Quantitative Methods for Business and Finance

Module code: EC7091

Module co-ordinator: Dr Barbara Roberts

Numerical data is required in order to make informed decisions in areas related to business and finance. It is often the case that our interest lies in the population, yet we only have a sample for making inferences about the underlying population. We might also be interested in the relationship between economic variables and how it varies over time. Real-life problems are set in an environment involving risk and are best described in terms of probability. Quantitative methods cover a broad range of tools for converting raw data into useful information by analysing the available data and drawing appropriate conclusions. The techniques include probability theory, descriptive and inferential statistics, as well the basics of econometric modelling.

In this module you will develop statistical, econometric, and computational skills in the context of modern economic and financial analysis. The first part of the module will focus on statistics, including principles of estimation and hypothesis testing; the second part will cover basic econometric concepts and applied econometrics. We will also look at one of the most widely used econometric software packages, Eviews 8.

Topics covered

  • Probability distributions
  • Estimation and hypothesis testing
  • Basic econometric techniques (OLS, ARMA)
  • Testing for and remedying econometric difficulties


  • 21 one-hour lectures
  • 4 one-hour tutorials
  • 4 computing classes


  • Exam, 2 hours (80%)
  • Coursework (20%)