CM 1 - Actuarial Mathematics
Why you are studying this subject
The aim of the Actuarial Mathematics subject is to provide a grounding in the principles of modelling as applied to actuarial work – focusing particularly on deterministic models which can be used to model and value known cashflows as well as those which are dependent on death, survival or other uncertain risks.
Syllabus
1. Data and basics of modelling (10%)
2. Theory of interest rates (20%)
3. Equation of value and its applications (15%)
4. Single decrement models (10%)
5. Multiple decrement and multiple life models (10%)
6. Pricing and reserving (35%)
The weightings are indicative of the approximate balance of the assessment of this subject between the main syllabus topics, averaged over a number of examination sessions.
The weightings also have a correspondence with the amount of learning material underlying each syllabus topic. However, this will also reflect aspects such as:
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the relative complexity of each topic, and hence the amount of explanation and support required for it
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the need to provide thorough foundation understanding on which to build the other objectives
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the extent of prior knowledge which is expected
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the degree to which each topic area is more knowledge or application based.
Learning Pattern
We suggest that you work through each of the chapters in turn. To get the maximum benefit from each chapter you should proceed in the following order:
1. Read the Syllabus Objectives. These are set out in the box at the start of each chapter.
2. Read the Chapter Summary at the end of each chapter. This will give you a useful overview of the material that you are about to study and help you to appreciate the context of the ideas that you meet.
3. Study the Course Notes in detail, annotating them and possibly making your own notes. Try the self-assessment questions as you come to them. As you study, pay particular attention to the listing of the Syllabus Objectives and to the Core Reading.
4. Read the Chapter Summary again carefully. If there are any ideas that you can’t remember covering in the Course Notes, read the relevant section of the notes again to refresh your memory.
5. Attempt (at least some of) the Practice Questions that appear at the end of the chapter.
6. Where relevant, work through the relevant Paper B Online Resources for the chapter(s). You will need to have a good understanding of the relevant section of the paper-based course before you attempt the corresponding section of PBOR.
Actuarial Common Entrance Test (ACET) Background
Institute of Actuaries of India had started conducting its Entrance Exam which is ACET from January 2012.
There is a change in the structure of ACET examination with effect from 16th July 2019 would be as under:
The Structure of ACET Examinations is:
1. ACET is a 3 hour, 100 marks online exam which has 70 multiple choice questions with one correct answer for each question
2. The distribution of questions will be:
a. 45 questions – 1 mark each
b. 20 questions – 2 marks each
c. 05 questions – 3 marks each
3. After successful registration, students will be able to download the sample question paper for the examination. However, the names of the reference books
are available under ACET syllabus tab for the students.
4. The Allocation of Marks will be as under:
a. Mathematics - 30 marks
b. Statistics - 30 marks
c. Data Interpretation - 15 marks
d. English - 15 marks
e. Logical Reasoning - 10 marks
5. ACET will be conducted in 24 exam centres in India.
6. ACET will be conducted in a single day with one slot.
7. There will not be any negative marking for incorrect answers.
8. The Pass mark for ACET Examination is 50%.
discrete uniform, Bernoulli, binomial, Poisson
j) Continuous distributions
continuous uniform, exponential, the normal distribution
k) Correlation
scatter plots, covariance, correlation coefficient
l) Regression
3) English
a) Vocabulary Based (Synonyms Antonyms)
b) English Usage or Grammar
c) Sentence Correction
d) Fill in the blanks
e) Cloze Passage
f) Analogies or Reverse Analogies
g) Jumbled Paragraph
h) Meaning-Usage Match
i) Summary Questions
j) Verbal Reasoning
k) Facts / Inferences / Judgements
l) Reading Comprehension
Vocabulary: Vocabulary questions test the candidate’s knowledge of the primary meanings of words, secondary shades of meaning, usage, idioms and phrases, antonyms, related words, etc.
Grammar: Grammar-based questions test the candidate’s ability to spot and correct grammatical errors. It should generally tests knowledge of high school level grammar and includes areas like subject-verb agreement, use of modifiers, parellel construction, redundancy, phrasal verbs, use of articles, prepositions, etc.
Verbal Reasoning: Verbal reasoning questions are designed to test the candidate’s ability to identify relationships or patterns within groups of words or sentences.
4) Data Interpretation
Data is given in form of tables, charts and graphs. In this section it is tested that how can you interpret the given data and answers the questions based on it.
a) Tables
b) Column Graphs
c) Bar Graphs
d) Line Charts
e) Pie Chart
f) Venn Diagrams
g) Caselets
Combination of two or more types linked to each other.
5) Logical Reasoning
a) Number and Letter Series
b) Calendars
c) Clocks
d) Cubes
e) Venn Diagrams
f) Binary Logic
g) Seating Arrangement
h) Logical Sequence
i) Logical Matching
j) Logical Connectives
k) Syllogism
l) Blood Relations
Reference Books for ACET Examination
1. TOMATO (Test Of Mathematics at Ten plus Two level published by ISI)
2. How to Prepare for Verbal Ability and Reading Comprehension for CAT by Arun Sharma and Meenakshi Upadhyay, Mc Graw Hill
3. How to prepare for Quantitative Aptitude for the CAT Editor: Arun Sharma
4. Quantitative Aptitude for Competitive Examinations Editor: Abhijit Guha
5. The Pearson and Guide to Verbal Ability and Logical Reasoning for the CAT Editor: Nishit K. Sinha
6. Quantitative Aptitude for MBA Entrance Examinations Editor: R.S. Aggarwal
7. High School English Grammar and Composition- Wren and Martin
8. Word Power Made Easy Editor: Norman Lewis
9. Problem Solving Strategies Editor: Arthur Engel
10. Challenge and Thrill of Pre-College Mathematics by New Age International Publishers
11. Challenging Mathematical Problems with Elementary Solutions Editors: A.M. Yaglom and I.M. Yaglom
12. An Excursion in Mathematics Editors: M. R. Modak, S. A. Katre, V. V. Acharya, V. M. Sholapurkar
13. Problem Primer for the Olympiad Editors: C R Pranesachar, B J Venkatachala, C S Yogananda
14. Trishna’s Data Interpretation and Logical Reasoning for the CAT and other MBA Entrance Examinations
15. ACTED Study Material - FAC and STATS PACK