DEPARTMENT OF STATISTICS AT UNIVERSITY OF GHANA
COURSE DESCRIPTIONS
ACTUARIAL SCIENCE
ACTU 101: Introduction to Statistics and Probability for Actuaries
To introduce students to basic concepts in Statistical Methods and Probability. Topics include
introduction to Statistics: The interpretation of data. Types of data. Methods of data
transformation: Graphical display of data, numerical characterization of data. Univariate and
bivariate exploratory data analysis. Introduction to basic concepts of Probability. Random events,
and Random Variables. The Probability Calculus and some univariate probability distributions.
Some applications to Actuarial Science.
LEVEL 200, 300 and 400 COURSES
ACTU 202: Data Analysis and Statistical Computing
To acquaint students with elementary modern computing methods appropriate to the work of an
actuary. This course is largely practical and involves analyzing large data sets. Students will be
introduced to modeling and statistical simulations using modern statistical software such as R.
Exploratory Data Analysis and Confirmatory Data Analysis of both univariate and bivariate cases
will be explored. Applications will be tailored to meet requirements of the Actuarial profession
with hands-on training sessions with large data sets. No ‘new’ statistical methods should be
presented but interesting data can be analyzed using known methods on the chosen package.
Topics should include graphics, descriptive statistics, representations of multivariate data, simple
hypothesis tests, analysis of variance, and linear regression.
ACTU 320: Internship in Actuarial Science
Aim: The core aim of this course is to introduce students to the Actuarial practices in jobs that
they find themselves in. This in turn will bridge the gap between theory and practice. The course is
offered in both semesters to students to seek practical applications of actuarial principles in
insurance companies, financial institutions, pension consulting firms, and other related fields. The
course requires students to participate in an internship program within the industry. Students need
to submit monthly progress reports and a final semester report to the Head, Department of
Statistics, University of Ghana, Legon.
ACTU 303: Introduction to Financial Mathematics
To provide grounding in Financial Mathematics and its simple applications. Topics to be
introduced include: Time value of money. Simple and Compound Interest accumulation and
discount functions. Theoretical continuous cases of forces of interest and discount, effective rates
of interest and discount and present values, as applied to annuities and other financial products,
and applications including the determination of loan repayment once interest rate assumptions
have been made.
ACTU 304: Life Contingencies
To help students to know the fundamental techniques relevant to the valuation of cash flows which
are a function of death, survival and other uncertain risks. Models that depict time until death,
analysis of probability distributions and present values associated with multiple decrement and
multiple life models. Application of probability to problems of life and death. The determination
of premiums for insurances and annuities in discrete and continuous cases. Single life annuity and
life insurance loss random variables and their probability distributions with application to analysis
of benefits, premiums, net premiums and net premium reserves. Mortality table, measures of
mortality, force of mortality graduation. The identity of the forces.
ACTU 403: Elements of Life Insurance
To instill the ability, in simple situations, to use judgment and apply the principles of actuarial
planning and control needed for the operation on sound financial lines of providers of life
insurance. Principal terms; The main contract types; The principles of life insurance markets; Data
requirements and verification; Product pricing; Reserving; Surrender values; Policy alterations;
Derivation of actuarial assumptions; Measurement and analysis of surplus; Methods of distributing
surplus to policyholders; Principles of investment and asset-liability modeling; Principles of
regulation and accounting; Risk and uncertainty in life insurance business; Principles of risk
management including reinsurance; Life insurance regulations, including: Taxation, Accounting,
Supervisory regulation; Experience rating; Future financial requirements including dynamic
financial analysis; Value of a life company; Evaluation of the capital requirements of a life insurer
for the purpose of determining the strategy for growth in business.
ACTU 404: Pensions and Social Security
To make students aware of the environment of effective social security system and pension and
employee benefit schemes. The theory and practice of social security and state, occupational and
personal pension plan funding. Features of the main employee benefit schemes, principles of
financing, including asset and liability relationships. Legislative framework on retirement and
various benefit schemes. Tax management, economic and demographic factors, accounting for
pension cots, valuation data collection, analysing experience, valuing liabilities and assets,
calculating contribution rates; choice and management of assets.
474
ACTU 407: Survival Analysis and Modelling
To provide understanding of survival analyses and how to model concepts in practice in order to
fix a trail for information. Topics that students will be exposed to include: Survival models,
estimation of survival function and hazard function, estimation and fitting of survival model,
parametric survival model, determining the optional parameters. Models for loss severity:
parametric models, models for loss frequency, mixed Poisson models, compound Poisson models.
Aggregate claims models, Classical ruin theory.
ACTU 409: Introduction to Actuarial Mathematics
To provide introductory preparation in Actuarial mathematics and their applications. Deterministic
theory of interest (i.e. traditional compound interest, cash-flow modelling; annuities certain, bond
market theory), Introduction to contingent claims analysis (i.e. definition of derivative securities,
no arbitrage principle); Stochastic calculus for finance (conditional expectation, introduction to
martingales, stochastic integrals and differential equations, pricing and hedging of derivatives);
Stochastic theory of interest; interest rate models (discrete and continuous time); derivatives on
interest rates and bonds; Dynamic portfolio management (asset-liability modeling; introduction to
stochastic optimal control); Introductory applications to insurance liabilities (embedded options in
life insurance; valuation techniques for embedded options)
STATISTICS
STAT 111: Introduction to Statistics
Introduction to Statistics. The reduction and interpretation of data.
STAT 112: Elementary Probability
Introduction to basic concepts of Probability, Random event and Random ariables.
Probability Calculus and some univariate probability distributions.
STAT 221: Introductory Probability I (Pre-req. MATH 121, 122)
Introduction to the concepts of probability, Random Events, and Random Variables. The
Probability Calculus, Univariate probability distributions.
STAT 222: Data Analysis I (Pre-Req. STAT 223)
The aim of this course is to give students practice in handling large data Sets; specifically to
provide opportunities for Descriptive and Exploratory Studies.
STAT 223: Elementary Statistical Methods
Bivariate Data Analysis. Time Series and Elements of statistical inference.
STAT 224: Introductory Probability II (Pre-Req. STAT 221)
Bivariate Distribut ions. Moment Gener at ing Funct ions; the i r properties and uses.
Sampling distributions. Distributions associated with samples from a Normal population. The
Weak Law of Large Numbers and the Central Limit Theorem. Applications.
STAT 226: Official Statistics
Purposes and Scope of Official Statistics. Structure and Work of the National Statistical System.
Organisational, Methods and Practices of data collection and dissemination.
475
STAT 331: Probability Distributions (Pre-req. STAT 221, 224)
Elementary Distribution Theory. Generating Functions. Sequences of random variables;
the Central Limit Theorem and its applications.
STAT 332: Multivariate Distributions (Pre-req. STAT 331)
Introduction to Vector Random Variables. Distribution Concepts for Several random variables.
Transformations of random vectors. Order Statistics. The multivariate Normal Distribution.
STAT 333: Statistical Methods I (Pre-req. STAT 224)
The first part of a two-semester Course providing a systematic development of the principles and
methods of statistical inference, on a largely intuitive basis, with a minimum of mathematical
theory. This part deals with the general nature of Statistical Problems, Statistical Models and
Problems of Estimation.
STAT 334: Statistical Methods II (Pre-req. STAT 333)
Sequel to STAT 333. General Principles and Procedures of Hypothesis Testing. Parametric and
Non-parametric Tests. Simple Linear Regression and Correlation Analysis. The Analysis of
Frequency Data.
STAT 335: Sample Survey Methods
Basic Sample Survey procedures and Sample Designs. Estimation of population parameters.
Sampling and Non-Sampling Errors.
STAT 336: Design of Experiments (Pre-req. STAT 223)
Basic concepts and principles of experimental Statistics. Analysis of Variance for standard
experimental designs. The estimation of treatment Effects.
STAT 440: Data Analysis II (Pre-req. STAT 222, 233)
Summary Statistics for Multivariate Data. Data Presentation and Report Writing. Random Sample
Selection. Discrete Analysis. Fitting and Testing Probability Models. Regression and Curve
Fitting. Analysis of Experimental Data.
STAT 441: Statistical Inference: Estimation (Pre-req. STAT 331, 333)
The Theoretical basis of the methods of Point and Interval Estimation. Uniformly Minimum
Variance Unbiased (UMVU) Estimation, and Maximum Likelihood Estimation.
STAT 442: Statistical Inference: Tests of Hypotheses (Pre-req. STAT 331, 334)
The Theory of Hypothesis Testing. Optimal tests. Uniformly Most Powerful Test. Likelihood
Ratio and related procedures.
STAT 443: Theory of Sampling (Pre-req. STAT 224)
Analysis and comparison of various sampling schemes. Optimal designs.
STAT 444: Survey Organization and Management (Pre-req. STAT 335)
Multi-subject and specialized Socio-Economic Surveys. Household Survey. Planning, Design and
Organization. Error Co n t ro l . Problems relat ing to Concepts, De f ini t ions ,
Cla s s i f ica t io n a nd Measurement.
476
STAT 445: Regression Analysis (Pre-req. STAT 334)
The methods of regression analysis extended to situations involving more than one predictor
variable. Special emphasis on problems associated with the presence of several predictors.
STAT 446: Multivariate Methods (Pre-req. STAT 332)
Introduction to theory and methods of Multivariate Data Analysis; Estimation and Tests of
Hypotheses, Profile Analysis, Multivariate Structure, Discriminant Analysis.
STAT 447: Non-Parametric Statistics (Pre-req. STAT 333, 304)
Some Single Sample problems; the problem of location, The Sign Test, The Wilcoxon Signed
Ranks test. Some Two-Sample Problems: The Chi-Square Test for Homogeneity, the Median
Test, the Mann-Whitney-Wilcoxon Test. Chi-Square Tests of Independence. Some Users of Order
Statistics Distributions under alternative Hypotheses.
STAT 448: Analysis of Experimental Designs (Pre-req. STAT 336)
Model specialization for single-factor and multi-factor designs. Main effects, specific effects and
interactions. Estimation. Multiple Comparisons. Analysis of covariance.
STAT 450: Project
This is a yearlong project. Student presents a project on a topical issue in Statistics using tools
acquired over the period to solve statistical problems.
STAT 451: Introduction to Stochastic Processes (Pre-req. STAT 331)
Stochastic models in the natural and social sciences. Some discrete and continuous time processes.
Basic theory and Applications.
STAT 453: Population Statistics
Demographic Concepts and Measures. Collection and Evaluation of demographic data. Analysis
of Demographic data. The Dynamics of Population change.
STAT 454: Biometrics (Pre-req. STAT 331)
Biological assay, Analysis of quantal responses. Agricultural and Clinical Trials. Sampling and
Estimation of Biological Populations.
STAT 455: Actuarial Statistics I (Financial Statistics) (Pre-req. STAT 331)
Principles of time value of money. Concepts of Compound Interest and Discounting. Interest or
Discount Rates. Compound Interest Functions. Investment Projects appraisals. Stochastic Interest
Rate Models.
STAT 456 : Actuarial Statistics II (Pre-req. STAT 455, Recommended STAT 453) Principles
of simple life insurance and annuity contracts. Means and variances of payment under these
contracts. Determination of expected present value and variances of benefits. Determination of
net premiums and net premium policy values. Survival models.
STAT 457: Economic and Social Statistics I (Pre-req. STAT 226)
Statistics on Economic and Social Activities and Trends, and their uses. Methods and Sources of
Data Collection. Indices and Indicators of Economic Activity. Indicators of Social Development
and Living Standard.
STAT 458: Economic and Social Statistics II (Pre-req. STAT 447)
Introduction to the System of National Accounts (SNA). The System, its Accounts and their
corresponding economic activities. Input-Output Tables. Social Accounting. Corresponding
economic activities. Input-Output Tables. Social Accounting.