Page 146 - FULL FINAL HANDBOOK 20232024

Faculty of Science Handbook, Academic Session 2023/2024

Asset valuations: market value, smoothed market SIQ3013 STOCHASTIC MODELS
values, group annuity contracts and individual life
insurance contracts. Introduction to probability theory, conditional probability
and expectation.
Actuarial assumptions: the Service Table, secondary
decrements, interest, inflation, and salary Increases. Markov chains: Chapman–Kolmogorov equations
random walk models, classification of states, limiting
Assessment: probabilities, mean time spent in transient states,
Continuous Assessment: 40% branching processes and time reversible Markov chains.
Final Examination: 60%
Poisson process: exponential distribution, counting
processes, distribution of inter-arrival time and waiting
time, conditional distribution of the arrival time,
SIQ3010 SURVIVAL MODELS nonhomogeneous Poisson process and compound
Poisson process.
Estimation of lifetime distributions: lifetime distributions,
cohort studies, censoring, Kaplan-Meier estimates, Cox Continuous time Markov chains: birth-and-death
regression model and its estimation. process, transition probabilities and transition rates,
limiting probabilities and time reversibility.
Markov models: Multi-state Markov models, Kolmogorov
forward equations, estimation of the force of mortality, Brownian motion and stationary processes: Brownian
estimation of multi-state model transition intensities. motion, martingale, hitting time and maximum variable,
maximum of Brownian motion with drift, geometric
Binomial and Poisson models of mortality: Binomial Brownian motion, white noise, Gaussian processes and
model of mortality, uniform and constant force of stationary, weakly stationary Processes.
mortality assumptions, maximum likelihood estimator for
the rate of mortality, Poisson models. Assessment:
Continuous Assessment: 40%
Graduation and statistical tests: methods of graduating Final Examination: 60%
crude estimates, Chi-square test, standardised deviation
test, sign test, grouping of sign test, serial correlations
test.
SIT1001 PROBABILITY AND STATISTICS
Exposed to risk: Exact exposed to risk, approximate I
exposed to risk using census data.
Axioms of probability. Counting techniques. Conditional
Assessment: probability. Independent events. Bayes Theorem.
Continuous Assessment: 40%
Final Examination: 60% Discrete random variables and its mathematical
expectation. Discrete distributions: uniform,
hypergeometric, Bernoulli, binomial, geometric, negative
binomial and Poisson.
SIQ3011 BUSINESS FINANCE
Continuous random variables and its mathematical
This course enables the students to understand and expectation. Continuous distributions: uniform,
deepen their knowledge of business finance theories. In exponential, gamma, chi-square and normal.
addition, it will enable them to understand various
advance techniques related to risk and return capital Moment generating functions. Distributions of functions
structure, dividend policy, long-term financing of one random variable. Independent random variables.
instruments such as bonds and equities, risk Distributions of sum of independent random variables.
management and mergers and acquisitions. Functions related to normal random variables. Central
limit theorem. Approximation for discrete distributions.
Assessment: Limiting moment generating functions.
Continuous Assessment: 40% Assessment:
Final Examination: 60% Continuous Assessment: 40%
Final Examination: 60%
SIQ3012 FINANCIAL AND BUSINESS
MANAGEMENT SIT1002 STATISTICAL PROGRAMMING
This course discusses the various financial tools Introduction to the statistical programming software.
employed to effectively manage a company’s financial Logical operations. Vector, matrices and arrays.
condition and strategic thinking in financial management. Sequence, decision statement and loops. Writing
Other topics discussed are financial statement and functions. Data inputs. Data frames. Graphics. Random
analysis, time value of money, bonds and stocks, capital number generation. Applications to statistics.
budgeting and its techniques and short-term working
capital management and basic legal principles relevant Assessment:
to the work of actuary and practical implications. Continuous Assessment: 70%
Final Examination: 30%
Assessment:
Continuous Assessment: 40%
Final Examination: 60%
SIT1003 ANALYSIS OF DATA AND
STATISTICAL REPORT WRITING
Descriptive statistics. Hypothesis testing, confidence
interval and tests of independence. Regression and
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