Lecture Notes in Actuarial
Mathematics
A Probability Course for the
Actuaries
A Preparation for Exam P/1
Marcel B. Finan
Department of Mathematics
Arkansas Tech University
c All Rights Reserved
Revised 2020 Edition
,In memory of my parents
August 1, 2008
January 7, 2009
,Preface
The present manuscript is a revised edition of the text that appeared first
in the year 2007. It adheres to the the SOA Syllabus October June 2020.
The book is designed mainly to help students prepare for the Probability
Exam (known as Exam P/1), the first actuarial examination administered
by the Society of Actuaries. This examination tests a student’s knowledge
of the fundamental probability tools for quantitatively assessing risk. A
thorough command of calculus is assumed. However, the text will include
the mathematical background needed throughout the book.
Users are encouraged to access the online site of the Society of Actuaries
www.soa.org for up-to-date information about the exam.
The present version includes in many cases in depth discussions in terms of
proofs which the reader can omit. For this reason, the book is suitable for a
one or two- semester course in undergraduate probability theory.
Users of the book who are preparing for the exam are strongly encouraged
to work out all the problems in the book. Make sure you can come out with
the solutions on your own without any outside reference. This will enhance
your chances in performing well on the exam.
The book covers all the sample problems from previous exams made available
by SOA. Such problems will be indicated by the symbol ‡.
Answer keys to text problems are found at the end of the book. Mock exams
are included as well. Attempt these exams after finishing all the chapters
of the book. Take these exams under the same circumstances as the actual
exam.
The present version of the book is made possible by a grant support from
Arkansas Tech University.
i
, ii PREFACE
Finally, this manuscript can be used for personal use or class use, but not
for commercial purposes. If you find any errors, I would appreciate hearing
from you:
All the best.
Marcel B. Finan
Russellville, AR
August, 2020
Mathematics
A Probability Course for the
Actuaries
A Preparation for Exam P/1
Marcel B. Finan
Department of Mathematics
Arkansas Tech University
c All Rights Reserved
Revised 2020 Edition
,In memory of my parents
August 1, 2008
January 7, 2009
,Preface
The present manuscript is a revised edition of the text that appeared first
in the year 2007. It adheres to the the SOA Syllabus October June 2020.
The book is designed mainly to help students prepare for the Probability
Exam (known as Exam P/1), the first actuarial examination administered
by the Society of Actuaries. This examination tests a student’s knowledge
of the fundamental probability tools for quantitatively assessing risk. A
thorough command of calculus is assumed. However, the text will include
the mathematical background needed throughout the book.
Users are encouraged to access the online site of the Society of Actuaries
www.soa.org for up-to-date information about the exam.
The present version includes in many cases in depth discussions in terms of
proofs which the reader can omit. For this reason, the book is suitable for a
one or two- semester course in undergraduate probability theory.
Users of the book who are preparing for the exam are strongly encouraged
to work out all the problems in the book. Make sure you can come out with
the solutions on your own without any outside reference. This will enhance
your chances in performing well on the exam.
The book covers all the sample problems from previous exams made available
by SOA. Such problems will be indicated by the symbol ‡.
Answer keys to text problems are found at the end of the book. Mock exams
are included as well. Attempt these exams after finishing all the chapters
of the book. Take these exams under the same circumstances as the actual
exam.
The present version of the book is made possible by a grant support from
Arkansas Tech University.
i
, ii PREFACE
Finally, this manuscript can be used for personal use or class use, but not
for commercial purposes. If you find any errors, I would appreciate hearing
from you:
All the best.
Marcel B. Finan
Russellville, AR
August, 2020
