MATH 0342 - Actuarial Problem Solving: Probability

Credits: 3

This course develops fundamental concepts of probability in a context of financial risk. A thorough knowledge of multi-variate differential calculus is assumed. Topics include probability spaces, independence, combinatorics, conditional probability and Bayes' theorem, measurements of central tendency, probability mass and density functions, cumulative distributions, distributions transformations, moment generating functions, joint probability functions, conditional and marginal distributions, covariance and correlation, and the Central Limit Theorem. Students will work frequently with common distributions including uniform, binomial, Poisson, negative binomial, geometric, hypergeometric, exponential, normal, gamma, mixed, and bivariate normal. Students will also explore concepts in insurance such as deductibles, policy limits, and re-insurance. This course is designed to fully prepare students for the actuarial exam P.

Prerequisites: MATH 0201 , and MATH 0333  or MATH 0340 , or permission of instructor.

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