Handbook

ACTL40002 Risk Theory I

Credit Points: 12.5
Level: 4 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2017:

Semester 1, Parkville - Taught on campus.Show/hide details
Pre-teaching Period Start not applicable
Teaching Period 27-Feb-2017 to 28-May-2017
Assessment Period End 23-Jun-2017
Last date to Self-Enrol 10-Mar-2017
Census Date 31-Mar-2017
Last date to Withdraw without fail 05-May-2017


Timetable can be viewed here.
For information about these dates, click here.
Time Commitment: Contact Hours: Three hours of lectures and/or tutorials per week
Total Time Commitment:

170 Hours

Prerequisites:

The following:

Subject
Study Period Commencement:
Credit Points:
Corequisites:

None

Recommended Background Knowledge:

Please refer to Prerequisites and Corequisites.

Non Allowed Subjects:

None

Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Coordinator

Dr Xueyuan Wu

Contact

shli@unimelb.edu.au

Subject Overview:

Topics include collective risk model, calculation of moments and mgf of aggregate claims, recursion formulae, effect of reinsurance; individual risk model, recursion formulae and approximations; credibility theory, exact credibility and the Buhlmann-Straub model; an introduction to ruin theory.

Learning Outcomes:
  • Apply relevant pre-requisite knowledge of mathematics, probability theory and statistics in the solution of a range of practical problems;
  • Derive and calculate probabilities for, and moments of, loss distributions both with and without simple reinsurance arrangements;
  • Construct risk models appropriate for short term insurance contracts and derive both moments and moment generating functions for aggregate claim amounts under these models;
  • Derive recursion formulae to calculate aggregate claims distributions for short term insurance contracts;
  • Describe and apply approximate methods of calculating an aggregate claims distribution;
  • Explain the fundamental concepts of Bayesian statistics and apply these concepts to derive Bayesian estimators;
  • Describe and apply the fundamental concepts of credibility theory;
  • Explain the concept of ruin for a risk model;
  • Explain the significance of the adjustment coefficient in ruin theory.
Assessment:
  • An individual 1500 word assignment, due in week 12 (10%)
  • One hour mid-semester test, week 7 (20%)
  • Two hour end of semester exam (70%)

To pass this subject students must pass the end of semester examination.

Prescribed Texts:

You will be advised of prescribed texts by your lecturer.

Recommended Texts:

Information Not Available

Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:
  • High level of development: written communication; problem solving; statistical reasoning; application of theory to practice; interpretation and analysis.


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