Dennis Cox & Michael Cox 
The Mathematics of Banking and Finance 

Throughout banking, mathematical techniques are used. Some of these
are within software products or models; mathematicians use others
to analyse data. The current literature on the subject is either
very basic or very advanced.

The Mathematics of Banking offers an intermediate guide
to the various techniques used in the industry, and a consideration
of how each one should be approached. Written in a practical style,
it will enable readers to quickly appreciate the purpose of the
techniques and, through illustrations, see how they can be applied
in practice. Coverage is extensive and includes techniques such as
Va R analysis, Monte Carlo simulation, extreme value theory,
variance and many others.

* A practical review of mathematical techniques needed in banking
which does not expect a high level of mathematical competence from
the reader

Table of Content

Introduction.

1 Introduction to How to Display Data and the Scatter
Plot.

2 Bar Charts.

3 Histograms.

4 Probability Theory.

5 Standard Terms in Statistics.

6 Sampling.

7 Probability Distribution Functions.

8 Normal Distribution.

9 Comparison of the Means, Sample Sizes and Hypothesis
Testing.

10 Comparison of Variances.

11 Chi-squared Goodness of Fit Test.

12 Analysis of Paired Data.

13 Linear Regression.

14 Analysis of Variance.

15 Design and Approach to the Analysis of Data.

16 Linear Programming: Graphical Method.

17 Linear Programming: Simplex Method.

18 Transport Problems.

19 Dynamic Programming.

20 Decision Theory.

21 Inventory and Stock Control.

22 Simulation: Monte Carlo Methods.

23 Reliability: Obsolescence.

24 Project Evaluation.

25 Risk and Uncertainty.

26 Time Series Analysis.

27 Reliability.

28 Value at Risk.

29 Sensitivity Analysis.

30 Scenario Analysis.

31 An Introduction to Neural Networks.

Appendix Mathematical Symbols and Notation.

Index.

About the author

DENNIS COX is CEO of Risk Reward Limited, a Strategy and
Risk Consultancy for the financial services industry, as well as
being a director of a number of other companies. He was formerly
Director, Risk Management at HSBC Operational Risk Consultancy and
Global Risk Director at Prudential Portfolio Managers Limited,
having spent 12 years in practice with Arthur Young and BDO Binder
Hamlyn. Among a range of external interests he is a senior Council
member of the ICAEW, a member of the Professional Standards Board,
Chairman of the Financial Planning Committee of the London Society
and a member of the Money Laundering Committee; together with being
the Chairman of the Risk Forum for the Securities and Investments
Institute. He also represents the public interest in the regulation
of the Institute of Actuaries for financial service matters.

MICHAEL COX has spent 25 years teaching quantitative
methods to a wide variety of undergraduate students in departments
ranging from agriculture, engineering, history, economics, business
and medicine. For over 20 years he has taught both statistics and
management science to MBA students.

During his career he has published some 50 referred papers in such
diverse areas as statistical process control, total quality
management, multidimensional scaling and the analytical hierarchy
process. In addition Michael has co-authored two text books and
developed a major piece of software.

Michael works in applicable mathematics, the solution of real world
problems employing statistical and management science techniques.
Most of this research has included computer applications.