The institute of actuaries in India has a very important subject called CT4 which ensures that each student passing it will have a strong foundation in processes that are stochastic in nature along with models of survivals with their proper applications too.

Importance of the paper:

If you want a future in actuarial science and need to be the future of financing in India then you must be adept in this subject called Models.

Pattern:

Examination of CT4-Models, actuarial paper has different type and kind of questions. It ensures that you know everything well. There are compulsory questions in the entire paper and attempting everything is imperative. One must answer first five questions to get 8 marks in each. The next 3 questions award us 8 marks each. The next question awards 12 marks. The final question carries 18 marks.

Questions asked in the paper:

The paper contains questions which are such as the aims of actuarial models and processes of execution, processes that are stochastic, and their grouping into many kinds, application of any Markov chain, application of any Markov process, aim of different survival models, estimation processes for long term distributions, changing intensities in types of transfers among states with piece by piece continuous changing intensities

Time and marks:

Models being 100 marks paper Insitutue has set 3 hours duration.

Recommended books:

• Analysing survival data from clinical trials and observational studies. Marubini, E.; Valsecchi, M. G. John Wiley, 2004
• Basic stochastic processes. A course through exercises. Brzezniak, Z.; Zastawniak, T. Springer, 1998.
• Introduction to actuarial modeling. Hickman, J. C. North American Actuarial Journal