SYLLABUS OF BASIC EDUCATION
2017
Probability Exam 1
The syllabus for this exam is defined in the form of learning objectives that set forth, usually in broad terms, what
the candidate should be able to do in actual practice.
Please check the Syllabus Updates section of the CAS Web Site for any changes to the Syllabus. The options for
obtaining credit for this exam are listed below and in Examination Rules, C. Grades and Accreditation, Waivers of
Examinations section of the Syllabus.
The purpose of the syllabus for this examination is to develop knowledge of the fundamental probability tools for
quantitatively assessing risk. The application of these tools to problems encountered in actuarial science is
emphasized. A thorough command of the supporting calculus is assumed. Additionally, a very basic knowledge of
insurance and risk management is assumed.
A. General Probability
LEARNING OBJECTIVES
1. Use and apply the following concepts in a risk management context:
Set functions including set notation and basic elements of probability
Mutually exclusive events
Addition and multiplication rules
Independence of events
Combinatorial probability
Conditional probability
Bayes Theorem / Law of total probability
Materials for Study, 2017 Exam 1 Exam 1-1
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SYLLABUS OF BASIC EDUCATION
2017
Probability Exam 1
B. Univariate Probability Distributions
This section includes binomial, negative binomial, geometric, hypergeometric, Poisson, uniform, exponential,
gamma, and normal distributions.
LEARNING OBJECTIVES
1. Use and apply the following concepts in a risk management context:
Probability functions and probability density functions
Cumulative distribution functions
Mode, median, percentiles, and moments
Variance and measures of dispersion
Moment generating functions
Transformations
C. Multivariate Probability Distributions
This section includes the bivariate normal distribution.
LEARNING OBJECTIVES
1. Use and apply the following concepts in a risk management context:
Joint probability functions and joint probability density functions
Joint cumulative distribution functions
Central Limit Theorem
Conditional and marginal probability distributions
Moments for joint, conditional, and marginal probability distributions
Joint moment generating functions
Variance and measures of dispersion for conditional and marginal probability distributions
Covariance and correlation coefficients
Transformations and order statistics
Probabilities and moments for linear combinations of independent random variables
Materials for Study, 2017 Exam 1 Exam 1-2
SYLLABUS OF BASIC EDUCATION
2017
Probability Exam 1
Options for Obtaining Exam 1 Credit
The CAS will grant credit for Exam 1 to those who have successfully completed one of the following examinations:
Organization Examination
Actuarial Society of South Africa A101, Probability and Mathematical Statistics
Actuaries Institute (Australia) CT3, Probability and Mathematical Statistics
Institute of Actuaries of India CT3, Probability and Mathematical Statistics
Institute and Faculty of Actuaries (U.K.) CT3, Probability and Mathematical Statistics
Society of Actuaries P, Probability
In addition, the CAS will now be granting exam waivers based on exams administered by the China Association of
Actuaries. This derives from the Board decision that fully accredited IAA actuarial organizations can now submit
their syllabus and learning objective materials for their preliminary exams as a cohort to gain credit for CAS Exams
1, 2, 3F, and 4 and Validation by Educational Experience requirements -- Corporate Finance and Economics.
To obtain credit, candidates should follow the procedures outlined on the Waivers of Examination page of the CAS
website.
Materials for Study, 2017 Exam 1 Exam 1-3
