A unique primer on quantitative methods as applied to Islamic finance Introductory Mathematics and Statistics for Islamic Finance + Website is a comprehensive guide to quantitative methods, specifically as applied within the realm of Islamic finance. With applications based on research, the book provides readers with the working knowledge of math and statistics required to understand Islamic finance theory and practice. The numerous worked examples give students with various backgrounds a uniform set of common tools for studying Islamic finance. The in-depth study of finance requires a strong foundation in quantitative methods. Without a good grasp of math, probability, and statistics, published theoretical and applied works in Islamic finance remain out of reach. Unlike a typical math text, this book guides students through only the methods that directly apply to Islamic finance, without wasting time on irrelevant techniques. Each chapter contains a detailed explanation of the topic at hand, followed by an example based on real situations encountered in Islamic finance. Topics include: Algebra and matrices Calculus and differential equations Probability theory Statistics Written by leading experts on the subject, the book serves as a useful primer on the analysis methods and techniques students will encounter in published research, as well as day-to-day operations in finance. Anyone aspiring to be successful in Islamic finance needs these skills, and Introductory Mathematics and Statistics for Islamic Finance + Website is a clear, concise, and highly relevant guide.

A unique primer on quantitative methods as applied to IslamicfinanceIntroductory Mathematics and Statistics for Islamic Finance +Website is a comprehensive guide to quantitative methodsspecifically as applied within the realm of Islamic finance. Withapplications based on research, the book provides readers with theworking knowledge of math and statistics required to understandIslamic finance theory and practice. The numerous worked examplesgive students with various backgrounds a uniform set of commontools for studying Islamic finance.The in-depth study of finance requires a strong foundation inquantitative methods. Without a good grasp of math, probabilityand statistics, published theoretical and applied works in Islamicfinance remain out of reach. Unlike a typical math text, this bookguides students through only the methods that directly apply toIslamic finance, without wasting time on irrelevant techniques.Each chapter contains a detailed explanation of the topic at handfollowed by an example based on real situations encountered inIslamic finance. Topics include:* Algebra and matrices* Calculus and differential equations* Probability theory* StatisticsWritten by leading experts on the subject, the book serves as auseful primer on the analysis methods and techniques students willencounter in published research, as well as day-to-day operationsin finance. Anyone aspiring to be successful in Islamic financeneeds these skills, and Introductory Mathematics and Statisticsfor Islamic Finance + Website is a clear, concise, and highlyrelevant guide.

Preface ixAcknowledgments xiAbout the Authors xiiiPART ONE MathematicsCHAPTER 1 Elementary Mathematics 3CHAPTER 2 Functions and Models 25CHAPTER 3 Differentiation and Integration of Functions 41CHAPTER 4 Partial Derivatives 61CHAPTER 5 Logarithm, Exponential, and Trigonometric Functions 77CHAPTER 6 Linear Algebra 91CHAPTER 7 Differential Equations 117CHAPTER 8 Difference Equations 141CHAPTER 9 Optimization Theory 167CHAPTER 10 Linear Programming 195PART TWO StatisticsCHAPTER 11 Introduction to Probability Theory: Axioms and Distributions 227CHAPTER 12 Probability Distributions and Moment Generating Functions 251CHAPTER 13 Sampling and Hypothesis Testing Theory 271CHAPTER 14 Regression Analysis 301CHAPTER 15 Time Series Analysis 327CHAPTER 16 Nonstationary Time Series and Unit-Root Testing 355CHAPTER 17 Vector Autoregressive Analysis (VAR) 369CHAPTER 18 Co-Integration: Theory and Applications 381CHAPTER 19 Modeling Volatility: ARCH-GARCH Models 397CHAPTER 20 Asset Pricing under Uncertainty 413CHAPTER 21 The Consumption-Based Pricing Model 439CHAPTER 22 Brownian Motion, Risk-Neutral Processes, and the Black-Scholes Model 451References 473Index 475