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ACSC13-302: Advanced Modelling


The focus of this subject is stochastic and survival modelling. Stochastic processes are typically used to model the dynamic behaviour of random variables indexed by time. The close-of-day exchange rate is an example of a discrete-time stochastic process. There are also continuous-time stochastic processes that involve continuously observing variables, such as the water level within significant rivers. This subject also introduces simple discrete Markov chains and continuous-time stochastic processes.

Subject details

FacultyBond Business School
Semesters offered
  • September 2018 [Standard Offering]
  • January 2019 [Standard Offering]
Study abroadAvailable to Study Abroad students
Study areas
  • Actuarial Science
Subject fees
  • Commencing in 2018: $4,247
  • Commencing in 2019: $4,290

Learning outcomes

1. Determine the type of a stochastic process and whether it possesses certain well-known properties.
2. Define, estimate and analyse Markov chains, including their long-run behaviour.
3. Define, estimate and analyse Markov jump processes, both time-homogeneous and time-inhomogeneous.
4. Demonstrate an understanding of censoring and lifetime random variables in survival modelling, including the ability to perform calculations involving lifetime random variables.
5. Estimate and analyse a variety survival models, including Weibull, Gompertz, Kaplan-Meier, Nelson-Aalen, Cox Proportional Hazards, Markov multi-state, Binomial and Poisson models.
6. Describe and perform multiple hypothesis tests applicable to survival modelling.
7. Demonstrate an understanding of the benefit of smoothing/graduation and the key trade-off involved.
8. Use statistical software commonly used by practitioners to model stochastic processes and survival models.


Please check the subject outline for pre-requisite subjects.

Subject outlines

Subject dates

Standard Offering
Enrolment opens12/11/2017
Semester start15/01/2018
Subject start15/01/2018
Cancellation 1?29/01/2018
Cancellation 2?05/02/2018
Last enrolment28/01/2018
Last withdrawal?09/02/2018
Teaching census?09/02/2018
Standard Offering
Enrolment opens15/07/2018
Semester start10/09/2018
Subject start10/09/2018
Cancellation 1?24/09/2018
Cancellation 2?01/10/2018
Last enrolment23/09/2018
Last withdrawal?05/10/2018
Teaching census?05/10/2018