TOPIC:-Applications statistics in finance and banking.
NAME OF GROUPS:-C
BAHJA AHMED
MAYMUN ABDULLAHI
ASSINGMENT
DEC 2022
NASTEEXO ABDIAZIZ
NAJMO MOHAMED
RAHMO MOHAMUD
RAHMO HASSAN
YASMIIN KASIM
MARYAN Abdirahman
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Applications Statistics In
Finance And Banking
Learning objectives
• Introduction statistics finance and
banking
• applications statistics finance and
banking
• drawing graph , chart statistics finance
and banking
• different between statistics finance and
banking
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Introduction
Definition statistics and finance
Financial statistics consist of a comprehensive set of stock and
flow data on the financial assets and liabilities of all sectors of
an economy
Financial analysts often use descriptive statistics to summarize
data related to the finances of companies. For example, a
financial analyst who works for a retail company may calculate
the following descriptive statistics during one business quarter:
mean number of daily sales. Median number of daily sales
The description of financial markets blindly in terms of models
of statistical physics has been argued as flawed because it has
transpired these do not fully correspond to what we now know
about real finance markets.
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What Is The Relationship Between
Finance And Statistics?
Financial analysts use statistical methods to analyze, evaluate, and
summarize large volumes of data into a mathematical form that is
useful. Statistics is applied in numerous disciplines such as business,
social sciences, manufacturing, psychology.
As in any research, the research on statistics in finance has few
defined objectives.
It is mainly focused on three areas.

empirical studies focused on the discovery of interesting
statistical features of financial time-series data aimed at
extending and consolidating the known stylized facts.

The use of these discoveries to build and implement models that
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better price derivatives and anticipate stock price movement with
an emphasis on non-gaussian methods and models.
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Application statistics finance
facilitate decision-making
 Appraisal of value, consumer surveys, hiring decisions,
insurance, manufacturing, online business, real estate
investing, rental housing, sales, and stock markets.

Role of statistics in finance
At a macro level, it helps in understanding a country's
financial state and measuring economic growth

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The Importance of Statistics in
Finance (With Examples
The field of statistics is concerned with collecting, analyzing, interpreting,
and presenting data.
In the field of finance, statistics is important for the following reasons:Reason 1: Using Descriptive Statistics to Summarize Data

Descriptive statistics are used to describe data.

Financial analysts often use descriptive statistics to summarize data
related to the finances of companies.

For example, a financial analyst who works for a retail company may
calculate the following descriptive statistics during one business
quarter:-

Mean number of daily sales

Median number of daily sales

Standard deviation of daily sales

Total revenue

Total expenses

Percentage change in new customers

Percentage of products returned by customer.
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 Reason 2: Using Regression Models to
Quantify the Relationship Between
Variables



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Another way that statistics is used in
finance is in the form of regression
models.
These are models that allow financial
analysts to quantify the relationship
between one or more predictor
variables and a response variable.
For example, an analyst may have
access to data on total money spent
on TV advertising, online advertising,
and total revenue generated
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Banking statistics
To identify and rate individual customers who are at risk of fraud and then apply different
levels of monitoring and verification to those accounts. Analyzing the risk of the accounts
allows banks and financial institutions to know what to prioritize in their fraud detection
efforts.
The role of statistics in banking
They earn their profit by lending money to others with interest, and the money they use is the
money other people deposit. Bankers use statistical approaches to estimate the number of
people who will be making deposits compared to the number of people requesting loans.
Applications statistics banking:
◇ customer segmentation.
◇ fraud management & prevention.
◇ risk
modeling.
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◇ identifying the main channels of transactions (atm withdrawal, credit/debit card payments)
Bill payment
Mobile payment
Users
Alipay
650 million
Wechat pay
550 million
Apple pay
220 million
Google pay
650 million
Samsung pay
100 million
Paypal
60 million
Find the mean , mode and medium
Mean
2230/6=2046.6
MODE
=650
MEDIUM
60,100,220,550,650,650
220+550/2=495
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