Thread: LTAM prerequisites View Single Post
#5
03-02-2019, 11:24 AM
 NchooseK Member SOA Join Date: Nov 2012 Location: Philly area Studying for PA, LTAM, FA (FAP) College: Swarthmore College (BA Mathematics), Villanova University (MS Applied Stat) Favorite beer: I don't drink beer, but I love the Dos Equis commercials. Posts: 353

Pre-reqs and potentially familiar topics. Everything is covered in a good manual, such as CA.

Calculus:
• The integral ${\normal \int} \, te^{-kt} \, \mathrm{d}t$
• Finite and infinite geometric sums
• Basic "u" substitution and appropriately adjusting limits of integration.
• VERY basic differentiation.
• Limits only as they apply to improper integrals.

Math:
• Rules of logs and exponents.
• Rules of inequalities; flipping sign when multiplying a negative.
• Recursion.
• Counting--I'm not kidding. Use your fingers if it helps!
• Matrix multiplication.
• Linear Interpolation.
• Cubic Splines.

Probability/Statistics:
• Expectation, Variance and Covariance operators (including linear combinations)
• Compute Variance from first two moments
• Independence, Mutual Exclusivity.
• Normal Approximation
• Double Expectation and Conditional Variance
• Bernoulli Shortcut for Variance
• Distribution and density/mass functions.
• Be prepared to answer a (short response) question in the context of the Central Limit Theorem or the Law of Large Numbers. Cursory understanding fine.
• Sums and products of Standard Normal RVs. Moments. Independence.
• Relationship and conversion between Normal and Log Normal. Means and Variances.
• Empirical Distr, Histogram (function), Ogive
• Exponential Distr. Recognize its form and know its mean.
• Confidence Intervals.
• Logit Function.
• Compute Correlation $\rho$ from Covariance and Variances/Standard Deviations.

Financial Math / Other:
• Though the section on spot and forward rates has been removed, know these since a few problems require it.
• Interest rates, compounding, 1/m-thly payments, annualization, discount rate,
• Reading really small tables.
__________________
Exams: P | FM | C | MFE | LTAM | SRM Credit | PA

VEE: Statistics | Finance | Economics

FAP: 1 | 2 | 3 | 4 | IA | 6 | 7 | FA

Conferences: APC

Last edited by NchooseK; 03-02-2019 at 11:28 AM..
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