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Summary of Formulas/Theorems/distributions etc - when/which to use

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  • Summary of Formulas/Theorems/distributions etc - when/which to use

    is there a link or a document that shows which formula/theorem or distribution is used and when.
    i am planning to attend the exam in sept but coming back from a 17 year break from school.

    Thanks

  • #2
    The best thing to do would be to make sure you understand basic probability theory first. If you try to memorize when to use a binomial distribution, rather than learning where that distribution comes from, I doubt that you will be able to understand and solve the straight up probability questions that are on the exam.

    Once you understand enough for that, you're pretty much set for most of the exam. The rest of the problems will explicitly state that you are to use a poisson, normal or exponential distribution.

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    • #3
      PJA is right. Adding to what he said. You want to have an intuitive understanding of the concepts. Probability for Risk Management 2nd Edition handles that well and as it goes through the topics with you they explain to you which distribution to use and when.

      For example, the binomial distribution would be used when dealing with independent events that occur in sequence and have a certain number of trials and if the probability of success and failure is known then this distribution is applied.

      Poisson distribution is used when it's probability is represented as a rate of occurrence and events are independent.

      That's just two of the distributions. It's all there in the text.

      There are similarities and differences in the binomial and hypergeometric distributions which the text also covers for you.

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      • #4
        Actex 2010 actually has a few nice reference tables that list the distributions along with their pdfs, means, variances, and mgfs. There's 2 of them scattered somewhere in the text, so I scanned both of them. But I'm just using them for reference. Like the above posters said, "memorizing" the instances where you should use these distributions is much less helpful than knowing how these distributions work and what they represent. Especially since the concepts behind most of them are pretty straightforward if you know the basics of probability and combinatorics.

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        • #5
          I concur. I concur.

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