Statistical Models: Theory and Practice by David Freedman

David Freedman’s Statistical Models: Theory and Practice is an accessible and comprehensive introduction to the world of statistics. This book is an ideal starting point for students, professionals and casual readers looking to gain a strong understanding of statistics, the principles of statistical models, and how to use those models in the real world.

The first section of the book (Chapters 1-9) is devoted to an overview of probability and statistical theory. Freedman begins by exploring the basic concepts of probability and statistics, explaining everything from the basics of sample spaces down to the principles of hypothesis testing and randomization. He then dives into the principles of descriptive statistics, providing readers with a detailed look at data analysis and the many ways in which statistics can be used to elucidate patterns in data. He concludes this section by covering the basics of regression and correlation, explaining the common assumptions and methods used in these methods.

The second section of the book (Chapters 10-17) delve into the software and technology used to analyze empirical data. Freedman begins by exploring the world of computer technology, from basic spreadsheeting programs to high-level mathematical software. He covers all the necessary topics, from connecting databases to using various statistical packages, providing readers with all the technical knowledge needed to analyze data more effectively. He then dives into the more complex applications of data analysis, such as predictive modeling, cluster analysis, and multivariate analysis. He provides readers with clear explanations of all of these methods, including step-by-step worked examples whenever applicable.

The third section of the book (Chapters 18-23) provides readers with a comprehensive look at the application of statistical models in the real world. Freedman begins by exploring how statistical models can be used to make more informed business decisions, providing insight into how statistics can inform the everyday practice of decision-making and problem-solving. He then dives into the application of statistics in the world of finance, providing a comprehensive look at capital asset pricing models and risk management. He concludes with an exploration of survey research, helping readers understand how to properly design and analyze surveys.

Statistical Models: Theory and Practice is a comprehensive introduction to statistics that provides readers with an invaluable foundation of knowledge. Freedman begins by giving readers the basics before building on that foundation with step-by-step worked examples and practical applications. His clear and accessible approach makes it easy to understand the basics, while providing readers with the necessary tools and resources to navigate their way through increasingly complex models and applications. This book provides readers with the confidence to tackle statistical models with ease and accuracy, setting a strong foundation for success in the world of statistics.