Page 171 - FINAL_HANDBOOK_20242025

Faculty of Science Handbook, Academic Session 2024/2025

value of money, bonds and probabilities and time
stocks, capital budgeting and reversibility.
its techniques and short-term
working capital management Brownian motion and
and basic legal principles stationary processes:
relevant to the work of actuary Brownian motion, martingale,
and practical implications. hitting time and maximum
variable, maximum of Brownian
Assessment: motion with drift, geometric
Continuous Assessment: 40% Brownian motion, white noise,
Final Examination: 60% Gaussian processes and
stationary, weakly stationary
Processes.
SIQ3013
STOCHASTIC MODELS Assessment:
Continuous Assessment: 40%
Introduction to probability Final Examination: 60%
theory, conditional probability
and expectation.
SIT1001
Markov chains: Chapman– PROBABILITY AND
Kolmogorov equations random STATISTICS I
walk models, classification of
states, limiting probabilities, Axioms of probability. Counting
mean time spent in transient techniques. Conditional
states, branching processes probability. Independent
and time reversible Markov events. Bayes Theorem.
chains.
Discrete random variables and
Poisson process: exponential its mathematical expectation.
distribution, counting Discrete distributions: uniform,
processes, distribution of inter- hypergeometric, Bernoulli,
arrival time and waiting time, binomial, geometric, negative
conditional distribution of the binomial and Poisson.
arrival time, nonhomogeneous
Poisson process and Continuous random variables
compound Poisson process. and its mathematical
expectation. Continuous
Continuous time Markov distributions: uniform,
chains: birth-and-death exponential, gamma, chi-
process, transition probabilities square and normal.
and transition rates, limiting

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