Statistical Decision Making

STA80006 12.5 Credit Points Hawthorn, Online


  • One study period

Contact hours

  • 36

On-campus unit delivery combines face-to-face and digital learning. For Online unit delivery, learning is conducted exclusively online.

Aims and objectives

Students will learn to model and manage uncertainty and risk. Some of the most commonly used probability distributions will be introduced together with Monte Carlo simulations. The concept of Maximum Likelihood Estimation (MLE) will also be introduced, allowing the estimation of distribution parameters. Probabilistic methods and models will then be illustrated using appropriate examples and software.

Students who successfully complete this unit will be able to:
1. Identify appropriate probability distributions for modelling chance occurrences.
2. Simulate such distributions and obtain estimates of distribution parameters using the method of moments and maximum likelihood estimation.
3. Navigate probabilistic methods for working with uncertainty.
4. Formulate probabilistic models for risk in real world contexts.
5. Use probabilistic models to design statistical systems for the management of risk and uncertainty.

Courses with unit

This unit will no be offered after Semester 1 2022