Stochastic Ageing and Dependence for Reliability

This book aims to introduce simulation techniques for practitioners in the financial and risk management industry at an intermediate level. The only prerequisite is a standard undergraduate course in probability at the level of Hogg and Tanis (2005), say, and some rudimentary exposure to finance. It is a hands-on book that has extensive simulation examples using S–PLUS or Visual Basics. The book contains 10 chapters. The chapters are organized into three parts. Part one consists of the first three chapters, part two covers Chapters 4–6, and part three consists of the rest of the book. Throughout the book, hands-on examples and case studies from finance and risk management are incorporated. Almost all of the examples and case studies are illustrate with S–PLUS and some with Visual Basics. Readers can reproduce the analysis and learn about either S–PLUS or Visual Basics by replicating some of the empirical examples.