This book is about a set of letters exchanged between Pascal and Fermat in the year 1654 that led to a completely different way of looking at future. The main content of the letters revolved around solving a particular problem, called “problem of points”. A simpler version of the problem goes like this: Suppose two players—call them Blaise and Pierre—place equal bets on who will win the best of five tosses of a fair coin.

Happy the man, whose wish and care A few paternal acres bound, Content to breathe his native air In his own ground. Whose herds with milk, whose fields with bread, Whose flocks supply him with attire; Whose trees in summer yield shade, In winter, fire. Blest, who can unconcern’dly find Hours, days, and years, slide soft away In health of body, peace of mind, Quiet by day. Sound sleep by night; study and ease

**What we process, we learn. If we are not processing life, we are not living it. Live Life !**

There are broadly three aspects that one needs to spend time on,while learning about any statistical model. Intuition behind a model in describing a problem/phenomenon/scenario. Nitty gritty of the model : The assumptions of the model, its functional form, the math behind parameter estimation, the way to plot the data and perform diagnostics, do forecasting based on the model and do structural analysis with the model.

The book starts off by stating, Time series econometrics is concerned with the estimation of difference equations containing stochastic components. Hence the book naturally begins with a full-fledged chapter on difference equations. Difference Equations A few examples of difference equations are given such as Random walk model, Structural equation, Reduced form equation, Error correction model to show the reader that difference equations are everywhere in econometrics.Any time series model indeed is trying to explain a univariate variable or a multivariate vector in terms of lagged values, lagged differences, exogenous variables, seasonality variables etc.