Page 133 - Handbook Bachelor Degree of Science Academic Session 20202021

Faculty of Science Handbook, Academic Session 2020/2021

SIQ3009 PENSION MATHEMATICS 3. London, Dick. (1998). Survival models and their
estimation. ACTEX Publications.
Introduction to Islamic finance and its practices; Riba, gharar 4. Peter J. Smith. (2002). Analysis of failure and survival
and maisir; Musharkah, mudharabah and murabahah; Ijarah, data. Chapman & Hall.
salam and istisna’; Çomparison of Islamic and conventional 5. Collett, D. (2015). Modelling survival data in medical
financial systems; Islamic financial institutions and products, research. CRS Press.
Islamic banking and takaful, Islamic investment instruments;
Capital market in an Islamic framework, leasing,
securitization and sukuk; Modeling Islamic financial products SIT1001 PROBABILITY AND STATISTICS I
using mathematical software; Regulatory framework for
Islamic financial institutions in Malaysia. Properties of probability. Counting techniques. Conditional
probability. Independent events. Bayes Theorem.
Assessment:
Continuous Assessment: 50% Discrete random variables. Mathematical Expectation.
Final Examination: 50% Discrete distributions: uniform, hypergeometric, Bernoulli,
binomial, geometric, negative binomial and Poisson.
Medium of Instruction: Moment generating function.
English
Continuous random variables and its mathematical
Soft Skills: expectation. Continuous distributions: uniform, exponential,
CS3, CTPS3 gamma, chi-squared and Normal distributions.

References: Distribution of function of one random variable.
1. Taqi Usmani, M. (1998). An introduction to Islamic
finance. Arham Shamsi. Sampling distribution theory: Independent random variables.
2. El-Gamal, M. A. (2006). Islamic finance: Law, Distributions of sum of independent random variables.
economics, and practice. Cambridge University Press. Random functions related to the normal distribution. Central
3. Iqbal, Z., & Mirakhor, A. (2011). An introduction to limit theorem. Approximation for discrete distributions.
Islamic finance: Theory and practice (Vol. 687). John Limiting moment generating functions.
Wiley & Sons.
4. Mirakhor, A., & Krichene, N. (2014). Introductory Assessment:
mathematics and statistics for Islamic finance. John Continuous Assessment: 40%
Wiley & Sons. Final Examination: 60%
5. Hassan, M.K., Kayed, R.N., & Oseni, U.A. (2013).
Introduction to Islamic banking and finance: Principles Medium of Instruction:
and practice. Pearson Education Limited. English

Soft Skills:
SIQ3010 SURVIVAL MODEL CS2, CTPS2, EM2

Estimation of lifetime distributions: lifetime distributions, References:
cohort studies, censoring, Kaplan-Meier estimates, Cox 1. R. V. Hogg, & E. A. Tanis. (2010). Probability and
th
regression model and its estimation. statistical inference (8 ed.). Pearson.
2. R. V. Hogg, J. McKean, & A. T. Craig. (2012).
Markov models: Multi-state Markov models, Kolmogorov Introduction to mathematical statistics (7 ed.).
th
forward equations, estimation of the force of mortality, Pearson.
estimation of multi-state model transition intensities. 3. H.J. Larson. (1982). Introduction to probability theory
rd
Binomial and Poisson models of mortality: Binomial model of and statistical inference (3 ed.). Wiley.
mortality, uniform and constant force of mortality
assumptions, maximum likelihood estimator for the rate of
mortality, Poisson models.
SIT2001 PROBABILITY AND STATISTICS II
Graduation and statistical tests: methods of graduating
crude estimates, Chi-square test, standardised deviation Distributions of two and more dimensional random variables.
test, sign test, grouping of sign test, serial correlations test. Correlation coefficient. Conditional distributions. Bivariate
Exposed to risk: Exact exposed to risk, approximate normal distribution. Transformation of two random variables.
exposed to risk using census data. Distributions of order statistics.

Assessment: Biased and unbiased estimators. Method of moments.
Continuous Assessment: 40% Method of maximum likelihood. Confidence interval for:
Final Examination: 60% mean, proportion and variance of single population;
difference between two means, difference between two
Medium of Instruction: proportions and ratio of variances.
English
Hypothesis testing for: mean, proportion and variance of
Soft Skills: single population; difference between two means, difference
CS3, CTPS3 between two proportions and ratio of variances. Chi-square
goodness-of-fit tests and contingency tables.
References:
1. Elandt-Johnson, R. C., & Johnson, N. L. (1999). Power of a statistical test. Best critical region. Likelihood ratio
Survival models and data analysis. John Wiley. test. Chebyschev's inequality. Rao-Cramer's inequality.
2. Benjamin, B., & Pollard, J. H. (1993). The analysis of Convergence in probability and distribution. Asymptotic
mortality and other actuarial statistics. Institute and distribution of maximum likelihood estimator.
Faculty of Actuaries.

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