Models for Quantifying Risk, Sixth Edition

 

This book is used in many university courses for SOA Exam MLC preparation.
The Fifth Edition is the official reference for CAS Exam LC.


The Sixth Edition of this textbook presents a variety of stochastic models for the actuary to use in undertaking the analysis of risk. It is designed to be appropriate for use in a two or three semester university course in basic actuarial science. It was written with the SOA Exam MLC and CAS Exam LC in mind. Models are evaluated in a generic form with life contingencies included as one of many applications of the science. Students will find this book to be a valuable reference due to its easy-to-understand explanations and end-of-chapter exercises.

In 2013 the Society of Actuaries announced a change to Exam MLC's format, incorporating 60% written answer questions and new standard notation and terminology to be used for the exam. There are several areas of expanded content in the Sixth Edition due to these changes.

Six important changes to the Sixth Edition:

• WRITTEN-ANSWER EXAMPLES
  This edition offers additional written-answer examples in order to better prepare the reader for the new SOA
  eam format.
• NOTATION AND TERMINOLOGY CONFORMS TO EXAM MLC
  MQR 6 fully incorporates all standard notation and terminology for exam MLC, as detailed by the SOA in their
  document Notation and Terminology Used on Exam MLC.
• MULTI-STATE MODELS
  Extension of multi-state model representationt to almost all topics covered in the text.
• FOCUS ON NORTH AMERICAN MARKET AND ACTUARIAL PROFESSION
  This book is written specifically for the multi-disciplinary needs of the North American Market. This is
  reflected in both content and terminology.
• PROFIT TESTING, PARTICIPATING INSURANCE, AND UNIVERSAL LIFE
  MQR 6 contains an expanded treatment of these topics.
• THIELE'S EQUATION
  Additional applications of this important equation are presented, to more fully prepare the reader for exam day.

A separate solutions manual with detailed solutions to all of the text exercises is also available. Please see the Related Items Tab for a direct link


I selected Models for Quantifying Risk as the text for my class. Given that the syllabus had changed quite dramatically from prior years, I was looking for a text that would cover all the material in the new syllabus in a way that was rigorous, easy to understand, and would prepare students for the May 2012 MLC exam. To me, the text with the accompanying solutions manual does precisely that.
--Jay Vadiveloo, Ph.D., FSA, MAAA, CFA, Math Department, University of Connecticut

I found that the exposition of the material is thorough while the concepts are readily accessible and well illustrated with examples. The book was an invaluable source of practice problems when I was preparing for the Exam MLC. Studying from it enabled me to pass this exam."
-- Dmitry Glotov, Math Department, University of Connecticut

"This book is extremely well written and structured."
-- Kate Li, Student, University of Connecticut

"Overall, the text is thorough, understandable, and well-organized. The clear exposition and excellent use of examples will benefit the student and help her avoid 'missing the forest for the trees'. I was impressed by the quality and quantity of examples and exercises throughout the text; students will find this collection of problems sorted by topic valuable for their exam preparation. Overall, I strongly recommend the book."
-- Kristin Moore, Ph.D., ASA, University of Michigan