Linear Algebra Operation Basics in R E22

Linear algebra operations are important for using R. Today we cover matrix addition, scalars, and matrix multiplication (dot product). Subtraction can easily be done in the same way as the addition.

As an example, I cover how to use matrix multiplication to find a stead initial state in a steady state Markov. Markov models are used in quantitative finance as well as other industries to model random transitions between states. A real world is example is modeling the probability of default in credit risk. A customer can have one of three states. Good standing, default, or prepayment.

This video and the videos in this series are based off of my favorite R programming book.

The Art of R Programming by Matloff

Welcome to the "Introduction to R" video series. If you found this video helpful, be sure to check out all the other R videos in the playlist.

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[STheBlackDragonS]

Nice, thanks, i just start a master on financial engineer and works alot for me ;)

[Rizzickk]

It would be so awesome if you made an advanced GBM or run through a project where you’d use decision trees on credit data from kaggle. I know that’s a huge ask, so just take this comment lightly. If you didn’t make this video, I want you to know I appreciate your content.

[giorgimtchedlishvili]

Hi Dimitri. Your channel is huge for future quants who want to feel valuable in finance industry. I’m doing Mathematics of Finance Program at Columbia University. However, I have a huge problem in finding passion about which sub area I should follow to. I’ve had interviews for Risk, Trading, Quant and Investment Banking internship and I got slap on my face. I have experience in IB for three years, have Engineering background but the prejudices that I’ve been hearing about quants makes day to day motivation hell to me. Even my quant friend tells me to got to trading or structuring. He is the only quant friend that I have. I’m newly married and I have to get a jobs this fall for the next year, is there a chance that I can dm you to hear more about the specific tasks that I have to take to land a job as a quant? I feel that’s the path I want to take mo matter what others say.

[DonRua]

Interesting. We did this in Fortran. A lot more complicated. But back then, we used to laugh at high level languages. Cos if they change the syntax, you are screwed. Low level we controlled the machine. That was when people had more time than money lol

[mukhammadsharif]

Hi Dmitriy ! Thank you for this very informative channel. I'm new to it. And I just got accepted to data science graduate program at Florida Atlantic University. What advice would you give to someone who gets degree but have no job experience in computational finance field to get a high probability of getting hired after grad school? What specific skills to focus on ? In a short, what would employer would want to have in new grad to get started at research analyst or junior analyst position ? Thanks.