• Archana Receives the Donna B. Hamilton Award

    Archana Khurana has been selected to receive the Donna B. Hamilton Award for Excellence in Undergraduate Teaching in a General Education Course.  Awards are based solely on student nominations and are solicited from across campus.  From the many nominations received, the selection committee was very impressed by the student experience… Read More

  • Yanir Receives a Do Good Campus Fund Grant

    Yanir’s proposal on “Incorporating outreach into the curriculum via experiential learning” is one of the only 27 projects out of 140 submissions that were funded by the UMD Do Good Campus Fund. Read More

  • Congrats to 3 CMNS Students Named Goldwater Scholars

    Congratulations to UMD’s 3 Goldwater Scholars this year, all from CMNS: Junior physics and mathematics double-degree student Yash Anand Sophomore atmospheric and oceanic science and physics double-degree student Malcolm Maas Junior biological sciences and mathematics double-degree student Jerry Shen Over the last 15 years, UMD’s nominations yielded 49 scholarships—No. 2… Read More

  • Maria Cameron Receives the 2024 MURI Award

    Congratulations to Maria Cameron for her MURI award. MURI are multidisciplinary university research initiative grants that are awarded by the department of defense. Cameron’s grant is sponsored by the office of naval research. Her team includes Balakumar Balachandran (ME) and Miao Yu (ME). This is a project on “disorder-influenced collective… Read More

  • A $27.2M Gift to the Math Department by the Brin Family

    The university announced today a big gift to the Math Department. The very generous gift of $27.2M was made by Michael & Eugenia Brin. The gift will endow the Brin Mathematics Research Center, establish an endowed chair, and launch a summer camp for high school students. The official university’s press… Read More
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Description

This course introduces several of the major mathematical ideas involved in calculating life insurance premiums.  Ideas from probability and statistics will be developed from scratch, as needed, through course notes and reference to the Stat 400 text (recommended for this course as well), Introduction to Probability and Statistics by R. Devore will be used.

(If you do not have any background in probability and statistics, there are a number of basic books which contain good basic discussions of random variables and probability at the level of the second Actuarial Exam. A few standard ones are: Ross, S., Introduction to Probability Theory (used for Stat 410); Hoel, Port, and Stone, Introduction to Probability Theory; Larson, R., Intro. to Probability Theory and Statistical Inference; Larsen and Marx (currently used for Stat 400); Hogg, R. and Craig, A., Introduction to Mathematical Stat.; and many others.)

Prerequisites

1 course with a minimum grade of C- from (MATH240, MATH461, MATH341); and 1 course with a minimum grade of C- from (MATH340, MATH241).

Recommended: STAT400 or Stat410.


Level of Rigor

Standard


Sample Textbooks

Actuarial Mathematics for Life Contingent Risks, by Dickson

Theory of Interest and Life Contingencies, etc., by M.M. Parmenter


Applications



If you like this course, you might also consider the following courses



Additional Notes


Students may also be interested in the actuarial club.

Topics

Compound interest and present valuation of future income streams

Probability distributions and expected values derived from life tables

Interpolation of probability distributions from values estimated at one-year multiples

"Law of Large Numbers" describing the regular probabilistic behavior of large populations of independent individuals

Detailed calculation of expected present values arising in Insurance problems






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