Topics covered will include: an introduction to the life table; estimation of age-specific transition intensities, both exact and using the census approximation; statistical tests for comparing standard life tables to crude estimates, and graduation of crude estimates; simple assurance and annuity contracts including means and variances of present values assuming constant deterministic interest; the use of life tables or table lookup for computation of moments of the present value of simple benefits; description and calculation of net premiums and net policy values of simple assurance and annuity contracts.

Development of basic actuarial techniques used in later work: forms of population heterogeneity and the issue of selection; simple assurance and annuity contracts; practical methods of evaluating expected values and variances of simple insurance and annuity contracts; and the calculation of gross premiums and provisions of assurance and annuity contracts.

Many of the principles and techniques learnt in this unit will also assist students in subsequent units including Actuarial Techniques (STAT3038) and in the Institute of Actuaries of Australia's part III Life Insurance Course.

• Mid-semester Exam 30% 
• Final Exam 70%

The mid-semester exam is compulsory and not redeemable.

Incompatible with STAT8043 Life Contingencies

See Course Outline:  http://ecocomm.anu.edu.au/courses/outline/STAT6043.pdf

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=STAT6043