Unit convenor and teaching staff |
Unit convenor and teaching staff
Convenor and Lecturer
Jim Farmer
Contact via Contact via iLearn Forum
E4A 616
Refer to the unit's web site
Lecturer
Xian Zhou
Contact via Contact via iLearn Forum
E4A 607
Refer to the unit's web site
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
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Corequisites |
Corequisites
ACST851 and (STAT806 or STAT810 or (ACST601 and ACST604))
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit covers the analysis of cash flows dependent on uncertain events of mortality. Single decrement survival models will be used to evaluate the expected present values of payments under life insurance and annuity contracts, and calculate the premiums of such contracts. The concepts of pricing and reserving for future contingent liabilities are considered, and the methods of calculating required reserves will be discussed.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
Macquarie University uses the grades HD, D, Cr, P and F for grading the achievements of students in units of study. The meaning of each symbol is explained in Schedule 1 of the Assessment Policy, available at
http://www.mq.edu.au/policy/docs/assessment/schedule_1.html
When you work as an actuary or in any other profession, if you have a dangerous misunderstanding of a concept you may provide incorrect advice to a client, possibly with severe financial consequences for your client and yourself. However, if you realise that you don’t understand a concept you may refrain from giving advice on it until you have filled the gaps in your knowledge. That is, dangerous misunderstandings have more serious consequences than a recognised lack of knowledge.
The grading philosophy and marking scales adopted in this unit (and in many other university units) reflect this situation. Correct relevant statements earn marks. Statements revealing dangerous misunderstandings result in the deduction of marks. If your answers reveal that your misunderstandings are very severe or numerous, you might earn a negative mark for a question. If a part of a question is worth x marks, the smallest mark you can be allocated for that part is –x marks.
As an example, a minor error when keying numbers into your calculator is not usually regarded as a dangerous error provided the resulting incorrect answer is plausible. However, if a calculator error results in an obviously unreasonable answer, such as an expected present value of benefits which exceeds the maximum possible benefit, and you fail to state that you realise this answer is unreasonable, this would be regarded as a dangerous misunderstanding.
It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment marks (not including the final exam mark) will not be addressed.
Assessment criteria for all assessment tasks will be provided on the unit iLearn site.
Name | Weighting | Hurdle | Due |
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Test | 10% | No | In class, 20 March |
Assignment | 30% | No | 10am 8 May 2017 |
Final Examination | 60% | No | Examination Period |
Due: In class, 20 March
Weighting: 10%
Class test with multiple-choice and/or True/False questions.
Incorrect answers will incur a penalty set at a level which ensures the expected mark from outright guessing is zero. No penalties apply if you choose not to answer a question.
Duration: 45 minutes
It will be open book. Any paper materials are permitted.
Students are permitted to use non-programmable calculators with no text-retrieval capacity.
Schedule 4 of the Assessment Policy includes the rules students must abide by during University examinations. The schedule is available at: http://www.mq.edu.au/policy/docs/assessment/schedule_4.html
Due: 10am 8 May 2017
Weighting: 30%
The assignment involves using a spreadsheet to investigate efficient calculation methods for some of the assurance and/or annuity functions considered in this unit.
Assignments should be submitted via the tool on the unit's iLearn web site.
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for disruption of studies is made and approved.
Due: Examination Period
Weighting: 60%
Duration: 3 hours plus 10 minutes reading time.
Students are permitted to use non-programmable calculators with no text-retrieval capacity.
Schedule 4 of the Assessment Policy includes the rules students must abide by during University examinations. The schedule is available at: http://www.mq.edu.au/policy/docs/assessment/schedule_4.html
In the exam, you are required to write your answers on the ruled (right hand) pages of the answer booklet provided. Anything written on the unruled (left hand) pages will not be marked.
You are permitted ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed.
Classes
There are 5 hours of face-to-face teaching per week consisting of 3 hours of lectures and 2 hours of tutorial.
Class times can be found at: https://www.timetables.mq.edu.au/2017/
Tutorials start in Week 1
Unit Web Page
• The web page for this unit can be found at: http://ilearn.mq.edu.au
Technology Used and required
You will require a calculator. For the final exam, you may only use non-programmable calculators which are not able to store text.
You will be required to use a spreadsheet for the assignment. It is also a useful learning exercise to build your own spreadsheet copy of the mortality tables used in this unit. We do not prescribe any particular brand of spreadsheet.
You require access to a computer to access material on the unit's iLearn web site.
Required and Recommended Texts and/or Materials
Lecture Notes are the required materials and will be posted on the website before the lectures.
If you want additional background reading, you can try the course notes for subject CT5 published by ActEd. CT5 covers both this unit and Contingent Payments 2.
Since students often seem to print the schedule of topics, it is provided as a separate printer-friendly document in the administration section of this unit's iLearn web site.
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy_2016.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.html
Disruption to Studies Policy (in effect until Dec 4th, 2017): http://www.mq.edu.au/policy/docs/disruption_studies/policy.html
Special Consideration Policy (in effect from Dec 4th, 2017): https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policies/special-consideration
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Results shown in iLearn, 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.
Supplementary exams
• Information regarding supplementary exams, including dates, is available at: http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
For all student enquiries, visit Student Connect at ask.mq.edu.au
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
There have been no significant changes to the unit content.
Survival analysis and the valuation of contingent payments has a long history. The techniques we are using can be found in textbooks or the CT5 course notes, rather than needing to source recent research papers.
While some topics in this unit will use Australian jargon and mention Australian market features, the mathematical concepts in this unit are independent of any legislative constraints and so do not recognise national or planetary boundaries.