This is a list of all courses offered by the Math Department.  Not all courses are offered each year.  What is provided is a general description of the courses and the prerequisites.  The actual content may vary.

Offered Course List Archived Courses

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


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