The Fourth Edition has been designed to meet and expand content of SOA Exam MLC, to be effective with the May 2012 exam administration. This textbook presents a variety of stochastic models for the actuary to use in undertaking the analysis of risk. It is designed to be appropriate for use in a two or three semester university course in basic actuarial science. It was also written with SOA Exam MLC and CAS Exam 3L in mind. Models are evaluated in a generic form with life contingencies included as one of many applications of the science. Students will find this book to be a valuable reference due to its easy-to-understand explanations and end-of-chapter exercises.

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