Lecture on 15th of March

Last lecture we stated and proved Thiele's difference/differential equations and we saw some examples of their use in determining reserves and yearly premiums. In addition, we discussed why distributional characteristics, such as higher moments, of the mathematical reserve are important for the insurer and we looked at two difference equations that can be used to calculate these.

I have uploaded the lecture notes for Chapters 4 and 5 and I have also uploaded Exercises 3 and 4.

Next week we will go through Problems 1 and 3 from Exercises 2 and the majority of problems in Exercises 3 and 4. If time permits, we will look at some of the examples from Chapter 6 in the book.