Computational Probability with Python : Theory, Simulation, and Actuarial Applications

This textbook is designed for undergraduate actuarial students seeking a clear, practical, and mathematically sound introduction to the subject. Requiring only a first course in calculus, it develops core ideas in a structured and accessible way, making it suitable for a one-semester course as well as for independent study.

Probability theory provides the foundation for understanding uncertainty in fields ranging from finance and insurance to engineering and data science. This textbook is designed for undergraduate actuarial students seeking a clear, practical, and mathematically sound introduction to the subject. Requiring only a first course in calculus, it develops core ideas in a structured and accessible way, making it suitable for a one-semester course as well as for independent study. What sets this book apart is its balanced approach between intuition and rigor. Rather than relying heavily on measure-theoretic formalism or focusing solely on computational techniques, it introduces essential concepts—such as probability spaces—in a gradual and approachable manner. By combining theoretical development with computational tools, the text bridges the gap between abstract understanding and real-world application, preparing students for both academic study and professional practice. Key features:A balanced presentation that introduces foundational concepts of probability without heavy measure-theoretic machineryClear, step-by-step development starting from set theory and building toward probability models and applicationsNumerous practice questions adapted from Society of Actuaries Probability (P) exam materialsSelected solutions with detailed explanations to support self-study and deeper understandingIntegrated Python simulations in every section to illustrate concepts and verify resultsAccompanying Jupyter notebooks available online for interactive learning and experimentationBy combining mathematical rigor, practical exercises, and modern computational tools, this book offers a solid introduction to probability theory. It is ideal for actuarial students preparing for professional exams, while also serving as a valuable resource for students in related fields who seek a solid and engaging foundation in probability.