ABSTRACT

This chapter’s primary purpose is for further reference. Nevertheless, it is recommended that the reader at least skims through the chapter before starting to read the main text.

We deal here mainly with definitions and basic notions to which we will repeatedly refer throughout the book. Most facts are given without proof, but we discuss their significance and plausibility. We touch briefly on simple or standard notions, and pay more attention either to notions that are less traditional but necessary or that are more difficult; for example, moment generating functions, and conditional expectations. For the last topic, we even give exercises at the end of the chapter. Sections 1-7 concern Probability Theory. In Section 8, we consider elements of the

theory of interest.