01522/Actuarial Science


Lower Division Courses

0001. Introduction to Actuarial Science (3 s.h.) F S.

Prerequisite: Mathematics C085/0095 (or equivalent). Co-Requisite: Mathematics 0086/0096 (or equivalent).

In this course, probability theory and its application to insurance and risk management problems are discussed. Among the topics to be covered: counting techniques, conditional probability, Bayes Theorem, discrete random variables, specific discrete distributions such as Binomial, Poisson, Negative Binomial and Uniform, moment generating functions and functions of two random variables.

Mode: Lecture and problem solving.

0061. Basic Actuarial Mathematics (3 s.h.) S.

Prerequisite: Mathematics C085/0095, 0086/0096, 0127, Actuarial Science 0001, Actuarial Science 0262 (or Mathematics 0233), and Risk Management and Insurance 0001/0091 (or equivalents).

This course is an intensive review for the Society of Actuaries Exam P/Casualty Actuarial Society Course 1 exam. Actuarial foundations from calculus-based probability theory are covered, with an emphasis on applications to risk management and insurance.

Mode: Problem solving.

Upper Division Courses

0101. Theory of Interest (3 s.h.) F S.

Prerequisite: Mathematics C085/0095, 0086/0096, and Actuarial Science 0001 (or equivalent courses) with a minimum grade of C in Actuarial Science 0001. Co-Requisite: Mathematics 0127.

In this course, simple, compound and effective interest functions are analyzed and used in the calculation of present value and future values of various investments. Annuities, loan amortization and bonds are discussed and techniques for computing their values at various dates are explored.

Mode: Lecture and problem solving.

W218. Casualty Contingencies (3 s.h.) F. Core: WI.

Prerequisite: Mathematics C085/H095, 0086/H096, 0127, Actuarial Science 0001 and Risk Management and Insurance 0001/0091, Accounting 0001/0091, Accounting 0002/0092 and Junior status.

This highly participative course is designed to broaden perspectives on the business environment in which actuaries work. In addition to analyzing the issues behind daily events, several continuing issues will be analyzed including insurance pricing cycles, regulatory developments, the role of the actuary as an educator, advisor, objective information source and problem solver insurance company financial rating and solvency issues, accounting fraud and questionable financial transactions, insurance and the financial markets managing insurance operations, professional ethics, and the impact of current developments in underwriting, and reinsurance on the actuarial function.

Note: This is the writing-intensive course for Actuarial Science majors. Mode: In addition to homework and exams, there will be significant writing assignments and a major group presentation project.

0262. Actuarial Probability and Statistics (3 s.h.) F S.

Prerequisite: Mathematics C085/0095, 0086/0096, and 0127 (or equivalents) and Actuarial Science 0001.

This course covers the tools for quantitatively assessing risk as presented on Society of Actuaries Exam P/Casualty Actuarial Society Course 1. Topics include: general probability (set functions, basic axioms, independence); Bayes’ Theorem; univariate probability distributions (probabilities, moments, variance, mode, percentiles, and transformations); multivariate probability distributions (joint, conditional, and marginal distributions—probabilities, moments, variance, and covariance); and basic asymptotic results.

Note: This course replaces the Statistics C021 Business Core requirement for Actuarial Science majors.

0305. Actuarial Modeling I (3 s.h.) S.

Prerequisite: Actuarial Science 0101, Actuarial Science 0262 (or Mathematics 0233) and Risk Management and Insurance 0001/0091, with a minimum grade of C in Actuarial Science 0101 and a minimum grade of C in Actuarial Science 0262, or permission of the Program Director.

This course introduces the discrete and continuous random variables measuring the future lifetime of a person. Among the topics covered are: calculation of the mean, variance and probability functions for these random variables, introduction of a present value random variable measuring the present value of a life insurance and annuity benefit, calculation of premiums for life insurance and annuities using interest rates and calculation of reserves for insurance companies, examining future liabilities and inflow.

Mode: Lecture and problem solving.

0306. Actuarial Modeling II (3 s.h.) F.

Prerequisite: Actuarial Science 0305. Co-Requisite: Statistics 0212 (or Mathematics 0234).

This course introduces multiple life functions that require the use of joint probability functions and the calculation of marginal probability distributions. Additional topics include the calculation of mean and variance for these joint random variables and multiple decrement theory. Various topics from Loss Models are also discussed including computation of mixed distributions through compounding of frequency distributions with severity distributions and the calculation of premiums for insurance policies with deductibles, limits and coinsurance.

Mode: Lecture and problem solving.

0316. Actuarial Modeling III (3 s.h.) S.

Prerequisite: Mathematics 0333 and Actuarial Science 0306.

Estimation and fitting of survival, frequency and severity, and compound distribution loss models; credibility methods.

0394. Special Topics (3 s.h.)

Prerequisite: Permission of the Program Director.

Current developments in the field of actuarial science.

0397. Senior Honors Thesis (3 s.h.) F S.

Prerequisite: Approval of instructor and Fox School Honors Director.

Independent research conducted under the supervision of a thesis advisor from the Actuarial Science Department resulting in a substantial piece of original research, roughly 30 to 50 pages in length. Student must publicly present his/her findings at a Temple University Research Forum session or the equivalent.

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