1821 Basics

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MATH 1821: Mathematical Methods for Actuarial Science I

Prerequisite knowledge

Students in this course are expected to have received training in basic one-variable calculus
in high school. They are expected to be familiar with the notations and notions listed below.
Knowledge from such topics will be assumed and most of them will be (directly or indirectly)
required in this course. You should consult your old textbooks or suitable references if you find
that you do not know or have forgotten those topics.

A. The very basics

The following topics should be learned by all students completing high schools. (In HKDSE,
these are topics in the compulsory part of the mathematics curriculum.)

1. Arithmetic and algebra

ˆ Percentages and applications to simple and compound interest


ˆ Quadratic functions
ˆ Indices and logarithms
ˆ Polynomials and rational functions, including remainder and factor theorems
ˆ Solving equations, including linear systems, quadratic/polynomial equations and
equations involving indices and logarithms
ˆ Complex numbers and the four arithmetic operations on them
ˆ Arithmetic and geometric sequences

2. Coordinate Geometry

ˆ Equations of straight lines and circles in various forms


ˆ Graphs of quadratic, exponential and logarithmic functions
ˆ Transformations of graphs such as reflection and horizontal/vertical stretching

3. Trigonometry

ˆ sin x, cos x and tan x for any angle x


sin x
ˆ Basic trigonometric identities such as tan x = , sin2 x+cos2 x = 1 and sin(180◦ −
cos x
x) = sin x
ˆ Simple trigonometric equations

4. Probability and statistics

1
ˆ Basic notions of probability
ˆ Addition and multiplication of probabilities
ˆ Conditional probability
ˆ Basic statistical measures such as mean, median, mode, quartiles and variance

B. More pre-calculus topics

Although the following may not be learned by every high school graduate, it is expected that
students with basic calculus training should know them. (For those sitting HKDSE, students
who have done either Module 1 (M1) or Module 2 (M2) of the extended part of the mathematics
curriculum should have learned these topics.)

1. Basics
k
X Y
ˆ Summation and product notations such as ak and x
i=1 x∈A

ˆ Meaning of the number e


ˆ Binomial theorem, and notations for binomial coefficients including Crn and n

r

2. Set notations

ˆ Various ways to describe sets such as {1, 2, 3}, {1, 2, ..., 100} and {x ∈ R : x3 +1 > x}
ˆ The notation |A| for the size of a set A
ˆ Meaning of the symbols ∅, ∈, ⊆, ∪, ∩ and A \ B (or equivalently A − B)
ˆ Interval notations such as (1, 2), [−4, −3], [5, 6), (−7, ∞) and (−∞, 8]
ˆ The sets C, R, Q, Z, N (in this course we adopt the convention 0 ∈
/ N)

3. Functions

ˆ The notation f : A → B
ˆ The absolute value function
ˆ Exponential and logarithmic functions such as ex and ln x

C. Calculus

1. Limits

ˆ Meaning of limits

2
x2 − 4 2x2 + x + 1
ˆ Evaluating simple limits such as lim and lim
x→2 x − 2 x→∞ 3x2 − 4x − 5

2. Differentiation

ˆ Meaning of the (first) derivative and second derivative


d2 y

dy
ˆ Notations for derivatives such as y , f (x),
0 00
and
dx dx2 x=1
ˆ Derivatives of xa , ax and loga x for constant a
ˆ The product, quotient and chain rules of differentiation
ˆ Increasing and decreasing functions; convex and concave functions
ˆ Finding maximum and minimum of functions
ˆ Rate of change problems

3. Integration

ˆ Indefinite integration as the reverse process of differentiation


ˆ Formulas for indefinite integrals based on knowledge of derivatives
ˆ Meaning and properties of definite integrals
ˆ Definite integration via the Fundamental Theorem of Calculus
ˆ Finding areas using definite integrals
ˆ Integration by substitution

D. Questions for self-check

The following problems serve to help you check and ensure that you possess the required
knowledge for this course. If you find that don’t know about a certain problem, you should
revise the corresponding parts of your high school textbook or any suitable references.

1. Determine whether each of the following is true or false.

(a) 3 ∈ Z
(b) −2 ∈ N

(c) 2 ∈ Q
(d) π ∈
/ (2, ∞)
(e) −4 ∈ (−∞, −4]
(f) {x ∈ R : x2 + 4x + 7 = 0} = ∅
(g) {x ∈ C : x2 + 4x + 7 = 0} ⊆ {x ∈ C : x3 + 4x2 + 7x = 0}

3
(h) [1, 2] ∪ [3, 4] ⊆ (R − {1}) ∩ (0, ∞)

2. Find the following limits.


x3 − 8
(a) lim
x→2 3x − 5

x3 − 8
(b) lim
x→2 3x − 6

3. Find the derivative of the following functions.

(a) 3x2 + 4x + 5
x3 − 8
(b)
3x − 6
(c) (2x + 1)100

4. Find and classify the stationary points of the graph of y = x3 − 6x2 + 15x + 7.
x
5. Find the intervals in which the function f (x) = ex
is

(a) increasing
(b) decreasing
(c) convex
(d) concave
Z 3  
4
6. Evaluate x + 2x + − 3ex
2
dx.
2 x
Z
2 x
7. Using the substitution u = x + 1, evaluate √ dx.
2
x +1
4
e1/x
Z
1
8. Using the substitution u = x
, evaluate dx.
1 x2

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