical Programming III 15
*If IB211 not taken in the second year

List (D) CATS


IB3A7 The Practice of Operational Research 12
IB349 Operational Research in Strategic Planning 12
IB391 Decision Analysis 15
IB407 Decision Analysis with Advanced Topics 15
IB408 Operational Research in SP with Advanced Topics 12

Optional Modules
Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602.

45
STATISTICS WITH MATHEMATICS STREAM

Objective: To prepare students for employment as statisticians and for research into
statistics.
Syllabus: All the major areas of probability modelling, stochastic processes and
statistical modelling.
Students must take the core modules, at least 15 CATS from List (E), at least 15
CATS from List (F) and an appropriate number of optional modules.

Core Modules CATS


MA359 Measure Theory 15
ST318 Probability Theory 15

ST323 Multivariate Statistics 15


Or
ST412 Multivariate Statistics with Advanced Topics 15

ST404 Applied Statistical Modelling 15

List (E) CATS


MA222 Metric Spaces 12
MA225 Differentiation 12
MA231 Vector Analysis 12
MA241 Combinatorics 12
MA243 Geometry 12
MA244 Analysis III 12
MA249 Algebra II: Groups and Rings 12
MA250 PDE 12
MA251 Algebra I: Advanced Linear Algebra 12
MA252 Combinatorial Optimisation 12
MA371 Qualitative Theory of ODEs 15
MA377 Rings and Modules 15
MA390 Topics in Mathematical Biology 15
MA398 Matrix Analysis and Algorithms 15
MA3A6 Algebraic Number Theory 15
MA3B8 Complex Analysis 15
MA3D1 Fluid Dynamics 15
MA3D5 Galois Theory 15
MA3D4 Fractal Geometry 15
MA3D9 Geometry of Curves and Surfaces 15
MA3E1 Groups and Representations 15
MA3E5 History of Mathematics 15
MA3F1 Introduction to Topology 15
46
MA3F2 Knot Theory 15
MA3G0 Modern Control Theory 15
MA3G1 Theory of PDEs 15
MA3G6 Commutative Algebra 15
MA3G7 Functional Analysis I 15
MA3G8 Functional Analysis II 15
MA3H0 Numerical Analysis and PDEs 15
MA3H1 Topics in Number Theory 15
MA3H2 Markov Processes and Percolation Theory 15
MA3H3 Set Theory 15
MA3H4 Random Discrete Structures 15

List (F) CATS


ST301 Bayesian Statistics and Decision Theory 15
ST305 Designed Experiments 15
ST329 Topics in Statistics 15
ST332 Medical Statistics 15
ST333 Applied Stochastic Processes 15
ST337 Bayesian Forecasting and Intervention 15
ST405 Bayesian Statistics and Decision Theory with Adv Topics 15
ST406 Applied Stochastic Processes with Advanced Topics 15
ST409 Medical Statistics with Advanced Topics 15
ST410 Designed Experiments with Advanced Topics 15
ST413 Bayesian Statistics and Decision Theory with Adv Topics 15
Optional Modules

Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602.

47
12. FOURTH YEAR of INTEGRATED MASTERS

The normal load is 120 CATS. The maximum load is 150 CATS. Recall: Final
year students are not allowed to take first and second year modules.

Students registered for G300 must take, over their third and fourth years, at
least120 CATS of level 4+ modules given by the Departments of Economics,
Mathematics, Statistics and Warwick Business School. At least 90 CATS of
level 4 should be taken in the fourth year.
No student is allowed to take modules so that more than 50% of their overall
degree mark is obtained from assessed work ("assessed work" means anything
other than a conventional University-supervised examination). If you break this
rule you will get a mark of zero for assessed work in excess of the 50%
maximum.
Certain third and final year options have prerequisites which are not in the
compulsory component of the second year. It is the responsibility of each
student to be in a position to understand the modules chosen.
Economics modules do not run if there aren't sufficient numbers. Check with
Economics Department.
All 4th Year students have to complete a project (Statistics Masters Dissertation)
which includes a short presentation in week 10 Term 1.
In order to award an MMORSE degree the Examination Board expects that the
candidate has passed the core project module.
Recall the advice from 5.3: in awarding a first class integrated Masters degree
the Examination Board expect to see good first class marks on at least 75 CATS
from: (a) modules from the core or Lists (A) through (F) taken in year 3 and (b)
modules from core or Lists (A) through (E) taken in year 4. A student who
achieves a final credit higher than 70% but who does not satisfy this requirement
will not usually be awarded a first class degree.
It is a student's responsibility to ensure that the modules they are following are
permitted - either because the modules are given explicitly as options by the
regulations or because permission has been sought and granted by filling in an
unusual option form.

48
ACTUARIAL AND FINANCIAL MATHEMATICS STREAM

Students must take the core module, at least 57 CATS from List (A) and an
appropriate number of optional modules.

Core Modules CATS

ST415 Statistics Masters Dissertation, 30


or
EC400 Statistics Masters Dissertation in Economics, 30
or
IB403 Operational Research Dissertation 30

List (A) CATS


EC306 Econometrics 2 30
EC910 Econometrics B 40
IB357 Investment Management 12
IB359 Derivatives and Financial Risk Management 12
IB407 Decision Analysis 15
ST323 Multivariate Statistics 15
ST401 Stochastic Methods in Finance 15
ST402 Risk Theory 15
ST403 Brownian Motion 18
ST405 Bayesian Forecasting and Intervention with Advanced 15
Topics
ST406 Applied Stochastic Processes with Advanced Topics 15
ST409 Medical Statistics with Advanced Topics 15
ST410 Designed Experiments with Advanced Topics 15
ST411 Dynamic Stochastic Control 15
ST412 Multivariate Statistics with Advanced Topics 15
ST413 Bayesian Statistics and Decision Theory with Advanced 15
Topics
ST414 Advanced Topics in Statistics 15
ST416 Advanced Topics in Biostatistics 15
ST417 Topics in Applied Probability 15
ST906 Financial Time Series 12
ST909 Continuous Time Finance for Interest Rate Models 12

Optional Modules

Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602.

49
ECONOMETRICS & MATHEMATICAL ECONOMICS STREAM

Students must take the core module, at least 60 CATS from List (B) and an
appropriate number of optional modules.

Core Module CATS


ST415 Statistics Masters Dissertation, 30
Or
EC400 Statistics Masters Dissertation in Economics, 30
Or
IB403 Operational Research Dissertation 30

List (B) CATS


EC301 Mathematical Economics 2 15 or 30
EC306 Econometrics 2 30
EC314 Topics in Economic Theory 15
EC333 Topics in Financial Economics: Theories and 15
International Finance
EC334 Topics in Financial Economics: Corporate Finance 15
and Economics
EC901 Economic Analysis (subject to availability) 24 or 48
EC910 Econometrics B (subject to availability) 40
EC920 International Monetary Economics 18
EC924 Monetary Economics 18
EC931 International Trade Theory 18
EC941 Game Theory 18
EC943 Industrial Economic Analysis 18
EC950 Microeconometrics 18
ST909 Continuous Time Finance for Interest Rate Models 12

Optional Modules
Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602.

50
OPERATIONAL RESEARCH AND STATISTICS STREAM
Students must take the core module, at least 24 CATS from List (C), at least 30
CATS from List (D), and an appropriate number of optional modules.
Core Modules CATS
ST415 Statistics Masters Dissertation, 30
or
EC400 Statistics Masters Dissertation in Economics, 30
or
IB403 Operational Research Dissertation 30
List (C) CATS
IB3A7 The Practice of Operational Research 12
IB407 Decision Analysis 15
IB408 Operational Research in Strategic Planning 12
IB94R0 Analytic Consulting 12
IB94S0 Decision Analysis Consulting 12
IB94T0 Soft Systems Analysis Consulting 12
IB94W0 Spreadsheet Modelling 12
List (D) CATS
ST301 Bayesian Statistics and Decision Theory 15
ST305 Designed Experiments 15
ST318 Probability Theory 15
ST329 Topics in Statistics 15
ST332 Medical Statistics 15
ST401 Stochastic Methods in Finance 15
ST402 Risk Theory 15
ST403 Brownian Motion 18
ST405 Bayesian Forecasting and Intervention with Adv Topics 15
ST406 Applied Stochastic Processes with Advanced Topics 15
ST407 Monte Carlo Methods 15
ST408 Reading Module 15
ST409 Medical Statistics with Advanced Topics 15
ST410 Designed Experiments with Advanced Topics 15
ST411 Dynamic Stochastic Control 15
ST412 Multivariate Statistics with Advanced Topics 15
ST413 Bayesian Statistics and Decision Theory with Advanced 15
Topics
ST414 Advanced Topics in Statistics 15
ST416 Advanced Topics in Biostatistics 15
ST417 Topics in Applied Probability 15
ST906 Financial Time Series 12
ST909 Continuous Time Finance for Interest Rate Models 12

51
Optional Modules
Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602.

52
STATISTICS WITH MATHEMATICS STREAM

Students must take the core module, at least 60 CATS from List (E), and an
appropriate number of optional modules.

Core Modules CATS


ST415 Statistics Masters Dissertation, 30
or
EC400 Statistics Masters Dissertation in Economics, 30
or
IB403 Operational Research Dissertation 30

List (E) CATS


ST301 Bayesian Statistics and Decision Theory 15
ST305 Designed Experiments 15
ST329 Topics in Statistics 15
ST332 Medical Statistics 15
ST401 Stochastic Methods in Finance 15
ST402 Risk Theory 15
ST403 Brownian Motion 18
ST405 Bayesian Forecasting and Intervention with 15
Advanced Topics
ST406 Applied Stochastic Processes with Advanced Topics 15
ST407 Monte Carlo Methods 15
ST408 Reading Module 15
ST409 Medical Statistics with Advanced Topics 15
ST410 Designed Experiments with Advanced Topics 15
ST411 Dynamic Stochastic Control 15
ST412 Multivariate Statistics with Advanced Topics 15
ST413 Bayesian Statistics and Decision Theory with 15
Advanced Topics
ST414 Advanced Topics in Statistics 15
ST416 Advanced Topics in Biostatistics 15
ST417 Topics in Applied Probability 15
ST906 Financial Time Series 12
ST909 Continuous Time Finance for Interest Rate Models 12
MA359 Measure Theory 15
MA371 Qualitative Theory of ODEs 15
MA377 Rings and Modules 15
MA390 Topics in Mathematical Biology 15
MA398 Matrix Analysis and Algorithms 15
MA3A6 Algebraic Number Theory 15
MA3B8 Complex Analysis 15
MA3D1 Fluid Dynamics 15
MA3D5 Galois Theory 15
53
MA3D4 Fractal Geometry 15
MA3D9 Geometry of Curves and Surfaces 15
MA3E1 Groups and Representations 15
MA3E5 History of Mathematics 15
MA3F1 Introduction to Topology 15
MA3F2 Knot Theory 15
MA3G0 Modern Control Theory 15
MA3G1 Theory of PDEs 15
MA3G6 Commutative Algebra 15
MA3G7 Functional Analysis I 15
MA3G8 Functional Analysis II 15
MA3H0 Numerical Analysis and PDEs 15
MA3H1 Topics in Number Theory 15
MA3H2 Markov Processes and Percolation Theory 15
MA3H3 Set Theory 15
MA3H4 Random Discrete Structures 15
MA408 Algebraic Topology 18
MA424 Dynamical Systems 18
MA426 Elliptic Curves 18
MA427 Ergodic Theory 18
MA433 Fourier Analysis 18
MA453 Lie Algebras 18
MA455 Manifolds 18
MA475 Riemann Surfaces 18
MA473 Reflection Groups 18
MA482 Stochastic Analysis 18
MA4A2 Advanced PDEs 18
MA4A5 Algebraic Geometry 18
MA4A7 Quantum Mechanics (Basic Principles and 18
Probabilistic Methods)
MA4C0 Differential Geometry 18
MA4E0 Lie Groups 18
MA4E7 Population Dynamics: Ecology and Epidemiology 18
MA4G7 Computational Linear Algebra and Optimization 18
MA4H0 Applied Dynamical Systems 18

Optional Modules
Modules available in any stream of the third or fourth year of G300 and modules in
the third year of Y602

54
13. MODULE DESCRIPTIONS

The remainder of this handbook consists of detailed descriptions of all the core
modules and some of the more popular optional modules. Modules are listed in year
order.

Further descriptions of Modules/Optional Modules can be found on the following


websites:

Course Regulations
http://www2.warwick.ac.uk/services/quality/courseregs/courseregs1011/undergrad/st

Economics:
http://www2.warwick.ac.uk/fac/soc/economics/ug

Mathematics:
http://www2.warwick.ac.uk/fac/sci/maths

Physics
http://www2.warwick.ac.uk/fac/sci/physics/teach/syllabi/

Statistics
http://www2.warwick.ac.uk/fac/sci/statistics

Warwick Business School:


http://www.wbs.ac.uk/students/undergraduate

55
FIRST YEAR

Modules are listed in alphabetical order

COMPUTER SCIENCE CS126 15 CATS


Term 2 Design of Information Structure

Prerequisite(s): CS118

Academic Aims:

To gain familiarity with the specification, implementation and use of some standard abstract
data types (ADTs) such as linked-lists, stacks, queues, graphs etc.
To learn some standard algorithms for common tasks (such as searching and sorting) and
some elementary methods of measuring the complexity, and of showing the correctness, of
algorithms.
To learn how to program with non-standard ADTs using an object-oriented language.

Learning Outcomes:

On completion of the module, a student will:

Be familiar with a range of standard ADTs and how they can be used to accomplish
common programming tasks;
Be able to assess the complexity and correctness of simple algorithms, and choose
appropriate algorithms for simple tasks; and
Have practical experience of designing user-defined ADTs, and associated algorithms, for a
non-standard application.

Content:

Types and their properties: simple types in programming languages; relationship between
familiar mathematical and program objects of given type. Using predicate logic to state
properties of types and their operations in terms of pre- and post-conditions.
Abstract data types: specification of familiar abstract objects (eg complex numbers, sets,
sequences, matrices) and their operations, comparison with their implementation using a
typical programming language. Specification and implementation of some important
standard types (eg strings, stacks and queues).
Algorithms: relationship between data structures and algorithms; some standard algorithms
for searching, sorting and pattern matching. Elementary analysis of complexity. Reasoning
about the correctness of the implementation of simple algorithms.

Books: Goodrich MT and Tamassia R, Data Structures and Algorithms in Java, Wiley, 2005.

Online course material: http://www2.warwick.ac.uk/fac/sci/dcs/teaching/material/cs126

Assessment: One and a half-hour examination (50%), programming assignment (40%), marked
laboratory session (10%)

Teaching: 22 one-hour lectures and 4 two-hour practical sessions

Organisers: Mike Joy

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FIRST YEAR

ECONOMICS EC106 24 CATS


Terms 1 & 2 Introduction to Quantitative Economics

Module leader: Dennis Novy

Teaching format: 2 lectures per week in Terms 1 and 2 plus fortnightly classes

Assessment 2 Hour examination in June, plus in-lecture tests


methods:

Prerequisite(s): This module is specifically designed for students taking mathematics-


based degree programmes. All students will normally have GCE A-
Level or equivalent in mathematics. Past experience has shown that
approximately 40% of students taking the module have studied
economics to GCE A level or equivalent. The pace of presentation and
the depth of analysis aim to strike a balance between the needs of those
students who have prior knowledge of economics and those who do not.

Academic aims: This module is intended as an introduction to economics for students


with a relatively strong mathematical background. At the end of the
year students should have a good grasp of the main theories and be
ready if they wish to embark upon more advanced economics options
taught in the second year, in particular, EC220/221 Mathematical
Economics 1, and EC204 Economics 2.

Syllabus: Term 1 covers microeconomics, which is concerned with the economic


behaviour of individual consumers and producing firms, and their
interaction in markets for goods, services and factors of production.

Term 2 covers macroeconomics, which is concerned with aggregate


economic variables or the workings of the national economy as a whole:
aggregate output (Gross Domestic Product or GDP), employment and
unemployment, inflation, interest rates, the balance of payments,
exchange rates, etc., and with government economic policies to
influence these variables.

The focus is mainly on economic theory but "real world" applications of


relevant theories will also be examined, subject to time limitations.
Illustrative W. Morgan, M. L. Katz and H.S. Rosen, Microeconomics
reading: (European edition, 2006, McGraw-Hill)
N. Gregory Mankiw, Macroeconomics (6th edition, 2007, Worth
Publishers)

Assessment: 2 hour examination in June plus 4 assessments in the form of term tests.

Lecturer: Sayantan Ghosal (Term 1) and Dennis Novy (Term 2).

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FIRST YEAR

BUSINESS SCHOOL IB104 12 CATS


Term 3 Mathematical Programming I (12 or 7.5 CATS for MathStats
Students Only)

Commitment: 20 lectures and 5 problem classes.

Academic Rationale: This is a short intensive module on theoretical and practical aspects of linear
programming including an introduction to other optimisation techniques.

Content: Formulation of linear programming models; graphical representation and solution of two
variable models; simplex method; sensitivity analysis; duality; formulation and solution of
transportation models; game theory. Also included in the course is a computer based project which
involves the formulation of a linear programming problem and its solution using a standard
computer package.

Leads to: IB207 Mathematical Programming II and IB352 Mathematical Programming III

Assessment: Open book examination (7.5 cats), written report (4.5 cats).
(MORSE: 12 CATS core or 7.5 CATS for MathStats Students only)

Lecturer: Vladimir Deineko

MATHEMATICS MA106 12 CATS


Term 2 Linear Algebra

Commitment: 30 one-hour lectures.

Content: Many problems in maths and science are solved by reduction to a system of simultaneous
linear equations in a number of variables. Even for problems which cannot be solved in this way, it
is often possible to obtain an approximate solution by solving a system of simultaneous linear
equations, giving the best possible linear approximation.

The branch of maths treating simultaneous linear equations is called linear algebra. The module
contains a theoretical algebraic core, whose main idea is that of a vector space and of a linear map
from one vector space to another. It discusses the concepts of a basis in a vector space, the
dimension of a vector space, the image and kernel of a linear map, the rank and nullity of a linear
map, and the representation of a linear map by means of a matrix.

These theoretical ideas have many applications, which will be discussed in the module. These
applications include:
Solutions of simultaneous linear equations.
Properties of vectors.
Properties of matrices, such as rank, row reduction, eigen values and eigenvectors.
Properties of determinants and ways of calculating them.

Aims: To provide a working understanding of matrices and vector spaces for later courses to build
on and to teach students practical techniques and algorithms for fundamental matrix operations and
solving linear equations.

Objectives: Students must understand the ideas of linear independent vectors, spanning sets and
bases of vector spaces. They must also understand the equivalence of linear maps between vector
58
FIRST YEAR

spaces and matrices and be able to row reduce a matrix, compute its rank and solve systems of
linear equations. The definition of a determinant in all dimensions will be given in detail, together
with applications and techniques for calculating determinants. Students must know the definition of
the eigenvalues and eigenvectors of a linear map or matrix, and know how to calculate them.

Leads to: Mainly 2nd year algebra modules, but results and techniques from linear algebra may be
used in any higher year maths modules and even in some outside options.

Books: David Towers, Guide to Linear Algebra, Macmillan 1988. Howard Anton, Elementary
Linear Algebra, 7th Edition, John Wiley and Sons, 1994. Paul Halmos, Linear Algebra Problem
Book, MAA, 1995. G Strang, Linear Algebra and its Applications, 3rd ed, Harcourt Brace, 1988.

Assessment: 15% from weekly assignments, 85% from a 2 hour examination.

Lecturers: Inna Korchagina/Colin Rourke

MATHEMATICS MA113 6 CATS


Term 2 Differential Equations A

You may not take this module as well as MA133 Differential Equations

Commitment: 15 one-hour lectures


Content: How do you reconstruct a curve given its slope at every point? Can you predict the
trajectory of a tennis ball? The basic theory of ordinary differential equations (ODEs) as covered in
this module is the cornerstone of all applied mathematics. Indeed, modern applied mathematics
essentially began when Newton developed the calculus in order to solve (and to state precisely) the
differential equations that followed from his laws of motion.

However, this theory is not only of interest to the applied mathematician: indeed, it is an integral
part of any rigorous mathematical training, and is developed here in a systematic way. Just as a
pure subject like group theory can be part of the daily armoury of the applied mathematician, so
ideas from the theory of ODEs prove invaluable in various branches of pure mathematics, such as
geometry and topology.

In this module we will cover relatively simple examples, first order equations

( dy / dx = f ( x , y ) ) and linear second order equations ( &x& + p (t ) x& + q(t ) x = g ( t )), for most of which
we can find an explicit solution. However, even when we can write the solution down it is
important to understand what the solution means, ie. its qualitative properties. This approach is
invaluable for more complex equations for which we cannot find an explicit solution: here we see
how to understand the behaviour of all the solutions of an equation dx/dt=f(x) using a very simple
method.If we try to approximate an ordinary differential equation like dx/dt=f(x) numerically, one
way would be to split the time into small increments and try to approximate x (t + t ) by, for
example,

x (t + t ) = x(t ) + f ( x(t )) t

If we write xn for x ( n t) then we have

59
FIRST YEAR

x n +1 = x n + f ( x n )t ,

a simple example of a difference equation.


In the final part of the module we will show how the techniques we learned for second order
differential equations have natural analogues that can be used to solve difference equations.

The last lecture will give some indication of the complicated behaviour that can occur even in the
simplest nonlinear difference equations.

Aims: To introduce simple differential and difference equations and methods for their solution, and
to illustrate the importance of a qualitative understanding of these solutions.

Objectives: You should be able to solve various simple differential equations (first order and linear
second order) and to interpret their qualitative behaviour; and to do the same for simple difference
equations.

Leads to: MA112 Experimental Mathematics; MA250 Partial Differential Equations;


MA240 Modelling Nature's Nonlinearity; MA235 Introduction to Mathematical Biology;
MA209 Variational Principles; MA371 Qualitative Theory of Differential Equations;
MA394 Waves; MA3D1 Fluid Dynamics; MA235 Topics in Mathematical Physics;
MA3G1 Theory of PDEs; MA458 Mathematical Recipes.
There are also links with MA131 Analysis; MA106 Linear Algebra; MA124 Mathematics by
Computer; MA222 Metric Spaces; MA228 Numerical Analysis.

Books: The primary text will be:

J. C. Robinson An Introduction to Ordinary Differential Equations, Cambridge University Press


2003. This is a new text designed for the length and rigour of this set of courses.

Additional references are:

W. Boyce and R. Di Prima, Elementary Differential Equations and Boundary Value Problems,
Wiley 1997
C. H. Edwards and D. E. Penney, Differential Equations and Boundary Value Problems, Prentice
Hall 2000
K. R. Nagle, E. Saff, and D. A. Snider, Fundamentals of Differential Equations and Boundary
Value Problems, Addison Wesley 1999

Assessment: One-hour written examination (100%)


Lecturer: Markus Kirkilionis

60
FIRST YEAR

MATHEMATICS MA117 12 CATS


Term 2 Programming for Scientists

Commitment: 10 lectures plus lab sessions/tutorials

Prerequisite(s): No previous computing experience will be assumed, but students should have
obtained a code to use the IT Services work area systems prior to this module. Information and
assistance is available in the Student Computer Centre in the Library Road.

Content: Aspects of software specification, design, implementation and testing will be introduced
in the context of the Java language. The description of basic elements of Java will include data
types, expressions, assignment and compound, alternative and repetitive statements. Program
structuring and object oriented development will be introduced and illustrated in terms of Javas
method, class and interface. This will enable the development of software that reads data in a
variety of contexts, performs computations on that data and displays results in text and graphical
form. Examples of iterative and recursive algorithms will be given. The importance of Java and
Java Virtual Machine in networked computing will be described. The majority of examples will be
standard applications but the development of Java Applets to be delivered by web browsers will
also be covered.

Aims: To provide an understanding of the process of scientific software development and an


appreciation of the importance of data vetting, sound algorithms and informative presentation of
results.
Objectives: To enable the student to become confident in the use of the Java language for scientific
programming.

Leads to: MA228 Numerical Analysis and modules given by the Computer Science Department
that are based upon the Java language, including CS223 Introduction to Software Engineering,
CS236 Data Structures and Algorithms and CS237 Concurrent Programming.

Books: Books are not essential for this module as use will be made of on-line tutorial and reference
material. An informative, optional text is H M Deitel/P J Deitel, Java How to Program (2nd or 3rd
Ed.), Prentice Hall

Assessment: Three programming assignments.

Lecturer: Zadim Visram

MATHEMATICS MA125 6 CATS


Term 1 Weeks 6-10 Introduction to Geometry

Commitment: 15 one-hour lectures

Content: This module begins with a quick tour through elementary plane Euclidean geometry. We
emphasise proof, and the careful use of diagrams as an aid to understanding problems and finding
proofs. Plane geometry then provides the setting for an introduction to the geometry of the sphere
and of polyhedra.

61
FIRST YEAR

Aims:
To learn and enjoy Euclidean geometry of the plane, the sphere and of three-dimensional space.
To learn to visualise geometrical problems, and to draw diagrams which represent them
accurately.
To learn to reason from diagrams, and use them as an aid to writing rigorous proofs.
To learn to construct proofs, and to set them out clearly and convincingly.

Objectives: You will gain familiarity with


Plane Euclidean geometry, isometries, congruence and similarity; theorems on triangles, circles,
tangents and angles; ruler and compass constructions.
Polyhedra: the Euler characteristic; classification and construction of regular polyhedra.
Spherical geometry: the angle sum formula for spherical triangles; sterographic projection and
its relation with inversion; conformal (angle preserving) maps.
Books: Notes for the module will be available at cost price from the departmental office. Also
relevant G A Jennings, Modern geometry with applications, Springer-Verlag (a fine book with
many challenging exercises, but useful only as a complement to the course).
Assessment: One-hour exam taken in the summer term.
Equipment: Students should come equipped with a ruler and a compass.

Lecturer: Stefan Friedl

MATHEMATICS MA131 24 CATS


Terms 1 & 2 Analysis

CAUTION: MORSE and MathStats students are taught separately from students of the
Mathematics Department.

Commitment: 30 lectures each term.

Content: At the beginning of the nineteenth century the familiar tools of calculus, differentiation
and integration, began to run into problems. Mathematicians were unsure of how to apply these
tools to sums of infinitely many functions. The origins of Analysis lie in their attempt to formalize
the ideas of calculus purely in the language of arithmetic and to resolve these problems.

You will study ideas of the mathematicians Cauchy, Dirichlet, Weierstrass, Bolzano, D'Alembert,
Riemann and others, concerning sequences and series in term one, continuity and differentiability in
term two and integration in term one of your second year.

By the end of the year you will be able to answer many interesting questions: What do we mean by
`infinity'? How can you accurately compute the value of or e or ? How can you add up infinitely
many numbers, or infinitely many functions? Can all functions be approximated by polynomials?

There will be considerable emphasis throughout the module on the need to argue with much greater
precision and care than you had to at school. With the support of your fellow students, lecturers and
other helpers, you will be encouraged to move on from the situation where the teacher shows you
how to solve each kind of problem, to the point where you can develop your own methods for
solving problems. You will also be expected to question the concepts underlying your solutions,

62
FIRST YEAR

and understand why a particular method is meaningful and another not so. In other words, your
mathematical focus should shift from problem solving methods to concepts and clarity of thought.

Assessment: First term weekly assignments and mid-term tests (7.5%); one-and-a-half-hour hour
examination on the first term's work (25%) (held in the first week of the second term); weekly
assignments in the second term (7.5%); three-hour end-of-year examination (60%).

Books:
D. Stirling, Mathematical Analysis and Proof, 1997.
M. Spivak, Calculus, Benjamin.
M. Hart, Guide to Analysis, Macmillan. (A good traditional text with theory and many exercises.)
G.H. Hardy, An introduction to Pure Mathematics, CUP.

Lecturers: For students based in Physics, Statistics or other Departments:


Term 1 Xue-Mei Li; Term 2 - Jon Warren

MATHEMATICS MA132 12 CATS


Term 1 Foundations

Commitment: 30 lectures, 10 weekly assignments with 5 fortnightly tests based on them.

Prerequisite(s): Grade A in A-level Maths or equivalent, plus an interest in how Mathematics is


built up from logical foundations.

Aims: University mathematics introduces progressively more and more abstract ideas and
structures, and demands more and more in the way of proof, until by the end of a mathematics
degree most of the student's time is occupied with understanding proofs and creating his or her own.
This is not because university mathematicians are more pedantic than schoolteachers, but because
proof is how one knows things in mathematics, and it is in its proofs that the strength and richness
of mathematics is to be found.

But learning to deal with abstraction and with proofs takes time. This module aims to bridge the
gap between school and university mathematics, by beginning with some rather concrete techniques
where the emphasis is on calculation, and gradually moving towards abstraction and proof.

Content:

1. Numbers

Number systems: Natural numbers, integers, rationals and real numbers. Existence of
irrational numbers.
Euclidean algorithm; greatest common divisor and least common multiple.
Prime numbers, existence and uniqueness of prime factorisation (and non-uniqueness in other
``number systems'', e.g. even integers, Gaussian integers).
Properties of commutativity, associativity and distributivity.
Infinity of the primes.
Summing series of integers; proofs by induction.

2. Language

63
FIRST YEAR

Basic set theory: , , Venn diagrams and de Morgan's Laws.


Logical connectives , , and their relation with , and

3. Polynomials

Multiplication and long division of polynomials.


Binomial theorem
Euclidean algorithm for polynomials.
Remainder theorem; a degree n polynomial has at most n roots.
Rational functions and partial fractions.
Incompleteness of the real numbers, completeness of the complex numbers (sketch).

4. Counting

Elementary combinatorics as practice in bijections, injections and surjections.


Cardinality of the set of subsets of a set X is greater than cardinality of X. Russell's paradox.
Definition of Cartesian product.
Countability of the rational numbers, uncountability of the reals.
Transcendental numbers exist!

The second (and smaller) part of the module explores the elementary properties of a fundamental
algebraic structure called a group. Groups arise in an extraordinary range of contexts in
mathematics and beyond (for example, in elementary particle physics and in card tricks), and can be
used to analyse the symmetry of geometric objects or physical systems.

1. Modular arithmetic: 3 hours

Addition, multiplication and division in the integers modulo n.


Some theorems of modular arithmetic.
Equivalence relations.

2. Permutations and the symmetric group

Multiplying (composing) permutations.


Cycles and disjoint cycle representation.
The sign of a permutation.

Organisation: This module is lectured in two parallel sections:

Section 1 Mathematics students (including M/Econ, M/BS, M/CS, M/Phil).


Section 2 MORSE, Maths/Stats, Maths/Phys, and any other students.

Objectives: Students will work with number systems and develop fluency with their properties;
they will learn the language of sets and quantifiers, and will become familiar with various styles of
proof. They will approach group theory via modular arithmetic and permutations.

Leads to: Most later pure mathematics modules; specifically MA131 Analysis, MA106 Linear
Algebra and MA242 Algebra I.

Books: None of these is the course text, but each would be useful, especially the first.

64
FIRST YEAR

A.F.Beardon, Algebra and Geometry, CUP, 2005.


I.N. Stewart and D.O. Tall, Foundations of Mathematics, OUP, 1977.
J. A. Green, Sets and Groups; First Course in Algebra, Chapman and Hall, 1995.

Assessment: 15% from fortnightly tests, 20% from Maths Techniques and 65% from a one-and-a-half
hour written exam in the first week of Term 2 (probably on the first day of term 2!).

Lecturers: Section 1: David Mond, Section 2: Neil OConnell

MATHEMATICS MA134 12 CATS


Term 2 Geometry and Motion

Commitment: 30 lectures.

Content: When a particle moves in space, it traces out a curve. This is one of the simplest
connections between geometry and motion. The motion contains more information than the curve
traced out by the particle because the same curve can be traversed at different, possibly non-
uniform, speeds (different motion). The length of the curve (a geometric property) is given by the
integral (with respect to time) of the speed at which the curve is traversed. However, the length is
evidently independent of the actual motion of the particle along the curve. This independence is
established by means of the change of variables formula for integrals. Another connection between
geometry and motion is provided by the relation between curvature and acceleration.

In high school, one learns how to integrate a function of one real variable. This course describes
how to integrate vector-valued functions and functions of two and three real variables. In
particular, the area of a surface and volume of a region (geometry) will be defined, as well as the
circulation of a fluid around a closed curve (motion). The change of variables formula for two and
three dimensional integrals will be (heuristically) derived; it involves a determinant and is
somewhat more complicated than the one dimensional formula.

A section on particle mechanics will derive Kepler's Laws of planetary motion from Newton's
second law of motion and the law of gravitation. The motion of the simple pendulum will also be
discussed. This section introduces the notion of conserved quantities.

Aims: This module aims to indicate to students how intuitive geometric and physical concepts such
as length, area, volume, curvature, mass, circulation and flux can be translated into mathematical
formulas. It also aims to teach the practical calculation of these formulas and their application to
elementary problems in particle and fluid dynamics. The importance of conserved quantities in
mechanics is also highlighted.

Objectives: On successful completion of this module students should be able to:

parametrise simple curves and surfaces, such as conic sections, helix, surface of revolution
(including sphere, cylinder, paraboloid and torus), in cartesian and other coordinates,
including polar, spherical polar and cylindrical coordinates.
calculate lengths and curvatures of curves in 3-space and demonstrate that length is
independent of parametrisation.
understand and be able to calculate line, surface and volume integrals with respect to various
coordinate systems. This includes change of variables and change of order of integration in
repeated integrals. Please note that in the examination, no formula sheets will be provided.

65
FIRST YEAR

to be able to determine whether a vector field is conservative and to calculate its potential
when it is.
apply all these techniques to elementary problems from fluid dynamics (mass, work,
circulation and flux) and geometry (area and volume).
understand basic notions from particle mechanics including momentum (linear and angular),
force, work, energy (potential and kinetic), Newton's laws of motion, Newton's law of gravity,
conservation laws. Students should also be able to apply all these principles to elementary
problems from mechanics, including central force theory (including, but not restricted to,
planetary motion) and the simple pendulum.

Books:
G. B. Thomas et al., Calculus and Analytic Geometry, Addison-Wesley. The course is concerned
with only the later chapters of this massive book. However, the earlier chapters are relevant to
other first year courses and even contain A-Level material from a different perspective. Any edition
of this book is appropriate. You may be able to buy a cheap copy through Amazon.

F. J. Flannigan and J. L. Kazdan, Calculus Two, Springer-Verlag. Again, the earlier chapters of this
book are relevant to other first year courses.

J.E. Marsden and A.J. Tromba, Vector Calculus, Freeman. This book is more advanced than
Calculus Two and is useful for the second year courses on Vector Analysis and Differentiation.

Assessment: 15% by marked homework, 85% by a three-hour exam.

Lecturer: Mario Micallef

STATISTICS ST104 12 CATS


Term 1 Statistical Laboratory

Prerequisite(s): None (but A level Mathematics is assumed).

Commitment: 2 lectures and 1 laboratory per week

Content: A first course on data collection and analysis, probability and statistical inference. The
emphasis is on using and interpreting statistical methods in practice, with a clear understanding of
potential pitfalls. The course provides valuable motivation for the theory presented in the second
year courses on Mathematical Statistics.

Aims: To introduce and explain the important ideas in practical statistics, so that, with full access to
textbooks and other resources, students will know when to apply various statistical methods, and
will understand the associated problems and pitfalls.

Objectives: After completing this course, students should be able to do the following given a
Practical problem:
Suggest methods to obtain relevant data.
Summarise low-dimensional data-sets, both graphically and numerically.
Apply simple formal statistical techniques and interpret the results.
Criticise the whole process and the applicability of the conclusions, in the light of the practical
situation and the actual data, discussing points such as: (sampling) bias, data quality,
independence, explanatory variables, distributional assumptions, outliers, prediction.
66
FIRST YEAR

Suggest improvements to the design and analysis.

Leads to: ST217 Mathematical Statistics A & B (for Statistics students only)
ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

Assessment: 30% on laboratory reports and 70% on a 2-hour open-book examination held at the
end of the Autumn Term (Week 10).

Lecturers: David Croydon/Anastasia Papavasiliou

STATISTICS ST108 7.5 CATS


Terms 2 and 3 Applications in Algebra & Analysis

Prerequisite(s): MA131 Analysis I and MA106 Linear Algebra.


Aims: This course aims to motivate and apply results from Algebra and Analysis in the study of
difference equations (often arising from models of population growth) and to develop quantitative
and qualitative methods to discover their solution, meeting relevant topics such as bifurcation and
chaos theory along the way.
Objectives: Its objectives are that by the end of the course students will be able to:
recognise various types of difference equations;
illustrate the behaviour of the system using cobwebs;
describe the equilibrium points;
solve simple systems of difference equations by using matrix methods and by recognising the
general form of the solution.

Assessment: 50% by tests and 50% by assessed exercises.

Lecturer: Heather Humphries

STATISTICS ST113 7.5 CATS


Term 1 Statistical Computing

Prerequisite(s): None

Commitment: 10 lectures, plus practical sessions.

Content: This course introduces some mathematically-oriented computer software and


corresponding skills that help students make the jump from school to university-level mathematics
and statistics.

Aims:
To familiarise students with the use of appropriate computer technology for mathematics;
To demonstrate the value and importance of expressing mathematical statements precisely when
communicating.

Objectives: After completing the course, students should be able to do the following:

67
FIRST YEAR

Use a computer algebra system such as Mathematica or Maple to attack simple mathematical
problems algebraically, numerically and/or graphically.
Use a system such as TeX or LaTeX to typeset reports with mathematical content.
Demonstrate simple programming skills.
Assessment: 100% by assessment. One short project (20%) and one long practical assessment
(80%).

Lecturer: Ewart Shaw

STATISTICS ST114 7.5 CATS


Term 2 Games and Decisions

Commitment: 20 lectures.
Content: Throughout their history, game and decision theories have used ideas from mathematics
and probability to help understand, explain and direct human behaviour. This course introduces
some of the less technical results in both of these disciplines. Ideas to be presented will include:
The quantification of subjective belief through probability.
The EMV decision rule.
The quantification of subjective preferences.
The concept of a rational opponent in a two player game.
As well as providing an insight into various applications of mathematical concepts, the course will
inform students how, at least in simple problems, they might ensure that their own decision-making
is coherent and rational.
Aims: To give an introduction into how the use of probabilistic and mathematical ideas can
enhance decision making by providing a framework in which actions can be judged as sensible or
irrational. Examples will be given both of games against nature and games against other rational
opponents.
Objectives:
The student will be taught some of the arguments underpinning the use of rationality and a
definition of subjective probability.
They will be taught how to use the simpler tools of decision analysis as a framework to discover
sensible decision rules which balance quantified uncertainties and payoffs.
The course will explain and illustrate some of the issues of rationality as they apply to games
and techniques will be given which will enable the student to solve some simple zero sum
games.

Assessment: 1.5 hour examination.

Lecturer: Adam Johansen

STATISTICS ST115 12 CATS


Term 2 Introduction to Probability

Prerequisite(s): MA131 Analysis, MA132 Foundations,

Commitment: 3 lectures/week, 1 tutorial/fortnight, 1 exercise class/week


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FIRST YEAR

Aims: To lay the foundation for all subsequent modules in probability and statistics, by introducing
the key notions of mathematical probability and developing the techniques for calculating with
probabilities and expectations.

Content:

1. Experiments with random outcomes: the notions of events and their probability. Operations
with sets and their interpretation. The addition law.
2. Simple examples of discrete probability spaces. Methods of counting: inclusion-exclusion
formula and Binomial co-efficients.
3. Simple examples of continuous probability spaces. Points chosen uniformly at random in
space.
4. Independence of events. Conditional probabilities. Bayes theorem.
5. The notion of a random variable. Examples in both discrete and continuous settings.
Indicator random variables.
6. The notion of the distribution of a random variable. Probability mass functions and density
functions. Cumulative distribution functions.
7. Expectation of random variables. Properties of expectation.
8. Mean and variance of distributions. Chebyshev's inequality.
9. Independence of random variables. Joint and conditional distributions. Covariance. Cauchy-
Schwartz inequality.
10. Addition of independent random variables: convolutions. Generating function and use to
compute convolutions.
11. Important families of distributions: Binomial, Poisson, negative Binomial, exponential,
Gamma and Gaussian. Their properties, genesis and inter-relationships.

Then the following topics to be covered in second year may be introduced at the end of this module.

Sequences of random variables. Convergence in probability and distribution. Examples including


the Weak law of large numbers. Generating functions and relationship with convergence. Central
limit theorem.

Books: Ross, A first course in probability, Prentice Hall, 1994


Pitman, Probability, Springer texts in Statistics

Assessment: 100% by 2 hr examination.

Lecturer: Jon Warren

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SECOND YEAR

Modules are listed in alphabetical order

ECONOMICS EC204 30 CATS


Terms 1 & 2 Economics 2
Commitment: A total of 45 lectures and 16 tutorial meetings in the year.

Note: This module is only available in Year 2.


Academic aims: The module aims to enable students to develop a deeper understanding of
economic concepts introduced in firstyear analysis and to introduce new concepts in both micro
and macroeconomic analysis. New concepts include the treatment of risk, asymmetric information,
general equilibrium, welfare economics, rational expectations and time consistency. The module
aims to introduce students to the analysis of public policy issues such as privatisation, regulation
and counter-inflation policy.
Learning objectives: By the end of the module, the student will be expected to be familiar with a
range of tools for the analysis of both micro and macroeconomic problems. The student will have a
rigorous knowledge of the theoretical models which underlie economic analysis and an
understanding of both the applicability and the limitations of particular models and approaches.
The student will also be expected to have an understanding of how to evaluate both competing
economic theories and empirical evidence.
Learning methods: The teaching process combines lectures and small group classes. Classes focus
chiefly on exercise sheet problems but also involve ? The teaching process combines lectures and
small group classes. Classes focus chiefly on exercise sheet problems but also involve student
presentations and group work. The macro part of the module follows a consecutive buildingblock
approach while the micro material is based more on specific topics and allows specialisation:
although a good understanding of the analytical core of each element of the module is regarded as
essential.
Syllabus:
Microeconomics (c.22 lectures): The analysis of consumer demand; including a focus on markets
with asymmetric information. The analysis of production, cost, supply and input demand functions,
with an emphasis on markets under oligopoly. The analysis of general equilibrium and welfare
economics. Consideration of the economics of public policy issues such as privatisation and
regulation. Game theoretic approaches to oligopoly, entry and other strategic areas in industrial and
business economics. Economics of risk and uncertainty.

Macroeconomics (c.22 lectures): The unemployment-inflation relationship. The effect of


monetary policy. Expectations, financial markets and the Macroeconomy. Political business
cycles. The Time inconsistency problem. The open economy.
Illustrative reading:
Microeconomics
Katz, M. and Rosen, H.S., Microeconomics, 4th edition, McGraw-Hill.
Varian, H., Intermediate Microeconomics, W W Norton 5th edn, 1999.
Macroeconomics:
Blanchard, O. Macroeconomics, Prentice Hall, 4th edn.

Assessment methods: 2 x 2000 word essays (20%) and 3hour examination (80%)

Module leader: Andres Carvajal


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SECOND YEAR

ECONOMICS EC220 12 CATS


Terms 1 Mathematical Economics 1a of a 24 CAT module

Module leaders: TBA


Context: Refer to degree course regulations.
Prerequisite(s): for non-economists, EC106 Introduction to Quantitative Economics.
Teaching format: Two lectures per week, one problem class per fortnight and one tutorial per
fortnight.
Assessment methods: 3-hour exam (80%) 2 x tests (20%).
Academic aims:
Mathematical Economics 1a: Introduction to Game Theory, aims to provide a basic
understanding of pure game theory and also introduce the student to a number of applications of
game theory to economic problems of resource allocation. Strategic, normative and bargaining
approaches to resource allocation are treated.
Mathematical Economics 1b: "Models of Static and Dynamic Optimisation provides some basic
mathematical tools of static and dynamic optimisation and presents some applications in theory of
incentives and in macroeconomic growth.
Learning objectives: Both game theory and general equilibrium theory involve deep analysis of
relatively simple situations conducive to the advancement of the reasoning ability of students.
Students will acquire a sense of the importance of strategic considerations in economic problem
solving and the normative significance of competitive markets in obtaining Pareto optimal
allocations via appropriate extensions of the commodity space. Students will learn that a few
simple, intuitive principles, formulated precisely, can go a long way in understanding the
fundamental aspects of many economic problems. Problem solving abilities and understanding of
the concepts and methods will be tested in the exam.
Learning methods: The best way to study for this course is to read the text and attend lectures in
preparation to working exercises. The best preparation is solving problems. To be able to do this, it
is extremely helpful to prepare in advance for lectures by reading the relevant textbook material and
by working at solving the problems in the text on that material. The classes are particularly
important for students having any difficulty with the material and also to ensure that one is solving
the assigned problems correctly

Syllabus: Term 1 - Mathematical Economics 1a

(i) Games in strategic form: Nash equilibria and its applications to voting games, oligopoly,
provision of public goods.
(ii) Games in extensive form: sub game perfect equilibria and its applications to voting games,
repeated games.
(iii) Static games with incomplete information: Bayesian equilibria and its applications to
auctions, contracts and mechanism design.
(iv) Dynamic games of incomplete information: Perfect Bayesian equilibria, Sequential
equilibria and its application to signalling games.
(v) Bargaining theory: Nash bargaining, non-cooperative bargaining with alternating offers and
applications to economic markets.
Illustrative reading: Mathematical Economics 1a

Dutta, P.K. (1999): Strategies and Games: Theory and Practice, MIT Press.
And, for supplementary reading for the student seeking a deeper understanding,

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SECOND YEAR

Fudenberg and Tirole (1996) Game Theory.


ECONOMICS EC221 12 CATS
Terms 2 Mathematical Economics 1b of a 24 CAT module

Commitment: Two lectures per week, one problem class and one tutorial per fortnight.

Prerequisite(s): EC220 Mathematical Economics 1A

Content: Lectures shall develop the fundamental properties of competitive equilibrium: Existence,
optimality and determinacy (i) in abstract economies, (ii) in economies over time and under
uncertainty, and (iii) in economies with incomplete asset markets and/or particular demographic
structures (overlapping generations), and their implications for monetary and fiscal policy.

Aims: ``Models of Static and Dynamic Optimisation'' provides some basic mathematical tools of
static and dynamic optimisation and presents some applications in theory of incentives and in
macroeconomic growth.

Books:

Principal reference:

Mas-Colell, A., Whinstone, M. D., and Green, J. R. (1995), Microeconomic Theory, OUP.
(Chapters 3 and 15-20)

Additional useful textbooks are:

For consumer theory:

Varian, H. (1992), Microeconomic Analysis, W. W. Norton.

For general equilibrium:

Bewley, T. F. (2007), General Equilibrium Overlapping Generations Models and Optimal Growth
Theory, Harvard University Press.

Assessment: 3-hour examination (80%) and tests (20%) if taking both EC220 and EC221, else a 1.5
hour examination (80%) and one test (20%).

Lecturer: Pablo Becker

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SECOND YEAR

BUSINESS SCHOOL IB109 24 CATS


Terms 1 & 2 Foundations for Accounting & Finance
Restriction: You cannot take IB109 and the module ST335 Finance and Financial Reporting
(which may lead to an actuarial exemption).

Commitment: Two 1 hour lectures (starts in week 2) plus a 1 hour seminar each week.

Objectives: The module is designed to provide students with a broad introduction to accounting
and finance, with a users or managers perspective rather than that of an accounts preparer or
specialist.

On completion of the module students will be able to:


understand the relation between the principal financial statements
understand the major assumptions and limitations employed in conventional financial reporting
forecast financial statements for simple cases and adjust financial statements for transactions
understand the interpretation of financial statements, the analysis of profitability, of solvency and
gearing
understand cost behaviour and development of product costs under competing assumptions
understand the construction and use of budgets inside organisations
value investments and capital projects under the certainty case
understand the trade-offs between risk and return
understand the principles of valuation of basic instruments of debt and equity
identify the issues in setting a rate of return and understand how this is influenced by borrowing
policy.

Content: Balance sheets, profit & loss accounts and cash flow statements. Accounting conventions
and creative accounting. Forecasting financial statements. Financial statement analysis. Cost
behaviour. Cost tracing (direct & indirect). Product costing. Budgeting. Elements of finance.

Leads to: IB253 Principles of Finance 1 and IB254 Principles of Finance 2.

Books: McLaney and Atrill, Accounting: An Introduction

Assessment: 1 x 2 hour exam (80%) 1 x 1 hour test (20%)

Lecturer: Simona Scarparo

BUSINESS SCHOOL IB206 6 CATS


Term 3 Introduction to Business Studies

Academic Rationale: Please ensure that you register for this module with the WBS Undergraduate
Office as well as on eMR. If you are not registered correctly, you will not have access to all of the
necessary web-based materials needed for the module. This module is only available to 2nd year
students.
Objectives: This module is intended as a general introduction to key disciplines in business and
management.

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SECOND YEAR

Syllabus:
There are four main subject topics:-
Marketing
Human Resources
Accounting & Finance
Operations Management

Bibliography
There is no required text though students are advised to study a recommended text such as
"Introduction to Management", Richard Pettinger, or "Mastering Basic Management, E C Eyre,
MacMillan Master series. Additional materials, and some cases and exercises will be given out
during the module. These will form the basis of the module for revision and assessment purposes.

Teaching: 3 x 1-hour lectures per week for five weeks in Term 3.

Assessment: 2 hour Examination (100%) by multiple choice question paper.

Lecturer: Terni Abimbola

BUSINESS SCHOOL IB207 12 CATS


Term 1 Mathematical Programming II

Prerequisite(s): IB104 Mathematical Programming I


Commitment: 2 x 1 hour lectures per week/1 x 1 hour seminar per week.
Content: This module includes coverage of theoretical and practical aspects of mathematical
programming. In particular it covers linear programming problems with integer variables; the
branch and bound algorithm; dynamic programming; network optimisation including project
management problems; stochastic linear programming; convex sets and functions and their role in
optimisation; simple optimality conditions for non-linear programming problems; the use of
spreadsheets for the solution of optimisation problems.
Objectives: On successful completion of this module, you will be able to:
Identify the business problems that can be modelled using optimisation techniques and
formulate them in a suitable mathematical form
Apply optimisation techniques to the solution of the problems using spreadsheets and other
appropriate software
Report on the meaning of the optimal solution in a manner suited to a business context.

Leads to: IB352 Mathematical Programming III

Assessment: 2 hour open book exam + 15 minutes reading time (70%), assessed (30%).

Lecturer: Victor Podinovski

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SECOND YEAR

BUSINESS SCHOOL IB211 12 CATS


Term 2 Simulation

Restriction: Students taking this module may not later take the third year course IB320
Simulation.

Prerequisite(s): ST111/2 Probability & ST217 Mathematical Statistics A

Commitment: 8 x 2 hour lectures and 1 tutorial hour per week for students for 7 weeks.

Objectives: Simulation is one of the most commonly used operational research methods for
analysing complex operational/ industrial problems. This course will focus on discrete event
simulation. Students will learn the theoretical underpinnings of the methods and the range of
applications for which they are useful. They will gain practical experience in problem solving using
commercial simulation software. The course assumes the student has covered some introductory
courses in computer programming and statistics.

Contents: Topics covered will be: introduction to simulation methods, the discrete-event
simulation method, software for discrete-event simulation (with use of a specific package e.g.
Simul8 or Witness), performing a simulation study (conceptual modelling, data collection and
analysis, experimentation and verification and validation).

The tutorials provide the opportunity for supervised exercises and help students develop their own
computer based simulation programmes.

Books: Robinson, S. (2003), Simulation: The Practice of Model Development and Use, Wiley

Assessment: Assessed 100%.

Lecturer: Ruth Davies

MATHEMATICS MA209 6 CATS


Term 3 Variational Principles

Commitment: 15 lectures

Prerequisite(s): MA131 Analysis, MA225 Differentiation is also helpful and a module on


differential equations.

Aims: To introduce the calculus of variations and to see how central it is to the formulation and
understanding of physical laws.

Objectives: To show you how to set up and solve minimisation problems with and without
constraints, to derive Euler-Lagrange equations and to have you appreciate how the laws of
mechanics fit in this framework.

Content: This module consists of a study of the mathematical techniques of variational methods,
with applications to problems in physics and geometry. Critical point theory for functionals in
finite dimensions is developed and extended to variational problems. The basic problem in the
calculus of variations for continuous systems is to minimise the integral
I(y)= ab f(x,y,y x ) dx
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SECOND YEAR

on a suitable set of differentiable functions y :[a, b] R. The Euler-Lagrange theory for this
problem is developed and applied to dynamical systems (Hamiltonian mechanics and the least
action principle), shortest time (path of light rays and Fermats principle), shortest
length and smallest area problems in geometry. The theory is extended to constrained variational
problems using Lagrange multipliers.

Books: A useful introduction is: R Weinstock, Calculus of Variations with Applications to Physics
and Engineering, Dover, 1974.

Other useful texts are: F Hildebrand, Methods of Applied Mathematics (2nd ed), Prentice Hall, 1965.
IM Gelfand & SV Fomin. Calculations of Variations, Prentice Hall, 1963.
The module will not, however, follow the syllabus of any book.

Assessment: One-hour examination.

Lecturer: John Rawnsley

MATHEMATICS MA222 12 CATS


Term 2 Metric Spaces
Commitment: Read the set book: W A Sutherland, Introduction to Metric and Topological Spaces,
OUP (chs 1-9); 10 support lectures; homework exercises.
Prerequisite(s): MA132 Foundations, MA131 Analysis and MA244 Analysis III.
Content: Roughly speaking, a metric space is any set provided with a sensible notion of the
distance between points. The ways in which distance is measured and the sets involved may be
very diverse. For example, the set could be the sphere, and we could measure distance either along
great circles or along straight lines through the globe; or the set could be New York and we could
measure distance as the crow flies or by counting blocks. Or the set might be the set of real
valued continuous functions on the unit interval, in which case we could take as a measure of the
distance between two functions either the maximum of their difference, or alternatively its root
mean square.
This module examines how the important concepts introduced in first year analysis, such as
convergence of sequences, continuity of functions, completeness, etc, can be extended to general
metric spaces. Applying these ideas we will be able to prove some powerful and important results,
used in many parts of mathematics. For example, a continuous real-valued function on a compact
metric space must be bounded. And such a function on a connected metric space cannot take both
positive and negative values without also taking the value zero. Continuity is readily described in
terms of open subsets, which leads us naturally to study the above concepts also in the more general
context of a topological space, where, instead of a distance, it is declared which subsets are open.
Aim: To introduce the theory of metric and topological spaces; to show how the theory and
concepts grow naturally from problems and examples.
Objectives: To be able to give examples which show that metric spaces are more general than
Euclidean spaces, and that topological spaces are yet more general than metric spaces. To be able
to work with continuous functions, and to recognise whether spaces are connected, compact or
complete. To know the definition of the quotient topology and to be able to work with it in simple
cases like projective space.
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SECOND YEAR

Leads to: The module is a vital prerequisite for most later (especially Pure) Mathematics modules,
including MA3F1 Introduction to Topology, MA3D9 Geometry of Curves and Surfaces, MA3F4
Linear Analysis, MA359 Measure Theory, MA3B8 Complex Analysis, MA371 Qualitative Theory
of ODEs, MA3G1 Theory of PDEs, MA424 Dynamical Systems, MA475 Riemann Surfaces,
MA4E0 Lie Groups.
Books: The set text is W A Sutherland, Introduction to Metric and Topological Spaces, OUP. You
will need your own copy (or a half share in one) from day 1.

Other books worth consulting:


E T Copson, Metric Spaces, CUP.; W Rudin, Principles of Mathematical Analysis, McGraw Hill; G
W Simmons, Introduction to Topology and Modern Analysis, McGraw Hill. (More advanced,
although it starts at the beginning; helpful for several third year and MMath modules in analysis).
A M Gleason, Fundamentals of Abstract Analysis, Jones and Bartlett.
D Epstein, Metric Spaces Lecture Notes, 1999--2000, Mathstuff.
Assessment: Examination 85%, assignments and class tests 15%.
Lecturer: David Preiss

MATHEMATICS MA225 12 CATS


Term 2 Differentiation
Commitment: Three one-hour lectures per week.

Prerequisite(s): MA131 Analysis I, MA244 Analysis III.


Content: There are many situations in maths where one has to consider the continuity and
differentiability of a function f:RmRn (e.g., the determinant of an n x n matrix as a function of its
entries, or the wind velocity as a function of space and time). The derivative is interpreted as a
linear transformation, or matrix, and basic properties which generalise those of ordinary calculus
are established, including finding maxima and minima and Taylor expansions. The inverse and
implicit function theorems are proved---these have many applications in both geometry and the
study of solutions of nonlinear equations.
We will also study norms on infinite dimensional vector spaces and some applications.

Aims :
To extend the results on differentiation of functions of 1-variable to functions between higher
dimensional linear spaces.
To develop the theory of the derivative as a linear map and study its relationship with partial
derivatives.
To introduce the basic theory of normed vector spaces as needed for this theory and to provide a
basis for later modules.
To show how different branches of mathematics, in this instance linear algebra and analysis,
combine to give an aesthetically satisfying and powerful theory.
To encourage self-motivated study of mathematics.
Objectives: At the end of this module the student should have a basic working knowledge of higher
dimensional calculus. The student should understand this is in the context of normed spaces and
appreciate the role this level of abstraction plays in the theory. They should understand basic linear
analysis to the extent of being able to follow it up in the relevant third year modules. They should
also be in a position to make use of more advanced textbooks if they wish to go further into these
theories.
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SECOND YEAR

Books: J Marsden and A Tromba, Vector Calculus, McGraw Hill. T Apostol, Mathematical
Analysis, Addison-Wesley
W Rudin, Principles of Mathematical Analysis, McGraw Hill M Spivak, Calculus on manifolds,
Benjamin Cummings
Assessment: Two-hour examination.
Lecturer: Vassili Gelfreich

MATHEMATICS MA228 6 CATS


Term 2 (weeks 1-5) Numerical Analysis

Commitment: 15 lectures and 3 or 4 computing exercises.

Prerequisite(s): Calculus; Linear Algebra; Familiarity with C++ or Java

Updated information on this course is given at


http://www.maths.warwick.ac.uk/~mak/Lecture0304_NET.html

Content: This module focuses on basic numerical methods for problems arising in mathematics
and the physical sciences. Through selected examples such as multi-dimensional zero-finding and
the solution of ordinary differential equations, the important concepts of iteration, convergence,
cost, accuracy and stability will be covered.

Aims: To introduce the numerical methods used in tackling mathematical equations which do not
yield to exact forms of analysis.

Objectives:
To learn how computers represent numbers and what kind of errors this representation can
involve.
To understand iterative methods through the techniques for finding roots of nonlinear equations.
To understand convergence through techniques for solving ordinary differential equations.
To be able to write a computer program to implement the methods covered in the module.

Books: The lectures will follow relatively closely the book by Burden & Faires (see below) and
cover material from chapters 1-5.

WH Press, BP Flanney, SA Teukolsky & WT Vetterling, Numerical Recipes, CUP.


KE Atkinson, Introduction to Numerical Analysis, Wiley.
RL Burden & JD Faires, Numerical Analysis, Wadsworth.

Assessment: By reports from computing exercises.


Lecturer: Xinyu He

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SECOND YEAR

MATHEMATICS MA231 12 CATS


Term 1 Vector Analysis
Commitment: 30 one-hour lectures

Prerequisite(s): MA134 Geometry and Motion or PX129 (Maths/Physics) Worksheets


Contents: The first part of the module provides an introduction to vector calculus which is an
essential toolkit for differential geometry and for mathematical modelling. After a brief review of
line and surface integrals, div, grad and curl are introduced and followed by the two main results,
namely, Gauss' Divergence Theorem and Stokes' Theorem. These theorems will be proved only in
simple cases; complete proofs are best deferred until one has learned about manifolds and
differential forms. The usefulness of these results in applications to flow problems and to the
representation of vector fields with special properties by means of potentials will be emphasised.
This leads to Laplace's and Poisson's equations which will be discussed briefly. The solution of
these equations are discussed more fully in modules on partial differential equations. Cartesian co-
ordinates are in many cases not well suited to a particular problem: for example, polar co-ordinates
yield simpler equations for the flow of water in a cylindrical pipe. We will show how to represent
div, grad and curl in general curvilinear co-ordinates, paying particular attention to spherical and
cylindrical geometries.
The second part of the module introduces the rudiments of complex analysis leading up to the
calculus of residues. The link with the first part of the module is achieved by considering a
complex valued function of one complex variable as a vector field in the plane. This idea is
particularly useful in the study of two-dimensional fluid flow. Complex differentiability leads to
the Cauchy-Riemann equations which are interpreted as conditions for the vector field to have both
zero divergence and zero curl. Cauchy's theorem for complex differentiable functions is then
established by means of the main integral theorems of vector calculus. Cauchy's integral formula
which expresses the value of a complex differentiable function at a point as a line integral of the
function on a contour surrounding the point is the key result from which the stunning properties of
complex differentiable functions follow.

Aim: This module aims to:


 Teach a practical ability to work with functions of two or three variables and vector fields;
 Present the theorems of Gauss and Stokes as generalisations of the fundamental theorem of
calculus to higher dimensions;
 Establish Cauchy's theorem in complex analysis as a consequence of the Cauchy-Riemann
equations and the divergence theorems;
 Teach those rudiments of complex analysis which follow from Cauchy's theorem, namely, the
Cauchy integral formula, Taylor expansions and residue calculus.

Objectives: On successful completion of this module, a student should:


 Be able to calculate line, surface and volume integrals in general curvilinear coordinates;
 Be familiar with and use in a variety of contexts the fundamental results of vector calculus,
namely, the divergence theorem and Stokes' theorem;
 Understand the relation between the existence of a scalar or vector potential of a vector field and
the vanishing of the curl or divergence of that vector field and be able to calculate the potential
when it exists,
 Be able to establish the Cauchy-Riemann equations for a complex differentiable function and
establish Cauchy's theorem from the integral theorems of vector calculus;
 Be able to prove Cauchy's integral formula from Cauchy's theorem, and to use the integral
formula to establish differentiability and series properties of complex differentiable functions;
 Be able to calculate Taylor expansions, residues and use them in the evaluation of definite
integrals and summation of series.
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SECOND YEAR

Leads to:
 MA3D1 Fluid Dynamics,
 MA3G1 Theory of PDEs,
 MA3D9 Geometry of Curves and Surfaces,
 MA3B8 Complex Analysis
 MA390 Topics in Mathematical Biology,
 Various 400 level courses.

Books: There are a huge number of books that cover Vector and Complex Analysis at roughly the
right level for this course. Comments on a selection of books that are useful for this module will be
distributed at the first lecture and posted on the

http://www.warwick.ac.uk/MathStuff/2ndyear/MA231/>}Mathstuff\html website for this module.

Assessment: 2-hour examination (90%) and coursework (10%)

Lecturer: Bas Lemmens

MATHEMATICS MA240 12 CATS


Term 1 - 2 (6-10 & 1-5) Modelling Nature's Nonlinearity

Commitment: 30 one-hour lectures.

Prerequisite(s): This module leads on directly from MA132 Differential Equations. For those
students who took only MA113 Differential Equations A in their first year, you should still be able
to follow the module but are strongly encouraged to do some background reading. I will assume at
least a rudimentary memory of coupled linear differential equations and competence with linear
second order differential equations. A good book is James Robinson's ``An Introduction to
Ordinary Differential Equations''.

Content: This module is designed to be a gentle introduction to the area of non-linear dynamical
systems by way of its application to the ``Natural World''. Some quite deep ideas are introduced to
help explain or describe natural phenomena such as evolutionary theory, species diversity, weather
forecasting, animal locomotion and epidemics. The mathematics considered will cover the full
spectrum of nonlinear dynamical systems theory including game theory, nonlinear oscillations,
symmetry, sensitive dependence upon initial conditions (chaos) and (if time permits) fractals. In
many cases these ideas are introduced outside of a rigorous setting so that the beauty and power of
the techniques can be explored. There will be occasional reference to numerical solutions of some
problems, and some of the assessed work may require use of a computer, but no previous
experience (or love) of computing will be assumed.

Aims: To provide a general introduction to the many aspects of dynamical systems theory through
its application to the ``Natural World''.

Objectives: At the end of the module you should be familiar with the ideas of stable/unstable
equilibria and periodic orbits, strange attractors, Poincar maps, bifurcations, catastrophes,
nonlinear oscillations, chaos and fractals.

Leads to: Although not leading directly onto another course, this module should provide a useful
introduction/motivation/complement to MA235 Introduction to Mathematical Biology.

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SECOND YEAR

Books: There is no one textbook which adequately covers the whole module, but J.D. Murray,
Mathematical Biology is recommended for many aspects. Other suggestions will be made during
the course.

Lecture Notes: Printed lecture notes for the module will be available, but these should be seen to
complement the lectures rather than replace them since there will be additional material (including
examples) covered during lectures. This additional material will almost certainly form the basis of
a significant amount of the assessments.

Assessment: The module is 100% assessed, through two assessments and what has on many
previous years proved to be a popular mini project. Expect the assessments to be quite demanding,
and make sure that you understand the university rules on plagiarism. In previous years there have
been some harsh penalties imposed for breach of these regulations. Ignorance is not an excuse.

Lecturer: Dave Wood.

MATHEMATICS MA243 12 CATS


Term 1 Geometry

Commitment: 30 lectures plus weekly worksheets


Prerequisite(s): None, but an understanding of MA125 Introduction to Geometry will be helpful.

Content: Geometry is the attempt to understand and describe the world around us and all that is in
it; it is the central activity in many branches of math and physics, and offers a whole range of views
on the nature and meaning of the universe.
Klein's Erlangen program describes geometry as the study of properties invariant under a group of
transformations. Affine and projective geometries consider properties such as collinearity of points,
and the typical group is the full n x n square matrix group. Metric geometries, such as Euclidean
geometry and hyperbolic geometry (the non-Euclidean geometry of Gauss, Lobachevsky and
Bolyai) include the property of distance between two points, and the typical group is the group of
rigid motions (isometries or congruencies) of 3-space. The study of the group of motions throws
light on the chosen model of the world.
The module includes a diversity of topics, such as the rules of life and self-consistency of the non-
Euclidean world, symmetries of bodies both Euclidean and otherwise, tilings of Escher and the
regular solids, and the geometric rules of perspective in photography and art.

Aims: To introduce students to various interesting geometries via explicit examples; to emphasise
the importance of the algebraic concept of group in the geometric framework; to illustrate the
historical development of a mathematical subject by the discussion of parallelism.

Objectives: Students at the end of the module should be able to give a full analysis of Euclidean
geometry; discuss the geometry of the sphere and the hyperbolic plane; compare the different
geometries in terms of their metric properties, trigonometry and parallels; concentrate on the
abstract properties of lines and their incidence relation, leading to the idea of affine and projective
geometry.

Leads to: MA3D9 Geometry of Curves and Surfaces, MA4E0 Lie Groups, MA473 Reflection
Groups.

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SECOND YEAR

Books: M. Reid, Geometry and Topology, chapters of forthcoming textbook, available from
General Office. E G Rees, Notes on Geometry, Springer. HSM Coxeter, Introduction to Geometry,
John Wiley & Sons.

Assessment: The weekly worksheets carry 15% assessed credit; the remaining 85% credit by 2-
hour examination.

Lecturer: Diane Maclagan

MATHEMATICS MA244 12 CATS


Term 1 Analysis III

This module will be examined in the first week of Term 3


Commitment: 30 lectures.
Prerequisite(s): MA131 Analysis, MA106 Linear Algebra.
Content: This covers three topics: (1) integration, (2) convergence of sequences and series of
functions, (3) Norms.
The idea behind integration is to compute the area under a curve. The fundamental theorem of
calculus gives the precise relation between integration and differentiation. However, integration
involves taking a limit, and the deeper properties of integration require a precise and careful
analysis of this limiting process. This module proves that every continuous function can be
integrated, and proves the fundamental theorem of calculus. It also discusses how integration can
be applied to define some of the basic functions of analysis and to establish their fundamental
properties.
Many functions can be written as limits of sequences of simpler functions (or as sums of series):
thus a power series is a limit of polynomials. The second part of the module develops methods for
deciding when a function defined as the limit of a sequence of other functions is continuous,
differentiable, integrable, and for differentiating and integrating this limit. Norms are used at several
stages and finally applied to show that a Differential Equation has a solution.
Aims:
To develop a good working knowledge of the construction of the integral of regulated
functions;
to study the continuity, differentiability and integral of the limit of a uniformly convergent
sequence of functions;
to use the concept of norm in a vector space to discuss convergence and continuity there.
Objectives:
Understand the need for a rigorous theory of integration, and that this can be developed for
regulated functions by approximating the area under the graph by rectangles;
understand uniform and point wise convergence of functions together with properties of the
limit function;
be able to prove the main results of integration: any continuous function can be integrated
on a bounded interval and the Fundamental Theorem of Calculus;
prove and apply the Contraction Mapping Theorem.
Leads to: MA222 Metric Spaces, MA225 Differentiation, MA359 Measure Theory, MA3F4 Linear
Analysis and MA3G1 Theory of PDE's.

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Books: No book covers the module although the MathSoc Revision Guide is recommended. A list
of books to consult is given on Mathstuff.
Assessment: Two-hour examination (85%), assignments (15%).
Lecturer: Anthony Manning

MATHEMATICS MA246 6 CATS


Term 3 Number Theory

Status: Students may take this module in Years 1 and 2 only. It is NOT available as an
unusual option in Years 3 and 4.

Commitment: There are five workbooks for this course. Each contains notes, examples and
questions. Solutions to the questions are available on Mathstuff. You are expected to study the
workbooks on your own, or with the help of friends. The workbooks are self-contained, but you
may also wish to refer to the recommended texts. There will be a single organisational lecture at
the start of Term 3 (the only lecture for this module). Workbooks 1 - 4 will each be examined by a
50-minute test held once a week in the first half of Term 3. Arrangements for these tests and details
of a support forum will be announced at the lecture.

Prerequisite(s): MA132 Foundations, MA106 Linear Algebra; second year Algebra courses are also
useful in understanding the material. First-year students should be able to tackle the module if they
are prepared to do a little reading around some of the topics (and if they are convinced it will not
interfere unduly with their revision for other examinations).

Content:
Workbook 1 The arithmetic of congruence classes, solving linear congruences, the multiplicative
structure of (Euler's Theorem and Fermat's Little Theorem).

Workbook 2 Primitive roots and finite logarithms, Euler's phi-function, decimal representation of
rational numbers.

Workbook 3 The greatest integer function, de Polignac's formula, standard multiplicative functions,
perfect numbers and Mersenne primes, Mbius's function and inversion formula.

Workbook 4 Finite continued fractions and Euclid's algorithm, infinite continued fractions for
irrational numbers.

Workbook 5 Periodic continued fractions, Pell's equation.

Aims:
To introduce students to the delights of elementary number theory.
To encourage independent study through using specially-prepared workbooks which develop
abstract theory through sequences of concrete exercises, problems, and calculations.

Objectives:
To give students an easy facility with modular arithmetic, continued fractions, and the
elementary functions of number theory; in particular, to develop their ability to do serious
calculations with these objects.
To stress the role of problem-solving in developing mathematical understanding.

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SECOND YEAR

To stimulate the use of pocket calculators in investigative mathematics (but note that
calculators will not be needed and will not be allowed in the examination).
To provide an incentive for cooperative study.

Leads to: MA3D5 Galois Theory, MA426 Elliptic Curves.

Books:

Prices are from amazon.co.uk (2006) where available.

First Choice: Harry Davenport, The Higher Arithmetic, 7th Edn. (CUP, 1999), ISBN 0521634466,
20.69.

A Problems-Based Approach R.P. Burn, A Pathway into Number Theory (CUP, 2nd edition,
1997), ISBN 0521575400, 23.99.

Also Recommended: Joseph Silverman, A Friendly Introduction to Number Theory (Prentice-Hall,


2nd edition, 2001), ISBN 0130309540, 40.99.

Also Recommended: James J. Tattersall, Elementary Number Theory in Nine Chapters (CUP,
1999), ISBN 0521585317, 5.99 + postage.

The Classic: G.H.Hardy & E.M.Wright, An Introduction to the Theory of Numbers (OUP, 1980),
ISBN 0198531710, 30.40.

A Number Theorist's World View: G.H.Hardy, A Mathematician's Apology (CUP, 1992), ISBN
0521427061, 11.99.

Assessment: Four weekly tests plus a 90-minute final examination. Your combined score for the
tests, which will be calculated from your best 3 results out of 4, contributes 25% to your module
mark. The final examination makes up the remaining 75% of the module credit.

Lecturer: Trevor Hawkes

MATHEMATICS MA249 12 CATS


Term 2 Algebra II: Groups and Rings

Commitment: 30 lectures.

Prerequisite(s): First year MA132 Foundations, MA106 Linear Algebra, and MA242 Algebra I

Content: This is an introductory abstract algebra module. Abstract algebra is a bit like solfeggio.
The latter is an abstract language that is served to preserve and communicate beautiful music. The
former is an abstract language to preserve and communicate beautiful mathematics, and both
require an essential mental effort to learn.

As the title suggests, the two main objects of the study are groups and rings. You already know that
a group is a set with one binary operation. But you have also seen examples of rings which are sets
with two binary operations. The most notable example is the set of integers with addition and

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SECOND YEAR

multiplication. We will develop the theories of groups and rings. Theorems discussed include the
Orbit-Stabiliser Theorem, the Chinese Remainder Theorem, and Gauss' theorem on unique
factorisation in polynomial rings. We will also enjoy some beautiful mathematics by seeing
examples and applications such as RSA, game 15 and, maybe, the discrete Fourier transform.

Aims: To study abstract algebraic, their examples and applications.

Objectives: By the end of the module the student should know several results about groups and
rings as well as be able to manipulate with them.

Leads to: The results of this module are used in several modules including: MA377 Rings and
Modules, MA453 Lie Algebras, MA362 Non-commutative Rings, MA3D5 Galois Theory, MA3E1
Group and Representations and MA3G0 Modern Control Theory

Books: This is a new module, so a printed study guide will be available from the general office
toward the end of the Spring term.

The study guide will be updated during the term and will be available online at

www.maths.warwick.ac.uk/~rumynin

The only recommended book is:


Niels Lauritzen, Concrete Abstract Algebra, Cambridge University Press.
You should seriously consider buying it for a number of reasons including:

it is relatively cheap: 22 for the paperback on Amazon or 6 on the Amazon marketplace;


it will be the only book I will use to prepare lectures (disclaimer: I can use my head, so not
everything in the course will be in the book);
it will be used as a source of exercises.

Assessment: Three example sheets will be assessed and are worth 5% each. Optional support
classes are available. The two-hour examination in June is worth 85%.

Lecturer: Dmitriy Rumynin.

MATHEMATICS MA250 12 CATS


Term 2 PDE

Commitment: 30 lectures.

Prerequisite(s): MA131 Analysis, MA244 Analysis III, MA113 Differential Equations, MA231
Vector Analysis.

Content: The theory of partial differential equations (PDE) is important both in pure and applied
mathematics. On the one hand they are used to mathematically formulate many phenomena from
the natural sciences (electromagnetism, Maxwell's equations) or social sciences (financial markets,
Black-Scholes model). On the other hand since the pioneering works on surfaces and manifolds by
Gauss and Riemann partial differential equations have been at the centre of many important
mathematical developments (geometry, Poincar-conjecture).

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SECOND YEAR

In this module I will classify the most important equations and discuss the qualitative behaviour of
the solutions. I will develop several approaches to construct solutions: Method of characteristics,
Green's functions and Fourier series to solve the classical equations

1. Laplace equation (elliptic),


2. Heat equation (parabolic),
3. Wave equation (hyperbolic).

The module will build upon the Analysis courses, Vector Analysis and Differential Equations. In
particular different notions of convergence of a sequence of functions will be discussed, and an
introduction to the theory of Fourier-series will be given.

Aims: To introduce the basic phenomenology of partial differential equations and their solutions.
To construct solutions using classical methods.

Objectives: At the end of the course you will be able to classify partial differential equations and
know which types of boundary conditions can be used. You will understand that the solutions of
PDEs depend in a very sensitive way on the type of the equation and you will be able to solve the
most important equations.

Leads to: MA3G1 Theory of Partial Differential Equations, MA4A2 Advanced PDEs, MA4A7
Quantum Mechanics of Atoms and Molecules, MA433 Fourier Analysis and MA592 Topics in
PDE.
Books: W. Strauss Partial Differential Equations. An introduction. John Wiley (1992).
M. Renardy and R.C. Rogers, An introduction to partial differential equations, Springer TAM 13
(2004).
Assessment: 2 hour exam.
Lecturer: Jose Luis Rodrigo

MATHEMATICS MA251 12 CATS


Term 1 Algebra 1: Advanced Linear Algebra

Commitment: 30 one-hour lectures plus six assignments


Prerequisite(s): MA132 Foundations and MA106 Linear Algebra.
This module will be examined in the first week of Term 3.
Content: This module is a continuation of First Year Linear Algebra. In that course we studied
conditions under which a matrix is similar to a diagonal matrix, but we did not develop methods for
testing whether two general matrices are similar. Our first aim is to fill this gap for matrices over
C. Not all matrices are similar to a diagonal matrix, but they are all similar to one in Jordan
canonical form; that is, to a matrix which is almost diagonal, but may have some entries equal to 1
on the superdiagonal.
We next study quadratic forms. A quadratic form is a homogeneous quadratic expression ay xi xj
in several variables. Quadratic forms occur in geometry as the equation of a quadratic cone, or as
the leading term of the equation of a plane conic or a quadric hypersurface. By a change of
coordinates, we can always write q(x) in the diagonal form ai xi 2. For a quadratic form over R, the
number of positive or negative diagonal coefficients ai is an invariant of the quadratic form which is
very important in applications.
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SECOND YEAR

Finally, we study matrices over the integers Z, and investigate what happens when we restrict
methods of linear algebra, such as elementary row and column operations, to operations over Z.
This leads, perhaps unexpectedly, to a complete classification of finitely generated abelian groups.
Aims: To develop further and to continue the study of linear algebra, which was begun in Year 1.
To point out and briefly discuss applications of the techniques developed to other branches of
mathematics, physics, etc.

Objectives: By the end of the module students should be familiar with: the theory and computation
of the Jordan canonical form of matrices and linear maps; bilinear forms, quadratic forms, and
choosing canonical bases for these; the theory and computation of the Smith normal form for
matrices over the integers, and its application to finitely generated abelian groups.
Leads to: third year algebra modules, such as MA3D5 Galois Theory, MA377 Rings and modules.
Some of the theory is also needed in MA371 Qualitative Theory of ODEs.
Books: P M Cohn, Algebra, Vol. 1, Wiley.
I N Herstein, Topics in Algebra, Wiley.
Neither is essential, but are a good idea if you are intending to study further algebra modules.
Assessment: Assignments 15%, two-hour examination 85% (usually first week April).
Lecturer: Derek Holt

STATISTICS ST202 12 CATS


Term 1 Stochastic Processes
Prerequisite(s): ST111 Probability A & B and MA131 Analysis

Note: From 2011/12 ST111/112 Probability A & B (Non-Statistics students)


ST115 Introduction to Probability (Statistics Students)
Content: Loosely speaking, a stochastic or random process is something which develops randomly
in time. Only the simplest models will be considered in this course, namely those where the process
moves by a sequence of jumps in discrete time steps. We will discuss: Markov chains, which use
the idea of conditional probability to provide a flexible and widely applicable family of random
processes; random walks, which serve as fundamental building blocks for constructing other
processes as well as being important in their own right; and renewal theory, which studies processes
which occasionally begin all over again. Such processes are common tools in economics,
biology, psychology and operations research, so they are very useful as well as attractive and
interesting theories.

Aims: To introduce the idea of a stochastic process, and to show how simple probability and matrix
theory can be used to build this notion into a beautiful and useful piece of applied mathematics.
Objectives: At the end of the course students will:
understand the notion of a Markov chain, and how simple ideas of conditional probability and
matrices can be used to give a thorough and effective account of discrete-time Markov chains;
understand notions of long-time behaviour including transience, recurrence, and equilibrium;
be able to apply these ideas to answer basic questions in several applied situations including
genetics, branching processes and random walks.
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SECOND YEAR

Leads to: ST333 Applied Stochastic Processes.


Assessment: 95% by examination, 5% by coursework.
Lecturer: Christina Goldschmidt

STATISTICS ST208 12 CATS


Term 1 Mathematical Methods

Prerequisite(s): MA106 Linear Algebra, MA131 Analysis, ST108 Applications of Algebra and
Analysis

Aims: This is a course of techniques which are in everyday use in probability and statistics, and
which are essential to a proper understanding of any second or third year course in these subjects. It
will provide the mathematical background for optimization, convergence, regression and best
approximation and to develop mathematical thinking.

Objectives: At the end of the course students will be familiar with and be able to apply the
following concepts and techniques:

a) multivariate calculus; multiple integration, calculation of volumes, under surfaces; change of


variable formule and Fubinis Theorem; partial derivatives, critical points and extrema;
constrained optimization;
b) eigenvalues/eigenvectors; diagonalisation and Jordan normal form; characteristic
polynormals; constant co-efficient differential equations; orthogonal bases and
orthonormalisation; generalised Fourier co-efficients; quadratic forms; projections; Spectral
Decomposition Theorem;
c) metrics; open, closed and compact sets; convergence and continuity in metric spaces.

Books: Anton & Rorres, Elementary linear Algebra, Sutherland, An Introduction to Metric
Spaces, Finney and Thomas, Calculus.

Assessment: 80% by examination, 20% by coursework.

Lecturer: Heather Humphries

STATISTICS ST213 12 CATS


Term 2 Mathematics of Random Events

Imagine picking a real number x between 0 and 1 at random and with perfect accuracy, so that the
probability that this number belongs to any interval within [0,1] is equal to the length of the
interval. Can we compute the probability of x belonging to any subset to [0,1]?

To answer this question rigorously we need to develop a mathematical framework in which we can
model the notion of picking a real number at random. The mathematics we need, called measure
theory, permeates through much of modern mathematics, probability and statistics. The aim of the
module is to provide an introduction to this theory, concentrating on examples and applications.

Objectives: By the end of the course students will be able to:


Use and understand the language of measure theory and probability.
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SECOND YEAR

Compute the probabilities of complicated events using countable additivity.


Understand the proper formulation of the notion of statistical independence.
Understand the basic theory of integration, particularly as applied to expectation of random
variables, and be able to compute expectations from first principles in simple cases.
Understand and identify convergence in probability and almost sure convergence of sequences
of random variables, and use and justify convergence in the computation of integrals and
expectations.

Prerequisite(s): ST111 Probability A and MA131 Analysis.

Leads to: ST318 Probability Theory, MA359 Measure Theory.

Books: Williams, Probability with Martingales, C.U.P.


Pfeiffer, Concepts of Probability theory
Jacod and Protter, Probability Essentials

Assessment: 100% by 2 hour examination.

Lecturer: Sigurd Assing

STATISTICS ST215 12 CATS


Term 2 Forecasting and Control

Prerequisite(s): ST217 Mathematical Statistics A & B, ST113 Statistical Computing.

Only available to students in the Department of Statistics.

Commitment: 3 lectures per week supplemented by practical classes.

Content: An introduction to the theory and application of linear regression. Introduction to time
series forecasting: moving averages and exponentially weighted regression.

Aims: To introduce the ideas of linear regression, model diagnostics, model building and time
series forecasting.

Objectives: At the end of the course, students will be familiar with:


the use of the language S to do a simple regression;
the idea of interactively building a statistical model by using graphs and model diagnostics;
the ideas of trend and seasonality in time series.

Leads to: ST404 Applied Statistical Modelling. Nearly all project work in the statistics department
(apart from theoretical projects) will require the use of the language S. Knowledge of the language
S is required for the third year of MMORSE.

Assessment: 100% by course work. There will be two assessments. The first deadline will be near
the end of the Spring Term. The second deadline will allow time for students to complete the
assessment during the first 2-3 weeks of the summer term.

Lecturer: Robin Reed

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SECOND YEAR

STATISTICS ST217 12 CATS


Term 1 Mathematical Statistics A (of a 24 CATS module)
Prerequisite(s): ST111 Probability A and ST112 Probability B.

Note: From 2011/12 ST115 Introduction to Probability (Statistics Students)

Commitment: 3 lectures/week; 1 tutorial per fortnight will be offered. It is essential for students to
prepare for and attend these tutorials as they form an important part of the learning process.

Students who do not make full use of the tutorials do not perform as well in the exam.

Content: ST217 is a key course for all students wishing to study statistics beyond the introductory
level, and a prerequisite for all further statistics and econometrics courses.

The course develops the main ideas of mathematical statistics, with an emphasis on probabilistic
inference and the basic concept of likelihood. Topics include empirical probability models, random
variables and expectations, the Central Limit Theorem and applications, parametric statistical
models and graphical methods, likelihood functions, estimation and asymptotic distributions,
hypothesis testing and confidence intervals.

ST217A is strongly recommended also to students wishing to take operational research courses,
quantitative business courses and any courses involving uncertainty, whether concerned with data
analysis, forecasting, finance, system modelling, marketing, quality management or decision
making. It is essential for students who wish to become actuaries and highly recommended to those
who wish to gain exemption from professional accountancy statistical examinations.

Aims: To introduce the main ideas of mathematical statistics and how they are used in practical
applications.

Objectives: To understand the concept of a statistical model. To understand, use and interpret the
statistical methods discussed in the course.

Leads to: ST217 Mathematical Statistics B, ST215 Forecasting and Control, ST301 Bayesian
Statistics and Decision Theory, ST304 Time Series and Forecasting, ST305 Designed Experiments,
ST323 Multivariate Statistics, ST404 Applied Statistical Modelling, ST329 Topics in Statistics,
ST332 Medical Statistics, ST337 Bayesian Forecasting and intervention, ST405 Bayesian
Forecasting and Intervention with Advanced Topics, ST414 Advanced Topics in Statistics, and all
ST3** and ST4** modules which cover the actuarial syllabus. IB320 Simulation, IB321
Forecasting, EC3xx Econometrics courses, Post graduate MSc in Financial Mathematics, Institute
of Actuaries paper CT3 (see Introduction).

Books: For both ST217A and B: G. Casella & R.L. Berger, Statistical Inference, 2nd Ed.
Duxbury. Also useful: D.S. Moore & G.P. McCabe, Introduction to the Practice of Statistics, 4th
Ed., 2002, Palgrave. M.H.DeGroot, M.J.Schervish, Probability and Statistics, 3rd Ed., 2002,
Addison-Wesley.
Assessment: 100% by examination in January (Week 1 of Term 2).

Lecturer: Anastasia Papavasiliou

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SECOND YEAR

STATISTICS ST217 12 CATS


Term 2 Mathematical Statistics B (of a 24 CAT module)

Prerequisite(s): ST217 Mathematical Statistics A .

Commitment: 3 lectures/week; 1 tutorial per fortnight will be offered. It is essential for students to
attend these tutorials as they form an important part of the learning process.

Students who do not attend the tutorials do not perform as well in the exam.

Content: This course builds on Mathematical Statistics A to study the interrelationships between
unknown quantities, enabling better predictions and decisions. The main topics covered are:
Bivariate and multivariate distributions, conditional expectations, the multivariate normal
distribution, statistical concepts and techniques for multi-parameter models, the linear statistical
model, inference for model parameters, residuals and the analysis of variance.

Aims: To review, expand and apply the ideas from ST217A (Mathematical Statistics A). In
particular to analyse interrelationships between unknowns such as random variables, rather than just
one unknown at a time.

Objectives: After completing this course, students should be able to do the following:
Quote and prove important simple results such as properties of conditional expectations and
variances, least squares estimates, and others related to the syllabus
Know and understand more advanced results such as asymptotic properties of likelihood ratios,
and some simple formulae appearing in multiple regression and analysis of variance
Apply their knowledge to derive estimators, hypothesis tests etc. in unfamiliar situations
Apply theoretical results when analysing data, and discuss the results obtained.

Books: G. Casella & R.L. Berger, Statistical Inference, 2nd Ed., Duxbury. M.H.DeGroot,
M.J.Schervish, Probability and Statistics, 3rd Ed., 2002, Addison-Wesley. D.S. Moore & G.P.
McCabe, Introduction to the Practice of Statistics, 2nd Ed., W.H. Freeman.

Leads to: ST305 Designed Experiments, ST323 Multivariate Statistics, ST404 Applied Statistical
Modelling, ST329 Topics in Statistics, ST332 Medical Statistics, ST337 Bayesian Forecasting and
intervention, ST405 Bayesian Forecasting and Intervention with Advanced Topics, ST414
Advanced Topics in Statistics and all ST3** and ST4** modules which cover the actuarial syllabus.
IB320 Simulation, IB321 Forecasting, EC306 Econometrics 2, other Econometrics courses, and
Institute of Actuaries paper CT3 (see Introduction).

Assessment: 100% by examination in June

Lecturer: Barbel Finkenstadt

Students should be aware that it is possible that ST217A & B can lead to an actuarial
exemption if a combined mark of 60 is obtained.

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FINAL YEARS

Modules are listed in alphabetical order

ECONOMICS EC301 15 or 30 CATS


Terms 1 & 2 Mathematical Economics 2
Module leader: Pablo Becker
Commitment: 2 50minute lectures per week for first 7 weeks of each term
2 50minute seminars per week for final 3 weeks of each term
Assessment: 30 CATS: Two mid-term tests (22.5% each) AND 2 hour final exam (50%)
15 CATS: One mid-term test (45%) AND 1 hour final exam (50%)
5% seminar weighting.

Academic aims: The module aims to introduce advanced topics in mathematical economics
and applied game theory. The treatment builds on the foundation established
in EC220. Topics covered vary from year to year with staff availability and
student interest. They are likely to include some or all of variants and
refinements of Nash equilibrium (Bayesian, sequential, correlated, perfect,
etc equilibria); reputations; auction theory; mechanism design; principal-
agent theory; games on networks; evolutionary game theory; and cooperative
game theory (core and Shapley values). A major objective of this module is
advancement of the logical reasoning abilities of the students through
learning to recognise strategic aspects of economic problems, formulating
appropriately simplified game-theoretic models, and solving these models
using appropriate techniques. In the mechanism design and auction portions
of the module, students will learn how to design games to overcome
information and incentive obstacles to desirable outcomes and how to
interpret constructively the nature and evolution of social and economic
institutions. During the seminar portion, students will be expected to read
and critically discuss basic papers relating to the chosen topic.
Learning By the end of the module students will have an appreciation of the use and
objectives: limitations of formal mathematical approaches to economic theory and
applications and be familiar with the main results and open questions in the
chosen areas. The seminar portion will strengthen skills in team working, the
absorption and analysis of peer reviewed literature, conveying and
interpreting this material to a critical audience and leading discussions
around a technical topic. The project (for those students completing it) will
teach them how to select a research area, review the relevant literature,
design a research or review question and carry out and write up the results in
a way that meets academic standards of style, scholarship, clarity and rigour.
Learning The module proceeds through lecturerbased overviews of theoretical material,
methods: backed up by student reading. Active inclass discussion is encouraged. The
best way to prepare is to read the text in advance attend lectures (and ask
questions) in addition to working exercises. During the seminars, groups of
students present material based on suggested readings. These presentations
can be synthetic (summarising the literature as regards a specific issue) or
critical (developing a critical analysis of a seminal paper in light of
subsequent research or a recent paper in light of related or prior work).
Presenters are expected to lead a discussion rather than deliver a lecture.
Success in the module consists in being able to interpret economic problems
in gametheoretic terms, solve specific noncooperative games of
incomplete information using appropriate solution concepts and design
games to solve specific implementation problems. The best preparation is
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FINAL YEARS

solving problems.

Students will be assessed by a combination of examination and coursework that


requires them to demonstrate understanding of the mathematical models and
analytic techniques, the applied issues (where relevant), and the contribution
theory can make to practical problems.

Seminar participation is mandatory and counts for 5% of the overall mark.


For students taking both halves of the module the assessed essay (project)
can comprise two 2000-word essays (one for each part of the module) or a
single 5000-word project (by agreement with the instructors). Topics must
be approved in advance.

For students taking one half of the module the assessed essay (project)
component comprises a 2000-word essay.

The coursework component consists of mandatory seminar participation


(5%) and either a problem set or an original. A problem set can be
substituted for either of the 2000 word essays.
Syllabus: The topics covered change from year to year. The academic year 2005/2006 topics were:
Term 1:
Topics on incomplete information games (Refinements of Bayesian equilibrium: sequential,
perfect Bayesian, intuitive and divine equilibria especially in signalling and agency games).
Auction theory and practice
Cooperative games (Bargaining, core and Shapley value, applications)
Seminar presentations (Auctions, Evolutionary games; Intellectual property rights, Network
economics, Political games, Trust)

Term 2:
Normal Form (Static Games) and Extensive Form games and Nash equilibria: Recap.
Weaker (than Nash) Solution Concepts : Iterated Elimination of strictly/weakly dominated
strategies, Rationalisability, Correlated Equilibria.
Refinements of Nash equilibrium: Subgame Perfect Equilibria, Trembling hand perfection,
proper equilibria.
Critique of Equilibrium Theory and Evolutionary Game Theory.
Links with Nash equilibria and refinements.
Dynamic Games.
Markov Perfect Equilibrium.
Adverse Selection and Moral Hazard: Incentives Theory.
Seminar presentations

Illustrative reading:
Introductory:
R. Gibbons, A Primer in Game Theory, Prentice Hall
A. Mas-Collell, M. Whinston and J. Green, Microeconomic Theory, OUP
K. Binmore, Fun and Games, Houghton Mifflin
G. Romp, Game Theory, C. D. Aliprantis, S. K. Chakrabarti, Games and Decision Making, OUP,
M. Osborne, An Introduction to Game Theory, OUP
Advanced: D. Fudenberg and J. Tirole, Game Theory, MIT Press 1994

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FINAL YEARS

M. Osborne and A. Rubinstein, A Course in Game Theory, MIT Press


R. Myerson, Game Theory, Harvard Press

ECONOMICS EC306 30 CATS


Terms 1 & 2 Econometrics 2

Module leader: Gianna Boero


Teaching format: Two 1hour lectures per week for 20 weeks, and 3 exercise classes a
term.
Assessment methods: Two assessments (20%) AND 3hour examination (80%).
Academic aims: The module will equip the student with the ability to undertake,
understand, and critically assess empirical work in economics, with a
view to enabling the student to use econometrics to catalogue and
describe empirical regularities and test various propositions.
Learning objectives: By the end of the module students will have learnt how to carry out
empirical analyses using different types of economics data (panel, limited
dependent variable, time series); how to interpret the results of such
analyses; and will have acquired an ability to critically assess empirical
papers.
Learning methods: The first term teaches students how to analyze models for discrete,
censored and truncated dependent variables where the range of the
dependent variable is restricted in some way. The last part of the term
focuses on the use of panel data. Matrix notation will be used for models
where necessary. The second term focuses on techniques for the
econometric analysis of economic and financial time series, covering
issues related to non-stationarity, cointegration and time varying
conditional volatility.
Understanding the material is of paramount importance, and the best way
of doing that is by attempting the class exercises before the classes take
place. You should follow the reading associated with each lecture to
remain on top of the material, and to deepen and widen your knowledge.
Students will be assessed by a combination of examination and
coursework in which they will be required to demonstrate understanding
of the key concepts and acquired analytical skills, and the ability to
comment critically on empirical regression results.
Syllabus: The first term of the course covers Maximum Likelihood estimation and
specification tests, models with limited dependent variable models, and
models based on panel data. The second term focuses on some issues and
recent developments in the area of time series econometrics. This part of
the module deals with issues related to non-stationarity and testing for unit
roots; cointegration in single equations and in multivariate systems;
error-correction models; vector autoregressive models (VARs);
modelling and forecasting financial time series; ARCH and GARCH
models.
Knowledge of the contents of Econometrics I (EC226) or an equivalent
module is assumed.

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FINAL YEARS

Illustrative reading: Verbeek, M., A Guide to Modern Econometrics, Wiley, 2000.


Johnston, J and DiNardo, J (1997), Econometric Methods, 4th edn.
An additional useful reference for Term 2 is:
Harris, R. D. and Sollis R., Applied time series modelling and
forecasting, Wiley, 2003.

ECONOMICS EC312 30 CATS


Terms 1 & 2 International Economics

Module leader: Natalie Chen


Teaching format: 50 lectures/classes in the first two terms
Assessment methods: 2 assessed essays (20%) and 3-hour examination (80%)
Syllabus: The first term covers international macroeconomic theory and recent
policy issues. The module examines national income accounting in an
open economy and in particular the balance of payments, models of the
inter-temporal approach to the current account, the foreign exchange
market and the interaction between price levels and exchange rates in the
long-run. Models of exchange rate determination with flexible prices
(Monetary Model), fixed prices (Mundell-Fleming Model) and sticky
prices (Overshooting Model) are also developed. We also examine in
more detail the empirical literature on Purchasing Power Parity and on
the analysis of trade flows (using the gravity equation framework) at the
macroeconomic level.
The second term focuses on the theory of international trade and trade
policy. After a brief overview of world trade and its phenomenal growth
in recent decades, we develop the classic models of trade theory and use
them to address policy issues. The Ricardian theory of comparative
advantage shows how a country may gain from trade. The Heckscher-
Ohlin model allows us to understand the effect of international trade on
income distribution. More recent trade models incorporate economies of
scale, imperfect competition and product differentiation. We also
consider the economic rationale behind labour migration and foreign
direct investment by multinational corporations. Then the module turns
to issues of trade policy. We analyse the economic effects of tarrifs,
antidumping duties and import quotas, combining the discussion with
case studies, for example the Common Agricultural Policy of the
European Union. We also examine why globalisation has been so
controversial and how environmental and labour standards enter the
debate. Finally, we try to explain why countries join international trade
agreements and how the World Trade Organisation (WTO) settles
international trade disputes.
Illustrative Reading: Copeland, L.S. (2008), Exchange Rates and International Finance, 5th
edition, Pearson Education.
Krugman, P.R. and Obstfeld, M. (2008), International Economics: Theory
and Policy, 8th edition, Addison-Wesley.
Feenstra, R.C. (2004), Advanced International Trade: Theory and
Evidence, Princeton University Press

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ECONOMICS EC314 15 CATS


Term 1 Topics in Economic Theory

Module leader: Sushama Murty


Teaching format: Two lectures per week for 10 weeks.
Assessment One 2000word essay relating to that terms material (20%) AND 1.5Hour
methods: final exam (80%).
Academic aims: The module aims to introduce students to several related areas of active
application of economic theory. The topics covered vary from year to year, but
in recent years have concentrated on social choice and mechanism design, with
the ultimate aim of bringing economic theory to bear on social problems and
economic and policy mechanisms to address them.
Learning The objective of the course is to give you an appreciation of the use, but also the
objectives: limitations, of economic theory and its methods in understanding the chosen
topics and analysing important social and economic problems.
Learning The course proceeds through lecturerbased overviews of theoretical material
methods: backed by student reading. Active inclass discussion and input to topic choice
is encouraged. Students will be assessed by a combination of examination and
coursework that requires them to demonstrate understanding of theoretical
constructs, realworld issues and the contribution each can make to the other.

Syllabus:
Topic 1: Welfare Economics, Social Choice and Cost-Benefit Analysis

Positive economics tries to understand how the economy functions; what will happen if policy A is
employed as opposed to policy B. Supposing that we understand what our choices are as well as
their consequences, society needs to choose among its many options. This is the role of normative
economics---to guide our thinking about how and why to make such choices. For example, there is
some probability that the green-house effect will impact disastrously future generations. How much
should current generations give up for certain to limit the possible damage to future ones? Given a
certain amount of foreign aid to a developing region how much should be used for current
consumption and how much for population control so that there will be fewer people to feed in the
future with possibly better lives. How much should be invested in highway safety to save just one
more life? More mundanely, was the policy that the brewers sell off large numbers of managed
and/or owned pubs a good one? Traditional welfare economics takes the possible states of the
economy as given and asks how one is to choose among them. Many possibilities will be
considered beginning with the rejection of utilitarianism in the 30s and the various compensation
tests that were proposed to replace it, most importantly the Boadway paradox. The failure of these
compensation tests leads naturally to the study of Bergson-Samuelson social welfare functions to
make choices among the many alternatives available. This part of the course entails understanding
the first and second theorems of welfare economics and more generally the notion of Pareto
efficiency. What is the origin of these social welfare functions? That is the question that is central
to social choice theory. Here we study Arrow's impossibility theorem and the possibilities that arise
when intra-personal comparisons of utility are permitted. This part of the course requires the
understanding of a limited amount of symbolic logic which will be presented in the lectures.
Although social choice theory may tell us how to make choices, for the most part, economists rely
upon the tools of cost-benefit analysis. We will study these tools in order understand the ethics that
are implicit in their use. More specifically we will show that when cost-benefit studies are
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internally consistent they are simply implementing a specific social welfare function without having
explicitly admitted such an ethical choice.

Topic 2: Law and Economics

This part of the module discusses the economic approach to law. There are various topics covered
under this heading, as the standard texts by Shavell, Katz and Cooter & Ulen discuss. The
treatment here will be much less comprehensive and will develop three points of view. The first is
the idea of mechanism design - in this view, legal structures constitute the 'rules of the game' for
economic (or other rational) agents in society. The second is the game theoretic perspective,
according to which the analysis of behaviour within legal and economic institutions can be
understood by considering individuals' strategic interactions, taking account of their motivations
(payoffs or incentives), powers of action (strategies) and information. The third is contractarian
and considers the creation of legal institutions as a conscious activity of individuals. In this view,
one can consider contract, civil and criminal law as follows: contract refers to the 'private law'
created between contracting parties, civil law refers to the implicit social contract that binds people
not to injure each other and criminal law refers to the explicit contract to which all citizens are
bound. The lectures will not deal with criminal law.

Topic 3: Duality Theory in Microeconomics and some Applications

This part of the module covers modern duality theory in microeconomics and some of its numerous
applications. In conventional microeconomic theory, the primitives of economic agents (such as the
consumers preferences or the producers technologies) are defined over the primal space of the
quantities of commodities. Economic agents are assumed to possess optimising natures (e.g.,
consumers are assumed to maximise utility or minimise expenditure and producers are often
assumed to maximise profits or minimise production costs). An axiomatic approach is then adopted
to derive certain regular features about the behaviour of economic agents (e.g., the law of demand
in the theory of the consumer and the upward sloping supply curve in the theory of the firm).
However, conducting these analyses in the primal space of quantities is computationally very
demanding and tedious. Also, it may be less tractable for empirical purposes.

The basic premise of modern duality theory is the optimising behaviour of economic agents. Under
certain conditions, this behaviour induces a nexus between the primal variables (such as the
quantities demanded by the consumers and the quantities supplied by the firms) and the dual
variables (such as the prices of commodities and consumer incomes.) This makes possible an
equivalent representation of the primitives of economic agents (e.g., the consumers preferences and
the producers technologies) in the space of the dual variables. This proves to be extremely
convenient when we exploit a very powerful result called the envelope theorem. By applying this
result, we can derive effortlessly (by simply taking a few derivatives of appropriate functions) (i)
many economic variables of interests (e.g., the consumer demands, the producer supplies, indicators
of consumer welfare, etc.) and (ii) the laws governing the way they respond to changes in other
economic variables (e.g., changes in prices, consumer incomes, governments tax policies, etc.)

Because of its simplicity, elegance, and intuitive appeal, modern duality theory has become a
powerful tool of analyses in both theoretical and empirical works. It has widespread applications in
all fields of economics. The applications that we will study may include those in (i) public
economics (such as the theory of optimal taxation in second best worlds), (ii) the index number
theory, (iii) the measurement of technical efficiency, growth, and productivity of firms, (iv)
defining and deriving the correct notion of the elasticity of substitution in production, etc.

Illustrative In view of the eclectic nature of the course and the heavy emphasis on
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reading: studentled learning, there are no set texts or reading for this course.
Lecturers will supply lists of suggested reading to accompany their
material.

ECONOMICS EC333 15CATS


Terms 1 Topics in Financial Economics: of a 30 CAT module
Theories and International Finance

Module leader: Lei Zhang

CATS points: This module is available at 15 CATS.

Context: See your degree course regulations. Students who have taken IB215
(Principles of Finance) are not permitted to take this module.

This is an optional module for L100, L112, LV13, L1MD (Economics major
and Politics and International Studies major), GL11, V7ML, V7MA, V7MB,
V7MC and V7MD students.

Note: 2010/11 IB215 has been replaced by IB2530 Principles of Finance 1 and
IB2540 Principles of Finance 2

Teaching format: 2 lectures a week during the first two terms.

Assessment 1 assignment (20%) and one 1.5hour exam (80%)


methods:
Individual project: 5,000word report (80%)

Academic aims: The module aims to develop the general intellectual abilities in understanding
the roles of capital markets, corporate policy and governance, and the causes
for the financial crises. It also introduces the subject specific technical skills
in finance and financial policy for firms.

The aims of the module are:

To equip students with an understanding of fundamental concepts in modern


finance and corporate finance

To develop a range of appropriate analytical skills, including dynamic and


theoretic methods

To develop in students the capacity to apply analytical techniques to real


world problems

Learning By the end of the module students will have acquired basic understanding of
objectives: the roles of the capital markets, corporate financial policy and corporate
governance, how financial crises arise. They are also expected to demonstrate
subjectspecific technical skills in asset valuation and some simple game-

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theoretical models.

Learning methods: It is important to possess the textbook, attend lectures regularly from the start,
prepare for them as your tutor recommends, and follow the reading which is
associated with each lecture and topic. Provided that that you have already
worked hard and acquired the modules necessary analytical core, there is
some scope for selecting topics and specialising according to your personal
interests.

Students will be assessed by a combination of examination and coursework in


which they will be required to demonstrate acquired analytical skills and
historical and institutional knowledge.

Some of the material in EC333 will be presented using mathematical models.


Preparatory work in the following topics is recommended:

Basic probability theory: expectations, variances (standard deviations) for


finite (discrete), uniform and normal distributions, expected present value
computations. Because corporate finance involves uncertainty, simple
probability computations are used throughout.

Discounting and the computation of present values will also be used


extensively.

Simple constrained optimisation with two variables (Lagrangean approach)


will be used to analyse two good partial equilibrium models and optimal
contracts.

Basic linear first order difference and differential equations are applied in
EC333 to monetary models of exchange rate determination.

Other mathematical tools and concepts, (e.g. signalling games, agency games,
moral hazard, adverse selection) are used, but are developed within the
module in a self-contained way.

Syllabus: 1) Theory of Finance (weeks 1-5)

This part of the course introduces the basic theories of finance. The topics
cover:

a) Intertemporal consumption and portfolio selections;

(i) Consumption and Investment: a two period model

(ii) Portfolio Selection

b) Capital market equilibrium

(i) Capital Asset Pricing Model

(ii) Arbitrage pricing theory

c) Option pricing

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d) Efficient market hypothesis

e) Real Options

2) International Finance (weeks 6-10)

Current events, beginning in East Asia, with the collapse of the currencies of
the former Asian Tiger economies, and spreading round the world to
economies such as Russia and Brazil, have focussed attention on international
financial crises. This part of the module reviews models of international
financial crises and evaluates the extent to which they help us understand the
facts. The topics in this part include:

a) Background: determinants of a floating exchange rate under rational


expectations

b) First generation models of a speculative attack on a currency

c) Second generation models of a speculative attack on a currency

d) Towards the third generation models and East Asian financial crisis

(i) Bank run and liquidity crisis

(ii) Moral hazard and asset price bubbles

(iii) Moral hazard in financial institutions and bank regulation, sequencing of


financial liberalisation.

Illustrative Allen, F. and D. Gale (1994), Financial Innovation and Risk Sharing, MIT
reading: Press.

Allen, F. and D. Gale (2000) Comparing Financial Systems, MIT Press.

Brealey, R.A., S.C. Myers, and A.J. Marcus (1995), Fundamentals of


Corporate Finance, McGrawHill.

Chiang, A.C., and Wainwright, K. (2005), Fundamental Methods of


Mathematical Economics, 4th edition, McGraw-Hill.

Copeland, T.E., and F.J. Weston (1988), Financial Theory and Corporate
Policy, 3rd edition, AddisonWesley.

Cuthbertson, K. (1996), Quantitative Financial Economics, Stocks, Bonds and


Foreign Exchange, Wiley.

Obstfelt, M., and Rogoff, K. (1996), Foundations of International


Macroeconomics, MIT Press.

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ECONOMICS EC334 15CATS


Terms 2 Topics in Financial Economics: of a 30 CAT module
Corporate Finance and Markets

Module leader: Jonathan Cave

Context: See your degree course regulations. To take this module, you must have taken
either EC333 or IB215 (Principles of Finance) but not both. Be advised that
the module also has substantial mathematical content.

Note: 2010/11 IB215 has been replaced by IB2530 Principles of Finance 1 and
IB2540 Principles of Finance 2

Teaching format: 2 lectures a week during the Spring term.

Assessment 1 assignment (20%) and one 1.5hour exam (80%)


methods:

Academic aims: The module aims to develop the general intellectual abilities in understanding
the roles of capital markets, corporate policy and governance, and the causes
for the financial crises. It also introduces the subject specific technical skills
in finance and financial policy.

The aims of the module are:

To equip students with an understanding of fundamental concepts in modern


finance and corporate finance

To develop a range of appropriate analytical skills, including dynamic and


theoretic methods

To develop in students the capacity to apply analytical techniques to real


world problems

Learning By the end of the module students will have acquired basic understanding of
objectives: the roles of the capital markets, corporate financial policy and corporate
governance and the origin of financial crises. They are also expected to
demonstrate subjectspecific technical skills in project and firm valuation and
some simple game-theoretical models.

Learning methods: It is important to possess the textbook, attend lectures regularly from the start,
prepare for them as your tutor recommends, and follow the reading associated
with each lecture and topic. Provided that that you have already worked hard
and acquired the modules necessary analytical core, there is some scope for
selecting topics and specialising according to personal interests.

Students will be assessed by a combination of examination (80%) and course


work (20%) in which they will be required to demonstrate analytical skills and
historical and institutional knowledge. There are a number of seminars
primarily devoted to problem solving, though the examination offers some
choice between problem-based and essay questions.

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Syllabus: 1) Corporate finance and strategic corporate finance (weeks 11-12)

a) Background: firm objectives and financial policy tools, incentives and


selection, governance issues

b) Efficient markets, corporate finance and investment under uncertainty,


capital structure and Modigliani-Miller (with taxes and bankruptcy risk)

c) The Firm as a network of contracts

(ii) Debt holders vs. entrepreneurs (moral hazard problem also arises
between equity holders and managers)

(iii) Debt overhang

d) Equity holders vs. managers

(i) Incentive effects of debt

(ii) Incentive effects of dividend policy

(iii) Incentive effects of executive comparison

(iv) Debt as optimal contract

2) Incomplete contracts / markets approach and signalling (weeks 13-14)

a) Not asymmetry but verifiability of information

(i) Modigliani-Miller with incomplete markets

(ii) Hold-up

(iii) Renegotiation

b) Signalling

(i) IPOs

(ii) Dividends, leverage

(iii) Share purchase, takeover battles, going private

3) Corporate governance and control (weeks 15-18)

a) Introduction

b) Executive compensation and optimal contracting

c) Managerial independence

d) Competition among firms

e) Empirical evidence

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f) Mergers and acquisitions

4) Topics (weeks 19-20)

a) Accountability the Sarbanes-Oxley Act and related issues

b) Making lemonade from lemons hedge funds and private equity

Illustrative Basic text:


reading:
Copeland, Thomas E. and Fred Weston (1998), Financial Theory and
Corporate Policy, 3rd edition, Addison-Wesley. Part 1

Other books:

Kolb, Robert W. (1998), Principles of Finance, Scott, Foresman and


Company.

Cox, John C. and Mark Rubinstein (1995), Option Markets, Prentice-Hall.

Dixit, Avinash K. and Robert S. Pindyck (1994), Investment under


Uncertainty, Princeton.

BUSINESS SCHOOL IB2530 12 CATS


Term 1 Principles of Finance 1

Tutor Responsible:

TBA

Academic Rationale:
The module aims to:

1. Introduce students to the workings of the equity and bond markets.


2. Equip students with the skills and understanding to use quantitative tools for pricing stocks
and bonds.
3. Develop in students a critical understanding of the trade-off between risk and return, and of
techniques for exploiting that trade-off to maximum effect.
4. Make students aware of key empirical tests of asset-pricing models and of market efficiency,
and the implications of those empirical findings.
5. Provide students with structured opportunities to practise using the key tools and techniques
of Financial Markets theory.
6. Prepare students for advanced undergraduate and postgraduate studies in Finance.

Objectives:
By the end of the module, students should be able to:

Describe how the equity and bond markets function, and their importance to both individual
investors and institutions.
use discounted cash-flow techniques to value stocks and bonds, and spreadsheets to test how
robust those values are to changes in key inputs.
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explain how risk can be diversified by forming portfolios of assets, and how to construct an
optimum portfolio of risky assets.
critically assess both theoretical and empirical relationships between risk and return.
formulate different hypotheses for the term structure of interest rates.
calculate spot and forward rates of interest from observed prices of calibration bonds, and
use those rates to price other bonds and identify arbitrage opportunities.
define the different forms of market efficiency, and interpret the results of key tests of the
Efficient Markets Hypothesis.
write informed critiques of key issues in asset valuation and empirical testing of asset-
valuation models.
analyse brief case-studies and construct arguments to support a particular solution.
use web-based resources to find and retrieve financial-market data, and spreadsheets to
process that data.
explain and interpret financial-market data.

Assessment:
12 CATS:
1.5 hour Examination (75%)
Class Test 1 (10%)
Class Test 2 (15%)

BUSINESS SCHOOL IB2540 12 CATS


Term 2 Principles of Finance 2

Tutor Responsible: TBA

Academic Rationale:

1. Introduce students to the workings of the derivatives markets.


2. Equip students with the skills and understanding to use quantitative tools for pricing
derivatives.
3. Make students critically aware of the key financial decisions taken by firms.
4. Develop in students a sound understanding of the main theories and models of Corporate
Finance.
5. Make students aware of key empirical tests of models of Corporate Finance, and the
implications of those empirical findings.
6. Provide students with structured opportunities to practise using the key tools and techniques
of Corporate Finance.
7. Prepare students for advanced undergraduate and postgraduate studies in Finance.

Objectives:
By the end of the module, students should be able to:

Describe how derivatives markets function, and their importance to both individual investors
and corporate decision-makers.
use analytical models and/or spreadsheets to value simple derivative securities and to assess
how robust those values are to changes in key inputs.
use discounted cash-flow techniques to estimate the value added by capital projects.
compute the cost of capital of a firm under alternative assumptions.
apply option-pricing techniques to value a firm's equity and debt.
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critically assess the factors that determine the optimal investment, financing and payout
decisions of a firm.
discuss the main motives for mergers and acquisitions.
identify the reasons why firms raise capital.
write informed critiques of key issues in corporate finance and empirical testing of corporate
finance models.
analyse brief case studies and construct arguments to support a particular solution.
use web-based resources to find and retrieve data on companies, and spreadsheets to process
that data.
explain and interpret corporate financial information.

Assessment:
12 CATS:
1.5 hour examination (80%)
45 minute class test (20%)

BUSINESS SCHOOL IB312 15 CATS


Terms 1 & 2 Project/Essay

This module is an option for MORSE and MMORSE students only. MathStats and MMathStats
students may take this module as an unusual option.

Commitment: 120 - 150 hours 5,000 words (15 CATS)

Projects may be in Mathematical Programming or any other area of Operational Research or


Information Systems by individual arrangement with OR/Systems staff. The student will prepare a
brief statement of the work he or she wishes to undertake. This will be presented to the supervisor
for discussion, amendment and approval. A detailed proposal from the student which has been
approved by the supervisor should be submitted for approval via the project coordinator, to a sub-
committee of the Undergraduate Committee, by the end of the second week of the final year.
However, students who are taking half weight projects will be allowed to submit their proposals by
the ninth week of the Autumn term of the final year. Normally projects should be handed in to the
supervisor by the Friday at the end of the second week of the Spring or Summer term as appropriate
to the start date. Students interested should contact the staff member below.

Tutor Responsible: P Walley

BUSINESS SCHOOL IB3A7 12 CATS


Term 2 The Practice of Operational Research

Note: Students can only take IB3A7 The Practice of Operational Research in their third year.

Commitment: 9x1 lectures. 9x1 seminars/tutorials

Academic Rationale: The module covers the theoretical frameworks and craft processes associated
with the conduction of operational research (OR) studies in organisations. While other OR modules
generally provide specific technical capabilities, this module supplies the general approaches and
skills necessary to use these techniques effectively in organizational interventions.

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Objectives: On successful completion of the module, students will be able to:


Understand the nature of OR studies and the practical issues involved in developing OR
models
Recognise the importance of the problem structuring skills required in conducting OR studies.
Formulate, test and validate OR models.
Conduct interviews using problem structuring methods.
Appreciate a range of modelling approaches and the circumstances in which they might be
applied.
Contents:
The nature and methods of operational research (OR).
Models and modelling in OR studies.
Issues in problem structuring and data collection.
OR model validation and verification.
Multi-methodology.

Books: Daellenbach, H.G. and McNickle D.C. (2005). Management Science: decision making
through systems thinking, Basingstoke: Palgrave MacMillan; Mitchell, G. (1993) The Practice of
Operational Research, Chichester: Wiley; Pidd, M. (2003) Tools for Thinking: modelling in
Management Science (2nd ed.), Chichester: Wiley; Rivett, B.H.P. (1994) The Craft of Decision
Modelling, Chichester: Wiley; Rosenhead, J. and Mingers, J. (2001) Rational Analysis for a
Problematic World Revisited: problem structuring methods for complexity, uncertainty and conflict
(2nd ed.), Chichester: Wiley.

A reading pack will be provided.


Assessment: A 3-hour, open book, partly seen, examination comprising:
Part A: 40 marks based on a modelling case study given out two weeks before the examination
date.
Part B: 60 marks based on the material covered during the lectures and seminars.

Lecturer: Giles Hindle

BUSINESS SCHOOL IB320 12 CATS


Term 2 Simulation
Note: Students who took IB211 Simulation are not eligible for IB320.

Objectives: Simulation is one of the most commonly used operational research methods for
analysing complex operational/ industrial problems. This course will focus on discrete event
simulation. Students will learn the theoretical underpinnings of the methods and the range of
applications for which they are useful. They will gain practical experience in problem solving using
commercial simulation software.

The course assumes the student has covered some introductory courses in computer programming
and statistics.
Content: Topics covered will be: introduction to simulation methods, the discrete-event simulation
method, software for discrete-event simulation (with use of a specific package e.g. Simul8 or
Witness), performing a simulation study (conceptual modelling, data collection and analysis,
experimentation and verification and validation).

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The tutorials provide the opportunity for supervised exercises and help students develop their own
computer based simulation programmes.

Books: Robinson, S. (2003), Simulation: The Practice of Model Development and Use, Wiley

Commitment: 8 x 2 hour lectures and 1 tutorial hour per week for students for 7 weeks.

Assessment: 100% Assessed.


Lecturer: Ruth Davies

BUSINESS SCHOOL IB321 12 CATS


Term 2 Forecasting

Note: The Business School has placed a restriction which makes this module unavailable to
students who have already taken ST215, Forecasting and Control, in their second year.

Commitment: Two 1-hour lectures per week plus one 1-hour seminar per week.

Prerequisite(s): Some basic ideas of statistics and probability (eg estimation and prediction
intervals for simple linear regression), and a familiarity with multiple regression analysis and
University computing facilities will be assumed.

Aims: This module aims to provide an introduction to current forecasting methods and develop
practical competence in their use, and concentrates on the models for short term forecasting as these
illustrate all the basic principles of analysing, comparing and extrapolating different models.

Content: Topics covered include:


Curve fitting using regression.
Sequential estimation and local models.
Longer Term Forecasting.
Error measurement and monitoring.

Objectives: On successful completion of the module, you will:


Have acquired a firm understanding of the ideas and principles underlying the most commonly
used forecasting models.
Have applied several methods on real data sets.
Understand the importance of the measurement of the errors associated with a forecasting
system, and how they are used to monitor the forecasting system.
Understand the relevant issues and measures available to select the most suitable system.
Have produced short, structured reports investigating two real data series.

Books: P. E. Gaynor and R. C. Kirkpatrick, Introduction to Time-Series Modelling &


Forecasting''; S. Makridakis et.al., Forecasting, Methods and Applications''.
Hanke, Wickern & Reitsch, Business Forecasting, 7th ed.
These may change in light of newer texts.
Examination: (examined at the end of Term 1) (60%).

Assessment: (practical exercise in preparing and reporting a forecast) (40%).

Lecturer: Estelle Shale


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BUSINESS SCHOOL IB349 12 CATS


Term 1 Operational Research for Strategic
Planning

This module can be taken in the third year (IB349) or fourth year with advanced topics (IB408).
You must notify the Lecturer concerned which variant you wish to take. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS
of level 4+ modules over their 3rd & 4th years.

Commitment: Mixture of lectures, group exercises and case studies averaging approx. 2.5-hours
per week.
Aim: To develop a framework for the practical application of a selection of modelling and
analytical techniques which can be used to support strategic planning process.

Students from a range of academic backgrounds may be interest in the module; those from a
scientific background will discover the application area of strategic planning within which
techniques can usefully be employed and those from a business background will discover the use of
structured methods relevant to the practice of strategic planning.

Objectives: On successful completion of the module you will:


Have an appreciation of the framework for the strategic planning/strategic development
process.
Have an understanding of the methods and models available and their role in the strategic
planning process.
Have developed skills in applying a selection of methods.

Content: A conceptual model of the strategic planning process is introduced which identifies a set
of essential elements. The module then focuses on a number of the elements including strategy
formulation, a system model, assessment of uncertainty and evaluation and selection. Methods and
models to support the planning process include:
Corporate modelling/System Dynamics.
Scenario planning.
Risk Analysis.
Strategy evaluation.
Balanced Scorecard.
Visioning.

Particular attention will be paid to system dynamics modelling for strategy support and scenario
development for describing and assessing uncertainty. The teaching style emphasises the practical
application of techniques for strategy support through the use of case studies and group exercises.

Books: R.G. Dyson and F.A. OBrien, Supporting Strategy: Methods & Models, Wiley (2007).
Assessment: 100% assessed.
System Dynamics - Group Assessment (2000 words including computer model output) - 40%
Scenario Planning - Individual Assessment (2000 words) - 60%.

Lecturer: Frances OBrien

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BUSINESS SCHOOL IB352 15 CATS


Term 2 Mathematical Programming III

Prerequisite(s): IB207 Mathematical Programming II.

Commitment: 2 x 1 hour lecture and one 1-hour problem class per week, plus assessed work.

Content: Unconstrained and constrained optimisations, quadratic programming, search methods for
constrained optimisation problems, combinatoral optimisation, approximation algorithms and
modern heuristic techniques for combinatoral optimisation problems.

Assessment: 2- hour open book examination (80%) and assessed exercise (20%).

Lecturer: Nalan Gulpinar

BUSINESS SCHOOL IB357 12 CATS


Term 2 Investment Management

For WBS students, this module builds upon IB114 Financial Management and IB235 Finance 1,
which are prerequisites.

For non-WBS students, this module builds upon IB215 Principles of Finance (2010/11 IB253
Principles of Finance 1 & IB254 Principles of Finance 2), which is a prerequisite.

This module complements the third-year electives IB359 Derivatives and Financial Risk
Management and IB394 International Financial Management.

By the end of the module you should be able to:

Explain the principles of portfolio construction.


Evaluate the use of, and empirical evidence for, different models of asset pricing.
Define and compute different measures of portfolio performance.
Discuss the role of bonds in portfolio diversification and the measurement of interest-rate
risk.
Assess the use of derivatives in portfolio management.
Describe various methods of active portfolio management.
Translate investor preferences and market information into viable investment strategies.
Understand how to interpret quantitative data to inform investment decisions.
Apply statistical concepts with confidence.
Understand the implications of prices being set by the actions of numerous interacting
economic agents.
Determine the characteristics of the optimum portfolio.
Explain how to manage interest-rate risk and market risk.
Assess the performance of a portfolio.

The syllabus is taught as follows:

1 x 2 hour lecture per week; 1 x 1 hour seminar per week

Portfolio construction.
Asset pricing models.
Testing and use of pricing models.
Performance measurement.
Bond and interest-rate markets.
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Interest-rate risk management.


Use of forwards and swap markets.
Use of options and non-linear claims.
Dynamic investment strategies.

This module is worth 12 Credit Accumulation and Transfer Scheme (CATS) points.

The reading list for the 2008-2009 academic year includes:

Recommended text: Bodie, Z, Kane A and Marcus AJ, Investments (7th ed.), McGraw-Hill 2008.

Other texts:; Elton EJ, Gruber MJ, Brown SJ and Goetzmann WN, Modern Portfolio Theory and
Investment Analysis (7th ed.), Wiley 2007.; Chew D and Stern J, The Revolution in Corporate
Finance (4th ed.), Blackwell 2003.; Shiller R, Irrational Exuberance (2nd ed.), Princeton 2005.;
Swensen D, Pioneering Portfolio Management: An Unconventional Approach to Institutional
Investment (2nd ed.), Free Press 2008.

Lecturer: Anthony Neuberger

BUSINESS SCHOOL IB359 12 CATS


Term 1 Derivatives and Financial Risk
Management

For WBS students, this module builds upon IB114 Financial Management and IB235 Finance 1,
which are prerequisites.

For non-WBS students, this module builds upon IB215 Principles of Finance (2010/11 IB253
Principles of Finance 1 & IB254 Principles of Finance 2), which is a prerequisite.

This module complements the third-year electives IB357 Investment Management and IB394
International Financial Management.

The module aims to extend your knowledge and understanding of the quantitative theory of
financial risk, and how that risk can be managed by means of hedging; to develop your critical
reasoning skills in the context of financial derivatives and financial risk management; and to equip
you with the practical skills which you will need to apply financial derivatives to hedging and risk
management.

By the end of this module you should be able to:

Describe the key characteristics of vanilla and exotic derivative products.


Explain the use of these products as risk management tools.
Discuss the means used to hedge the exposure that such products create for the banks that
issue them.
Price vanilla and exotic derivative products using simple lattice methods and simulation
techniques.
Design hedging and risk management strategies for
1. corporate consumers of derivative products.
2. banks that supply derivative products.
Assess risk profiles arising from the use of derivatives and associated hedging activity.
Communicate effectively the results of risk analysis to non-quantitative people
Interpret quantitative data from the viewpoint of risk and uncertainty.

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Apply statistical tools to both time-series and cross-sectional data to derive meaningful risk
management metrics.
Understand the implications of hedging via risk-neutral replication.
Construct hedge portfolios, with both unconstrained and restricted choices of hedging
instrument.
Price and hedge a range of non-vanilla products using simple lattice methods and simulation
techniques.

The syllabus is taught as follows:

1 x 2 hour lecture per week for 9 weeks; 1 x 1 hour seminar per week for 9 weeks

1. Introduction to hedging and risk management.


2. Hedging with (FX and index) futures.
3. Fixed-income instruments and hedging (duration, convexity, immunisation).
4. Vanilla options - hedging and absence of arbitrage, valuation using (binomial) lattices and
sand-box simulation.
5. Exotic options - valuation and hedging issues.
6. Valuation and hedging - extending the Black-Scholes model.
7. Credit risk and credit instruments.
8. Risk management in practice.

This module is worth 12 Credit Accumulation and Transfer Scheme (CATS) points.

The reading list for the 2008-2009 academic year includes:

Recommended text: Hull J, Options, Futures and Other Derivatives (6th ed.), Pearson 2006.

Other texts: Hull J, Fundamentals of Futures and Options Markets (6th ed.), Pearson 2008; Hull J,
Risk Management and Financial Institutions

Lecturer: Alex Stremme

BUSINESS SCHOOL IB391 15 CATS


Term 2 Decision Analysis

This module can be taken in the third year (IB391) or fourth year with advanced topics (IB407).
You must notify the Lecturer concerned which variant you wish to take. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS,
of level 4+ modules over their 3rd & 4th years.

Prerequisite(s): IB104 Mathematical Programming I and IB207 Mathematical Programming II.


Commitment: 2 x 1 hour lecture per week and 1 x 1 hour seminar per week.
Content: This course builds upon the foundation of the two courses: 'Mathematical Programming I'
and 'Mathematical Programming II', which are the prerequisites. The course consists of two closely
related but nevertheless distinct parts: decision analysis and efficiency assessment. The former is
represented by multiple criteria problems in which a number of objectives have to be achieved, for
example, the maximisation of profit or market share whilst simultaneously minimising
environmental impact. The mathematical models and optimisation techniques for the solution of
such problems are considered.

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The second part of the course deals with the use of optimisation based techniques for the assessment
of the relative efficiency of organisational units, such as bank branches, pubs, hospitals, schools,
etc. For each inefficient unit the models provide a range of diagnostic output. This includes
identifying the target performance levels that the inefficient unit should achieve to become efficient
and which of the other units operate in a similar manner but achieve efficiency. The latter enables
benchmarking and the dissemination of best practice.

The methodologies developed in the course have numerous applications in the private and public
sectors. The course is supported by the use of specialised software and spreadsheets.

Objectives: By the end of the course, students should be able to:


Understand mathematical models and methods used in decision analysis and performance
measurement.
Formulate business-related decision problems in a structured form suited to solution by the
use of mathematical techniques.
Apply these techniques to the solution of the problems using appropriate software.
Assess the efficiency of organisational units under various assumptions about the operational
environment.
Interpret the results of their analysis and report on their findings in a manner suited to a
business context.
Be able to critically assess the relevance and limitations of the methods
Use linear programming for modelling decision making processes.

Syllabus: Multiple criteria decision analysis, multi-objective optimisation, linear programming


models of efficiency assessment (data envelopment analysis), benchmarking techniques

Books: E. Thanassoulis. Introduction to the Theory and Application of Data Envelopment


Analysis. Kluwer: Dordrecht, 2001 W.W. Cooper, L.M. Seiford, K. Tone. Data Envelopment
Analysis. Kluwer: Dordrecht, 2000 W.L. Winston. Operations Research, 3d edition. Duxbury Press,
1994

Assessment: 1 x Assessment, 1 x Exam. NB: IB391 will be examined in the first week of
Summer Term.
Lecturer: Estelle Shale

BUSINESS SCHOOL IB403 30 CATS


Operational Research Dissertation

Availability: This module is available to final year (4) MMORSE students only.

A list of potential titles will be e mailed to students the week prior to the start of the academic year.
Other titles are possible by individual arrangements.

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BUSINESS SCHOOL IB407 15 CATS


Term 2 Decision Analysis
Availability: Not available to students who have taken IB391.

Content: This is a 4th year variant of the existing module IB391 Decision Analysis. This course
builds upon the foundation of the two courses: Mathematical Programming I and Mathematical
Programming II, which are the prerequisites.

In comparison with the existing 3rd year IB391, the proposed module has an extended bibliography,
would require significantly more reading and the assignment will be marked to a higher standard.
The course consists of two closely related but nevertheless distinct parts: decision analysis and
efficiency assessment. The former is represented by multiple criteria problems in which a number
of objectives have to be achieved, for example, the maximisation of profit or market share whilst
simultaneously minimising environmental impact. The mathematical models and optimisation
techniques for the solution of such problems are considered.

The second part of the course deals with the use of optimisation based techniques for the assessment
of the relative efficiency of organisational units, such as bank branches, pubs, hospitals, schools,
etc. For each inefficient unit the models provide a range of diagnostic output. This includes
identifying the target performance levels that the inefficient unit should achieve to become efficient
and which of the other units operate in a similar manner but achieve efficiency. The latter enables
benchmarking and the dissemination of best practice.

The methodologies developed in the course have numerous applications in the private and public
sectors. The course is supported by the use of specialised software and spreadsheets.

Objectives: On successful completion of the module you will:


Understand mathematical models and methods used in decision analysis and performance
measurement
Formulate business-related decision problems in a structured form suited to solution by the
use of mathematical techniques.
Apply these techniques to the solution of the problems using appropriate software.
Assess the efficiency of organisational units under various assumptions about the operational
environment.
Interpret the results of their analysis and report on their findings in a manner suited to a
business context.
Be able to critically assess the relevance and limitations of the methods
Use linear programming for modelling decision making processes.

Syllabus: Multiple criteria decision analysis, multi-objective optimisation, linear programming


models of efficiency assessment (data envelopment analysis), benchmarking techniques.

Books:
E. Thanassoulis. Introduction to the Theory and Application of Data Envelopment Analysis.
Kluwer: Dordrecht, 2001
W.W. Cooper, L.M. Seiford, K. Tone. Data Envelopment Analysis. Kluwer: Dordrecht, 2000
W.L. Winston. Operations Research, 3d edition. Duxbury Press, 1994

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Commitment: 2x1 hour lectures and 1x1 hour seminar per week.

Assessment: 1 x 2 hour examination 70% 1 x assessment 30%.


Lecturer: Estelle Shale

BUSINESS SCHOOL IB408 12 CATS


Term 1 Operational Research for Strategic Planning
with Advanced Topics
Availability: Not available to students who have taken IB349.

Commitment: Mixture of lectures, group exercises and case studies averaging approx. 2.5-hours
per week. Additional material will be given on the evaluation of Scenario Planning which
involves additional contact time (lecture and discussion) and an additional component to an
assessment.
Aim: To develop a framework for the practical application of a selection of modelling and
analytical techniques which can be used to support strategic planning process.

Students from a range of academic backgrounds may be interest in the module; those from a
scientific background will discover the application area of strategic planning within which
techniques can usefully be employed and those from a business background will discover the use of
structured methods relevant to the practice of strategic planning.

Objectives: On successful completion of the module you will:


Have an appreciation of the framework for the strategic planning/strategic development
process.
Have an understanding of the methods and models available and their role in the strategic
planning process.
Have developed skills in applying a selection of methods.

Content: A conceptual model of the strategic planning process is introduced which identifies a set
of essential elements. The module then focuses on a number of the elements including strategy
formulation, a system model, assessment of uncertainty and evaluation and selection. Methods and
models to support the planning process include:
Corporate modelling/System Dynamics.
Scenario planning.
Risk Analysis.
Strategy evaluation.
Balanced Scorecard.
Visioning.

Particular attention will be paid to system dynamics modelling for strategy support and scenario
development for describing and assessing uncertainty. The teaching style emphasises the practical
application of techniques for strategy support through the use of case studies and group exercises.
Books: R.G. Dyson and F.A. OBrien, Supporting Strategy: Methods & Models, Wiley (2007).
Assessment: 100% assessed.
System Dynamics - Group Assessment (2000 words including computer model output) - 40% Scenario
Planning - Individual Assessment (2000 words) - 60%
Lecturer: Frances OBrien
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BUSINESS SCHOOL IB94W0 12 CATS


Term 1 Spreadsheet Modelling

Academic Rationale: This module recognises the essential role that computing plays in
Operational Research, and the need for the students to develop hands on experience, good
modelling and design skills and an understanding of the role of popular business computing tools.
It includes both a top-down conceptual modelling/design and a bottom-up skills based course. The
module demonstrates and develops both conceptual and practical understanding of the fundamental
computing tool of spreadsheets and the problems they can address. There is an emphasis on OR
applications such as simulation, stochastic and data management processes. The module aims to
promote good analysis and design skills so that the student can build or specify applications that
both meet the requirements and are usable and well documented. To this end the focus includes
both methodological rigour and practical problem-solving techniques, and computer programming
for control and usability of custom applications.

Objectives:
Understand the capabilities and contribution that computer-based spreadsheets can offer in
business and operational research.
Design a functional, well structured, documented and usable spreadsheet application.
Implement a functional, well structured, documented and usable spreadsheet application.
Work collaboratively towards application design.
Design and write simple computer programs.
Know how to develop and use a spreadsheet for investigating a problem situation.

Syllabus: The module covers conceptual modelling, design and implementation. T his includes
basic model building and formatting, data validation, data analysis and simulation techniques,
charts and special functions. Then it presents a gradual but progressive introduction to the
capability of computer programming within the package including basic syntax and structure of
programming, conditional and repeated routines, interacting with the user. All these are treated
within the context of operational research oriented problems.

Books:
Edwards, J.S. and Finlay, P. (1997). Decision Making with Computers. Pitman.
Harvey, G. (2003). Excel 2003 for Dummies. Hungry Minds.
Harvey, G. (2006). Excel 2007 for Dummies. Hungry Minds.
Walkenbach, J. (2004). Excel VBA Programming for Dummies. Wiley.
Walkenbach, J. and Pieterse JK (2007). Excel 2007 VBA Programming for Dummies. Hungry
Minds.
Walkenbach, J. (2004). Excel 2003 Power Programming with VBA. Hungry Minds.
Walkenbach, J. (2007). Excel 2007 Power Programming with VBA. Wiley.

Assessment Method: Individual (75%) and group (25%) coursework.

Lecturer: Andrew Martin

MATHEMATICS

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Only the third year analysis courses are listed below. For others in algebra and topology, see the
Mathematics PYDC booklet. Each course carries a commitment of 3 lectures per week, and unless
stated otherwise is assessed solely by examination.

MATHEMATICS MA359 15 CATS


Term 1 Measure Theory

Commitment: 30 hours.
Prerequisite(s): MA132 Foundations, MA222 Metric Spaces, MA244 Analysis III.
Content: A measure m is a law which assigns a number m(A) to certain subsets A of a given space.
Measures are indispensable tools in various fields of mathematics: in geometry, measures are used
to quantify areas and volumes; in probability theory, measures are used to quantify the probability
of events; in dynamics, measures are used to quantify the fraction of time a chaotic system spends
in a given state.

Given a measure m, one can define the integral of suitable real valued functions with respect to m.
Lebesgue's integral is what you get when you integrate with respect to Lebesgue's measure, which is
the measure on the real line which assigns to intervals their lengths. Although Lebesgue's integral
coincides with the regulated integral for regulated functions, it is much more comfortable to use. This
is because the class of Lebesgue integrable functions is significantly larger than that of regulated
functions, and since the Lebesgue integral is more adapted to limit procedures than the regulated
integral. Indeed, very often the pointwise limit of a sequence of regulated functions looses its
regularity, but retains its Lebesgue integrability. It is therefore not surprising that Modern Analysis is
based on the Lebesgue integral and its generalizations, and not on the regulated integral.

The Module will cover the following topics: Definition of a measurable space and -additive
measures, Construction of Lebesgue's measure and Carathodory's extension procedure, Lebesgue
measurability, Construction of a non-measurable set, Regularity of Lebesgue measurable sets,
Measurable Functions, Lusin's Theorem, Egoroff's Theorem, Integral with respect to a measure and
approximation by measurable step functions, Fatou's Lemma, Monotone Convergence Theorem,
Dominated Convergence Theorem, Product Measures and Fubini's Theorem.

Aim: To introduce the concepts of measure and integral with respect to a measure and to discuss
their basic properties, so as to provide a basis for further studies in Analysis, Probability, and
Dynamical Systems.

Objective: To construct Lebesgue's measure on the real line; to construct the integral and discuss its
basic properties; to explain the basic properties of measurable functions with emphasis on proofs by
approximation; to define product measures.

Leads to: ST318 Probability Theory, MA3D4 Fractal Geometry, MA482 Stochastic Analysis,
MA496 Signal Processing, Fourier Analysis and Wavelets, MA3F4 Linear Analysis.
Books: Stein, E. M. and Shakarchi, R. Real Analysis - measure theory, integration and Hilbert
spaces. (Princeton Lectures in Analyis III) Princeton University Press (2005). Royden, H. L.: Real
Analysis, Third Edition, Macmillan Publishing Company (1988).Rudin, W.: Real and Complex
Analysis, Third Edition, McGraw-Hill Book Company (1987). Halmos, P. R.: Measure Theory, D.
Van Nostrand Company Inc., Princeton, N.J. (1950).

Assessment: 3-hour examination (85%) plus assessed work (15%)

Lecturer: Jose Rodrigo


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MATHEMATICS MA3G7 15 CATS


Term 1 Functional Analysis I

Prerequisite(s): You should revise the material from MA225 Differentiation and MA244 Analysis
III; MA222 Metric Spaces would be useful but not essential; MA359 Measure Theory would be a
natural course to take in parallel.

Commitment: 30 lectures.

Content: This is essentially a module about infinite-dimensional Hilbert spaces, which arise
naturally in many areas of applied mathematics. The ideas presented here allow for a rigorous
understanding of Fourier series and more generally the theory of Sturm-Liouville boundary value
problems. They also form the cornerstone of the modern theory of partial differential equations.

Hilbert spaces retain many of the familiar properties of finite-dimensional Euclidean spaces ( R n ) -
in particular the inner product and the derived notions of length and distance - while requiring an
infinite number of basis elements. The fact that the spaces are infinite-dimensional introduces new
possibilities, and much of the theory is devoted to reasserting control over these under suitable
conditions.

The module falls, roughly, into three parts. In the first we will introduce Hilbert spaces via a
number of canonical examples, and investigate the geometric parallels with Euclidean spaces (inner
product, expansion in terms of basis elements, etc). We will then consider various different notions
of convergence in a Hilbert space, which although equivalent in finite-dimensional spaces differ in
this context. Finally we consider properties of linear operatorsbetween Hilbert spaces
(corresponding to the theory of matrices between finite-dimensional spaces), in particular
recovering for a special class of such operators (compact self-adjoint operators) very similar results
to those available in the finite-dimensional setting.

Throughout the abstract theory will be motivated and illustrated by more concrete examples.

Books: Printed lecture notes will be provided, which will contain all the material in the module. A
useful book to use as an accompanying reference is:BP Rynne & MA Youngson, Linear Functional
Analysis, Springer-Verlag, London, 2000.

Leads to: MA3F4 Functional Analysis II, MA3G1 Theory of PDEs, MA433 Fourier Analysis,
MA482 Stochastic Analysis, MA4A2 Advanced PDES, MA4G6 Calculus of Variations, MA4G8
Computational PDE

Assessment: 15% by assessed work, 85% by two-hour examination.

Lecturer: James Robinson

MATHEMATICS MA3G8 15 CATS


Term 2 Functional Analysis II

Commitment: 30 lectures.

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Prerequisite(s): MA3G8 Functional Analysis I

Content: Many problems in Mathematics lead to linear problems on infinite-dimensional spaces. In


this course we shall mainly study infinite-dimensional normed linear spaces and continuous linear
transformations between such spaces. We will study Banach spaces and prove the main theorems of
this subject (Hahn-Banach, open mapping, uniform boundedness). The last part of the course will
be devoted to bounded and unbounded operators with specific mention of differential operators in L
2
spaces.

Books: E. Kreyszig, Introductory Functional Analysis with Applications, Wiley, 1989.


W. Rudin, Functional Analysis, McGraw-Hill, 1973.
G. B. Folland, Real Analysis, Wiley, 1999.
J. K. Hunter and B. Nachtergaele, Applied Analysis, World Scientific, 2001.

Leads to: MA4A2 Advanced PDEs, MA433 Fourier Analysis.

Assessment: 3-hour examination

Lecturer: Stefan Adams

STATISTICS ST301 15 CATS


Term 1 Bayesian Statistics & Decision Theory
Important: If you decide to take ST301 you cannot then take ST413. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS,
of level 4+ modules over their 3rd & 4th years.
Prerequisite(s): ST217 Mathematical Statistics A (for Statistics students)
ST218 Mathematical Statistics A (for all non-statistics students)

Content: Bayesian statistics is one of the fastest growing areas in statistics. With the advance of
computer technology it is now a highly practical methodology for addressing many important high
dimensional decision problems as well as being underpinned by a sound mathematical foundation.
It is especially useful when some of the components of uncertainty have only sparsely collected
data associated with them, so that expert judgements need to be incorporated. The course first
introduces the central concepts of Bayesian decision analysis through a selection of simple
examples. Various methodologies are then presented for:

Structuring a decision problem for example by decision trees and influence diagrams.
Eliciting probability distributions over many variables using the concepts of irrelevance and
the Belief net.
Eliciting the objectives and preferences of the client developing the ideas of m.u.i.a. and value
independence and the use of the decision conference.
The formal methodologies are illustrated through a wide range of examples for health, the
environment, finance and public sector administration. Some of the examples build on the practical
experience of the lecturer as an active Bayesian decision analyst.
Aims:
To demonstrate how to build statistical models of non-trivial problems when data is sparse and
expert judgements need to be incorporated.
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To give ways to represent the pertinent features of a decision problem.


To give practical algorithms for finding decision rules which the client can expect will best
satisfy pre-specified objectives.
To train the student in the rudiments of decision analysis.
Objectives:
The student will gain an appreciation of the importance of conditional independence in
subjective (Bayesian) statistical modelling and be introduced to the DAG as an efficient
representation of collections of conditional independence statements as they arise in practice.
The student will be provided with techniques for eliciting subjective probability distributions
over many variables.
The student will be provided with techniques for eliciting quantitative preference structures
from a client which may involve competing objectives.
The student will obtain an appreciation of the foundational arguments that justify expected
utility maximisation as a paradigm for rational action.
The student will obtain practice in implementing these techniques.
The student will learn the bases of fast algorithms for the calculation of probabilities needed in
such maximisation.
Assessment: 100% by 2-hour examination.

Lecturer: Jim Smith

STATISTICS ST305 15 CATS


Term 1 Designed Experiments

Important: If you decide to take ST305 you cannot then take ST410. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS,
of level 4+ modules over their 3rd & 4th years.

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

Commitment: 30 one-hour lectures.


Background: Designed experiments are used in industry, agriculture, medicine and many other
areas of activity to test hypotheses, to learn about processes and to predict future responses. The
purpose of experimentation is to determine the relationship between a response variable and the
settings of a number of experimental variables which are presumed to affect it. Experimental
design is the discipline of determining the number and order (spatial or temporal) of experimental
runs, and the setting of the experimental variables.
Content: The theory of experimental design is quite mathematical while the practice involves
important eliciting and communication skills. In this course we will look at both these aspects.
Classical experimental design is based on the linear model, and the course will start with a review
of linear model theory and some simple models; we shall then examine the principles of
experimental design and analysis in design theory, in which we consider both qualitative and
quantitative factors; a significant part of the course will be spent developing aspects of factorial
design theory including confounding and fractional designs, other important topics to be included
will be response surface designs and incomplete block designs; finally, we shall discuss optimal
design in which the focus is on maximising the information available to the experimenter whatever

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the experimental constraints. Further topics such as repeated measures and non-linear design will
conclude the module.
Aims: This course aims to give students a sound understanding of experimental design, both
theoretical and practical. The course will explore the method of analysis of variance and show how
it is structurally linked to particular types of design. The combinatoric properties of designs will be
explored, and the impact of computers on classical design considered. Examples from many
different application areas will be given throughout.
Objectives: By the end of the course students will be able to:
Describe the basic principles behind designed experiments
Construct the design matrix for simple experiments and estimate their parameters
Perform an analysis of variance on standard experimental designs
Distinguish between different designs and recognise their efficiency / utility
Show the relationship between designing experiments and analysing the resulting data
Perform diagnostic tests on the results from a designed experiment.
Take a practical design problem and determine an optimal or robust solution
Books: G Clarke & R Kempson, Introduction to the Design and Analysis of Experiments, Arnold,
1996. DR Cox & N Reid, The Theory of the Design of Experiments, Chapman & Hall / CRC, 2000.
AC Atkinson & AN Doney, Optimal Experimental Designs, Oxford, 1992. DC Montgomery,
Design and Analysis of Experiments, Wiley, 2001, 2005
Assessment: 20% by coursework and 80% by 2-hour examination. There will be two major pieces
of coursework, one at the half-way point and one at the end of the course. Other exercises will be
provided and discussed during the lectures.

Lecturer: John Fenlon

STATISTICS ST318 15 CATS


Term 2 Probability Theory

Prerequisite(s): ST213 Mathematics of Random Events or MA359 Measure Theory (3rd year).
Content: Independence and conditioning, probability measures on metric spaces, types of
probabilistic convergence, an introduction to martingales.
Aims: This course aims to give the student a rigorous presentation of some fundamental results in
measure theoretic probability and an introduction to the theory of discrete time martingales. In so
doing it aims to provide a firm basis for advanced work on probability and its applications.
Objectives: The objectives of the course are as follows: at the end of the course the student will:
Understand the ideas relating to independence and zero-one laws and be able to apply these
ideas in simple contexts.
Understand the different modes of convergence for sequences of random variables (more
generally random elements) and the relationship between these different modes.
Be able to state and prove the Central Limit Theorem and understand how this result can be
applied.
Understand some basic results on discrete time martingales and how this theory can be used to
prove Kolmogorovs Strong Law of Large Numbers.
Assessment: 5% by class tests and 95% by 2-hour examination.

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Prerequisite Material: The first two main sections of the online lecture notes survey prerequisite
material on probability models and random variables and are now available online. You are
strongly advised to ensure that you are familiar with this material: if not then you should fill this
deficit for example by working through these two sections in the vacation before the module
commences.

Lecturer: Aleksandar Mijatovic

STATISTICS ST323 15 CATS


Term 1 Multivariate Statistics
Important: If you decide to take ST323 you cannot then take ST412. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS,
of level 4+ modules over their 3rd & 4th years.

Prerequisite(s): ST208 Mathematical Methods or equivalent,


ST217 Mathematical Statistics A and B (for Statistics students)
ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

Aims: Multivariate data arises whenever several interdependent variables are measured
simultaneously. This occurs frequently in many areas: in medicine, in the social and environmental
sciences and in economics. The analysis of such multidimensional data often presents an exciting
challenge that requires new statistical techniques which are usually implemented using computer
packages. This module aims to give you a good understanding of the geometric and algebraic ideas
that these techniques are based on, before giving you any chance to try them out on some real data
sets.

Objectives: By the end of the course students will be able to:


Carry out a principal components analysis and use it to summarise high dimensional data.
Use linear discriminant analysis to solve simple classification problems.
Understand the theory of the multivariate normal distribution.
Perform multivariate hypothesis tests and construct confidence regions.

Book: Krzanowski, W.J., Principles of Multivariate Analysis : a users perspective,


Oxford: Clarendon 2000

Assessment: 20% by coursework, 80% by 2-hour examination.

Lecturer: Ewart Shaw

STATISTICS ST329 15 CATS


Term 1 Topics in Statistics

Prerequisite(s): ST217 Mathematical Statistics A and B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

Content: Three self-contained sets of ten lectures.

Introduction to Mathematical Finance (Dario Span):

Aims:

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This short course introduces and studies the procedure of hedging in simple tree models of a
financial market. Following the fundamental work of Black and Scholes hedging is used to find the
value of derivative contracts.

Objectives:
By the end of the course students will be able to:
Calculate fair prices for simple derivatives.
Check whether or not a market is arbitrage-free and complete by investigating the existence
and uniqueness of pricing mechanisms.

Bayesian Methods in Practice (Fabio Rigat):

Aims: This component of the course offers a practical introduction to Bayesian statistical
procedures, a rapidly developing area of statistics. Key Bayesian themes such as choice of prior
distribution, the use of hierarchical models and computational techniques will be discussed.

Objectives: By the end of the course students should be able to:

1. Understand the role of the prior distribution in Bayesian methods.


2. Fit simple models using MCMC in WinBUGS.
3. Recognize good and bad behaviour of MCMC methods.

Statistical Population Genetics (Sigurd Assing)

Aims: This course introduces easy stochastic models used in population genetics. The Wright-
Fisher model and the Moran model will be described but Coalescent theory will consistute the core
of the course. Its use will be illustrated by a number of applications in molecular genetics.

Objectives: By the end of the course students should be able to:a) describe the Wright-Fisher and
Moran models;
b) derive the coalescent theory in simple applications;
c) use coalescent theory in simple applications.

Assessment: 100% by 2-hour examination.

STATISTICS ST332 15 CATS


Term 2 Medical Statistics

Important: If you decide to take ST332 you cannot then take ST409. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS
of level 4+ modules over their 3rd & 4th years.

Commitment: 3 lectures/week

Prerequisite(s): ST217 Mathematical Statistics A and B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

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Content: Modern applications of statistics to medicine are highly developed. A look at almost any
medical journal reveals that a substantial proportion of medical research papers employ statistical
techniques. Large numbers of statisticians are employed in medical research establishments,
particularly in the pharmaceutical companies and the medical schools, and medical statistics
continues to be the most buoyant area for statistical recruitment. Although the course will cover
some topics of a specifically medical nature, much of the work will be discussing basic statistical
techniques as applied to medical data, but which could equally well be applied to data arising in
other applications. Thus, whilst medicine provides the focus of the course, it could also be viewed
as a more general applied statistics course. The course will explain why and how statistics is used
in medicine, and study some of the statistical methods commonly used in medical research.
Examples and case studies in areas such as cancer, heart disease and psychiatry will be discussed.

Generalised linear models: linear models as an extension of linear regression; analysis of binary
data by logistic regression; analysis of counts and proportions. Two by two tables.
Study designs: cohort, case-control and survey designs; randomised clinical trials; sample size
and power; conditioning and covariance adjustment.
Analysis of censored survival data: life tables; hazard and survival functions; Kaplan-Meier
survival curves; parametric survival models, the proportional hazards regression model.

Aims: To introduce applications of statistics in medicine, and some of the statistical


methodscommonly used in medical research.

Objectives:
To appreciate the role of statistics in medical research.
To understand some of the statistical principles of good practice in medical investigations.
To understand how to use and interpret some of the statistical techniques used in medical data
analysis.

Books: A.J.Dobson, An introduction to generalised linear models; D.G.Altman, Practical


statistics for medical research; D.Collett, Modelling survival data in medical research. (All
Chapman & Hall)

Assessment: 20% by coursework, 80% by 2-hour examination.

Lecturers: Jane Hutton

STATISTICS ST333 15 CATS


Term 1 Applied Stochastic Processes

Important: If you decide to take ST333 you cannot then take ST406. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS
of level 4+ modules over their 3rd & 4th years.

Prerequisite(s): ST202 Stochastic Processes.

Aims: To provide an introduction to concepts and techniques which are fundamental in modern
applied probability theory and operations research:

Models for queues, point processes, and epidemics.


Notions of equilibrium, threshold behaviour, and description of structure.

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FINAL YEARS

These ideas have a vast range of applications, for example routing algorithms in
telecommunications (queues), assessment of apparent spatial order in astronomical data (stochastic
geometry), description of outbreaks of disease (epidemics). We will only be able to introduce each
area - indeed each area could easily be the subject of a course on its own! But the introduction will
provide you with a good base to follow up where and when required. (For example: a MORSE
student graduating in 1996 found the next year their firm was asking them to address problems in
queuing theory, for which ST333 provided the basis.) We will discuss these and other applications
and show how the ideas of stochastic process theory help in formulating and solving relevant
questions.
Objectives: At the end of the course students will:
Be able to formulate continuous-time Markov chain models for applied problems.
Be able to use basic theory to gain quick answers to important questions (for example, what is
the equilibrium distribution for a specific reversible Markov chain?).
Be able to solve for the transition probabilities for Markov chains on a finite state space.

Assessment: 20% by coursework, 80% by examination.

Lecturer: David Hobson

STATISTICS ST334 15 CATS


Term 1 Actuarial Methods
Important: This module is only available to students on four year degrees in the Department of
Statistics (MMORSE and MMathStat).

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

Commitment: This will be a reading course based on handouts; there will be a one hour session
every week.

Content:
Interest rates and discount rates.
Equations of value and compound interest calculations.
Discounted cash flow.
Types of investment.
Concept of arbitrage.
Introduction to the term structure of interest rates.
Stochastic interest rate models.

Aims: To cover the syllabus for Actuarial CT1

Objectives: At the end of the course, students will:


be familiar with basic financial terminology and be able to understand the financial press.
be able to carry out basic financial calculations.

Leads to: Knowledge of basic financial terminology necessary for several other modules.
Assessment: 3 one-hour class tests (each 15%) with 2-hour examination in January (55%).

Lecturer: Robin Reed

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FINAL YEARS

STATISTICS ST335 15 CATS


Term 1 Finance and Financial Reporting

Important: This module is only available to students in the Department of Statistics.

Prerequisite(s): None.

Students may not take this module and IB109 Foundations of Accounting and Finance.

Commitment: 3 lectures per week.

Content:
Structure of a joint stock company and the different methods by which it may be financed.
Basic principles of personal and corporate taxation.
Principal forms of financial instruments.
Factors to be considered by a company when deciding on its capital structure and dividend
policy.
Companys cost of capital and how its cost of capital interacts with the nature of investment
projects.
The major forms of financial institution.
Role and principal features of the accounts of a company.
Construction of simple balance sheets, profit and loss accounts and cash flow statements.
Interpretation of financial statements.

Aims: To cover the syllabus for Actuarial CT2.

Objectives: At the end of the course students will:


Be familiar with the structure of a joint stock company and how it can be financed.
Be familiar with the different types of financial instruments.
Be able to construct simple balance sheets, profit and loss accounts and cash flow statements.
Be able to interpret financial statements.

Assessment: Two hour examination (80%) and two one-hour class tests (10% each).

Lecturers: John Panther/Graham Sara

STATISTICS ST337 15 CATS


Term 2 Bayesian Forecasting and Intervention

Important: If you decide to take ST337 you cannot then take ST405. Bear this in mind when
planning your module selection. Recall: a BSc.MMORSE student must take at least 120 CATS
of level 4+ modules over their 3rd & 4th years.

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

Rationale: Forecasting is a vital prerequisite to decision making. This course is concerned with the
theory and practice of short-term forecasting, using both data and subjective information. The
course focuses on Dynamic Linear Models (DLM). DLMs are a class of Bayesian Forecasting

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FINAL YEARS

Models which generalise linear regression models and static statistical linear models. The course
offers a very powerful fundamental probabilistic approach to forecasting, controlling and learning
about uncertain commercial, financial, economic, production, environmental and medical dynamic
systems.

Contents:
State space modelling
Bayesian updating of beliefs
Specifying Dynamic Linear Models
Updating Dynamic Linear Models, forecasting
Building Dynamic Linear Models, accommodating external information
ARIMA models, stationarity

The theory will be illustrated by real examples from industry, marketing, finance, government,
agriculture etc.

Books: Printed course notes will be available. Mike West & Jeff Harrison, Bayesian Forecasting
and Dynamic Models, 1997 (2nd edn.) Springer - Verlag. Andy Pole, Mike West & Jeff Harrison,
Applied Bayesian Forecasting and Time Series Analysis, 1994 Chapman and Hall.

Assessment: 100% by 2-hour examination.

Lecturer: Mark Steel

STATISTICS ST338 15 CATS


Term 2 Actuarial Models

Important: This module replaces ST336 Life Tables. This module is only available to students on
four year degrees in the Department of Statistics (MMORSE and MMathStat.)

Prerequisite(s): ST334 Actuarial Methods, ST217 Mathematical Statistics A & B.

Commitment: 3 lectures per week.

Content:
Principles of actuarial modelling
Principles of stochastic processes
Markov chains and Markov processes
Survival models: lifetimes, curtate future lifetime, expected value and variance.
Estimation procedures for lifetime distributions: KaplanMeier estimate, Cox model
Multi-state Markov models.
Maximum likelihood estimators for transition intensities in multi-state models.
Binomial model of mortality.
Estimating mortality rates by age: exact methods, census approximations
Process of graduation.
Statistical tests for life tables.

Aims: To cover the syllabus for Institute of Actuaries exam CT4.

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FINAL YEARS

Objectives: At the end of the course, students will be familiar with calculations involving life tables
and survival analysis.

Assessment: Two-hour examination (80%) and two one-hour class tests (10% each).

Lecturer: A Batchelor

STATISTICS ST401 15 CATS


Term 1 Stochastic Methods in Finance

Important: This module is only available to final year (4) integrated Masters students.

Commitment: 3 x 1-hour lectures per week, 1 tutorial class per week.

Prerequisite(s): ST217 Mathematical Statistics A & B; ST318 Probability Theory;


IB215 Principles of Finance. This module leads onto ST905 Stochastic Methods II.

Content: This module will cover the actuarial syllabus for examination CT8. It will cover material
of use in financial mathematics such as Brownian motion, portfolio theory, models of asset returns,
stochastic models of security prices, term structure of interest rates.

Aims: To enable students to study more deeply in the stream of Actuarial and Financial
Mathematics.

Objectives: Students who have successfully completed this module will:


Know how probability models are used in financial mathematics
Understand the concept of Brownian Motion.

Books: M. Baxter and A. Rennie, Financial Calculus. J.C. Hull, Futures and Other
Derivatives.

Assessment: 2 class tests (each 10%).1 x 2 hour examination (80%) in April (Week 1 Term 3)

Lecturer: Vassili Kolokoltsov

STATISTICS ST402 15 CATS


Term 2 Risk Theory

Important: This module is only available to final year (4) integrated Masters students.

Commitment: 3 x 1-hour lectures per week, 1 tutorial class per week.

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students);
ST318 Probability Theory.

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FINAL YEARS

Content: This module will cover the actuarial syllabus for examination CT6. It will introduce
material of use in general insurance such as loss distributions, ruin, and credibility theory.

Aims: To enable students to study more deeply in the stream of Actuarial and Financial
Mathematics.

Objectives: Students who have successfully completed this module will:


Know how probability models are used in general insurance
Understand the concept of methods of re-insurance to hedge against risk.

Books: C.D. Daykin, T. Pentikainen & M. Pesonon, Practical Risk Theory for Actuaries. S.A.
Klugman, Loss Models.
Assessment: 1 x 2 hour examination (80%); 2 class tests (each 10%).
Lecturer: Larbi Alili

STATISTICS ST403 18 CATS


Term 1 Brownian Motion
Also offered by Maths as MA4F7
WHAT IS IT?
Brownian motion was originally the description given in physics for the random erratic movement
of molecules. In 1905 Einstein made a detailed study in which he postulated certain properties
should hold. In 1923 mathematical Brownian motion was born when a famous mathematician,
Norbert Wiener, showed how to construct a random function W(t) giving the molecules position
at time t which had Einsteins properties.

WHY IS IT INTERESTING?
It is a beautiful mathematical object worth studying both for its own sake and because of the
deep links it has with other areas of mathematics, particularly in analysis.
Brownian motion is a fundamental tool for modelling processes which evolve randomly in time.
It is used widely in many areas of applied maths and in the last few decades it has become
essential to the study of financial maths as a model of stock prices.

WHAT WILL WE LEARN?


Construction. According to Einstein
- the function t W(t) must be continuous the molecule never jumps
- the displacement between times s and t, that is W(t) W(s), should be independent of the
past motion and its distribution should be Gaussian with mean zero and variance t s.

We will investigate methods of constructing such random functions. It turns out the Gaussian
distribution is essential it is impossible to do with any other distribution.

Properties of the paths. The path t W(t) cannot be smooth. Look at


www.stat.umn.edu/~charlie/Stoch/brown.html to see a simulation. The applet at this web site
allows you to zoom in on a simulated path notice it seems to look the same no matter how
much it is magnified: Brownian motion is the ultimate fractal!
The stochastic calculus. Ordinary calculus is a powerful method of doing calculations with
smooth functions. As we have just seen Brownian paths are not smooth, but miraculously there
is a stochastic calculus which was developed by a Japanese mathematician Ito in the 1940s
and which allows us to do computations with Brownian motion.

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FINAL YEARS

Differential equations. Differential equations are essential to modelling deterministic


phenomena in applied maths and physics. Arguably the most famous equation of all is
2u 2u 2u
+ + =0
x 2 y 2 z 2
Laplaces equation:
Somewhat surprisingly this can be solved probabilistically using Brownian motion a fact that
lies at the heart of the links between probability theory and analysis, and which is still today
yielding new discoveries.

Prerequisite(s):
AT LEAST ONE OF: ST318 Probability Theory, MA359 Measure Theory.

Assessment: 100% by 2 hour examination.


Lecturer: Roger Tribe
STATISTICS ST404 15 CATS
Term 2 Applied Statistical Modelling

Important: This module is only available to students on four year degrees in the Department of
Statistics (MMORSE and MMathStat).

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)


ST215 Forecasting and Control. Students who did not take ST215 can attend the
classes for ST215 in order to obtain practice in using SPLUS.

Content: Regression is the most widely used tool in statistics. This course will start with a look at
multiple regression including variable selection and transformations. The second half of the course
will consist of topics chosen from: logistic regression, Poisson regression, robust regression, non-
linear regression, time series and simulation.

Aims: To introduce the art of statistical model-building, and to demonstrate that statistical
problems do not have precise clear-cut solutions. To give practice in writing a report on a statistical
investigation.

Objectives: At the end of the course, students will:


Appreciate that real problems do not have precise clear-cut solutions
Understand the need to critically assess the quality of a statistical model by the use of diagnostic
measures.

Assessment: 100% by coursework (five questions each worth 20%, all involving the use of
SPLUS).

Lecturer: Robin Reed

STATISTICS ST405 15 CATS


Term 2 Bayesian Forecasting and Intervention
with Advanced Topics

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)

Availability: Only available to students who have not taken ST337

129
FINAL YEARS

Rationale: Forecasting is a vital prerequisite to decision making. This course is concerned with the
theory and practice of short-term forecasting, using both data and subjective information. The
course focuses on Dynamic Linear Models (DLM). DLMs are a class of Bayesian Forecasting
Models which generalise linear regression models and static statistical linear models. The course
offers a very powerful fundamental probabilistic approach to forecasting, controlling and learning
about uncertain commercial, financial, economic, production, environmental and medical dynamic
systems.

Contents:
State space modelling
Bayesian updating of beliefs
Specifying Dynamic Linear Models
Updating Dynamic Linear Models, forecasting
Building Dynamic Linear Models, accommodating external information
ARIMA models, stationarity

The theory will be illustrated by real examples from industry, marketing, finance, government,
agriculture etc.

Students will be given selected advanced research material for independent study and
examination.

Books: Printed course notes will be available. Mike West & Jeff Harrison, Bayesian Forecasting
and Dynamic Models, 1997 (2nd edn.) Springer - Verlag. Andy Pole, Mike West & Jeff Harrison,
Applied Bayesian Forecasting and Time Series Analysis, 1994 Chapman and Hall.

Research material on some advanced topics will be made available.

Assessment: 100% by 2-hour examination.

Lecturer: Mark Steel

STATISTICS ST406 15 CATS


Term 1 Applied Stochastic Processes with
Advanced Topics
Prerequisite(s): ST202 Stochastic Processes.

Availability: Only available to students who have not taken ST333

Aims: To provide an introduction to concepts and techniques which are fundamental in


modern applied probability theory and operations research: Models for queues, point processes,
and epidemics.
Notions of equilibrium, threshold behaviour, and description of structure.

These ideas have a vast range of applications, for example routing algorithms in
telecommunications (queues), assessment of apparent spatial order in astronomical data (stochastic
geometry), description of outbreaks of disease (epidemics). We will only be able to introduce each
area - indeed each area could easily be the subject of a course on its own! But the introduction will
provide you with a good base to follow up where and when required. (For example: a MORSE
student graduating in 1996 found the next year their firm was asking them to address problems in
queuing theory, for which ST333 provided the basis.) We will discuss these and other applications
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FINAL YEARS

and show how the ideas of stochastic process theory help in formulating and solving relevant
questions.

Objectives: At the end of the course students will:


Be able to formulate continuous-time Markov chain models for applied problems.
Be able to use basic theory to gain quick answers to important questions (for example, what is
the equilibrium distribution for a specific reversible Markov chain?).
Be able to solve for the transition probabilities for Markov chains on a finite state space.

Students will be given selected research material on advanced topics for independent study
and examination.

Assessment: 20% by coursework, 80% by examination.


Lecturer: David Hobson

STATISTICS Term 1 ST407 15 CATS


Monte Carlo Methods

Aims: This module will provide students with the tools for advanced statistical modelling and
associated estimation procedures based on computer-intensive methods known as Monte Carlo
techniques.

Content: When modelling real world phenomena statisticians are often confronted with the following
dilemma: should we choose a standard model that is easy to compute with or use a more realistic
model that is not amenable to analytic computations such as determining means and p-values. We are
faced with such choice in a vast variety of application areas, some of which we will encounter in this
module. These include financial models, genetics, polymer simulation, target tracking, statistical
image analysis and missing data problems. With the advent of modern computer technology we are
no longer restricted to standard models as we can use simulation-based inference. Essentially we
replace analytic computation with sampling of probability models and statistical estimation. In this
module we discuss a variety of such methods, their advantages, disadvantages, strengths and pitfalls.

Learning Outcomes:
Knowledge of a collection of simulation methods including Markov chain Monte Carlo
(MCMC); understanding of Monte Carlo procedures.
Ability to develop and implement (in BUGS) an MCMC algorithm for a given probability
distribution
Ability to evaluate a stochastic simulation algorithm with respect to both its efficiency and the
validity of the inference results produced by it.
Ability to use Monte Carlo methods for scientific applications.

Desirable background:
A basic knowledge of the statistical programming language R or SPLUS (as taught in ST215
Forecasting and Control). Coursework will be based on R.
ST111 Probability A & ST112 Probability B or equivalent.
ST217 Mathematical Statistics A & B or equivalent.

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FINAL YEARS

Commitment: 30 hourly lectures and 5 2-hourly practicals.

Assessment: 20% by coursework and 80% by exam in April.

Syllabus:
1. Introduction and Examples: The need for Monte Carlo Techniques; History; Example
applications.
2. Basic Simulation Principles: Rejection method; variance reduction; importance sampling.
3. Markov chain theory: convergence of Markov chains; detailed balance; limit theorems.
4. Basic MCMC algorithms: Metropolis-Hastings algorithm; Gibbs sampling.
5. Implementational issues: Burn In; Convergence diagnostics, Monte Carlo error.
6. More advanced algorithms: Auxiliary variable methods; simulated and parallel tempering;
simulated annealing; reversible jump MCMC; EM algorithm.

Books:
W. Gilks et al., Markov chain Monte Carlo in practice, Chapman & Hall, 1996.
J.S. Liu, Monte Carlo Strategies in Scientific Computing, Springer, 2001.
Lecturer: Elke Thonnes
STATISTICS ST408 15 CATS
Term 1 Reading Module
NOT RUNNING 2010/11

Blank

STATISTICS ST409 15 CATS


Term 2 Medical Statistics with Advanced Topics

Availability: Only available to students who have NOT taken ST332.

Commitment: 3 lectures/week

Prerequisite(s): ST217 Mathematical Statistics A and B (for Statistics students)


ST218 Mathematical Statistics A and ST219 Mathematical Statistics B (non
Statistics students)

Content: Modern applications of statistics to medicine are highly developed. A look at almost any
medical journal reveals that a substantial proportion of medical research papers employ statistical
techniques. Large numbers of statisticians are employed in medical research establishments,
particularly in the pharmaceutical companies and the medical schools, and medical statistics
continues to be the most buoyant area for statistical recruitment. Although the course will cover
some topics of a specifically medical nature, much of the work will be discussing basic statistical
techniques as applied to medical data, but which could equally well be applied to data arising in
other applications. Thus, whilst medicine provides the focus of the course, it could also be viewed
as a more general applied statistics course. The course will explain why and how statistics is used
in medicine, and study some of the statistical methods commonly used in medical research.
Examples and case studies in areas such as cancer, heart disease and psychiatry will be discussed.

132
FINAL YEARS

Generalised linear models: linear models as an extension of linear regression; analysis of binary
data by logistic regression; analysis of counts and proportions. Two by two tables.
Study designs: cohort, case-control and survey designs; randomised clinical trials; sample size
and power; conditioning and covariance adjustment.
Analysis of censored survival data: life tables; hazard and survival functions; Kaplan-Meier
survival curves; parametric survival models, the proportional hazards regression model.

Aims: To introduce applications of statistics in medicine, and some of the statistical methods
commonly used in medical research.

Objectives:
To appreciate the role of statistics in medical research.
To understand some of the statistical principles of good practice in medical investigations.
To understand how to use and interpret some of the statistical techniques used in medical data
analysis.

Books: A.J. Dobson, An introduction to generalised linear models; D.G. Altman, Practical
statistics for medical research; D. Collett, Modelling survival data in medical research. (All
Chapman & Hall)

Students will be given selected advanced material for further study and examination.

Assessment: 20% by coursework, 80% by 2-hour examination.


Lecturers: Jane Hutton
STATISTICS ST410 15 CATS
Term 1 Designed Experiments with Advanced Topics

Availability: Only available to students who have NOT taken ST305

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)
Commitment: 30 one-hour lectures.

Background: Designed experiments are used in industry, agriculture, medicine and many other
areas of activity to test hypotheses, to learn about processes and to predict future responses. The
purpose of experimentation is to determine the relationship between a response variable and the
settings of a number of experimental variables which are presumed to affect it. Experimental
design is the discipline of determining the number and order (spatial or temporal) of experimental
runs, and the setting of the experimental variables.
Content: The theory of experimental design is quite mathematical while the practice involves
important eliciting and communication skills. In this course we will look at both these aspects.
Classical experimental design is based on the linear model, and the course will start with a review
of linear model theory and some simple models; we shall then examine the principles of
experimental design and analysis in design theory, in which we consider both qualitative and
quantitative factors; a significant part of the course will be spent developing aspects of factorial
design theory including confounding and fractional designs, other important topics to be included
will be response surface designs and incomplete block designs; finally, we shall discuss optimal
design in which the focus is on maximising the information available to the experimenter whatever
the experimental constraints. Further topics such as repeated measures and non-linear design will
conclude the module.

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FINAL YEARS

Aims: This course aims to give students a sound understanding of experimental design, both
theoretical and practical. The course will explore the method of analysis of variance and show how
it is structurally linked to particular types of design. The combinatoric properties of designs will be
explored, and the impact of computers on classical design considered. Examples from many
different application areas will be given throughout.
Objectives: By the end of the course students will be able to:
Describe the basic principles behind designed experiments
Construct the design matrix for simple experiments and estimate their parameters
Perform an analysis of variance on standard experimental designs
Distinguish between different designs and recognise their efficiency / utility
Show the relationship between designing experiments and analysing the resulting data
Perform diagnostic tests on the results from a designed experiment.
Take a practical design problem and determine an optimal or robust solution
Books: G Clarke & R Kempson, Introduction to the Design and Analysis of Experiments, Arnold,
1996. DR Cox & N Reid, The Theory of the Design of Experiments, Chapman & Hall / CRC, 2000.
AC Atkinson & AN Doney, Optimal Experimental Designs, Oxford, 1992. DC Montgomery,
Design and Analysis of Experiments, Wiley, 2001, 2005
Students will be given selected advanced material for further study and examination.

Assessment: 20% by coursework and 80% by 2-hour examination. There will be two major pieces
of coursework, one at the half-way point and one at the end of the course. Other exercises will be
provided and discussed during the lectures.

Lecturer: John Fenlon


STATISTICS ST411 15 CATS
Term 1 Dynamic Stochastic Control

Commitment: 3 x 1-hour lectures per week, 4 examples classes in the term.

Prerequisite(s): ST318 Probability Theory; ST333 Applied Stochastic Processes.

An example of a stochastic control problem is the Red and Black problem. Essentially, this asks
what the best betting strategy is if you want to maximise your chance of winning 1000 playing
roulette.

Syllabus: This module will cover:


Recapitulation of the theory of stochastic processes.
Introduction to finite horizon control problems and optimal stopping.
The Hamilton-Jacobi-Bellman equation.
Infinite horizon discounted problems.
Applications to finance, clinical trials, planning production processes and insurance, and, time
permitting
Discussion of long-run average problems.

Aims: This module is designed to cover the important area of stochastic control within applied
probability. The taught material will prepare students for careers in business, industry or
government and will also lead up to the boundaries of research.

Learning Outcomes: Students who have successfully completed this module will be able to:
Identify and deal with stochastic control and optimal stopping problems.
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FINAL YEARS

Solve simple Hamilton-Jacobi-Bellman equations.


Apply the above techniques to finance, to clinical trials and to the planning of production
processes.

Books: Ross, S.M., Introduction to Stochastic Dynamic Programming, 1983, Academic Press

Assessment: 1 x 2 hour examination.

Lecturer: Saul Jacka

STATISTICS ST412 15 CATS


Term 1 Multivariate Statistics with Advanced Topics

Availability: Only available to students who have NOT taken ST323

Prerequisite(s): ST208 Mathematical Methods,


ST217 Mathematical Statistics A and B (for Statistics students)
ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)

Aims: Multivariate data arises whenever several interdependent variables are measured
simultaneously. This occurs frequently in many areas: in medicine, in the social and environmental
sciences and in economics. The analysis of such multidimensional data often presents an exciting
challenge that requires new statistical techniques which are usually implemented using computer
packages. This module aims to give you a good understanding of the geometric and algebraic ideas
that these techniques are based on, before giving you any chance to try them out on some real data
sets.

Objectives: By the end of the course students will be able to:


Carry out a principal components analysis and use it to summarise high dimensional data.
Use linear discriminant analysis to solve simple classification problems.
Understand the theory of the multivariate normal distribution.
Perform multivariate hypothesis tests and construct confidence regions.

Book: Krzanowski, W.J., Prinicples of Multivariate Analysis: a users perspective,


Oxford: Clarendon 2000

Students will be given selected advanced material for further study and examination.

Assessment: 20% by coursework, 80% by 2-hour examination.

Lecturer: Ewart Shaw

STATISTICS ST413 15 CATS


Term 1 Bayesian Statistics & Decision Theory
With Advanced Topics
Availability: Only available to students who have NOT taken ST301
Prerequisite(s): ST217 Mathematical Statistics A.

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FINAL YEARS

Content: Bayesian statistics is one of the fastest growing areas in statistics. With the advance of
computer technology it is now a highly practical methodology for addressing many important high
dimensional decision problems as well as being underpinned by a sound mathematical foundation.
It is especially useful when some of the components of uncertainty have only sparsely collected
data associated with them, so that expert judgements need to be incorporated. The course first
introduces the central concepts of Bayesian decision analysis through a selection of simple
examples. Various methodologies are then presented for:

Structuring a decision problem for example by decision trees and influence diagrams.
Eliciting probability distributions over many variables using the concepts of irrelevance and
the Belief net.
Eliciting the objectives and preferences of the client developing the ideas of m.u.i.a. and value
independence and the use of the decision conference.
The formal methodologies are illustrated through a wide range of examples for health, the
environment, finance and public sector administration. Some of the examples build on the practical
experience of the lecturer as an active Bayesian decision analyst.
Aims:
To demonstrate how to build statistical models of non-trivial problems when data is sparse and
expert judgements need to be incorporated.
To give ways to represent the pertinent features of a decision problem.
To give practical algorithms for finding decision rules which the client can expect will best
satisfy pre-specified objectives.
To train the student in the rudiments of decision analysis.

Objectives:
The student will gain an appreciation of the importance of conditional independence in subjective
(Bayesian) statistical modelling and be introduced to the DAG as an efficient representation of
collections of conditional independence statements as they arise in practice.
The student will be provided with techniques for eliciting subjective probability distributions
over many variables.
The student will be provided with techniques for eliciting quantitative preference structures
from a client which may involve competing objectives.
The student will obtain an appreciation of the foundational arguments that justify expected
utility maximisation as a paradigm for rational action.
The student will obtain practice in implementing these techniques.
The student will learn the bases of fast algorithms for the calculation of probabilities needed in
such maximisation.
Students will be given selected advanced material for further study and examination.
Assessment: 100% by 2-hour examination.

Lecturer: Jim Smith

STATISTICS ST414 15 CATS


Term 2 Advanced Topics in Statistics

Prerequisite(s): ST217 Mathematical Statistics A & B (for Statistics students)


ST218 Maths Stats A & ST219 Maths Stats B (for all non-statistics students)
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Content: Three self-contained sets of ten lectures.

Exotic Derivatives in Stochastic Volatility Models with Jumps (Alexsander Mijatovic):

Aims:
In equity and foreign exchange markets the risk-neutral dynamics of the underlying asset are
commonly represented by a stochastic volatility model with jumps. In this short course we will
study a dense subclass of such models (given by Markov additive processes) and describe
analytically tractable formulae for the prices of a range of first-generation exotic derivatives. The
following topics will be discussed:

Fourier transforms of vanilla and forward starting options,


Formula for the slope of the implied volatility smile for large strikes,
Formula a variance swap price,
One-dimensional integral representation for volatility swaps and (if the time permits),
Analytically tractable formula for the Laplace transform (in maturity) of the double-no-touch
options based on complex-matrix Wiener-Hopf factorisation.

Recommended: A good understanding of continuous-time Markov chain theory (e.g. the content of
J. Norris, Markov Chains) and of fundamental properties of Brownian motion are essesntial. Some
familiarity with integral transforms is desirable.

Hidden Markov Models (John Aston)

Hidden Markov models (HMMs) provide a rich modelling structure for non-linear time series and
sequence analysis. The aim of this course is to familiarise students with the fundamental ideas of
HMMs including their setup, estimation and uses. In particular the following will be covered:

- The Viterbi Algorithm which is used to find the most likely underlying state sequence

- The Forwards-Backwards and Baum-Welsh Algorithms for parameter estimation

The course will be motivated by examples from many applications including engineering,
economics and biological sciences.

Stein-Chen Method (David Croydon):

Aims: The Stein-Chen method is a powerful modern technique which extends the Poisson 'law of
small numbers' (given n independent events each of small probability p, the total number of event
which occur is approximately Poisson of distribution np). There are many applications, for example
in bioinformatics, insurance, and the study of extreme phenomena.

Objectives: By the end of the course students will be able to:

Describe the principles of the Stein-Chen method;


Apply it in a couple of central examples.
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STATISTICS ST415 30 CATS


Statistics Masters Dissertation

Only available to year 4 integrated Masters students.

The department offers two types of project: group based and individually supervised.

The group based project involves a small group of students and a member of the lecturing staff
studying a common theme in a seminar before proceeding to individual problems based on that
theme. For example you could learn about a certain class of statistical models and then individually
try to fit the models to different data sets in order to gain some practical experience. Doing a group
project you have the opportunity to learn from each other and develop skills together before
tackling your own case study.

An individually supervised project involves working, with the support of a member of the lecturing
staff, on a topic specific to you. The range of topics is very wide and reflects the research interests
of the lecturing staff. Other titles are possible by individual arrangements.

Deadlines and other practicalities

A list giving details of the projects available will be sent to all students, by e mail, the week
prior to the start of the academic year. After consulting with lecturers you should submit your
choices of project to the Course Director by the end of the first week of Term 1 (autumn term).
Project assignments will then be made during the second week of term
Changes of supervisor (and project) are not permitted after week 6 of the term 1 (autumn term).
The deadline for submission of the written dissertation is the Thursday of week 3 of term 3
(summer term). Students are advised to refer to section 5.9 Assessed Work in the handbook.
All projects, including those supervised by WBS and by Economics, must be submitted to
Hilda Cooper, the Academic Administrator.
The penalties for late submission are as described in the course handbook.
If you know that you will not meet the deadline, or you experience any difficulties which
prevent you from meeting the deadline, please inform your supervisor and Hilda Cooper
(Academic Administrator) as soon as possible.
Your project must be typed and bound and you must submit two hard copies. In the case of a
project which is supervised by the Economics Department or Warwick Business School you
must submit three hard copies.
http://www2.warwick.ac.uk/services/retail/warwickprint/bookbinding

You must make a five minute oral presentation which will be scheduled on Tuesday, Week 10
Term 1 (Autumn term). You must plan to keep this day free, other than from scheduled
lectures. 5% of credit is awarded for the presentation.

A full set of guidance notes will be in your pigeonhole at the start of term.

STATISTICS ST416 15 CATS


Term 1 Advanced Topics In Biostatistics

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Prerequisite(s): ST111/112 Probability A and B, ST217 Mathematical Statistics A and B, basic


computing literacy (R, Matlab)

Content: Three self-contained modules, each with ten lectures.

Assessment: 100% by 2-hour examination

Bayesian Inference & Modelling in Biostatistics: (Fabio Rigat)

This module component illustrates models arising from a variety of application in Biostatistics,
including survival analysis, flexible modelling of dose-response relations, gene expression, neural
recordings and mass spectrometry.

As such, this component aims at equipping students with a basic modelling expertise in
Biostatistics, providing a springboard to either academic or industrial careers.

Essential requirements for taking this component are a strong interest in applied statistical
modelling, along with a clear understanding of the principles of statistical inference. Useful
although not required prerequisites are previous exposure to Bayesian inference and basic
computational skills (e.g. in R, Matlab). The latter become of fundamental importance if students
are interested in developing their final project in areas linked to this module component.

By the end of this component, students will have become familiar with the mechanics of Bayesian
inference, with the scientific questions inspiring the models illustrated along this component and
with the technical issues involved by the construction of such statistical models.

Statistical Methods for Large Biological Datasets (Julia Brettschneider)

This module aims to give an introduction into a new area of applied statistics. Innovative
measurement technologies have been producing large data sets in genetic laboratories which
triggered the development of statistical methods to extract useful information. Among the
challenges are high-dimensionality, unknown correlation structure and noise.

The biotechnological background for some of these technologies will be introduced as well as the
basics of genetics needed to understand the examples.

Then the following topics will be discussed:

Exploratory approaches to determine genes relevant for a certain biological process


with explicit applications such as understanding development (who does a fruit fly embryo
grow?), reaction to stimulus (describing the circadian clock at a molecular level) or the
aetiology of complex genetic diseases such as cancers or mental disorders
Classification and clustering for genomic data sets
Data preprocessing and quality assessment for high-dimensional data sets
Approaches for validation
Gene set analysis
Genetic networks
Biomarker analysis for (individual) diagnostic or prognostic purposes:diagnostic paradigm,
measures of diagnostic performance, ethical issues

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FINAL YEARS

By the end of the course students should be able to support biologists with the design and the
analysis of the data generated by genomics experiments

Modelling & Inference for Brain Image Data (Thomas Nichols)

This module will provide an overview of functional and structural brain imaging, and the statistical
tools used to model this data. It will cover the multiple testing problem, and different measures of
false positive risk on images, as well as Random Field Theory and how it adapts to spatial
correlation.

Positron Emission Tomography (PET) and Functional Magnetic Resonance Imaging (fMRI) are
used to literally view the brain 'in action', measuring changes in blood flow that identify which brain
regions are used to, for example, remember words, perceive pain or process emotions. These
technologies produce massive datasets, however, presenting a challenge for traditional statistical
methods. For example, the simplest possible result of a study is 3-dimensional t statistic image with
as many as 100,000 voxels (volume elements), each measuring the strength of evidence for a
change in activity at that brain region.

In this module we will cover topics including:

Basic introduction to neuroscience and brain imaging methods, differences between PET &
fMRI
Preprocessing of brain image data, including motion correction and inter-subject brain
warping
Time series regression modelling of fMRI data
Mixed effect models of multi-subject data
Multiple Testing Problem, and ways of measuring false positive risk, including the
Familywise Error Rate (FWE) and the False Discovery Rate (FDR)
Random Field Theory, a Gaussian Process model for smooth data, which provides key
results for finding FWE- and FDR-controlling procedures
"Brain Reading", or the use of classification methods with fMRI, using linear discriminant
and support vector machine methods

By the end of the course students should be able to support neuroscientists with the design and the
analysis of the data generated by neuroimaging experiments

STATISTICS ST417 15 CATS


Term 2 Topics in Applied Probability

Important: This module is only available to final year (4) integrated Masters students.

Prerequisite(s): ST318, ST333

Aims: This module will cover several topics chosen from modern applied probability. The topics
will be selected to demonstrate how probability theory can be used to study various phenomena in
the real world. Examples might include random graphs, spatial point processes, branching
processes, interacting particle systems, random polymers etc. The topics might vary from year to
year.

Commitment: 3 lectures/week
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FINAL YEARS

Content: During the academic year 2010-2011 the focus of the module will be on the applications
of Markov processes and random walks to various fields such as statistical mechanics, computer
science and mathematical biology. The students will have the opportunity to witness the beauty and
power of the probabilistic techniques when these are applied to give surprising answers and insight
to problems of other scientific fields.

We will first make a quick review of the basic notions of Markov Chains, before proceeding to
develop some more sophisticated tools around this theme. In the first part of the course, the
question ``how much time does it take for a Markov Process to approach equilibrium'' will be of
central interest. This is of particular importance in Markov Chain Monte Carlo simulations, and we
will also cover several applications to statistical mechanics (Ising model etc.), computer science
(colourings of graphs, counting), card and gene shuffling.

To complete the course, we study random walks using ideas from electrical networks. The
advantage of this approach is its robustness, as it allows questions such as ``how long will it take for
a random walk to visit a particular vertex, or indeed all the vertices?'' to be answered using very
limited knowledge of the underlying graph. Such results are of interest in the design of randomised
search algorithms, amongst other areas.

Objectives: By the end of the course, the student will:


- Understand and be able to use key methods and concepts of applied probability.
- Understand and be aware of examples of current research involving the application of probability.
Books: Most of the material discussed will be included in Markov Chains Mixing Times;

D. Levin, Y. Peres, E. Wilmer; American Mathematical Society (2008).


Random Walks and Electric Networks;
P. G. Doyle, J. L. Snell, Mathematical Association of America (1984).

Assessment: 10% by coursework and 90% by 2hr exam.

Lecturers: David Croydon/Nikolaos Zygouras

STATISTICS ST906 12 CATS


Term 2 Financial Time Series

Important: This module is only available to final year (4) integrated Masters students.

Summary:
Most financial data is available in time series form and therefore the statistics and modelling of time
series data are essential components underpinning mathematical finance. The module aims to
provide the relevant statistical theory and experience in financial time series statistics. One-third of
the course covers exploratory and descriptive techniques for various features, such as long term
level, fluctuation, distribution, linear and non-linear dependence, short and long memory
dependence, directionality and volatility. Both linear and non-linear models are equally developed.
Linear autoregressive moving average and nonlinear locally non-constant variance models are
covered, as applicable to volatile financial returns, interest, exchange rates and futures. Ways of
fitting these models to time series data, methods of their statistical validation and their use in such
financial areas as forecasting, systematic trading models, fund manager evaluation, hedging, option

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evaluation and simulation are covered. The course aims to give practical experience in the use of
specialized time series software for class examples and projects. .

Aims:
The Module aims to provide the student with background and skills
(a) to be able to model and analyse financial time series data, and to extend and develop
methodology as required
(b) to understand and be able to critically evaluate times series developments and research
results in the finance area

Learning Outcomes:
By the end of the module the student should have:

a good theoretical understanding of the standard techniques of time series analysis as applied in
the finance area
an ability to carry out exploratory and descriptive analysis of time series data, particularly with
reference to financial applications
mathematical ability in deriving the statistical properties of linear and nonlinear time series
models
a general appreciation of nonlinearity in time series modelling, and in particular with respect to
modelling volatile financial series
an ability to undertake modelling studies of time series involving forecasting and simulation,
with appropriate software, and covering model choice, fitting and validation

Content:
Examples, exploration and description of time series data: long term and local level, fluctuation,
distribution, short and long term memory dependence, directionality and volatility. Use of statistical
time series software. Linear modelling of time series: meaning of linearity, autoregressive and
moving average models and their statistical properties, likelihood estimation and residual analysis,
forecasting and simulation. Illustrative financial applications. Nonlinear modelling of financial time
series: meaning of non-linearity, various non-constant conditional variance models for volatility, their
statistical properties, their use in financial time series data analysis and systematic trading models,
and example applications in finance. Presentation by practitioner from the finance industry showing
use of time series methodology.

Organisation:
There will be one 2-hour lecture and one 1-hour seminar or problem class per week.

Texts:
Franke J, Hardle W and Hafner C, (2004) Statistics of Financial Markets, Springer
Cizek P, Hardle W and Weron R, (2005) Statistics for Finance and Insurance, Springer
Tsay RS, (2005) Analysis of Financial Time Series, (Second Edition), Wiley.
T L Lai & H Xing, (2008) Statistical Models and Methods for Financial Markets
Brockwell PJ and Davis RA, (2002) Introduction to Time Series and Forecasting, (Second
Edition), Springer

Assessment:
Financial Time Series is examined by a single 90-minute paper at the beginning of Term 3.
There is also assessed coursework in the form of three mini-projects which is weighted at 20%.
Only the marks for projects 2 & 3 are assessed.

Lecturer: Tony Lawrance


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FINAL YEARS

STATISTICS ST909 15 CATS


Term 2 Continuous Time Finance for
Interest Rate Models

Prerequisite(s): ST401 Stochastic Methods in Finance


or ST403 Brownian Motion or ST908 Probability and Stochastic Processes (non
Statistics students)

Commitment: 3 x 1 hour lectures per week

Content:

Mathematical Foundations

1. Monotone convergence, dominated convergence and Fatous lemma for conditional


expectation. Optional sampling theorem. Finite variation processes as integrators, quadratic
variation for continous martingales, Meyers Theorem.

2. Continuous Local Martingales, properties of the stochastic integral with respect to continuous
local martingales. Continuous semimartingales as integrators, integration by parts and
multidimensional Itos formula for continuous semimartingales, Levys Theorem.

3. Radon-Nikodym derivative, Girsanovs Theorem for semimartingales, Novikovs condition


Martingale Representation Theorem

Option Pricing in Continuous Time


1. Pricing via PDEs (brief review)
2. Pricing via equivalent martingale measures, fundamental valuation formula, arbitrage and
admissible strategies. Completeness for the Black Scholes economy. Pricing kernels

3. Implied volatility, market implied distributions. Stochastic volatility and incomplete markets.
Multicurrency Economy.

Term Structure Models


1. ctd. Short rate models. Introduction to main examples, implementation of Hull-White

2. Review of main types of term structure models including Pure discount Bond, Heath-Jarrow-
Morton, Flesaker-Hughston.

3. Market Models (Brace, Gaterek and Musiela approach), specification in terminal and spot
measure.

4. Pricing callable interest rate derivatives with market models, drift approximation and
separability, implementation via Longstaff-Schartz Greeks via Monte Carlo for market
models, pathwise method, likelihood ratio method.

5. Markov-functional models

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6. Practical issues in choice of model for various exotics, Bermudan swaptions, TARNS
7. Calibration: global versus local

Examination: (80%) 2 class tests (20%)

Lecturer: Jo Kennedy

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