Nov 23, 2024  
2023-2024 Undergraduate Academic Catalog 
    
2023-2024 Undergraduate Academic Catalog [ARCHIVED CATALOG]

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ACS 4630 - Actuarial Probability Models I

3 lecture hours 0 lab hours 3 credits
Course Description
This course is the first of a sequence of two courses to prepare our students for an actuarial exam focused on using probability models in the context of short-term insurance coverages. It will provide a more in-depth study of certain topics in probability and mathematical statistics, with a focus on problems and models that are relevant to insurance products. (prereq: ACS 3540 ) (quarter system prereq: Actuarial Science program director consent)
Course Learning Outcomes
Upon successful completion of this course, the student will be able to:
  • Understand and make calculations related to frequency, severity, and aggregate models
  • Use frequency, severity, and aggregate models in insurance-related applications
  • Estimate parameters for parametric models and construct confidence intervals for those parameters
  • Use model selection tests to choose between competing models
  • Understand various coverage modifications of insurance products, including deductibles, limits, and coinsurance
  • Apply Bayesian, Bühlmann, and classical techniques to study credibility

Prerequisites by Topic
  • Calculus
  • Probability
  • Statistics

Course Topics
  • Severity, frequency, and aggregate models
  • Parameter estimation and confidence intervals
  • Bayesian estimation
  • Hypothesis tests, Bayesian Information Criterion, and other model selection tests
  • Insurance coverage modifications
  • Classical credibility
  • Bayesian credibility
  • Bühlmann and Bühlmann-Straub credibility

Coordinator
Dr. Yvonne Yaz



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