Faculty of Business and Economics

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This unit entry is for students who completed this unit in 2016 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

Monash University

6 points, SCA Band 2, 0.125 EFTSL

Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.


Business and Economics

Organisational Unit

Department of Econometrics and Business Statistics


Associate Professor Colin O'Hare



  • First semester 2016 (Day)


This unit will introduce students to stochastic techniques used in actuarial work, and will give an overview of some of the areas in which actuaries are currently involved. The student will be introduced to the basic concepts involved in assessing risk and pricing insurance products, using past data to model survival and using Markov techniques to model multiple state systems.


The learning goals associated with this unit are to:

  1. introduce statistical techniques in actuarial work
  2. construct demographic statistics and life tables
  3. model mortality rates
  4. use Markov Chains and jump processes to price insurance products and determine reserves.


Within semester assessment: 40%
Examination: 60%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information

Chief examiner(s)


Students must have passed ETC1000, or be enrolled in course 4439.