john lee

Hi On page 13 of the notes for CS1 chapter 10 (section 2.2), there is a note at the end which says to assume 5% for the level of the test if not specified in the exam question. In Question 10.10 part (i), it has compared the TS to the CV @1% level, but i’m unsure why as i didn’t think it was...

Hello, regarding part ii) of this question, in order to calculate the expected profit margin the reserves at each time t are required. To calculate reserves there are two methods, also shown in the solution, but when I tried to get the solution using the first method i don't get the same...

Really struggling to understand the derivation of the first two parts of this question. Also watched the YouTube video but still didn't make things clear to me. could someone explain this to me? Thank you in advance

Hello everyone, how come the variance of the approximate normal distribution is 0.2* n*148.56^2 and not 0.2*n*148.56^2 - 0.2*n*109^2 ? Thanks

Good Day I would like to write CT1 as a non-member in April. I cant seem to find a webpage that will allow me to register fo this exam. Could someone please assist me in this regard.

I was intersted in joining the profession by writing ct1 as a non-member then progressing through the exams. But now with the syllabus change I am not sure if I should wait till 2019. I plan to take one exam per sitting. Any advice on this will be appreciated

Hi, I need some help as I have trouble in understanding the concept of Annuity on a pthly basis. Please can someone help with the text mentioned in the Module. Here it goes: Where annuity payments are made p times a year (eg p  12 for a monthly annuity), a superscript ( p) is added in the top...

I have CT1 CMP notes from 2009. I would like to ask you guys if I can use these notes to study for the exam for September 2017. The cost of the notes in my currency (S.A Rand) is a lot of money and I cant really afford it at the moment (I am not being sponsored). I see that the syllabus is the...

Hii all Here's a qus. of flat rate. I tried this qus. differently with the logic that the initial loan amount is 15000 but we are paying the instalments monthly in advance. So, as we are paying a part of loan on the same day it has been taken, the initial loan amount is reduced by that amount...

Hii all I'm sharing two qus. here, one if of Q&A part1 , qus.1.25 and second it IAI, May 2015 qus 5. My query is: Qus1.25 - Here we have XOL reinsurance arrangement and only the info of claims which are greater than retention level is given, so we use the conditional dist. of reinsurer to find...

Hii all Here, it is given that the reinsurer assumes that X has a weibull distribution where X is the gross claim amt. before reinsurer. In part (ii), (a) the MLE of ∅ is calculated in reinsurer's point of view. It is given as: L(∅)= π f(xi,∅)× [F(M)]^600 (where i goes from 1 to 50) Given that...

Please anyone explain qus.5 (ii), (c) part. I am really not getting how it is solved here? Is there any intermediate steps missing? Could anyone provide the steps? It would be a great help! Thanks

Hii all The section moments of An (pg10) of this chapter gives the formula for mean and variance of series of investments made at the start of each year. But, I am wondering how the formula will work if the investments are made at the end of each year? Could anyone please help me with the qus...

Hii all What is the difference between a 'purely indeterministic process' and a process posesses 'markov property' in time series? On the top of page8 of this chapter, it is written that 'when we talk of a "stationary time series process", we shall mean a weakly stationary purely indeterministic...

Hii all In the below attached qus., part(iii) tells that there will be a loss to the company if there is a small increase in interest rate since the DMT of assets is greater than the DMT of liabilities. What I'm getting from this qus. is the following four cases: If DMTA > DMTL → small increase...

Hi all Please anyone explain this qus. I didn't get what does mean-reverting mean? In the solution,it is said that in order to be mean-reverting, this distance must reduce. Why? What does it actually mean that a process is mean-reverting? Please rply asap. Thanks

In the below attached text, I got the difference between both the probabilities and how they are affected by change in poisson parameter. But my qus. is in finite-time ruin prob. :- As Lembda increases, the prob. of finite-time ruin also increases. But, by increasing lembda, both the premium...

Hi tutors In the attached qus., in part (i) why (1-t1) is not used although it is said that the investor pay 25% tax on coupons only? Please rply asap. Thanks

(question and solution attached). could someone please explain to me the solution of this problem in a different way? Am not sure I understood why a 7 year period is used. Thanks.

Hello everyone Please anyone help me with this qus. attached below. It's a new case I have seen here which I can't see in the chapter. There we are taught to calculate the value of forward contract at some *intermediate* time r. And at page16 of ch13, it is written that at time 0, the value of...

Hi all I need to confirm one thing. In May 2010, IAI paper, qus. 8: Here is a capital loss but the worst case scenario is not considered and the later possible date is choosen for redemption. Is it because here it is the INVESTOR who is choosing the redemption date instead of borrower. And the...

When we test for equality of population variances, we consider Alfa/2 in our decision criteria as it is a two sided test. But in IAI Nov 2008 Q13 a) they've taken Alfa only in finding the critical points.

In 2016 revision notes, I think there's a small error in Qus 1 of September 2013, Ifoa. It should be Z×k/n + (1-Z)×[(a-1)/(a+b-2)] in last line. Please see in the pic below. Thanks

Hi all In Risk models, three types of compound distributions are given- Compound Binomial, Compound Poisson and Compound Neg. binomial. My question is when we need to find probabilities of S, we take S is approximately normally distributed. Then should we use continuity correction while finding...

Hi tutors I am having revision notes for 2016 exams. I guess there are some mistakes in booklet 1, covering chapter-1, Decision theory. These are as follows: Past exam questions: •Q9, (April 2011, qus.5)- In the solution of this qus., some quantities I found wrong, like- - Scenario A, first...

Q&A bank Part-1, Qus.1.10 Please anyone rectify what I did wrong here (in attached file)? I'm not getting the correct answer by this method. Couldn't we use payment stream method in this qus.? Thanks

Hi all In this paper, qus.10(ii) asks to mention any two methods of estimation. The solution gives: method of moments method of maximum likelihood or method of percentile But is it wrong if we mention Point estimation and Interval estimation as two methods of estimation? Tutors please suggest...

Hi, I am enrolled for CT1 ( Certificate in Financial Mathematics) for April'2017 exam. I have got the study material. Now, I wish to enroll for some classroom sessions to make things easier and seamless. I want it to clear my concepts through it where I get stuck while studying. Kindly suggest...

Please anyone clarify qus. 13 part (v) Is it the right way to calculate this: Here, we need to find the value of X for which the CI for mean daily revenue is shortest. So it will be shortest if variance is shortest. By looking at the formula of variance, it seems that it will be shortest if...

In chi-sequre test of contingency table, is appropriate to perform test without clubbing up expected values which are less than 5?? I mean in exam do we take care of less than 5 expected values as we do in chi-sequre Fit Data test. Please clarify

Can anyone help me to understand this question? Doubt: This is given that 10 cards are assigned randomly One of the 5 different patterns. So identifying any pattern is 1/5=0.2 Probability of success. So it's binomial (10,0.2). And if she fails to identify any pattern then she claimed that this...

Hi. In IAI nov 2010, Q11, they have asked us to test goodness of fit on a continuos random variable, while core reading of chap 12,pg 29 states that Chi square test are used in Categorical or count data.! . So, how can we apply it on continuous data? . Please reply.

I am just a bit confused about continuity correction! We use continuity correction while aproximating binomial or poison to normal.. But why don't we use continuity correction when we find difference between two proportions(in binomial) or two lamdas(in poisson) . Please reply as soon as...

In this question Xmax and Xmin distribution are required to obtain. The definition for Xmax would be sufficient for exam prospective? Another thing for Xmin total function is subtracted again from 1. This is quite unusual can anyone please help me to understand this? On next page 56 part 5...

In This question an alternative approach is given to find MGF. Is it appropriate as per exam prospective to obtain full marks on question? I guess there is a mistake in alternative way that it is given Y=x+a. Please clarify and suggest why it shouldn't be Y= x-a which is given in pdf of...

In ques 4.25, part(ii) Why Var(Yi)=Var(ei)? Why hadn't we considered var(Bxi)?

In this question part (iii) a What is the reason to use degree of freedom 5-1-1=3 instead of using 5-1=4 since parameter value is given we didn't estimate. However I found similar question in Ch 12 page 63. Also a note given why DF 4-1=3 is used here since the parameter value is given already...

I want to understand why we keep generating values from U(0,1) distribution to obtain values of y until we obtain Y m. We don't use these random numbers anywhere right.