Apply regression, statistical analysis, and supervised learning to evaluate financial performance and predict risk. In this course, you’ll build the quantitative skills used by financial analysts to interpret data and support investment and lending decisions.

Statistical and Predictive Modeling for Finance
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Statistical and Predictive Modeling for Finance
This course is part of Financial Analyst: AI, Excel, and Power BI Skills Professional Certificate

Instructor: Professionals from the Industry
Included with
Recommended experience
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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March 2026
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Build your Finance expertise
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- Develop job-relevant skills with hands-on projects
- Earn a shareable career certificate from Coursera

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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Felipe M.

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Larry W.

Chaitanya A.

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Frequently asked questions
Yes. The course introduces statistical concepts with guided examples and finance-focused applications. No prior statistics background is required.
Yes. You’ll apply supervised learning techniques, including decision trees, to predict financial outcomes and evaluate model performance.
Financial analysts use statistical modeling to assess risk, evaluate investments, and support data-driven decisions. This course builds those applied skills through real financial scenarios.
More questions
Financial aid available,
¹ Some assignments in this course are AI-graded. For these assignments, your data will be used in accordance with Coursera's Privacy Notice.





