Notes, summaries, assignments, exams, and problems for Mathematics

Two-State Actuarial Model

The Two-State Model (also known as the Dead-Alive or Binary Model) is a fundamental actuarial framework used to represent processes that exist in one of two possible states, such as Alive/Dead or Working/Retired. It is widely utilized in life insurance and pension modeling to estimate the probability of transition between states. The model assumes that at any given time, an individual occupies only one state, allowing actuaries to calculate premiums, reserves, and expected present values by simplifying complex uncertainties into binary outcomes.

Core Assumptions

• Binary States: The system exists in only one of two states at any time.
• Markov Property: Transitions depend solely on the current state.
• Constant Probabilities:

Combine Independent Unbiased Estimators

Let d₁ and d₂ be independent unbiased estimators of θ with variances σ₁² and σ₂², respectively:

• E[d_i] = θ for i = 1,2.
• Var(d_i) = σ_i².

Any estimator of the form d = λ d₁ + (1 - λ) d₂ is also unbiased for any constant λ.

The variance (mean square error for an unbiased estimator) is
Var(d) = λ²σ₁² + (1 - λ)²σ₂².

To minimize Var(d) with respect to λ, differentiate and set to zero:

d/dλ Var(d) = 2λσ₁² - 2(1 - λ)σ₂² = 0.

Solving gives the optimal weight

λ_* = σ₂² / (σ₁² + σ₂²).

Question 1: Posterior PMF for a Third Dice Roll

Assume there are five dice with sides {4, 6, 8, 12, 20}. One of these five dice is selected uniformly at random (probability 1/5) and rolled twice. The two observed results are... Continue reading "Optimal Estimators, Dice Posterior & Statistical Problems" »

Evaluation Metrics for ML Models

• Accuracy: The ratio of correctly predicted instances.

• Precision: Correct positive predictions divided by total predicted positives.

• Recall: Correct positive predictions divided by actual positives.

• F1 Score: The harmonic mean of precision and recall.

  

K-Nearest Neighbors (KNN) Algorithm

• A classification algorithm that works by finding the 'k' closest training examples to a data point.

• Strengths: Simple to understand, effective for smaller datasets.

• Weaknesses: Sensitive to irrelevant features and the scale of the data.

• Applications: Image recognition, recommendation systems.

Ensemble Learning Techniques

• Combines multiple models to improve predictive performance.

• Methods:

  • Bagging (e.g., Random Forests)
  • Boosting (e.g., AdaBoost)

1. Simplifying Algebraic Expressions

How to Simplify Algebraic Expressions

• Multiply numbers and letters together.
• Combine like terms (terms with the same letters and powers).

Example:
−2ac × 4bd = −8abcd

Example:
5ab − 8b²a + ba = 5ab − 8ab² + ab = −8ab² + 6ab

2. Expanding Brackets (Distributive Law)

How to Expand Brackets

• Multiply everything inside the bracket by what is outside.

Example:
−4(x + 7) = −4x − 28

Example:
5(x − 3) + 2(6 − x) = 5x − 15 + 12 − 2x = 3x − 3

3. Solving Equations

How to Solve Equations

• Get all variables (e.g., x's) on one side and numbers on the other.
• Perform the same operation on both sides of the equation.

Example:
3x + 2 = 17
3x = 15
x = 5

Example:
9x − 8 = 4x + 7
5x = 15
x = 3

4. Solving Inequalities

How

Understanding Inheritance in Python

Inheritance allows a class to use and extend the properties and methods of another class. It promotes code reusability and reduces duplication. Think of it as “child learns from parent.” 👨‍👦‍💻

Code Duplication: Program Without Inheritance

When classes share common attributes or methods (such as first_name, last_name, and get_age), implementing them separately leads to redundant code, as shown below:

import datetime

class TennisPlayer:
    def __init__(self, fname, lname, birth_year):
        self.first_name = fname
        self.last_name = lname
        self.birth_year = birth_year
        self.aces = []

    def get_age(self):
        now = datetime.datetime.now()
        return now.year -

System Types
The systems of equations can be classified by the number of solutions that can arise. According to that case may have the following cases:
· Incompatible system if it has no solution.
· Compatible system if you have any solution in this case can also distinguish between:
or compatible system determined when it has a finite number of solutions.
indeterminate or compatible system when it admits an infinite set of solutions.
Fitting and classification:

Calculating the rank of a matrix for determining

1. We can rule a line if:.
· All the coefficients are zeros.
· There are two equal lines.
• A line is proportional to another.
• A line is a linear combination of others.
Delete the third column because it is a linear... Continue reading "Matrices: multiplication, rank, determinant, inverse and Rouche-Frobenius theorem" »

Part I: Complete the Following Table

Part II: Complete the Following Sentences

1. She is from the United States. She is American.
2. She is from Nigeria. She is Nigerian.
3. She is from Germany. She is German.
4. They are from Egypt. They are Egyptian.
5. We are from Canada. We are Canadian.

Part III: Select the Correct Sentence

1. Select the correct sentence.
   • a) She lives with Carlos, and she works on Saturdays.
2. Select the correct sentence.
   • c) They are running in the park.
3. Select the correct sentence.
   • b) She is 20 years old.
4. Select the correct sentence.
   • a) We always

Fundamental Accounting Principles and Practices

Core Accounting Definitions

Assets = Liabilities + Owner’s Equity: This is the fundamental accounting equation, representing the balance of a company's financial position.

Double-Entry Accounting

The recording of both debit and credit parts of every transaction, ensuring the accounting equation remains balanced.

Objective Evidence Principle

Requires that a source document (e.g., invoice, receipt) be prepared for every entry in a journal, providing verifiable proof of a transaction.

File Maintenance

The process of arranging accounts in a general ledger, assigning account numbers, and keeping records current.

Opening an Account

Writing an account title and number on the heading of an account in the ledger.... Continue reading "Essential Accounting Concepts and Financial Reporting" »

Chapter 1: Core Accounting Fundamentals

Key Financial Statements Equations

• Balance Sheet (BS) Equation: Assets = Liabilities + Stockholders' Equity (SHE)
• Income Statement (IS) Equation: Revenues - Expenses = Net Income (NI)
• Retained Earnings (RE) Equation: Beginning RE + Net Income - Dividends = Ending RE

Debit and Credit Rules

• A Debit increases: Expenses, Assets, Dividends (DEAD)
• A Credit increases: Liabilities, Revenues, Equity (CLEAR)

Objective of Financial Reporting

1. Provide information useful to equity investors and creditors.
2. Maintain the Entity Perspective (separating the company from its owners/people).
3. Ensure Decision Usefulness.

Adjusting Entries: Deferrals and Accruals

Deferrals (Cash Paid/Received Before Recognition)

Prepaid Expenses

Meaning: Paid... Continue reading "Core Financial Accounting Concepts and Principles" »