Author(s): Michael B. MillerDifference between 2nd and 1st editions Side by side comparison of table of contents helps to figure out the most significant changes. |

**Key differences between 2nd and 1st editions**

- Time lapse between current and previous editions: 1 year (2013 vs 2012).
- The First edition of Miller's statistics textbook was published in 2012.
**Chapter 4:**New discussions on Triangular and Beta Distributions, which can be used to model default rates and recovery rates.- New
**Chapter 5**"Multivariate Distributions and Copulas" investigates concepts for measuring the risk of portfolios, including joint distributions and copulas. - Section "Multivariate Distributions" covers discrete distributions, continuous joint distributions, visualization of probability density function in three dimensions, correlation, and marginal distributions.
- Section "Copulas" covers definition of copula (a multivariate probability distribution), graphing copulas, how copulas can be used in Monte Carlo simulations, and parameterization of copulas.
- New
**Chapter 6**"Bayesian Analysis" covers: - Bayes' theorem -- the foundation of Bayesian analysis.
- Comparison of Bayes vs Frequentists approach - which approach is better?
- Many-State problems -- extension of Bayesian analysis to any number of possible outcomes.
- Continuous distributions
- Bayesian networks -- representation of the causal relationships between different random variables.
- Comparison of Bayesian networks vs correlation matrices.
- New Appendix F "Copulas" summarizes the properties of various named copulas.

Mathematics and Statistics for Financial Risk Management

Published by: Wiley, December 12, 2013

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Available |

Published by: Wiley, December 31, 2013

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$68.42 |
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$64.98 |
$94.50 due: Jun 04 $89.25 due: May 23 $84.00 due: Apr 23 |

Mathematics and Statistics for Financial Risk Management

Published by: Wiley, March 06, 2012

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$121.64 |
From: $44.54 |

**Saving advice**

- Used 2nd edition can save you
**$15.16**over the new one. -
Used previous 1st edition costs
**$8.72**less than the used 2nd.