Thread: LTAM prerequisites View Single Post
#5
 NchooseK Member SOA Non-Actuary Join Date: Nov 2012 Location: Philly area College: Swarthmore College (BA Mathematics), Villanova University (MS Applied Stat) Posts: 353 Pre-reqs and potentially familiar topics. Everything is covered in a good manual, such as CA.

Calculus:
• The integral
• 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 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,