by Daniela Witten, Gareth James, Jonathan Taylor, Robert Tibshirani, Trevor Hastie
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Suggested foundations for probability and statistical reasoning and financial time series. Specialist prerequisites vary by resource.
Read the distributions and expectations used in probabilistic arguments.
Interpret expectations after information is observed.
Check whether a relationship can be estimated consistently over time.
Read the fitted relationship and its residuals.
Assess uncertainty rather than treating an estimate as a fact.
Study long-run relationships without confusing them with correlation.
Check the assumptions behind reported estimates.
Learn statistical learning, establish simple baselines, and evaluate financial predictions without leaking the future.