THAKUR COLLEGE OF SCIENCE & COMMERCE (AUTONOMOUS)

Program: B.Sc. (Actuarial Science) Course and Credit Structure as per School Specific Core
Framework of NEP 2020
SYLLABUS STRUCTURE
SEMESTER I

COURSE CODE COURSE NAME CREDITS*

Major Paper – I Actuarial Mathematics-I 3
Major Paper – II Actuarial Mathematics-II 3
Major Paper – III Actuarial Statistics-I and Practical using R 3+1
Minor Paper – I Descriptive Statistics and Data Analysis 3
Generic/Open Elective Basics of R-Programming / Advanced MS Excel 3
(OE) (Practical Course)
AEC/IKS/VEC Business English Communication – I 2
VSC / SEC Corporate governance and organization 2
CEP/CC/RP Insurance Business 2
22

SEMESTER II

COURSE CODE COURSE NAME CREDITS*

Major Paper – I Actuarial Finance –I 3
Major Paper – II Actuarial Finance –II 3
Major Paper – III Actuarial Statistics-II and Practical using R 3+1
Minor Paper – I Regression Theory and Its Applications 3
General Elective Advanced R-Programming / Applications of MS Excel 3
(Practical Course)
AEC/IKS/VEC Business English Communication - II 2
VSC / SEC Bayesian Statistics 2
CEP/CC/RP Project Appraisal 2
22
Academic Year 2024-25: Semester I
Sub: Actuarial Mathematics I No. of Credits: 3
Course Objective
The aim of this course is to
● provide a basic understanding of mathematical concepts needed for studying actuarial
science.
Course Outcome
On successful completion of this course, student should be able to
● use numerical methods to understand accuracies of calculations (Apply)
● apply matrix and determinants for solving equations (Apply)
● understand the basics of calculus to build on further (Understand)
● apply finite differences and difference equations in actuarial applications (Apply)
● calculate various statistical measures and interpret them (Understand, Apply)
● Summarise data using appropriate statistical analysis, descriptive statistics and graphical
presentation (Understand, Apply, Analyse)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Numerical methods: 15
● Measures of Absolute and Relative Changes
● Measures of Absolute and Relative Errors
● Linearly interpolating an intermediate value of a function
based on two given values
● Simple iterative methods to solve a non-linear equation
● Vector algebra with simple operations
● Matrix operations

2 Mathematical constants & standard functions: 10

● Functions: xn, ax, ex, ln x. Definition, basic properties,

graphs, absolute values, minimum and maximum values.
● Concepts of limit and continuity
3 Algebra: 20
● Solution of simple equations, including simultaneous
equations (not necessarily linear)
● Use of Matrix Algebra and Determinants in solving Linear
Equations
● Solution of quadratic equations
● Solution of inequalities
● Summation of terms (Σ) and Product of terms (π).
● Summation of terms in Arithmetic Progression and
Geometric Progression
● Σr and Σr2 where r represents a natural number ranging
from 1 to n.
● Binomial expansions of (a + b)n where n is a positive
integer and (1 + x)p where p is a real number with condition
for convergence.
 Finite Differences and their Applications:
● Operators: E, Δ, B.
● Finite differences and their tables
● Applications to estimation of missing number.
● Newton’s and Lagrange’s Formulae
● Applications to interpolation and extrapolations
● Solution of Simple Difference equations

Reference Books:
Title
Sr. No. Author
1 Higher Algebra Hall and Knight
ISBN 9781402179655
2 College Algebra T G Kulkarni and Kelkar

3 Calculus: Early Transcendentals James Stewart

ISBN-13:
9780534393212
4 Calculus James Stewart
ISBN-13:
9780534393397
5 Descriptive Statistics R. J. Shah
Sub: Actuarial Mathematics II No. of Credits: 3

Course Objective
The aim of this course is to
● provide a basic understanding of certain mathematical concept needed for studying
actuarial science
● provide basics of machine learning

Course Outcome
On successful completion of this course, student should be able to
● understand apply differential calculus in actuarial analysis (Apply)
● understand apply integral calculus in actuarial analysis (Apply)
● understand certain more theories of calculus (Knowledge)
● calculate probabilities of simple and compound events (Apply, Analyse)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Differential Calculus: 15

● Derivative as rate of change. Derivative as gradient of a

curve.
● Derivative of simple functions: xn, ax, ex, ln x.
● Derivatives of sums, products, quotients and “functions
of a function”.
● The concept of a higher-order (repeated) derivative
● Application of derivative to find the maximum or
minimum value of a function over a
specified range
● Identify the nature of stationary points
● The meaning of a partial derivative, notations, evaluation.
● Extreme values of functions of two variables

2 Integral Calculus: 15
● Meaning of indefinite integral as the anti-derivative of a
function and the meaning of a definite integral as the limit
of a sum of infinitesimal elements.
● The interpretation of a definite integral as the area under a
graph
● Integration of the standard functions xn, ax and ex.
● Solution of indefinite and definite integrals by inspection,
by identifying and applying an appropriate substitution,
by integration by parts, by using simple partial fractions
where the fractions initially have a quadratic denominator
or by a combination of these methods
● Determine when a definite integral converges
● State and apply Taylor series and Maclaurin series in their
simplest form, including using these to determine the
approximate change in a function where the argument is
varied by a small amount.
 ● Apply the Taylor series expansions for ex and ln(1+ x)
and, in the latter case, determine when the series
converges.
● Concept of Differential equation and solution of dy/dx +
Py = Q where P and Q are functions of x. Applications of
this solution in Actuarial study.

3 Combination and Permutation: 15

● Calculation of number of way of selection and
arrangements under various conditions
● Symbols and Relationships
Probability:
● Algebra of Elementary outcomes, Sample Space and
Events
● Different approaches/definitions to find probability of
an event
● Simple Events, Calculation of Probabilities of such
events
● Probability calculations involving combinations and
permutations
Advanced Probability:
● Conditional probabilities
● Compound events
● Mutually exclusive, exhaustive, complementary,
independent events
● Addition Theorem, Multiplication Theorem, Bayes’
theorem
● Applications of these theorems

Reference Books:
Title
Sr. No. Author

1 Calculus: Early Transcendentals James Stewart

ISBN-13:
9780534393212
2 Calculus James Stewart
ISBN-13:
9780534393397
3 Statistical Methods R. J. Shah
Sub: Actuarial Statistics-I and Practical using R No. of Credits: 4(3+1)
Course Objective
The aim of this course is to provide a grounding in statistical techniques that are of particular
relevance to actuarial work.

Course Outcome
On successful completion of this course, student should be able to
● Calculate probabilities and other measures from standard discrete and standard continuous
distributions (Evaluate)
● Define random variables and determine their distributions in various actuarial applications
(Knowledge, Apply)
● Determine generating functions (Apply)
● Understand standard discrete and continuous distributions and their measures and applications
(Knowledge, Apply)
● Calculate various statistical measures and Interpret them for distributions
Understand methods of estimating parameters and apply them (Knowledge, Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Probability Distributions and Generating Functions 20
● Discrete random variable, probability mass function,
cumulative distribution function, calculation of
probability
● Expectation, variance, median, mode, moments and other
measures. Properties of Expectation and Variance
● Standard Discrete Distributions: Discrete Uniform,
Bernoulli’s, Binomial, Poisson, Geometric Type I and Type
II, Negative Binomial Type I and Type II, Hypergeometric.
Their Key characteristics and Calculation of
Probability (Using Actuarial Tables and otherwise)
● Generating Functions: Probability Generating Function,
Moment Generating Function and Cumulant
● Generating Function. Their key properties, determination
of these functions and their use in finding various other
measures

2 Joint Distributions and Conditional Expectations 15

• Explain what is meant by jointly distributed random
variables, marginal distributions and conditional
distributions.
• Define the probability function/density function of a
marginal distribution and of a conditional distribution.
• Specify the conditions under which random variables are
independent.
• Define the expected value of a function of two jointly
distributed random variables, the covariance and correlation
coefficient between two variables, and calculate such
quantities.
 • Define the probability function/density function of the sum
of two independent random variables as the convolution of
two functions.
• Derive the mean and variance of linear combinations of
random variables.
• Use generating functions to establish the distribution of
linear combinations of independent random variables.
• Define the conditional expectation of one random variable
given the value of another random variable, and calculate
such a quantity.
• Show how the mean and variance of a random variable can
be obtained from expected values of conditional expected
values, and apply this.
3 Central Limit Theorem 10
• State the Central Limit Theorem for a sequence of
independent, identically distributed random variables.
• Generate simulated samples from a given distribution and
compare the sampling distribution with the Normal.

Reference Books:
Title
Sr. No. Author / Publisher

1 John Freund’s Mathematical Statistics with Applications Miller, Miller

ISBN-10: 131427067

2 Elementary Statistics Mario Triola

ISBN-13:
9780321369185

3 Descriptive Statistics R. J. Shah

4 Statistical Methods R. J. Shah

5 Actuarial Statistics ACTED, UK

Sub: Descriptive Statistics and Data Analysis No. of Credits: 3
Course Objective
The aim of this course is to provide a grounding in data analysis that are of particular relevance to
actuarial work.

Course Outcome
On successful completion of this course, student should be able to
● Describe the purpose of exploratory data analysis. (Knowledge)
● Explain what is meant by a sample, a population and statistical inference (Knowledge)
● Use appropriate tools to calculate suitable summary statistics and undertake exploratory data
visualizations. (Knowledge, Apply)
● Use Principal Components Analysis to reduce the dimensionality of a complex data set.
(Apply)
● Determine the mean and variance of a sample mean and the mean of a sample variance in terms
of the population mean, variance and sample size. (Knowledge, Apply)
● State and use the basic sampling distributions for the sample mean and the sample variance for
random samples from a normal distribution. (Knowledge, Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Descriptive Statistics: 15
● Data, Frequency Distribution, Tables
● Graphs and Diagrams: Line Plot, Box Plot, Stem and Leaf
Diagram, Frequency Curve, Ogives, Histogram
● Averages: Mean, Median, Mode. Weighted Averages. Their
special uses
● Location measures: Median, Quartiles, Percentiles
● Moments
● Dispersion measures: Range, Quartile Deviation, Mean
Deviation, Standard Deviation and their relative measures
● Skewness and its measures
● Kurtosis and its measures

2 Sampling and statistical Inference 15

• Explain what is meant by a sample, a population and
statistical inference.
• Define a random sample from a distribution of a random
variable.
• Explain what is meant by a statistic and its sampling
distribution.
• Determine the mean and variance of a sample mean and the
mean of a sample variance in terms of the population mean
and variance and the sample size.
• State and use the basic sampling distributions for the sample
mean and the sample variance for random samples from a
normal distribution.
• State and use the distribution of the t-statistic for random
samples from a normal distribution.
• State and use the F distribution for the ratio of two sample
variances from independent samples taken from normal
distributions.
 3 Exploratory data analysis 15
• Describe the purpose of exploratory data analysis.
• Use appropriate tools to calculate suitable summary statistics
and undertake exploratory data visualizations.
• Define and calculate Pearson’s, Spearman’s and Kendall’s
measures of correlation for bivariate data, explain their
interpretation and perform statistical inference as appropriate.
• Use Principal Components Analysis to reduce the
dimensionality of a complex data set.

Reference Books:
Title
Sr. No. Author / Publisher

1 John Freund’s Mathematical Statistics with Applications Miller, Miller

ISBN-10: 131427067

2 Elementary Statistics Mario Triola

ISBN-13:
9780321369185

3 Descriptive Statistics R. J. Shah

5 Actuarial Statistics ACTED, UK
Sub: Basics of R-Programming (Practical Course) No. of Credits: 3
Course Objective
To introduce participants to the fundamentals of R programming language, equipping them with the
knowledge and skills necessary to write basic scripts, perform data manipulation, and create
visualizations using R.

Course Outcome
By the end of this course, participants will be able to:
• Understand the basic syntax and data structures in R. (Knowledge)
• Write simple scripts to perform data manipulation tasks such as data cleaning, filtering, and
summarization. (Knowledge, Evaluate)
• Utilize functions and control structures to effectively manage and process data. (Knowledge,
Apply)
• Create basic visualizations including scatter plots, histograms, and bar charts to represent
data. (Apply)
• Perform basic statistical analysis and hypothesis testing using built-in functions in R.
(Apply)
• Import and export data from various file formats such as CSV, Excel, and text files. (Apply)
• Apply the concepts of loops and conditional statements to automate repetitive tasks. (Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 • Introduction to R and RStudio 15
• Data Types and Variables
• Data Structures and Sub setting

2 ● Control Structures and Functions 15

● Data Manipulation with dplyr
● Data Visualization with ggplot2

3 ● Working with External Data Sources 15

● Data Cleaning and Preprocessing
● Statistical Analysis and Hypothesis Testing

Reference Books:
Sr. No. Author / Publisher
Title

1 Beginning R : The Statistical Programming Language Dr. Mark Gardener

2 Statistics Using R Purohit, Gore
and Deshmukh
3 Actuarial Statistics- An Introduction Using R Shailaja R
Deshmukh
Sub: MS Excel – Advance
No. of Credits: 3 No. of Lectures/week: 3
Course Objective
The objective of this course is to equip participants with advanced skills and techniques in
Microsoft Excel, enabling them to efficiently manage, analyze, and visualize data. By the
end of the course, participants should be proficient in using advanced features and functions
of Excel for complex data analysis, reporting, and decision-making.
Course Outcome
Upon successful completion of this course, participants should be able to:
1. Utilize advanced formulas and functions to perform complex calculations and data
analysis.
2. Create and customize advanced charts and graphs to visually represent data.
3. Design and manage large datasets efficiently using advanced data management
techniques.

Module wise Detailed Syllabus

Module Description No. of
Lectures
1 Advanced Formulas and Functions

• Advanced functions: INDEX, MATCH, OFFSET, INDIRECT, etc.

• Array formulas and functions 15
• Logical functions: IFERROR, IFNA, CHOOSE, etc.
• Date and time functions
• Text functions: CONCATENATE, TEXTJOIN, etc.
2 Advanced Data Analysis Techniques

• Data validation and validation rules

• What-If Analysis with Scenario Manager and Goal Seek 15
• Forecasting with Regression Analysis
• Using Solver for optimization problems
• Advanced filtering and sorting techniques
3 Advanced Charting and Graphing

• Customizing charts: axis formatting, trendlines, error bars, etc. 15

• Creating combination charts
• Sparklines for data visualization
• Interactive charts with Form Controls and Pivot Charts

Reference Books:
ISBN
Sr. No. Title Author
Publisher/Seller
1 Textbook: "Excel 2019 Bible" Michael Alexander and Richard Kusleika

2 Online tutorials and resources Microsoft

Sub: Corporate governance and organization No. of Credits: 2

Course Objective
The aim of this course is to provide a basic understanding of corporate finance including a
knowledge of the instruments used by companies to raise finance.

Course Outcome
On successful completion of this course, student should be able to understand how companies are
governed and structured (Knowledge, Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Key principles of finance and corporate governance 10
• Explain the purpose and process of regulating the financial
reporting information of incorporated entities.
• Describe the key principles of corporate governance and
regulation of companies.
• Demonstrate an awareness of the key principles of finance.
2 Business ownership 10
• Describe the structure of a company and the different
methods by which it may be financed.
- Outline the distinctive characteristics of sole traders,
partnerships and limited companies as business entities.
- Discuss the economic advantages and disadvantages of a
limited company as a business entity.
- Outline the main differences between a private and
public company.
3 Taxation 10
• Describe the basic principles of personal and corporate
taxation.
- Describe the basic principles of personal taxation of
income and capital gains.
- Describe the basic principles of company taxation.
- Explain the different systems of company taxation from
the points of view of an individual shareholder and the
company.
- Outline the basic principles of double taxation relief.

Reference Books:
Title
Sr. No. Author / Publisher

1 ActEd Study Material Subject CB1 Actuarial Education Co.

[email protected]

2 Accounting and financial fundamentals for nonfinancial

AMACOM, New
executives by Robert Rachlin& Allen Sweeny.
York
Sub: Business English Communication – I No. of Credits: 2
Course Objective
To provide beginners with a foundation in business English communication skills, focusing on basic
vocabulary, grammar, and business correspondence etiquette necessary for effective communication
in a professional environment.

Course Outcome
• Understand and use basic business vocabulary and phrases in common workplace scenarios.
(Knowledge)
• Write simple business emails, memos, and reports following standard formats and
conventions. (Apply)
• Engage in basic business conversations, including greetings, introductions, and small talk.
(Apply)
• Demonstrate comprehension of basic business documents such as agendas, minutes, and
schedules. (Knowledge, Apply)
• Apply basic grammar rules and sentence structures accurately in written and spoken
communication. (Apply)
• Use appropriate language and tone for different business communication purposes and
audiences. (Knowledge, Apply)
• Demonstrate awareness of cultural differences in business communication etiquette.
(Knowledge, Apply)
• Develop confidence in participating in common business communication tasks such as
phone calls, meetings, and presentations. (Knowledge, Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Introduction to Business English Communication 5
• Basic business vocabulary and phrases
• Business communication etiquette
2 Business Writing Basics 5
• Email etiquette and format
• Writing simple business correspondence: emails, memos
3 Basic Grammar and Sentence Structure 10
• Parts of speech: nouns, verbs, adjectives, etc.
• Sentence construction and punctuation
4 Business Conversations 5
• Greetings, introductions, and small talk
• Giving and requesting information
5 Reading Business Documents 5
• Understanding agendas, minutes, schedules, etc.
• Extracting key information from business documents
Reference Books:
Sr. No. Author / Publisher
Title

1 Basic Business Vocabulary in Use Bill Mascull

2 Essential Grammar in Use Raymond Murphy
3 English for Business Communication Simon Sweeney
Sub: Insurance Business No. of Credits: 2
Course Objective
The aim of this course is to
• make the learner aware about basic concepts, terms and evolution of insurance business.
• introduce the learner to the business of insurance and the principles of insurance contracts.
• educate the learner about the currently available insurance products.

Course Outcome
On successful completion of this course, student should be able to
● understand and appreciate the uniqueness of insurance contracts (Knowledge)
● recognizes different types of Insurance products (Knowledge, Evaluate)
● acquires the necessary skills for comparing insurance products (Knowledge, Apply)
● assess the scope of insurance business and the career opportunities (Apply)
● get an idea of the management of insurance entities (Knowledge, Apply)
● understand concepts of underwriting and claim settlement. (Knowledge, Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 • The Conceptual Framework 10
- Meaning and Definition
- History of Insurance
- Perils and Risks
- Growth and evolution of Insurance Industry in India
2 • The Insurance Contract and Insurance Products 10
- Life Insurance Products
- Health Insurance Products
- General Insurance Products
- Other types of Insurance Products
3 • The Insurance Market 10
- Insurance companies in India
- Reinsurers
- Regulator and Councils
Academic Year 2024-25: Semester II
Sub: Actuarial Finance I No. of Credits: 3

Course Objective
The aim of this course is to
● provide a basic understanding of corporate finance
● provide knowledge of the instruments used by companies to evaluate projects and
raise finance

Course Outcome
On successful completion of this course, student should be able to
● understand how companies are governed and structured (Understand)
● suggest appropriate ways to finance a company (Analyse)
● understand how to calculate company’s taxable income (Understand)

Module wise Detailed Syllabus

Module Description No of lecture
1 Financing of Corporates, Issue of Shares, Rewarding 25
Shareholders:
● Types of medium term company finance:
o hire purchase
o credit sale
o leasing
o bank loans
● Types of short term company finance:
o bank overdrafts
o trade credit
o factoring
o bills of exchange
o commercial paper
● Alternative methods of raising finance outside the regular
banking system including
o shadow banking
o direct project financing
o crowd-funding
o micro-finance
● Understanding of the characteristics of the principal forms of
financial instrument issued or used by companies and the
ways in which they may be issued.
● Reasons a company might have for seeking a quotation on
the stock exchange
● The characteristics of
o debenture stocks
o unsecured loan stocks
o Eurobonds
o preference shares
o ordinary shares
o convertible unsecured loan stocks
o convertible preference shares
o warrants
 o floating rate notes
o subordinated debt
o options issued by companies
● The characteristics and possible uses by a non-financial
company of:
o financial futures
o options
o interest rate and currency swaps
● Methods of obtaining a quotation for securities:
o introduction
o placing
o offer for sale
o offer for sale by tender
o offer for subscription
● New issues to existing shareholders:
o scrip issue
o rights issue
● Role of underwriting in the issue of securities.
● Factors to be considered by a company when deciding on
its capital structure
● Effect of the capital structure of a company on the market
valuation of the company
● Effect of taxation on the capital structure used by a company
● Principal factors that a company should consider in setting
dividend policy
● Alternative ways of distributing profits, such as buybacks
● Effect of the dividend policy on the market valuation of a
company
● Companies growth with the different ways of company
restructuring
● Relationship between growth and profitability
● Constraints on a firm’s growth

2 Mergers and Acquisition and Weighted Average Cost of Capital 20

Motives for mergers and acquisitions
o Characteristics of a merger
o Methods of evaluating a target company
o Steps that a buyer will usually take in a leveraged
buyout
● Cost of Capital of a company
o Concept
o Impact of nature of investment projects
● Weighted average cost of capital of a company
● Methods to determine the viability of a capital project
● Cash flow projections and techniques to estimate cash flows
● Methods commonly used to evaluate risky investments
including simulation and certainty equivalents
● Issues in establishing the required rate of return for a capital
project
● Factors underlying the choice of discount rate within project
assessment including:
 o the assumptions and limitations in the use of the
weighted average cost of capital
o the allowance for leverage
o the allowance for risk
● Methods for identifying the risks that may be present for
different types of project
● Techniques for ascertaining the probability of occurrence of
different risks over varying timescales and the financial impact
of occurrence
● Techniques for ascertaining the distribution of the possible
financial outcomes of a capital project

Reference Books:
Title ISBN
Sr. No.
Author Publisher/Seller
1 ActEd Study Material Subject CB1 Actuarial Education
Co. [email protected]
2 Accounting and financial fundamentals for nonfinancial
AMACOM, New
executives by Robert Rachlin& Allen Sweeny.
York
3 Accounting Fundamentals by William Ruland 0324023618
South-Western College
Pub.
Sub: Actuarial Finance II No. of Credits: 3
Course Objective
The aim of this course is to
● provide a basic understanding of accounting principles
● provide the ability to interpret the accounts and financial statements of companies and
financial institutions
● provide an understanding of how to manage financial risk
Course Outcome
On successful completion of this course, student should be able to
● construct statement of income, balance sheet and cash flow statement (Create)
● analyse published accounts (Analyse)
● produce management information (Create)

Module wise Detailed Syllabus

Module Description No of lecture
1 Insurance Company Accounts, Group Accounts and
Limitations of Accounts:
● Insurance company accounts:
o how different from other companies’ account
o structure and content
● Concepts of holding company,
subsidiary company and associated
company
25
● Purpose of consolidated accounts
● Goodwill arising on consolidation of group accounts
● Minority interest
● Shortcomings of historical cost accounting
● Limitations in the interpretation of company accounts
● How reported figures can be manipulated to create a
false impression of a company's financial position
2 Measures of Comparison of Accounts, Evaluating Working
Capital and Constructing Management Information:
● Measures useful to lenders:
o priority percentages and gearing
o interest cover and asset cover for loan capital
● Measures useful to owners/investors:
o price earnings ratio
o dividend yield
o dividend cover
o EBITDA 20
o (Net) earnings per share
● Understanding the possible effects of interest rate
movements on a highly geared company.
● Accounting ratios which indicate:
o profitability
o liquidity
o efficiency
● Working capital position of a company
 o Analysis of accounts receivables, accounts
payables and inventory ratios
o Evaluate policies for working capital
management, including its individual
elements
o Methods for financing working capital
o Analysis of the short term cash position of a
company
o Measures to manage the short term cash position
of a company
o Dividend sustainability
● Forecasts and budgets as sources of management
information. Their
o Functions
o Purpose
o Basic examples

Reference Books:
Title ISBN
Sr. No.
Author Publisher/Seller
ActEd Study Material Subject CB1 Actuarial Education Co.
1 [email protected]
Accounting and financial fundamentals for
AMACOM, New
2 nonfinancial executives by Robert Rachlin& Allen
York
Sweeny.
Accounting Fundamentals by William Ruland 0324023618
3 South-Western College
Pub.
4 Principles of Corporate Finance by Richard Brealey McGraw Hill
and Stewart Myers
Sub: Actuarial Statistics-II and Practical using R No. of Credits: 4(3+1)
Course Objective
The aim of this course is to provide a grounding in statistical techniques that are of particular
relevance to actuarial work.

Course Outcome
On successful completion of this course, student should be able to
• describe and apply the principles of statistical inference (Understand, Apply)
• calculate point estimates and interval estimates of parameters under different distribution
environments (Evaluate)
• calculate test statistic and perform a test of significance for various parameters under
appropriate distributional environments (Evaluate, Analyse)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Estimation and estimators 15
● Describe and apply the method of moments for
constructing estimators of population parameters.
● Describe and apply the method of maximum likelihood
for constructing estimators of population parameters.
● Define the terms: efficiency, bias, consistency and
mean squared error.
● Define and apply the property of unbiasedness of an
estimator.
● Define the mean square error of an estimator, and use it
to compare estimators.
● Describe and apply the asymptotic distribution of
maximum likelihood estimators.
● Use the bootstrap method to estimate properties of an
estimator.

2 Confidence intervals 10
• Define in general terms a confidence interval for an unknown
parameter of a distribution based on a random sample.
• Derive a confidence interval for an unknown parameter using
a given sampling distribution.
• Calculate confidence intervals for the mean and the variance
of a normal distribution.
• Calculate confidence intervals for a binomial probability and
a Poisson mean, including the use of the normal
approximation in both cases.
• Calculate confidence intervals for two-sample situations
involving the normal distribution, and the binomial and
Poisson distributions using the normal approximation.
• Calculate confidence intervals for a difference between two
means from paired data.
• Use the bootstrap method to obtain confidence intervals.

3 Hypothesis testing and goodness of fit 20

• Explain what is meant by the terms null and alternative
hypotheses, simple and composite hypotheses, type I and
 type II errors, test statistic, likelihood ratio, critical region,
level of significance, probability-value and power of a test.
• Apply basic tests for the one-sample and two-sample
situations involving the normal, binomial and Poisson
distributions, and apply basic tests for paired data.
• Apply the permutation approach to non-parametric
hypothesis tests.
• Use a chi-square test to test the hypothesis that a random
sample is from a particular distribution, including cases
where parameters are unknown.
• Explain what is meant by a contingency (or two-way) table,
and use a chi-square test to test the independence of two
classification criteria.

Title
Sr. No. Author / Publisher

1 John Freund’s Mathematical Statistics with Applications Miller, Miller

ISBN-10: 131427067

2 Elementary Statistics Mario Triola

ISBN-13:
9780321369185

3 Descriptive Statistics R. J. Shah

4 Statistical Methods R. J. Shah

5 Actuarial Statistics ACTED, UK

Sub: Regression Theory and Its Applications No. of Credits: 3
Course Objective
The aim of this course is to provide a grounding in statistical techniques that are of particular
relevance to actuarial work.

Course Outcome
On successful completion of this course, student should be able to
• describe, apply and interpret the results of the linear regression model and generalised linear
models. (Understand, Apply, Analyse)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Linear regression 20
● Explain what is meant by response and explanatory
variables.
● State the simple regression model (with a single
explanatory variable).
● Derive the least squares estimates of the slope and
intercept parameters in a simple linear regression
model.
● Use appropriate software to fit a simple linear
regression model to a data set and interpret the output.
- Perform statistical inference on the slope
parameter.
- Describe the use of measures of goodness of fit of
a linear regression model.
- Use a fitted linear relationship to predict a mean
response or an individual response with
confidence limits.
- Use residuals to check the suitability and validity
of a linear regression model.
● State the multiple linear regression model (with
several explanatory variables).
● Use appropriate software to fit a multiple linear
regression model to a data set and interpret the output.
● Use measures of model fit to select an appropriate set of
explanatory variables.

2 Generalised linear models 25

• Define an exponential family of distributions. Show that the
following distributions may be written in this form: binomial,
Poisson, exponential, gamma, normal.
• State the mean and variance for an exponential family and
define the variance function and the scale parameter. Derive
these quantities for the distributions above.
• Explain what is meant by the link function and the canonical
link function, referring to the distributions above.
• Explain what is meant by a variable, a factor taking
categorical values and an interaction term. Define the linear
predictor, illustrating its form for simple models, including
polynomial models and models involving factors.
 • Define the deviance and scaled deviance and state how the
parameters of a generalised linear model may be estimated.
Describe how a suitable model may be chosen by using an
analysis of deviance and by examining the significance of the
parameters.
• Define the Pearson and deviance residuals and describe how
they may be used.

Title
Sr. No. Author / Publisher

1 John Freund’s Mathematical Statistics with Applications Miller, Miller

ISBN-10: 131427067

2 Elementary Statistics Mario Triola

ISBN-13:
9780321369185

3 Descriptive Statistics R. J. Shah

4 Statistical Methods R. J. Shah

5 Actuarial Statistics ACTED, UK

Sub: Application of R-Programming (Practical Course) No. of Credits: 3
Course Objective
• To provide participants with an understanding of how R can be applied to actuarial science,
including insurance and risk management.
• To equip participants with advanced skills in data manipulation, statistical modelling, and
predictive analytics using R.
• To enhance participants' ability to interpret and communicate the results of actuarial analyses
conducted in R effectively.
Course Outcome
By the end of this course, participants will be able to:
• Demonstrate proficiency in advanced data manipulation techniques in R, including
reshaping data, merging datasets, and handling missing values. (Knowledge, Evaluate)
• Apply various statistical modelling techniques such as generalized linear models (GLMs),
generalized additive models (GAMs), and time series analysis to actuarial data. (Knowledge,
Apply)
• Utilize specialized R packages for actuarial science to perform tasks such as loss reserving,
risk assessment, and credibility analysis. (Apply)
• Effectively visualize actuarial data and model outputs using advanced plotting techniques in
R, including interactive visualizations for exploring complex relationships. (Apply)
• Apply critical thinking skills to evaluate the assumptions, limitations, and implications of
actuarial models and analyses conducted in R. (Apply)
• Demonstrate readiness for further specialization or professional certification in actuarial
science through practical experience gained in applying R to actuarial problems. (Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 ● Data Modeling and Machine Learning 15
● Writing Custom Functions and Packages
● Advanced Topics and Best Practices

2 ● Working with External Data and APIs in R 15

● Text Mining and Natural Language Processing with R
● Web Scraping and Data Wrangling in R
3 ● Time Series Analysis and Forecasting in R 15
● Creating Interactive Dashboards with Shiny in R
● Advanced Topics and Best Practices in R

Reference Books:
Sr. No. Author / Publisher
Title

1 Beginning R : The Statistical Programming Language Dr. Mark Gardener

2 Statistics Using R Purohit, Gore
and Deshmukh
3 Actuarial Statistics- An Introduction Using R Shailaja R
Deshmukh
4 Essential R For Data Analysis: Data manipulation and PBR Books
visualization using R for beginning and intermediate
users
Sub: Applications of MS Excel (Practical Course)
No. of Credits: 3 No. of Lectures/week: 3
Course Objective
The objective of this course is to equip participants with advanced skills and techniques in
Microsoft Excel, enabling them to efficiently manage, analyze, and visualize data. By the
end of the course, participants should be proficient in using advanced features and functions
of Excel for complex data analysis, reporting, and decision-making.
Course Outcome
Upon successful completion of this course, participants should be able to:
4. Implement PivotTables and PivotCharts for interactive data analysis and reporting.
5. Automate repetitive tasks and increase productivity using Macros and VBA (Visual
Basic for Applications).
6. Collaborate and share workbooks effectively within a team environment.
7. Troubleshoot common errors and issues encountered while working with complex
spreadsheets.

Module wise Detailed Syllabus

Module Description No. of
Lectures
1 Data Management and Analysis Tools

• Managing large datasets: sorting, filtering, subtotaling

• Creating and customizing PivotTables 15
• Analyzing data with Power Pivot and Power Query
• Consolidating data from multiple sources

2 Automation with Macros and VBA

• Introduction to Macros: recording, editing, and running macros

• Introduction to VBA: variables, loops, conditions, etc. 15
• Writing and editing VBA code for automation tasks
• Creating user-defined functions (UDFs)

3 Collaboration and Sharing

• Protecting workbooks and worksheets 10

• Tracking changes and comments
• Sharing workbooks and managing shared workbooks
• Co-authoring in real-time with OneDrive
4 Troubleshooting and Error Handling

• Identifying and resolving common errors 5

• Auditing formulas and tracing precedents/dependents
• Error handling techniques: IFERROR, ISERROR, etc.

Reference Books:
 ISBN
Sr. No. Title Author
Publisher/Seller
1 Textbook: "Excel 2019 Bible" Michael Alexander and Richard Kusleika

2 Online tutorials and resources Microsoft

Sub: Business English Communication – II No. of Credits: 2
Course Objective
To enhance participants' proficiency in business English communication, focusing on advanced
vocabulary, negotiation skills, and formal business writing required for complex workplace
interactions.

Course Outcome
• Utilize a broader range of business vocabulary and idiomatic expressions in professional
contexts. (Apply)
• Engage in negotiations, discussions, and presentations with confidence and clarity.
(Knowledge, Apply)
• Write formal business documents such as proposals, reports, and presentations effectively.
(Apply)
• Analyze and respond to complex business scenarios and case studies in English. (Apply)
• Demonstrate proficiency in advanced grammar structures and sentence variety in written and
spoken communication. (Apply)
• Apply persuasive communication techniques in business contexts. (Apply)
• Exhibit cross-cultural communication competence in diverse business settings. (Apply)
• Develop strategies for continued improvement and lifelong learning in business English
communication. (Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Advanced Business Vocabulary and Idioms 5
• Business communication etiquette Industry-specific
terminology
• Idiomatic expressions and phrasal verbs in business English
2 Formal Business Writing 5
• Writing formal letters, proposals, reports, and presentations
• Structuring and organizing complex business documents
3 Advanced Grammar and Sentence Variety 10
• Complex sentence structures
• Avoiding common grammatical errors in business
writing and speaking
4 Persuasive Communication 5
• Strategies for influencing and persuading others in business
contexts
• Presenting arguments and proposals convincingly
5 Cross-Cultural Communication in Business 5
• Understanding cultural nuances in business communication
• Adapting communication styles for international audiences
Reference Books:
Sr. No. Author / Publisher
Title

1 English Vocabulary in Use: Advanced Michael McCarthy and

Felicity O'Dell
2 Advanced Grammar in Use Martin Hewings
3 Effective Business Writing Patrick Forsyth
Sub: Bayesian Statistics No. of Credits: 2
Course Objective
The aim of this course is to provide a grounding in statistical techniques that are of particular
relevance to actuarial work.

Course Outcome
On successful completion of this course, student should be able to
• explain the fundamental concepts of Bayesian statistics and use these concepts to calculate
Bayesian estimators. (Understand, Apply, Analyse)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Bayesian statistics 10
● Introduction
● Baye’s Theorem
● Prior and posterior distribution
● The loss function

2 Credibility theory 10
• Explain what is meant by the credibility premium formula
and describe the role played by the credibility factor.
• Explain the Bayesian approach to credibility theory and use it
to derive credibility premiums in simple cases.
• Explain the differences between the two approaches (ie the
Bayesian approach and the empirical Bayes approach) and
state the assumptions underlying each of them.
3 Empirical Bayes Credibility Theory 10
• Explain the empirical Bayes approach to credibility theory
and use it to derive credibility premiums in simple cases.
• Explain the differences between the two approaches (ie the
Bayesian approach and the empirical Bayes approach) and
state the assumptions underlying each of them.

Reference Books:

Title
Sr. No. Author / Publisher

1 John Freund’s Mathematical Statistics with Applications Miller, Miller

ISBN-10: 131427067

2 Elementary Statistics Mario Triola

ISBN-13:
9780321369185

3 Descriptive Statistics R. J. Shah

4 Statistical Methods R. J. Shah

5 Actuarial Statistics ACTED, UK

Sub: Project Appraisal No. of Credits: 2
Course Objective
The aim of this course is to provide a knowledge on how a company’s cost of capital interacts with
the nature of the investment projects it undertakes.

Course Outcome
On successful completion of this course, student should be able to
• Understand what is meant by a company’s cost of capital. (Knowledge)
• Carry out cashflow projections and techniques to estimate cashflows. (knowledge, apply)
• Understand and apply suitable techniques for ascertaining the distribution of the possible
financial outcomes of a capital project. (Evaluate, Apply)

Module wise Detailed Syllabus

Module Description No. of Lectures
1 Weighted average cost of capital 10
● Define what is meant by a company’s cost of capital.
● Describe how to calculate a company’s weighted average
cost of capital.

2 Capital project appraisal 20

• Discuss the principal methods that may be used to determine
the viability of a capital project.
• Carry out cashflow projections and techniques to estimate
cashflows.
• Describe methods commonly used to evaluate risky
investments including simulation and certainty equivalents.
• Discuss the issues in establishing the required rate of return
for a capital project.
• Discuss the factors underlying the choice of discount rate
within project assessment including:
- the assumptions and limitations in the use of the
weighted average cost of capital
- the allowance for leverage the allowance for risk.
• Discuss the methods that may be used for identifying the
risks that may be present for different types of project.
• Discuss suitable techniques for ascertaining the probability of
occurrence of different risks over varying timescales and the
financial impact of occurrence.
• Discuss suitable techniques for ascertaining the distribution
of the possible financial outcomes of a capital project.

Reference Books:
Title ISBN
Sr. No.
Author Publisher/Seller
Actuarial Education Co.
1 ActEd Study Material Subject CB1
[email protected]
Accounting and financial fundamentals for nonfinancial AMACOM, New
2
executives by Robert Rachlin& Allen Sweeny. York
3 Accounting Fundamentals by William Ruland 0324023618
 South-Western College
Pub.
Principles of Corporate Finance by Richard Brealey and
4 McGraw Hill
Stewart Myers