MAP 4172 ACTUARIAL SCIENCE PROBLEMS

Academic Courseware
c date August 23, 2014

Contents
Contents

Preface

1 Counting Techniques

1.1

Fundamental Principle of Counting . . . . . . . . . . . . . . . . . . .

1.2

Counting Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bibliography

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CONTENTS

Preface
The lproblem set that accompanies Actuarial Science 1 is designed to increase your
familiarity with those problem types which we have found common to exam P/1.
The recessitation session is generally run as a strictly question answer session not as
a lecture session. The focus is on students working problems to understand where
their difficulties lie and seeking solutions that are quick and illuminating. Your
teaching assistant is there to answer questions you have about the problems youre
working on.

CONTENTS

Chapter 1
Counting Techniques
1.1

Fundamental Principle of Counting

Counting is an important skill. The Fundamental Principle of counting will be used

to
1. Count simple events
2. Compute the number of permutations
3. Compute the number of combinations
Let us recall the Fundamental of Counting
Fundamental Theorem of Counting
With m elements a1 , a2 , . . . , am and n elements b1 , b2 , . . . , bm , it is possible to form
mn pairs containing one element from each group.

Theorem 2
The number of ways of ordering n distinct objects taken r at a time is equal to
n(n 1)(n 2) (n r + 1) =

n!
(n r)!

CHAPTER 1. COUNTING TECHNIQUES

Theorem 3
The number of ways of partitioning n distinct objects into k distinct groups containing n1 ,P
n2 , . . . , nk objects, respectively, where each object appears in exactly one
group and ki=k ni = n is


n
n!
=
n1 !n2 !n3 ! nk !
n1 !n2 !n3 ! nk !

Theorem 4
The number of unordered subsets of size r chosen (without replacement) from n
available objects is
 
n
n!
=
r!(n r)!
r

example 1
A chef has 3 meats, 4 vegetables, 2 desserts, and 2 bevarages that he will use to
create a meal. How many distinct meals can he create if he must use a meat, a
vegetable, a beverage, and a dessert to create a meal?
Answer: 3 4 2 2 = 48
example 2
In how many ways can n distinct objects be arranged in a row?
Answer: n(n 1)(n 2) . . . (2)(1) = n!
example 3
The names of 3 employees are to be randomly drawn, without replacement, from a
bowl containing the names of 30 employees of a small company. The person whose
name is drawn first receives $100, and the individuals whose names are drawn
second and third receive $50 and $25, respectively. How many sample points are
associated with this experiment?

1.1. FUNDAMENTAL PRINCIPLE OF COUNTING

Answer: 30 29 28 =

30!
(303)!

example 4
A librarian wishes to place 7 books on a bookshelf. There are three mathematics
books, a college algebra book, a calculus book, and a liberals arts mathematics
book, two chemistry books, an organic chemistry book, and a general chemistry
book, one general physics book, and a history book. If the mathametics books are
indistinguishable from one another (say an identical jacket with math is written on
each and placed on each), the chemistry books are indistinguishable from one
another (say an identical jacket with chemistry is written on each and placed on
each) then how many distinguishable ways are there to place the 7 books on the
bookshelf.
Answer:

7!
3!2!1!1!

= 420

CHAPTER 1. COUNTING TECHNIQUES

1.2

Counting Problems

1. John, Jim, Jay, and Jack have formed a band consiting of 4 instruments. If
each of the boys can play all 4 instruments, how many different arrangements
are possible? What if John and Jim can play all 4 instruments, but Jay and
Jack can each play only piano and drums?

2. A well known nursery rhyme starts as follows: As I was going to St. Ives I
met a man with 7 wives. Each wife had 7 sacks. Each sack had 7 cats. Each
cat had 7 kittens. How many kittens did the traveler meet?

3. In how many ways can 3 boys and 3 girls sit in a row? In how many ways can
3 boys and 3 girls sit in a row if the boys and the girls are each to sit together?
In how many ways if only the boys must sit together? In how many ways if
no two people of the same sex are allowed together?

4. How many different letter arrangements can be made from the letters MISSISSIPPI?

1.2. COUNTING PROBLEMS

5. A child has 12 blocks, of which 6 are black, 4 are red, 1 is white, and 1 is blue.
If the child puts the blocks in a line, how many arrangements are possible?

6. In how many ways can 8 people be seated in a row if persons A and B must
sit together? What if there are 4 men and 4 women and no 2 men or 2 women
can sit next to each other? What if there are 5 men and they must sit next
to eah other. What if there are 4 married couples and each couple must stay
together?

7. Five separate awards (best leadership qualities, and so on) are to be presented
to selected students from a class of 30. How many different outcomes are
possible if a student can receive any number of awards. What if each student
can receive at most 1 award?

8. Consider a group of 20 people. If everyone shakes hands with everyone else,

how many handshakes take place?

CHAPTER 1. COUNTING TECHNIQUES

9. How many 5 card poker hands are there?

10. A dance class consists of 22 students, 10 women and 12 men. If 5 men and 5
women are to be chosen and then paired off, hwo many results are possible?

11. A student has to sell 2 books from a collection of 6 math, 7 science, and 4
economics books. How many choices are possible if both books are to be on
the same subject? What if the books are to be on different subjects?

12. A total of 7 different gifts are to be distributed among 10 children. How many
distinct results are possible if no child is to receive more than one gift?

1.2. COUNTING PROBLEMS

13. A committee of 7, consisting of 2 Republicans, 2 Democrats, and 3 Independents, is to be chosen from a group of 5 Republicans, 6 Democrats, and 4
Independents. How many committees are possible?

14. From a group of 8 women and 6 men a committee consisting of 3 men and 3
women is to be formed. How many different committees are possible if 2 of
the men refuse to serve together? How many if 2 of the women refuse to serve
together? How many if one man and one woman refuse to serve together?

15. A person has 8 friends of whom 5 will be invited to a party. How many choices
are there if 2 of the friends are feuding and will not attend together? How
many choices are there if 2 of the friends will only attend together?

16. A psychology laboratory conducting dream research contains 3 rooms, with 2

beds in each room. If 3 sets of identical twins are to be assigned to these 6
beds so that each set of twins sleeps in different beds in the same room, how
many assignments are possible?

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CHAPTER 1. COUNTING TECHNIQUES

17. The game of bridge is played by 4 players, each of whom is dealt 13 cards.
How many bridge deals are possible?

18. If 12 people are to be divided into 3 committees of respective sizes 3, 4, and

5, how many divisions are possible?

Bibliography
[1] S. Ross A First Course In Probability 7th edition Prentice Hall, Upper Saddle
River, New Jersey 2006
[2] L. Lamport. LATEX A Document Preparation System Addison-Wesley,
California 1986.
[3] M.D. Spivak The Joy of TEXA Gourmet Guide to Typesetting with the AMSTEXmacro package American Mathematical Society, Providence, Rhode Island
1986

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