Introduction to discrete probability models; basic mathematics of simple and compound interest. Actuarial foundations from calculus and probability theory, with applications to risk management and insurance. Generalized and compound interest theory with applications to annuities certain, amortization, depreciation, valuation of securities, and bond yield determinations. This is the writing-intensive course for majors in Actuarial Science. The course presents the basic mathematical and statistical techniques for the pricing of, and reserving for, property-liability insurance coverages. The material will be presented through lectures, and absorbed through independent work by the students. In addition to homework and exams, there will be significant writing assignments and a major group presentation project. Contingent payment models; applications of probability theory to life insurance and annuities, premiums, and reserves. Survival, frequency and severity, and compound distribution loss models. Introduction to ruin theory. Estimation and fitting of survival, frequency and severity, and compound distribution loss models; credibility methods. Current developments in the field of actuarial science. |