Introducing a Basic Financial Example

00:00 The example you’ll be working on in this course has to do with money. Let’s assume that you want to stochastically model your financial surplus over the next 12 months just to see if you have enough money for the next year. So the interface will be that firstly you select an income function, and there’ll be two to choose from.

00:22 You then enter the income parameters that are related to that function, and then you do the same thing for the outgo. You select an outgo function, again there are two options there, and then you enter the relevant parameters for the outgo function. And then finally, based on the income and the outgo, you’ll model the surplus.

00:42 Now, building this basic example, firstly you’ll do that without the __init__.py module, so that you and I can discuss the interface, and you’ll realize that to use the interface, the user actually needs to know the folder structure, which isn’t very convenient, and also the interface is actually quite tedious in the sense that you have to type quite a bit to get everything going.

01:08 The third step then, of course, will be to improve this interface using the __init__.py file. I hope you find that a relatively exciting example, and I’ll talk you through the code in the next lesson.