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.