MOI UNIVERSITY
SCHOOL OF BIOLOGICAL AND PHYSICAL SCIENCES
Course outline
DEPARTMENT: STATISTICS & COMPUTER
SCIENCE
ACADEMIC YEAR: 2014/2015
COURSE LECTURER: E. MBUTHI KILONZO
COURSE CODE: ACS 304
PHONE NUMBER: XXXXXXXXX
COURSE TITLE: ACTUARIAL MATHEMATICS I
Email address: mbuthi77@gmail.com
YEAR OF STUDY: III
SEMESTER: I
SESSION: JANUARY-APRIL 2015
DEGREE PROGRAMME: BACHELOR OF SCIENCE IN ACTUARIAL SCIENCE
TOTAL NUMBER OF LECTURE HOURS: 42
COURSE PURPOSE
The purpose of this course is to provide grounding in Mathematics of graduation and exposed to risk
COUSE DESCRIPTION
A description of data collection suitable for examining past experience; calculation of exposed to risk
and the derivation of crude decrement rates; monitoring actual against expected experience; methods
of graduating experience rates; mortality variation; Mortality experience during the 20 th century;
heterogeneity within a population; Standard mortality tables. Risk classification, underwriting and
allowing extra mortality risk.
EXPECTED LEARNING OUTCOMES
At the end of the course, the student should be able to
i.
Describe the types of rate bases-Calendar year, and so on
ii.
Explain utility of each of three graduation Methods-Graphical, Mortality table, Mathematical
formulae
iii.
Calculate exposed to risk and crude decrement rates.
iv.
Apply Chi-square test to test goodness of fit of an actual set of Mortality experience to a
chosen standard
v.
Describe the shortcomings of the chi-square test in testing hypotheses on Mortality data
experiences and some remedies
vi.
Differentiate between different methods of graduation and their applications in solving
problems related to risk.
vii.
Apply standard and adjusted mortality tables in solving problems dealing with mortality risk
and in insurance underwriting.
viii.
Explain utility of Binomial Model for Modeling Mortality experiences
ix.
Explain aspect of extra Mortality risk
CLASS SCHEDULES
WEEK
1
2
3
4
5
6
7
8
9
10
11 - 13
TOPICS WITH SUMMARY OF CONTENT
Graduation Methods
Mathematical Methods-The Chi-square test
Limitations of Chi-square test and Solutions to the Shortcomings
Types of exposures to risk-Initial and Central exposed to risk
Rating criteria/basis-Calendar Year, and so on
C.A.T 1
Numerical methods an approximations in computing exposed to risk
Utility of Binomial Model for Modeling Mortality experiences
Extra Mortality risk
CAT 2
END OF SEMESTER EXAMINATIONS
EVALUATION
CAT I
CAT 2
EXAM
TOTAL
Theory courses
15%
15%
70%
100%
REFERENCES
a. Scott, W. F. (2000). Mortality Studies. Aberdeen.
b. Neil, A. (1999) Life Contingencies, Butterworth-Heinemann: London.
LECTURER’S SIGN
HOD’S SIGN
DATE: 18-12-2014
DATE: 18-12-2014