CT8 Generally

[Erik]

How far are you guys with the course notes. Just finished the acted notes for first time.
I find Chapter 6-8 the most difficult. Is it just me or is the part 4 a lot less work (just memorizing) than other parts? Also find part 4 quite easy, but haven't attempted past questions though.

Enjoy your studying.

 

[FatSam]

I am about 50% of the way through the course now and although my method isnt necessarily the best (i.e just bombing through the notes in one go) I have to admit that I am hopelessly lost in this course. I think it started getting difficult at around chapter 3 and then deteriorated rapidly at around ch6-8. I honestly have no clue what the hell its going on about and I just feel like binning the course. I have never found a CT subject so impossible to understand.

My only hope is that what other people have said is true - that the notes are basically not much help and the best way to get to grips with the course is through question practice. That remains to be seen though

 

[Erik]

FatSam,

Lucky for you, I did find chapters 9 - 12 much easier to understand (and very well written).
I'm lost in Chapter 8: 6-8 is not written as nicely as the rest. I've analysed past papers and found that part 1 and 3 both take up about one third of the course and part 2 and 4 together one third, so my focus will be accordingly.

Just one problem, I did not study CT6 (only doing it this semester at university), so I'm useless with time series and chapter 8 really assumes some time series even though the only requirements is CT1-4 and 7.

Just keep going. It's not that hard. And yes, do a LOT of questions practice. It helps me a lot.

Erik

 

[Gareth]

im in the strange position where i am doing ST6 alongside it. The notes are practically the same for most of the courses, apart from the first few chapters.

I find the chapter on the Wilkie model the most annoying, due to the large amount of formulas that you need to learn. Why those are not in the formula book I will never understand...

 

[Erik]

This should help you, I mailed a question to an ACTED tutor and this was the reply.

Question:
I find the Wilkie model quite challenging to understand. Is there any additional material available on it. I find the notes are not as clear as some other chapters. (I have Options, Futures and Other derivatives by Hull, but there's nothing on the Wilkie model.) I find it hard to get good explanitory material on it.

Answer:
The Core Reading for this topic gives a misleading impression of what is expected here. The syllabus only mentions the Wilkie Model as an example of a time series model. So it is really just a case study. You'll see when you start looking at the past questions that you are not expected to know the detailed specification of this model. The important thing is to be able to identify the properties of a particular model when you are given the relevant equations. For example: Does the model exhibit mean reversion? What does each of the parameters represent? I would say that the only part of the Wilkie Model you need to learn in detail is the inflation component I(t).

Erik

 

[Gareth]

i don't quite agree on that. the examiner could easily ask the candidate to describe the wilkie model in detail including formulae.

if it's in the core reading, it can be examined.

 

[Erik]

If you wanna go and memorize them, be my guest. I've looked through old exam papers and never have they asked you to write down equations. (They often give them and ask you to explain them) Youre welcome to try and prove me wrong, or come up with a counter argument.

(There are already so much to memorize in this course, I kind of tryo keep it to the minimum)

(Anyway, the acted notes says that the updating equations should not be learnt)

You decide.

Erik

 

[Muppet]

I think that theoretically if it's in the Core Reading then it could be asked, and if you want to cover every single possible question then learn them. BUT given the syllabus and past questions, it sounds like a risk worth taking to me - allowing more time to try and understand the rest of the course.

 

[FatSam]

To be honest, from what I can gather, there seems to be so much else in the course to be worried about than just the Wilkie model. Given the fact that we all have a finite amount of time to study all of the material I guess its up to each individual to prioritise their study as they see fit. If one believes the material won't come up then don't learn it and if you do think its gna come up then do study it.

I am more worried about all the Brownian motion and Martingales stuff though to be honest....in actual fact this whole course is pretty damn hard in comparison to the other CT's!!!!!

Thanks for your reassurance Erik

 

[Gareth]

i've had too many experiences with murphy's law with the actuarial exams. if it could come up and you haven't learnt it, then it will!

 

[Cymro Card]

When faced with such dilemas I apply the marks for effort rule:

Looking at past papers the questions do seem quite similar, therefore make sure you have an understanding of this are to get a few easy(!) marks.

If there are extra marks going, then they're gonna require a lot of effort (and knowledge) for only a few marks, therefore it is probably better to make sure you have other parts of the course nailed. If you have time after revising all this, then by all means get a better understanding of the Wilkie model.

DISCLAIMER: I failed CT8 last sitting so this may not be the best of advice!! But don't think it was owt to do with not picking up extra marks on a Wilkie question!

 

[jamesK1]

interestingly cool

When faced with such dilemas I apply the marks for effort rule:

Looking at past papers the questions do seem quite similar, therefore make sure you have an understanding of this are to get a few easy(!) marks.

If there are extra marks going, then they're gonna require a lot of effort (and knowledge) for only a few marks, therefore it is probably better to make sure you have other parts of the course nailed. If you have time after revising all this, then by all means get a better understanding of the Wilkie model.

DISCLAIMER: I failed CT8 last sitting so this may not be the best of advice!! But don't think it was owt to do with not picking up extra marks on a Wilkie question!

profound or simple.. like lots of stuff.