[![Probability and Statistics for Economics and
Business](https://mit-press-new-us.imgix.net/covers/9780262553360.jpg)](https://www.amazon.com/dp/0262553368?tag=ps4e-20)

Release date: November 25, 2025 ([MIT
Press](https://mitpress.mit.edu/9780262553360/probability-and-statistics-for-economics-and-business/))

[Available on Amazon](https://www.amazon.com/dp/0262553368?tag=ps4e-20)

[![](data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdib3g9IjAgMCAxNiAxNiIgY2xhc3M9ImJpIGJpLWFycm93LWRvd24gIiBzdHlsZT0iaGVpZ2h0OjFlbTt3aWR0aDoxZW07ZmlsbDpjdXJyZW50Q29sb3I7dmVydGljYWwtYWxpZ246LTAuMTI1ZW07IiBhcmlhLWhpZGRlbj0idHJ1ZSIgcm9sZT0iaW1nIj48cGF0aCBmaWxsLXJ1bGU9ImV2ZW5vZGQiIGQ9Ik04IDFhLjUuNSAwIDAgMSAuNS41djExLjc5M2wzLjE0Ni0zLjE0N2EuNS41IDAgMCAxIC43MDguNzA4bC00IDRhLjUuNSAwIDAgMS0uNzA4IDBsLTQtNGEuNS41IDAgMCAxIC43MDgtLjcwOEw3LjUgMTMuMjkzVjEuNUEuNS41IDAgMCAxIDggMXoiIC8+PC9zdmc+)](#more)

  

------------------------------------------------------------------------

## About

This book is intended for an introductory course in probability and
statistics for economics and business majors. The book introduces
students to the R statistical programming language and uses R to
illustrate the various concepts throughout. The book uses examples from
economics, finance, and business, stresses asymptotic inference, and
utilizes computer simulation techniques.

## Table of Contents

1.  The Basics of *R*
2.  Introduction to Probability Theory
3.  Conditional Probabilities and Independence
4.  Combinatorics (Counting Methods)
5.  Economic Data and Sampling
6.  Descriptive Statistics and Visuals: Univariate Data
7.  Descriptive Statistics and Visuals: Bivariate Data
8.  Discrete Random Variables
9.  Models of Discrete Random Variables
10. Continuous Random Variables
11. Models of Continuous Random Variables
12. Sampling Distributions: Exact
13. Sampling Distributions: Asymptotic
14. Estimation and Confidence Intervals
15. The Bootstrap
16. Hypothesis Testing
17. Simple Linear Regression
18. Multiple Linear Regression

# Package index

## Helper Functions

- [`linear_combination()`](https://probstats4econ.com/reference/linear_combination.md)
  : Test a single linear restriction of a model
- [`se_meanx()`](https://probstats4econ.com/reference/se_meanx.md)
  [`se_rxy()`](https://probstats4econ.com/reference/se_meanx.md)
  [`se_sx()`](https://probstats4econ.com/reference/se_meanx.md) :
  Asymptotic Standard Errors
- [`test_linear_restrictions()`](https://probstats4econ.com/reference/test_linear_restrictions.md)
  : Test multiple linear restrictions simultaneously
- [`var_mean_indep()`](https://probstats4econ.com/reference/var_mean_indep.md)
  [`var_mean_onesample()`](https://probstats4econ.com/reference/var_mean_indep.md)
  [`var_prop_indep()`](https://probstats4econ.com/reference/var_mean_indep.md)
  : Variance helper functions
- [`wald_test()`](https://probstats4econ.com/reference/wald_test.md) :
  Wald test statistic and p-value

## Datsets

- [`auctions`](https://probstats4econ.com/reference/auctions.md) :
  Auction data
- [`babynames`](https://probstats4econ.com/reference/babynames.md) :
  Popular names data
- [`baseball`](https://probstats4econ.com/reference/baseball.md) :
  Baseball attendance data
- [`births`](https://probstats4econ.com/reference/births.md) : Birth
  outcome data
- [`bitcoin`](https://probstats4econ.com/reference/bitcoin.md) : Bitcoin
  price and returns data
- [`brands`](https://probstats4econ.com/reference/brands.md) : Brand
  data
- [`cigdata`](https://probstats4econ.com/reference/cigdata.md) :
  State-level cigarette price and tax data
- [`congress`](https://probstats4econ.com/reference/congress.md) :
  Congressional election data
- [`cps`](https://probstats4econ.com/reference/cps.md) : Current
  Population Survey (CPS) data
- [`dictator`](https://probstats4econ.com/reference/dictator.md) :
  Dictator-game data
- [`exams`](https://probstats4econ.com/reference/exams.md) : Exam data
- [`houseprices`](https://probstats4econ.com/reference/houseprices.md) :
  Housing price data
- [`hrs`](https://probstats4econ.com/reference/hrs.md) :
  Health-expenditure data
- [`inflation`](https://probstats4econ.com/reference/inflation.md) :
  Inflation data
- [`inflation_expectations`](https://probstats4econ.com/reference/inflation_expectations.md)
  : Inflation expectations data
- [`married`](https://probstats4econ.com/reference/married.md) :
  Married-couple data
- [`metricsgrades`](https://probstats4econ.com/reference/metricsgrades.md)
  : Econometrics course data
- [`mutualfunds`](https://probstats4econ.com/reference/mutualfunds.md) :
  Mutual-fund performance data
- [`premier`](https://probstats4econ.com/reference/premier.md) : Premier
  League soccer data
- [`resume`](https://probstats4econ.com/reference/resume.md) : Resume
  response data
- [`sp500`](https://probstats4econ.com/reference/sp500.md) : Monthly
  returns data for S&P 500 companies
- [`strikes`](https://probstats4econ.com/reference/strikes.md) : Strike
  duration data
- [`website`](https://probstats4econ.com/reference/website.md) : Website
  visitor arrival data
- [`widgets`](https://probstats4econ.com/reference/widgets.md) :
  Hypothetical data for widgets.com website