Exam P/1 is, for most candidates, their first experience with professional actuarial examinations. Many
candidates find this experience to be a great challenge, nearly overwhelming. This study manual is
written for serious candidates, who want to be so prepared as to feel "underwhelmed" by the exam. A
student who is really prepared by the day of the exam should be able to say: "Been There Done That"
when looking at the problems. (The author of this manual calls this "The BTDT Rule".) This manual is
written for a student who wants to be prepared like that, a student who does not want to count on luck
on exam day. It covers every topic that can possibly show up on the exam, taking even the most difficult
topics head-on and providing thoughtful explanations and examples for them. It also contains twenty
practice examinations, with complete solutions. The first five examinations are somewhat easier, most
likely on a par with the real exams. The last fifteen are intentionally harder, designed to make the real
exam look relatively easy. Of course, these difficult examinations also have complete, fully-explained
solutions. Understanding those solutions is an important part of the educational process.
This manual has four core sections:
Random Variables and Probability Distributions
Risk and Insurance
These sections are divided into smaller subsections, each covering a specific topic, with detailed
explanations, followed by exercises illustrating that topic, with complete solutions. This core is
followed by twenty thirty-problem practice tests, with complete solutions. There are problems from
past actuarial exams, but there are also many original problems. Candidates can treat this manual as
their first probability textbook, since explanations of all topics are provided, and only solid knowledge
of three semesters of calculus is assumed. Candidates are urged to read every page, every exercise
and every practice exam, and make certain that they follow all of them in detail. Approximately 650
problems and 700 pages in all.
Updates for Spring 2014:
Corrections to all known errata
Includes premuim quality oversized "D" ring binder.