STAT 470 (Actuarial Mathematics)
| DESCRIPTION |
This course introduces several of the major mathematical
ideas involved
in calculating life insurance premiums. |
| PREREQUISITES |
Math 240 and 241. Some Probability at the level of Stat
400 would be helpful. 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. |
| 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 |
| TEXT |
Text(s)
typically used in this course.
For more detailed syllabus information on this course, click here .
For more information on actuarial science, visit the Actuarial
Mathematics site.
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