CT3 FAQ (updated 2 January 2012)

This thread contains the Subject CT3 questions asked most frequently by students, with answers written by ActEd's tutors. Each year, we'll incorporate these questions and solutions into the study material.

You may also find it useful to refer to the Subject CT3 Corrections page on the ActEd website, which contains details of any typographical errors and ambiguities in the Subject CT3 study materials for the 2012 exams that have been brought to our attention.

This thread was last updated on 2 January 2012.

Question: What level of mathematical knowledge is required for CT3?

Answer: The level of maths you need for this course is broadly A-level standard. However, there may be some symbols (eg the gamma function) that are not usually included on A-level syllabuses. You will find the course (and the exam!) much easier if you feel comfortable with the mathematical techniques (eg integration by parts) used in the course and you feel confident in applying them yourself.

If you feel that you need to brush up on your mathematical skills before starting the course, you may find it useful to study the Foundation ActEd Course (FAC) or read an appropriate textbook. The full Syllabus for FAC, a sample of the Course Notes and an Initial Assessment to test your mathematical skills can be found on our website at www.acted.co.uk.

Question: What should I do if I’ve never studied statistics before?


Answer: Whilst the Core Reading does cover all that you need to know, it is our experience that students who have not studied any statistics before can find the pace too fast to gain a sufficient grasp. To prevent such students being disadvantaged, we have recently developed the Stats Pack, which covers the basics at a much slower pace with plenty of examples. Sample pages can be found on our website at www.acted.co.uk.

Question: I’ve always been good at maths but I’m finding CT3 very difficult. Have you got any advice for me?


Answer: A lot of people find CT3 difficult – even those with maths degrees. In fact, a lot of maths graduates have deliberately avoided statistics in the past (so the actuarial world might seem like a strange career choice!) and some have just been busy doing lots of pure maths and mechanics, perhaps with physics, and therefore never had the chance to study it before.

Many do find statistics quite different and quite perplexing; the language of the subject and the basic concepts sometimes take a long time to sink in.
So, you’re not alone! What do you do about it?

1. Check that your basic maths isn’t letting you down; although you might have known it all once, it might be a bit rusty. If you know what to do but you’re getting held up because you don’t recognise a geometric series or because your algebra or calculus holds you up, then try to get hold of an A-level textbook or ActEd’s FAC (described above).

2. If the statistical concepts are getting you down, then try ActEd’s Stats Pack (described above).

3. If you’re following the Course Notes but can’t cope with questions in the Q&A Bank and assignments, don’t despair. You will find that, with practice, this will become easier.

Try not to rush your reading. There is a lot to take in. Take each chapter at a time and make a list of key formulae (or use the chapter summaries). Try to learn those that are not in the Tables – you will need to learn them for the exam, and if you know them, you will feel more confident when approaching the questions.

Try to do lots of questions on the same topic, using the Q&A Bank. Initially, you might find that you don’t read the question properly. As you gain experience and confidence, you will know what to look for in the question. You might want to highlight or write down key instructions in the question, eg derive, calculate, explain, and key pieces of information in the question, eg the distribution, the parameters, data. You will soon find that similar questions appear again and again and your confidence will rise.

When you are happy with the material in a chapter, you can move on to the next with confidence.

4. If you have any queries, don’t suffer in silence. Ask your tutor (if you’re going to tutorials or are studying with the Online Classroom) or raise the issue on the forum.

Question: How much working do I need to show in my answers?

Answer: You need to do what the question asks you to do and you need to bear in mind the marks available.

If the question asks you to “derive” something or to “show” or “prove” that something is equal to the answer given, then you need to start at the beginning and show each stage of the derivation clearly, stating any assumptions that you make.

If the question asks you to “calculate”, then you will obtain full marks if you arrive at the correct answer. However, if you do not arrive at the correct answer and have given no record of your working, you will receive no marks. It is therefore essential to show your workings (ie leave an audit trail) so that the marker can see what you have done and award method marks. If you’ve done the question in a slightly unusual way and not quite arrived at the correct answer, you will receive credit as appropriate, as long as the marker can see how you have done it. Where the same error is carried forward to later parts of the question, you will not be penalised twice.
 
Question: What degree of accuracy do I need to show in my answers?

Answer: According to the examiners, “rounding errors are not penalised, unless excessive rounding has led to significantly different answers”. As a general rule, it is best to store interim calculations in your calculator and quote your final answer to an appropriate degree of accuracy. Money is usually quoted in £ and pence, eg £79.12 unless the data is given in £millions, in which case £79.123m might be sufficient. Variances and standard deviations can be very small and it is sometimes necessary to quote these to at least three significant figures, eg 0.00123. Probabilities should be quoted to at least three significant figures.

Question: What level of detail do I need to give when the question asks for a comment?

Answer: Comment questions do not seem to be very popular with students. Many students quickly pass them by and move on to the next question! However, these are often generously marked, so don’t be tempted to do so.

Comment questions are testing whether or not you understand what you’re doing, so when you’re revising a topic, do make sure that you’re thinking about what you’re doing (ask yourself “why am I doing this?”) so that you can cope with them.

You need to consider the number of marks available and you will probably have to make one comment for each mark.

For example, you might have to compare an exact probability with two approximate probabilities calculated in two different ways (for two marks). In this case, state the obvious – that one of the approximations is better than the other – and then say why this is so – that the conditions are appropriate for one approximation method and not the other (stating those conditions, which you will have learned).

In another typical question, you might be asked to comment on the validity of the test or method used. This is basically asking you whether the assumptions required for the test are met. You need to learn these assumptions to gain these easy marks.

If you are asked to “discuss” the results, you will have to make sense of the calculations and conclusions that you have made in the earlier parts of the question. Start by simply quoting the earlier results (for which you will receive some credit) and, where there seem to be some conflict (as there probably will be), try to work out why.
 
Question: How should I revise?

Answer: Everyone is different, but the following might be a good plan:

1. For each chapter in turn:
(i) revise the chapter and test yourself – use the Course Notes, your own notes, the chapter summary sheets, revision booklets and/or flashcards
(ii) do lots of questions on these topics – where possible, use past questions, [which are available from the profession’s website, ASET (using the ASET grid to identify appropriate questions) or the revision booklets (using the Past Exam Questions grid)], but where there are gaps, use the Q&A Bank. As you do more questions on the same topic, your confidence and speed will improve. Save some questions (perhaps the last two papers) for whole-paper practice later.

2. When you have finished a part of the course you might want to do (or re-do) the X assignment for that part.

3. When you have finished going through all 14 chapters like this, you can have a go at whole papers. You can use any past papers that you haven’t used already and also Q&A Bank 5. You can also complete an ActEd mock exam and have it marked if you would like feedback on your performance. By this stage, you should be up to exam speed, so make sure that you complete any whole papers in three hours.

Question: Are the exam questions in the Subject 101 papers still relevant?

Answer: Yes - all of the old Subject 101 questions are relevant for Subject CT3.

Question: How should I cope with the exam?

Answer: Be confident and calm (you’ve done your revision and you know your stuff so you have no need to worry).

Have a plan. Some students just like to do the questions in order – they might feel that the short questions at the beginning help them get “into” the exam and then the brain is ticking over by the time they reach the longer questions. If you go for this strategy, you have to make sure that you leave yourself enough time to approach the big-mark questions calmly and confidently. On the other hand, some students like to do the long questions first – they may be happier with the topics (typically regression and hypothesis tests) or they just might want to gain the big marks first and fear that they could easily get held up on some tricky short questions that won’t earn many marks. However, if you go for this strategy, remember that the long questions will take a long time, so don’t panic when you have lots of short questions to do in what seems to be a short (but hopefully appropriate) space of time! Whichever strategy you choose, keep an eye on the clock. Remember that you have 1.8 minutes per mark!

Read the question at least twice before diving in. Highlight or make a note of the key instructions and key pieces of information.

Use the Tables where possible to save you time. (Make sure you know what’s in the Tables before the exam!)

Attempt the question. Do what you can. Remember to show your working and state any assumptions that might be required. If you don’t get the final answer right, at least you can maximise your method marks.

Where there are tricky questions (and there will be), try to make a start, eg write down the appropriate formula or distribution. Once you’ve made a start, you might surprise yourself and realise that you’ve helped yourself into the question. However, don’t stubbornly stick with a question when you could earn easier marks elsewhere on the paper. Move on but remember to return at the end if you have time. You never know, when you come back to it, you’ll see at once where to go next!

Don’t despair! You don’t need 100% to pass!

Question: I failed CT3 last sitting and I want to buy some revision aids. What do you recommend?

Answer: Some comments from students on the forum:

“The revision notes are really useful for the CTs because they go back about 10 years and you can do some good exam question practice on areas which you struggle with.”

“Flashcards are good to flick through whilst you're on the tube ¬ especially for learning bookwork.”

“It is wise to find new things to work through. If you didn't do one before, I also recommend mocks under full exam conditions as this can help throw up where you may have gone wrong on the day in question from a technique point of view. Use marking to get an independent review.”

Question: What is the pass mark for CT3?

Answer: We don't know! The profession doesn't publish pass marks. However, we think that it's about 65% for CT3.