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EF5370 Mathematics and Statistics for Financial Services
Part I Course Duration: 1 semester Credit Units: 3 Level: P5 Medium of Instruction: English Prerequisites: Nil Precursors: Nil Equivalent Courses: Nil Exclusive Courses: Nil Part II Course Aims This course aims to equip students with the quantitative skills to carry out analysis in the insurance profession and to develop students’ creativity and originality through teaching, learning, and assessment tasks. The lectures encourage students to raise questions, apply innovative approaches, and discover optimal ways to deal with problems through in-class participation and discussion, which will also enhance students’ understanding of mathematical concepts. Students are required to apply fundamental mathematical concepts to solve real world cases and designed scenarios. A final interpretation of the numerical solution with economic concepts shows the accomplishment of students’ ability to discover and innovate. Course Intended Learning Outcomes (CILOs) No. CILOs Weighting 1 Understand the fundamental concepts of interest theory, probability and risk measures. Students are encouraged to discover the underlying probability theories in real-world cases and/or designed scenarios 30% 2 Understand the basic concepts in life and non-life insurance mathematics. The attitude and ability of discovery and innovation are developed in deriving the mathematical solution to some insurance exercises. 35% 3 Apply various mathematical methods in life and non-life insurance in an innovative way. The mathematical solutions need to be supported by sound economic interpretations. 35% (Indicative of likely activities and tasks designed to facilitate students’ achievement of the CILOs. Final details will be provided to students in their first week of attendance in this course) CILO No. TLAs Functions Hours/week (if applicable) CILOs 1, 2 & 3 Lecture To provide basic concepts and structure of interest, probability, life and non-life insurance theories. CILOs 1, 2 & 3 In-class exercise, homework To give students hands-on experience with applications of concepts. Students are encouraged to apply mathematical concepts to solve real world problems. It helps cultivate students’ attitudes to innovate and apply. CILOs 1, 2 & 3 Examinations To assess the students’ understanding of mathematical methods in finance and insurance, and the ability to apply them and make innovations. Assessment Tasks/Activities Constructive Alignment of CILOs and Assessment Methods: CILO No. Type of Assessment Tasks/Activities Weighting Remarks CILOs 1, 2 & 3 In-class exercise, homework 50% CILOs 1, 2 & 3 Examinations 50% Summary of how DEC is incorporated in Assessment Tasks, and Teaching and Learning Activities (TLAs) DEC Elements ATs and TLAs Develop students’ attitude to discover and innovate Enhance students’ abilities to discover and innovate Accomplishments of discovery and innovation Real world problems in course works and the final exam Grade Points Grade Definitions Remarks A+ 4.3 Excellent Strong evidence of the understanding of the statistical concepts and the ability to apply the mathematical methods in the relevant context. Students have demonstrated very strong overall ability to discover and innovate, and showed very strong evidence of accomplishments of discovery. B+ 3.3 Good Evidence of the understanding of the statistical concepts and the ability to apply the mathematical methods in the relevant context. Students have demonstrated strong overall ability to discover and innovate, and showed strong evidence of accomplishments of discovery. C+ 2.3 Adequate Some evidence of the understanding of the statistical concepts and the ability to apply the mathematical methods in the relevant context. Students have demonstrated some ability to discover and innovate, and showed satisfactory evidence of accomplishments of discovery. D 1.0 Marginal Basic familiarity with the subject matter in examinations. Students have demonstrated marginal ability to discover and innovate, and showed marginal evidence of accomplishments of discovery. F 0.0 Failure Little evidence of familiarity with the subject matter. Students have demonstrated little ability to discover and innovate, and showed marginal evidence of accomplishments of discovery. 1) Review of Interest Theory a) Simple interest, Compound interest 2) Overview of Probability a) Random variables b) Probability densities c) Univariate and multivariate probability distributions d) Covariance and correlation coefficients 3) Life Insurance Mathematics a) The life table b) Life annuities c) Life insurance 4) Non-life Insurance Mathematics a) The collective risk models b) Introduction to stochastic processes Related Links
Department of Economics and Finance |
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