Chapter 3. Annuities
Lecture Notes for ACTSC 231 Mathematics of Finance
Spring 2015 (Session 2)
Wenjun Zhu
w25zhu@uwaterloo.ca
Department of Statistics and Actuarial Science
University of Waterloo
Wenjun Zhu (w25zhu@uwaterloo.ca)
Yield Rates
1 / 11
Recap
1
STAT 231 Midterm Test 2
Solutions
2
1: [18]
(a) [3] Suppose Y v Binomial (n; ). An experiment is to be conducted in which data y are to be collected to estimate
. To ensure that the width of the approximate 90% condence interval for is no wider that 2 (
PPDAC
Week 5
Goals:
Describe the statistic process (PPDAC)
Statistical Method (PPDAC)
Problem
-Specify the question(s) of interest
Plan
-Specify what data you will collect/use and how you will
collect
Data
-Collect data according to plan, monitor for anom
Model Checking
Week 4
Goals:
MLEs with multiple parameters
Model checking:
Observed vs Expected frequencies
ECDF Plots, QQ Plots
Multinomial MLE
Suppose we perform a trial with 3 dierent possible outcomes. Let
(Y1 , Y2 , Y3 ) be the observed number of eac
In an observational study of 1,718 men aged 40 to
55, men were classified according to whether they
were heavy coffee drinkers (more than 100
cups/month) or not (less than 100 cups/month)
and whether they suffered from CHD (coronary
heart disease) or not.
A statistical model is a mathematical model
that incorporates probability
It allows us to study variability and uncertainty
in populations and processes and to draw
inferences in the presence of this uncertainty
Random variables represent characteristics
Females
1970
2000
Lung
5.8
21.6
Leukemia &
Lymphoma
8.6
9.0
Breast
20.5
17.4
Colorectal
19.5
12.6
Stomach
5.8
2.5
Other
39.8
37.0
How can we best display these data graphically?
These two types of plots are very useful when
trying to plot categorical data
Chapter 3. Annuities
Lecture Notes for ACTSC 231 Mathematics of Finance
Spring 2015 (Session 2)
Wenjun Zhu
w25zhu@uwaterloo.ca
Department of Statistics and Actuarial Science
University of Waterloo
Wenjun Zhu (w25zhu@uwaterloo.ca)
Yield Rates
1 / 19
Reap
: