|Course Type||Course Code||No. Of Credits|
Semester and Year Offered: Winter semester
Course Coordinator and Team: Geetha Venkataraman and others
Email of course coordinator: firstname.lastname@example.org
Pre-requisites: Mathematics at the XII grade level and 4 credits each of SUS1MA507 (Probability and Statistics) and SUS1MA536 (Mathematical Finance)
This Course is primarily intended for students interested in Statistics and Actuarial Science. This course will be beneficial not only for Mathematics Programme students but also for the students of other disciplines. This is an introductory course on Actuarial Mathematics and also has applications.
After completing this course students will be able to
Brief description of modules/ Main modules:
The basic deterministic model: Cash flows, Analogy with currencies, Discount functions and its calculation, interest and discount rates, Constant interest, values and actuarial equivalence, Regular Pattern cash flows, Balance and Reserves and its relationship, Prospective versus retrospective methods, Recursion formulas, Time shifting and the splitting identity, change of discount function
introduction to stochastic processes: Introduction, Markov Chains, Martingales, Finite State Markov chains. Poisson Process, waiting times, Properties of Poisson Process, Non-Homogeneous Poisson process, Compound Poisson Process.
Life table: Basic definitions, probabilities, constructing life tables from values of qx, Life expectancy, construction of life table
Survival distributions and failure times: Introduction to survival distributions, The discrete case, The continuous case, The Gompertz–Makeham distribution, shifted distributions, The standard approximations, Stochastic Life table, Life expectancy in the stochastic model, Stochastic interest rates.
Assessment Details with weights:
Date/period in which Assessment will take place
First week of February
Mid Semester Exam
Home Assignments/ Tutorials
Throughout the semester
End Semester Exam
End April-early May