STAT 216 - ACTUARIAL PROBABILITY

Credit Hours: 4(3+1+0)

Beneficiaries: College of Sciences (Actuarial Math Students and Math Students).

Previous Course Requirement: STAT 101 + MATH 206 or MATH 201

Text Book:
Probability and Statistical Inference, 2015, Ninth Edition by Robert V. Hogg, Elliot A. Tanis, and Dale L. Zimmerman, Pearson Education.
 

Course Scope Contents:

• Set functions including set notation and basic elements of probability.
• Mutually exclusive events.
• Addition and multiplication rules.
• Independence of events.
• Combinatorial probability.
• Conditional probability.
•  Bayes Theorem / Law of total probability.
• Random variables and distributions.
•  Mode, median, percentiles, and moments.
• Variance and measures of dispersion (including coefficient of variation). 
• Moment generating functions.
• Transformations.
• Joint probability functions and joint probability density functions.
• Joint cumulative distribution functions.
• Conditional and marginal probability distributions.
• Moments for joint, conditional, and marginal probability distributions.
• Joint moment generating functions.
• Variance and measures of dispersion for conditional and marginal probability distributions.
• Covariance and correlation coefficients.
• Transformations and order statistics.
• Probabilities and moments for linear combinations of independent random variables.
• Central Limit Theorem.

Marks Distribution: 

• First Exam: 25 marks.
• Second Exam: 25 marks.
• Assignments and projects: 10 marks.
• Final Exam: 40 marks.