Question

Tell how you currently use statistics at a bank. Be descriptive in 250 words or more. Please typed answers only.

Answer 1

Statistics plays an important role in banking. Banks make use of statistics for a number of purposes. They work on the principle that everyone who deposits their money with the banks does not withdraw it at the same time. The bank earns profits out of these deposits by lending it to others on interest. Bankers use statistical approaches based on probability to estimate the number of deposits and their claims for a certain day.

The statistical tools are used in banking sector for making a decision.How do a bank invest their money in capital market or for lending to their customer,they have to use statistics.It is also use in forecasting in the banking sector.

Banks take your money and invest it into the stock-market and there is a trillion different ways statistics are use to analyze stocks.

Bank uses statistical data for monetary policy purposes, macro-prudential analysis, and financial stability analysis.

Statistical methods used by banks are many but one important one is Linear Regression – Sales / Loss prediction

     

• Cross-sell and Up-Sell Modelling
• Descriptive Statistics
• Probability Theory and Distribution Function
• Hypothesis Testing- Type I and II Error
• Decision Tree (CHAID/CARD/Random Forest)
• Clustering and Segmentation
• Forecasting and Time Series (ARIMA)
• Logistic Regression and Scorecard Development