Chapter 3
Introduction to Risk Management
Answers to Case Application
a.
There are four steps in the risk management process: (1) identify major and minor
loss exposures; (2) measure and analyze the loss exposures in terms of loss
frequency and loss sever
UKEA1023-Microeconomics I
Tutorial 5
Trimester Jan-17
1) Explain how a consumers income and the prices of goods limit consumption possibilities.
2) What is utility and how do we use the concept of utility to describe a consumers
preferences?
3) What does
UKEA1023-Microeconomics I
Tutorial 4
Trimester Jan-17
1) Better-than-average weather brings a bumper tomato crop. The price of tomatoes falls
from $6 to $4 a basket, and the quantity demanded increases from 200 to 400 baskets a day.
Over this price range,
UKEA1023-Microeconomics I
Tutorial 3
Trimester Jan-17
1) Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and
sellers.
2) Why does an increase in the supply of computers lead to a lower price for a computer?
3) "If
UKEA1023-Microeconomics I
Tutorial 1
Trimester Jan-17
1) What do economists mean when they discuss "scarcity"?
2) What is the relationship between wants, factors of production, scarcity, and choices?
Discuss the relationship for an individual and for a so
UKEA1023-Microeconomics I
Tutorial 2
Trimester Jan-17
1) Explain why a relative price is an opportunity cost.
2) What is the law of demand and how do we illustrate it?
3) List all the influences on buying plans that change demand, and for each influence,
UECM1403 Theory of Interest
Tutorial 7: Amortization Schedules
1. On a certain loan with annual payments, the first payment is made one year after the loan
was made. The interest portion of the first payment is 43.10, the principal repaid in the
first pay
UECM1403 Theory of Interest
Tutorial 3: Basic Annuities
1. On 1 January, 2000 Smith borrows an amount
with the following 10-year payment
scheme. 1000 at the end of each even-numbered year, 2000 at the end of each oddnumbered year. The final payment will b
UECM1403 Theory of Interest
Tutorial 10: Yield Rates and Practical Applications
1. A fund earned investment income of 9200 during 1999. The beginning and ending
balances of the fund were 100,000 and 129,200, respectively. A deposit was made at time
during
UECM1403 Theory of Interest
Tutorial 5: More General Annuities
1. A 20-year annuity pays 100 every other year beginning at the end of the second year, with
additional payments of 300 each at the ends of years 3, 9 and 15. The effective annual
interest
rat
Q. A pressure sensor has a resistance that changes with pressure according to
R = (0.2 k/psi) p + 2.5 k. This resistance is then converted to a voltage
with the transfer function of
The sensor time constant is 400 ms. At t = 0, the pressure changes sudden
UECM1403 Theory of Interest
Topic 1
Measurement of Interest
1.
Interest Accumulation and Effective Rates of Interest
1.1
Definition
A common financial transaction is the investment of an amount of money at interest. For
example, a person may invest in a s
UECM1403 Theory of Interest
Topic 3
Basic Annuities
1.
Introduction
Annuity = a series of payments made at equal intervals of time. More
generally, any terminating stream of fixed payments over a specified period of
time.
Annuity-certain = an annuity such
UECM1403 Theory of Interest
Topic 2
Solutions of Problems in Interest
1.
Interest Problem
An interest problem involves four basic quantities:
The principal originally invested.
The length of the investment period.
The rate (or force) of interest (or disco
Test 2
1.
Find the accumulated value at the end of 10 years of an annuity in which payments are
made at the beginning of each half-year for 5 years. The first payment is $2000, and
each payment is 98% of the prior payment. Interest is credited at 10% conv
UECM1403 Theory of Interest
Topic 4
More General Annuities
1.
Level Payment Annuities Some Generalization
1.1
Differing payment & Interest conversion
Previously, the payment period and the interest conversion period of annuities
are assumed equal and coin
Topic 6
Bonds
1.
Introduction
One of the major applications of the theory of interest is the determination of prices and values
for bonds and other securities, such as preferred stock and common stock. There are three main
questions which Topic 6 consider
Topic 8
Practical Applications
1.
Yield Curves, Spot Rates and Forward Rates
1.1
Yield Curves
Term structure of interest rates = A relationship between rates of interest and
the term of the investment / financial instrument.
Yield curve = the graph that d
Topic 7
Yield Rates
1.
Discounted Cash Flow Analysis and Net Present Value
1.1
Discounted cash flow analysis
In previous topics, we have analyzed the present values of various types of
financial transactions consisting of regular series of payments.
The a
UECM1403 Theory of Interest
Topic 5
Amortization Schedules and Sinking Funds
1.
Introduction
This topic discusses two methods of repaying a loan:
The Amortization Method: In this method the borrower repays the lender by
means of installment payments at pe
Practical Assignment
UECM1203
UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)
LEE KONG CHIAN FACULTY OF ENGINEERING AND SCIENCE
PROBABILITY AND STATISTICS I
UECM1203
PRACTICAL GROUP ASSIGNMENT
Session: May 2016
No
Name
Student ID Tutorial
Group
Course /
Major
1
T1
A
The University of Hong Kong Department of Statistics and Actuarial Science STAT2802 Statistical Models Tutorial Solutions
Before the experiment is performed we have no data, so we cannot obtain the observed information. However we can calculate the expect
UNIVERSITI TUNKU ABDUL RAHMAN
ACADEMIC YEAR 2015/2016
SEPTEMBER EXAMINATION
UECM2273 MATHEMATICAL STATISTICS
MONDAY, 21 SEPTEMBER 2015
TIME : 9.00 AM 11.00 AM (2 HOURS)
BACHELOR OF SCIENCE (HONS) ACTUARIAL SCIENCE
BACHELOR OF SCIENCE (HONS) APPLIED MATHEM
UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ENGINEERING AND SCIENCE
ACADEMIC YEAR 2014/2015
SEPTEMBER EXAMINATION
UECM2273 MATHEMATICAL STATISTICS
SATURDAY, 20 SEPTEMBER 2014
TIME : 9.00 AM 11.00 AM (2 HOURS)
BACHELOR OF SCIENCE (HONS) ACTUARIAL SCIENCE
BACH
UECM2273
Mathematical Statistics
Tutorial 10
1. One observation X is taken from the uniform distribution on interval
[0,].
(a) Verify that random interval ( X / b, X / a ) with 0 < a < b 1 is a
Confidence interval for . What is the confidence coefficient
UECM2273
Mathematical Statistics
Tutorial 6
1. Let X 1 , X n be a random sample of size n from the Poisson distribution with
unknown mean . Show that statistic S = 2 X + 3 is sufficient for .
2. Let X 1,L, X n be a random sample of size n from the normal
UECM2273
Mathematical Statistics
Tutorial 8
1. Suppose that X1,L , X n are independent Poisson random variables in which
E ( X i ) = i , i = 1,L , n . Find the MLE of (a) (b) e .
2. Let X1,L , X n be a random sample of size n from the uniform distribution