APPLIED MATHEMATICS (TURKISH, NON-THESIS)
Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
AKB5001 Statistical Models in Insurance Fall
Spring
3 0 3 8
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction: Turkish
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Course Lecturer(s): Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Recommended Optional Program Components: None.
Course Objectives: To introduce the student the statistical models used in life and non-life insurance.

Learning Outcomes

The students who have succeeded in this course;
Students will develop proficiency in statistical models used in life and non-life insurance. Also they will be prerared to the local and international actuarial exams.

Course Content

Review of probability and statistics. Frequency and severity distributions, mixture models. Parameter estimation and fitting of data. The effect of
inflation, deductibles and reinsurance. The Normal approximation to the total claims distribution. Calculation of one period probability of ruin.

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Review of probability theory. Basic information about probability.
2) Discrete and continuous random variables and their distributions.
3) Statistical distributions useful in life and non life insurance.
4) The Poisson, Exponential, Pareto, Lognormal , and negative binomal distributions as they appear in actuarial studies.
5) Measures of location and dispersion. Expectation and moments.
6) Joint distribution functions and their applications in insurance.
7) Two dimentional and multi dimentional random variables.
8) Distribution of multi dimensional random variables and their application in insurance.
9) Exam questions rewiew and preparation to actuarial exams.
10) Reinsurance and types of reinsurance.
11) Central Limit Theorem and its applications in insurance.
12) Normal approximation and its applications.
13) Application examples.
14) Hypothesis testing and applications in insurance.
15) Point and interval estimation methods.
16) Final exams.

Sources

Course Notes / Textbooks: Hossack, I.B., Pollard, J.H.,
Zehnerwith, B., Introductory statistics with applications in
general insurance.

S.A Klugman, H.H.Panjer, G.E. Willmot , ‘Loss Models:from data
to decisions’, John Wiley 1998

SOA EXAM questions from SOA past exam library
References: Any basic book in Statistics and Probability.

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Quizzes 2 % 10
Homework Assignments 4 % 20
Midterms 1 % 30
Final 1 % 40
Total % 100
PERCENTAGE OF SEMESTER WORK % 60
PERCENTAGE OF FINAL WORK % 40
Total % 100

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 14 3 42
Study Hours Out of Class 14 4 56
Homework Assignments 4 10 40
Quizzes 2 10 20
Midterms 1 20 20
Final 1 22 22
Total Workload 200

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Ability to assimilate mathematic related concepts and associate these concepts with each other.
2) Ability to gain qualifications based on basic mathematical skills, problem solving, reasoning, association and generalization.
3) Be able to organize events, for the development of critical and creative thinking and problem solving skills, by using appropriate methods and techniques.
4) Ability to make individual and team work on issues related to working and social life.
5) Ability to transfer ideas and suggestions, related to topics about his/her field of interest, written and verball.
6) Ability to use mathematical knowledge in technology.
7) To apply mathematical principles to real world problems.
8) Ability to use the approaches and knowledge of other disciplines in Mathematics.
9) Be able to set up and develope a solution method for a problem in mathematics independently, be able to solve and evaluate the results and to apply them if necessary.
10) To apply mathematical principles to real world problems.
11) To be able to conduct a research either as an individual or as a team member, and to be effective in each related step of the project, to take role in the decision process, to plan and manage the project by using time effectively.
12) To be able to acquire necessary information and to make modeling in any field that mathematics is used and to improve herself/himself.