# Computer environments for matrix computations (Matlab, octave, scilab etc)

Many computational problems in finance are most easily specified using the mathematical tool of
linear algebra. For practical purposes, Linear Algebra is a tool for compact notation of
complicated numerical operations, notation which maps naturally into computer commands.
Computer environments that lets one write linear algebra commands and apply them to actual data are
numerous. The best known is * Matlab *, but there are good alternatives, such as *
Octave * and * Scilab*. The latter two have the advantage that they are freely available for
download from the internet.

## Empirics

These computer environments are good for intensive computations, but less suited for complicated
empirics involving complex datasets, such as time series. For involved empirical work one needs to
use more dedicated statistical packages, such as * R * or * Stata *
## Points of comparison

- Industry use: Matlab is the program you are most likely to run into in finance shops in the
business world.
- Documentation: Matlab has the best known notation, and you will find easy accessible
explanatory textbooks for it. For the other packages there is documentation on the web.
- Price: Matlab is expensive. The others are freely available, and can be installed on any
computer.

## Lectures

## Matlab examples

- termstru.m Examples of term structure calculations.

## Internet links