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Statistical and Predictive Modeling for Finance

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Coursera

Statistical and Predictive Modeling for Finance

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Gain insight into a topic and learn the fundamentals.
Intermediate level

Recommended experience

1 week to complete
at 10 hours a week
Flexible schedule
Learn at your own pace
Gain insight into a topic and learn the fundamentals.
Intermediate level

Recommended experience

1 week to complete
at 10 hours a week
Flexible schedule
Learn at your own pace

What you'll learn

  • Apply regression to interpret alpha, beta, and financial relationships

  • Design A/B tests and evaluate statistical assumptions

  • Build and assess predictive models for financial risk classification

Details to know

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Recently updated!

March 2026

Assessments

21 assignments¹

AI Graded see disclaimer
Taught in English

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This course is part of the Financial Analyst: AI, Excel, and Power BI Skills Professional Certificate
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There are 11 modules in this course

You will explain how alpha and beta measure portfolio performance and risk relative to the market. You’ll explore how these metrics separate market influence from manager skill and support risk-adjusted evaluation.

What's included

3 videos1 reading1 assignment

You will apply regression techniques to calculate and interpret a stock's beta. You’ll translate statistical output into practical investment insights and communicate findings clearly.

What's included

2 videos1 reading2 assignments

You will recognize the key assumptions underlying classical linear regression and understand why they matter for financial modeling reliability. You’ll explore how violations can affect forecast accuracy and credibility.

What's included

3 videos1 reading1 assignment

You will apply an OLS regression model and plot residuals to identify heteroscedasticity. You’ll interpret diagnostic outputs and assess whether your model meets statistical standards.

What's included

3 videos1 reading2 assignments

You will understand key measures of central tendency and determine when the mean or median is more appropriate, especially with skewed financial data. You’ll interpret summary statistics to support sound decision-making.

What's included

3 videos1 reading2 assignments

You will apply descriptive statistics to summarize key features of a dataset. You’ll calculate, visualize, and communicate data patterns clearly for professional audiences.

What's included

3 videos1 reading3 assignments

You will explain the difference between a null and an alternative hypothesis and understand their role in financial experimentation. You’ll connect hypothesis testing logic to risk-adjusted performance evaluation.

What's included

3 videos1 reading2 assignments

You will apply A/B testing principles to design an experiment measuring an algorithm’s impact on the Sharpe ratio. You’ll structure test plans that distinguish true improvement from random variation.

What's included

3 videos2 readings3 assignments

You will describe the standard workflow for developing and evaluating supervised learning models, from defining the predictive question to validating results. You’ll understand how structured workflows improve transparency and trust.

What's included

3 videos1 reading2 assignments

You will apply a decision tree model to predict a categorical outcome and report its accuracy. You’ll interpret model performance metrics and communicate findings in clear business language.

What's included

2 videos1 reading2 assignments

In this project, you will evaluate two predictive credit risk models—a logistic regression model and a decision tree classifier—using provided statistical outputs and performance metrics. You will interpret regression coefficients, assess statistical significance, evaluate model assumptions, and compare classification performance using accuracy, precision, and recall. You will also analyze confusion matrix results and interpret pilot A/B testing outcomes. Based on your analysis, you will recommend a lending strategy that balances predictive performance, financial risk exposure, and business priorities. This project simulates a real credit risk evaluation task performed by entry-level financial and risk analysts.

What's included

3 readings1 assignment

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Professionals from the Industry
238 Courses 35,970 learners

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¹ Some assignments in this course are AI-graded. For these assignments, your data will be used in accordance with Coursera's Privacy Notice.