Students
ACST3056 – Mathematical Theory of Risk
2020 – Session 1, Weekday attendance, North Ryde
Coronavirus (COVID-19) Update
Due to the Coronavirus (COVID-19) pandemic, any references to assessment tasks and on-campus delivery may no longer be up-to-date on this page.
Students should consult iLearn for revised unit information.
Find out more about the Coronavirus (COVID-19) and potential impacts on staff and students
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Colin Zhang
6ER (E4A) 743
Please see iLearn
Angela Chow
|
|---|---|
| Credit points |
Credit points
10
|
| Prerequisites |
Prerequisites
130cp at 1000 level or above including STAT272 or STAT2372
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
|
| Unit description |
Unit description
This unit examines the use of statistical models in the insurance context. Statistical models of the number of claims and the sizes of the claims are studied. These models are used as a basis for the study of risk theory, ruin theory and the effect of reinsurance. Decision theory and simulation are also studied. Students gaining a Credit average in both ACST3056 and ACST3057 (minimum mark of 60) will satisfy the requirements for exemption from professional subject CT6 of the Actuaries Institute. |
Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- ULO1: Analyse and model insurance claims using loss distributions and Bayesian analysis.
- ULO3: Apply premium principles to price insurance products.
- ULO2: Perform Monte Carlo simulation for insurance models.
- ULO4: Construct risk models with frequency and severity distributions and apply ruin theory to insurance problems.
- ULO5: Apply credibility theory and decision theory to insurance problems.
Assessment Tasks
Coronavirus (COVID-19) Update
Assessment details are no longer provided here as a result of changes due to the Coronavirus (COVID-19) pandemic.
Students should consult iLearn for revised unit information.
Find out more about the Coronavirus (COVID-19) and potential impacts on staff and students
General Assessment Information
Assignment
Due: Week 3 and Week 12 Weighting: 20%
There are two written assignments due in Week 3 (5%) and Week 12 (15%). Marks will be granted for accuracy and clarity of the work submitted.
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of zero (0) for the task, except for cases in which an application for special consideration is made and approved.
Class Test
Due: Week 7 Weighting: 20%
You are permitted one (1) A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned to you at the end of the class test.
Students who do not attend the class test will be awarded a mark of zero (0) for the test, except for cases in which an application for special consideration is made and approved.
Final exam
Due: Exam period Weighting: 60%
A three-hour (3) written exam will be held during the normal university exam period. Questions will cover the entire unit. Marks will be granted for accuracy and clarity of the work shown.
You are permitted one (1) A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned to you at the end of the final exam. Non-programmable calculators with no text-retrieval capacity are permitted.
Students who do not attend the final exam will be awarded a mark of zero (0) for the exam, except for cases in which an application for special consideration is made and approved.
Delivery and Resources
Coronavirus (COVID-19) Update
Any references to on-campus delivery below may no longer be relevant due to COVID-19.
Please check here for updated delivery information: https://ask.mq.edu.au/account/pub/display/unit_status
The timetable for classes can be found on the University website at:
https://timetables.mq.edu.au/2020/
Lecture notes are available for download from iLearn. You will need to print the lecture notes and bring them to classes to complete.
From Week 8 onward, the required textbook is:
Dickson, D. (2016). Insurance Risk and Ruin. Cambridge University Press.
Other references include:
Hossack, I.B., Pollard, J.H. and Zehnwirth, B. (1999). Introductory Statistics with Applications in General Insurance. 2nd Edition. Cambridge University Press.
Klugman, S.A., Panjer, H.H. and Willmot, G.E. (2004). Loss Models: From Data to Decisions. 2nd Edition. Wiley: New York.
Casualty Actuarial Society (2001). Foundations of Casualty Actuarial Science. 4th Edition.
Students will be required to use iLearn, Excel, PDF, Word, and a non-programmable calculator.
Unit Schedule
Coronavirus (COVID-19) Update
The unit schedule/topics and any references to on-campus delivery below may no longer be relevant due to COVID-19. Please consult iLearn for latest details, and check here for updated delivery information: https://ask.mq.edu.au/account/pub/display/unit_status
Week 1 Loss Models I
Week 2 Loss Models II
Week 3 Loss Models III
Week 4 Loss Models IV
Week 5 Reinsurance and Deductibles
Week 6 Simulation
Week 7 Class Test
Week 8 Premium Principles
Week 9 Risk Models
Week 10 Ruin Theory
Week 11 Ruin Theory with Reinsurance
Week 12 Credibility Theory
Week 13 Decision Theory
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/study/getting-started/student-conduct
Results
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
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Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
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