• Four Science Terps Awarded 2025 Goldwater Scholarships

    Four undergraduates in the University of Maryland’s College of Computer, Mathematical, and Natural Sciences (CMNS) have been awarded 2025 scholarships by the Barry Goldwater Scholarship and Excellence in Education Foundation, which encourages students to pursue advanced study and research careers in the sciences, engineering and mathematics.  Over the last 16 years, UMD’s nominations Read More
  • Announcing the Winners of the Frontiers of Science Awards

    Congratulations to our colleagues who won the 2025 Frontiers of Science Award: - Dan Cristofaro-Gardiner, for his join paper with Humbler and Seyfaddini: “Proof of the simplicity conjecture”, Annals of Mathematics 2024. - Dima Dolgopyat & Adam Kanigowski, for their joint paper with Federico Rodriguez Hertz: “Exponential mixing implies Bernoulli”, Annals of Mathematics Read More
  • 2024 Putnam Results

    We are very excited to report that our MAryland Putnam team ranked 7th among 477 institutions that participated in the 2024 Putnam math competition. Our team members this year were Daniel Yuan, Isaac Mammel, and Clarence Lam. Daniel Yuan ranked 26th among 3,988 participants. Clarence Lam and Isaac Mammel were recognized for Read More
  • From Math Olympiads to Diplomacy: Meet Visiting Math Professor Qendrim Gashi

    Maryland Global, published a great interview with our visiting professor (and diplomat), Qendrim Gashi. The interview is available at https://marylandglobal.umd.edu/about/news/math-olympiads-diplomacy-meet-visiting-math-professor-qendrim-gashi Read More
  • Eugenia Brin, Longtime Supporter of Science and Performing Arts at UMD, Dies

    Eugenia Brin, a Russian immigrant and retired NASA scientist who, with her family of accomplished Terps, became an important benefactor of the University of Maryland, died on Dec. 3, 2024. She was 76 years old. The rest of the article can be read here: https://cmns.umd.edu/news-events/news/eugenia-brin-1948-2024 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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