Learn how to calculate Value at Risk (VaR) to effectively assess financial risks in portfolios, using historical, variance-covariance, and Monte Carlo methods.

This PFD measures the probability that a company will go bankrupt within the next 12 months given its current financial position. Example calculation ...

This PFD measures the probability that a company will go bankrupt within the next 12 months given its current financial position. Example calculation ...

The impact probability describes how likely a hazardous asteroid is to hit Earth. For example, if the impact probability is 1%, it means that in 1 of 100 cases, it hits Earth.

How likely you think something is to happen depends on what you already believe about the circumstances. That is the simple ...

I was preparing for my early morning class back in January 2025 when I received a notice regarding an asteroid called 2024 YR4. It said the probability it could hit Earth was unusually high. As ...

In this note we wish to pass along an example that we have found useful when introducing the concepts of conditional probability and Bayes' Rule to undergraduate students. The advantages of this ...