Beginning January 1, 2005, the Society of Actuaries and the Casualty Actuarial Society  introduced new examination systems.  Our program has been changing in response to these changes.  This page contains two sections:

Course offerings -- Course numbers, descriptions, and relationship to the new exams.

Degree requirements -- This includes both the requirements for all degrees in the College as well as for the three actuarial science majors.

Model schedules are found on another page.

Course Offerings

The following courses will be offered by the Department.  Each course is offered in the indicated semester(s).

STAT 131 – Introduction to Probability I – 4 semester hours – Spring and Fall

An introduction to probability concepts, including definition of probability; independence; conditional probability; random variables; specific discrete and continuous probability distributions; multivariate random variables; moments and moment generating functions; functions of random variables; sampling distributions; and central limit theorem. Prerequisites: MATH 100.

Actuarial Exam -- 1/P

STAT 132 – Introduction to Probability II – 3 semester hours – Fall

Continuation of STAT 131. The Poisson process and its relation to the exponential distribution; Classifying and creating discrete and continuous distributions; frequency and severity with coverage modifications; aggregate loss models and ruin theory.  Prerequisite: STAT 131.

Actuarial Exam -- 4/C

STAT 141 – Statistical Modeling and Data Analysis I – 3 semester hours – Spring

Statistical techniques of estimation, both point and confidence intervals; theory of hypothesis tests; goodness-of-fit tests and model selection. Prerequisite: STAT 132.

Actuarial Exam -- 4/C

STAT 142 – Statistical Modeling and Data Analysis II – 3 semester hours – Fall and sometimes Spring

Regression and time series analysis. Specific topics include simple and multiple regression; multicollinearity; heteroscedasticity; diagnostics; forecasting with the regression model; binary and multiple-choice models; autocorrelation; random walks; ARIMA models; minimum mean-square-error forecasts and confidence intervals. Prerequisite: STAT 141 or consent of instructor.

Actuarial Exam -- This is a subject for Validation by Education Experience

Note - ECON 107 - Econometrics may be substituted for STAT 142.

ACTS 140 – Theory of Interest – 4 semester hours – Fall and Spring

Measurement of interest; solution of interest problems; basic and general annuities; yield rates; amortization schedules and sinking funds; bonds; yield curves; duration and immunization; stochastic approaches; derivatives and their use in managing risk. Prerequisite: MATH 70.

Actuarial Exam -- 2/FM

ACTS 150 – Life Insurance Mathematics I – 3 semester hours – Spring

The life table; present value determination for life insurances and annuities; benefit premiums and reserves. Prerequisites: ACTS 140 and STAT 131 and junior standing, or consent of instructor.

Actuarial Exam -- 3L/MLC

ACTS 151 – Life Insurance Mathematics II – 3 semester hours – Fall

Multiple life functions; multiple decrement models; applications to pension plans, insurance models including expenses and profits.  Prerequisite: ACTS 150.

Actuarial Exam -- 3L/MLC

ACTS 160 – Credibility and Simulation – 3 semester hours – Spring

Limited fluctuation and greatest accuracy credibility; empirical Bayes estimation of credibility factors' methods of simulation and their application to evaluating probabilities, the bootstrap, and financial economics.  Prerequisites: STAT 132 and FIN 150.

Actuarial Exam -- 4/C

FIN 150 - Derivatives Mathematics - 3 semester hours - Fall

Option pricing; Black-Scholes formula; delta hedging; exotic options; Brownian motion; and interest rate models.  Prerequisite: ACTS 140 and STAT 131.

Actuarial Exam -- 3F/MFE

Degree Requirements

All students majoring in the College of Business and Public Administration must take the following courses:

ACCT 41 and 42 -- Principles of Accounting I and II
ECON 1 and 2 -- Principles of Macro and Micro Economics
IS 44 -- IT Applications for Business or CS 65 -- Introduction to Computer Science I*
BLAW 60 -- Business Law I
RHET 73 -- Public Speaking
An intensive writing course (ENG 20-99 or JMC 140)
MGMT 110 -- Management Process and Behavior
MGMT 120 -- Management of Operations
MKTG 101 -- Marketing Principles
FIN 101 -- Corporate Finance
IS 101 -- Information Systems in Organizations
BUS 195 -- Business Strategy and Policy

*IS 44 provides an introduction to the Microsoft Office suite of programs as well communicating via e-mail and the web.  Students who already have these skills should bypass this course.  CS 65 is a programming course.  This is an extremely useful skill for actuaries.

All students majoring in the College of Business and Public Administration must also satisfy general education requirements as set forth in the Drake Curriculum.

More information can be found at the Drake Curriculum Home Page

Students selecting one of the actuarial science majors must take:

MATH 50, 70, 100 -- Calculus I-II-III
MATH 80 -- Linear Algebra
FIN 102 -- Advanced Corporate Finance (A Validation by Educational Experience subject)
FIN 150
ACTS 140, 150, 151
STAT 131, 132, 141

Additional requirements for the individual majors are:

Actuarial Science -- Add one of STAT 142, ECON 107, ACTS 160

Accounting/Actuarial Science -- Add ACCT 80, 115, 155, 165, 166, 175.

Actuarial Science/Finance -- Add ECON 105, FIN 193, 197 and two of the following three choices:  FIN 119, 129, one of FIN 170, FIN 190, ECON 174.

Send mail to Stuart Klugman with questions or comments about this web site.
Last modified: June 28, 2001