CS1 Actuarial Statistics – Guide and Details from Ifoa and IAI

A Guide to CS1- Actuarial Statistics

The older subject CT3 (Probability and Mathematical Statistics) is now CS1 (Actuarial Statistics) subject under the new curriculum of IFoA and IAI (after 2019).

It is an exam that tests your statistical and analytical skills by marking how well you apply formulas, theorems, and statistical tests you study for problem-solving. It also strengthens your Data visualization and analysis capabilities if you study the concepts well.

Exams under CS1

The exam from IAI and IFoA contain these two exams.

CS1 – A TheoryCS1 -B Practical Exam
3 hours and 15 minutes Theoratical Exam1 hour and 45 minutes Computer based Exam
Tests formulaes, knowledge of applying those formulaes to solve some problems.Tests your knowledge of “R” Language and application of theory in R.
100 Marks exam , with 70% weightage in total score.100 Marks exam, with 30% weightage in total score.

♀ Both CS1 A and CS1 B need to be attempted in the same exam sitting.

♀ If your combined score from both A and B papers is above the passing mark, you will pass the subject. Otherwise, be ready to appear again for both papers.

What are some of the topics that will be tested by the CS1 exam?

The major topics that this paper tests are:

1.Probability Distributions – Both discrete and continous , The application of both and how to find Probability density functions?

2.Generating functions- Finding moment generating functions for different random variables that follow some distributions.

3.Joint distributions and Central Limit Theorem Application

4.Sampling and Hypothesis testing – Use of different statistical tests such as T test , Z test etc in different situations.

5.Checking biasness of a random variable using point estimation methods.

6.Linear Regression

7.Generalised Linear Modelling

8.Bayesian Statistics

9.Ruin Theory

10. Measures of Correlation

Questions related to CS1

How to study for CS1 B?

CS1 B focuses on the R language. You can either study online through various websites like Youtube, DataCamp, Coursera, Udemy etc. or may want to take offline coaching for the same.

If you have a background in programming, you can also self-learn using the CS1 B- R material provided by the institute which tells how each concept from different chapters of the theory material can be applied in R.

Even without a background in programming, you can learn R using the CS1 B – R material which beautifully takes you from getting started with R (Installing it, performing basic arithmetics ) to some of the most advanced functions of R. All you need is a zest for learning it!

Focus on learning shortcuts and loops in R language as time is limited for a 100 mark paper and you may not want to waste it in writing long R codes.

You can discuss your doubts, questions and learnings on our forums dedicated to learning R here.

How to study for CS1 A?

First, go through the core reading material for this exam. Solve all the examples, back exercise questions. Also, the X series Assignment at the back of the core reading material. Then practice past year papers and sample papers from IFoA. You can access Core reading and Specimen exam papers from IFoA here.

Having a strong conceptual knowledge is important for this subject so that you can relate things and apply them to solve relevant problems.

What is the fees of this exam?

At a reduced rate, you pay GBP 180.00 for CS1 exam booking as a fee from IFoA.
Fees of other subjects from IFoA can be checked here.

How to appear for CS1 exam?

You can appear for CS1 from IFoA only if you are a student member of this institute.

You can submit your application form online for becoming their student member. Once your application has been reviewed and cleared, you can book this exam for the upcoming exam sitting.

However, IFoA keeps updating its Student membership criteria. So you can check the latest information here.

What are recommended study hours for CS1?

The recommended hours for both CS1 A and CS1 B are 200 hours combined for study.

What is the difference between old curriculum of CT3 and new curriculum of CS1?

With the addition of R in the paper being the major change, the curriculum to study for the theory paper is more or less the same with an addition of few more topics such as Bayesian Statistics, Measures of correlation, Generalized Linear Regression etc. However, Compound distributions and ANOVA have been excluded from CS1 (which were a part of the old CT3 curriculum).

About the Author

Anmol Kaur

Anmol Kaur is an actuarial graduate working as a Business Analyst(Actuarial) in a leading MNC. With a quest to learn more, she is looking forward to become a fellow of both The UK Actuarial Society (IFoA) and Insurance Institute of India (III) which she believes will provide her an edge over her actuarial career in India.

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