• 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
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    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
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  • 2024 Michael Brin Dynamical Systems Prize for Young Mathematicians Awardees

    Math is excited to announce that Francisco Arana-Herrera has been awarded the 5th Michael Brin Dynamical Systems Prize for Young Mathematicians.  The prize was shared between Francisco and Rohil Prasad. Details about eh prize and previous winners can be found at  https://science.psu.edu/math/research/dynsys/dynamical-systems-prize-young-mathematicians Read More
  • UMD Launches Award to Recognize Dual Majors in Computer Science and Mathematics

    Starting Spring 2025, the Grant Family Outstanding Achievement Undergraduate Student Award will recognize graduating seniors excelling in both fields. Link to the article can be read here: https://www.cs.umd.edu/article/2024/11/umd-launches-award-recognize-dual-majors-computer-science-and-mathematics 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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