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Probability: The Science of Uncertainty with Applications to Investments, Insurance, and Engineering, by Michael A. Bean
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Bean's PROBABILITY: THE SCIENCE OF UNCERTAINTY WITH APPLICATIONS TO INVESTMENTS, INSURANCE, AND ENGINEERING is an 'applied' book that will be of interest to instructors teaching probability in mathematics departments of operations research, statistics, actuarial science, management science, and decision science. Comprehensive, easy to read and comprehend, and current, the book uses investment, insurance, and engineering applications throughout as a unifying theme.
- Sales Rank: #2359787 in Books
- Brand: Brand: Brooks Cole
- Published on: 2000-12-20
- Original language: English
- Number of items: 1
- Dimensions: .87" h x 7.57" w x 9.58" l, 1.90 pounds
- Binding: Hardcover
- 464 pages
- Used Book in Good Condition
Most helpful customer reviews
10 of 10 people found the following review helpful.
Good for self-study
By Anastasia
I used this textbook as my main study material for the SOA/CAS P/1 exam. I found it to be well-written and understandable. I have some background in calculus and probability (long-forgotten college courses). I'm hanging on to it for future reference. It's actually possible to learn the material from the book all on your own. All in all, one of the better textbooks out there.
58 of 62 people found the following review helpful.
Excellent
By A Customer
This book is on the course of reading for the Society of Actuaries and Casualty Actuarial Society jointly sponsored Course 1/Exam 1. Although all the probability books listed on the course of reading are good, this text is probably the one to choose. The book seems to be designed with an actuarial student in mind, and an actuarial student would find it very useful for self study. A solution manual is also available.
The quality and level of the writing are excellent. It covers all the required probability topics, and emphasizes certain topics that are not usually emphasized in other texts. Some of these topics are conditional probability; distributional form of Law of Total Probability and Bayes Theorem; conditional expectation; limited moments; mixed probability distributions; survival distributions; hazard or mortality functions; special continuous distributions used in survival analysis (Weibull, Pareto, etc.); compound Poisson and other compound distributions. All but the last chapter on option pricing would be required reading for Exam 1, and the last chapter useful for Exam 2.
A very useful feature of this textbook is that in Chapters 5 (Special Discrete Distributions) and 6 (Special Continuous Distributions) the distribution theory is very clearly outlined. For example, relationship to other distributions, distribution of iid sums, limiting distributions, etc. are clearly stated and summarized. In addition to Exam 1, this text will also be valuable as a reference to study for Exam 4.
Students who would have difficulty with the level of this presentation will also have difficulty with SOA Exam 1.
3 of 3 people found the following review helpful.
Horrific
By mpapadak
I sued this book more than once to teach because it was the mandatory textbook in my college. Here is my brief assessment for this book. It is not suitable for a first course in probability. It may be useful only to those who will study for actuarial exams. Also the focus of the book does not apply to students of other disciplines. Chapter 2 is useless. You may start your course with chapter 3 because all you cover in chapter 2 will be covered again in the following chapters. The attempt to present discrete continuous and mixed variable in `an one fits all' manner is futile and confusing to the students. The book has some examples and probably the only good part of it is the examples. The problems often include stupid questions that offer insignificant observations and the problems that you can work with are quite difficult for students with no prior experience to probability theory. Overall, if you are teaching a first course on serious probability theory (a first course on random variables) stay away from this book at all cost.
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