Applied Probability

Course aim

To introduce students to the mathematical theory of probability and probability modelling, especially in actuarial science and finance. Students will also gain a working knowledge of how to simulate from the basic probability distributions using MATLAB or R for stochastic modelling.

Course content

The course covers probability, probability distributions and densities, independence, conditioning, mathematical expectation, special probability distributions and densities, functions of random variables, introduction to Markov Chains, basics of simulation, Poisson and Compound Poisson Processes.

Textbook(s)

Nil

Prerequisite(s)

Common to all relevant programs
Subject Area & Catalogue Number	Course Name
MATH 1056	Linear Algebra
MATH 1055	Calculus 2

Assumed knowledge for this course is a thorough knowledge of first-year college calculus - including sum of infinite series, differentiation, and single and double integration; and linear algebra. A desirable, but not essential statistical prerequisite is the knowledge on basic statistical methods, for instance the graphical and tabular way of presentation of data, estimation, hypothesis testing, and regression etc., which can be accessed through the course Statistical Methods.

Corequisite(s)

Nil

Teaching method

Component	Duration
INTERNAL, MAWSON LAKES
Lecture (2 hours x 13 weeks)	2 hours x 13 weeks
Tutorial (2 hours x 13 weeks)	2 hours x 13 weeks
INTERNAL, CITY WEST
Lecture (2 hours x 13 weeks)	2 hours x 13 weeks
Tutorial (2 hours x 13 weeks)	2 hours x 13 weeks

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Assignment, Examination

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 1)
To determine the fee for this course as part of a Commonwealth Supported program, go to:
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
Non-award tuition fees are set by the university. To determine the cost of this course, go to:
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Not all courses are available on all of the above bases, and students must check to ensure that they are permitted to enrol in a particular course.

* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.