Math 5030: Actuarial Mathematics

Math 5030: Actuarial Mathematics. Spring '09

Time and place: MWF 11:50-12:40, LCB 222.

Instructor: Stewart Ethier (Prof.), JWB 119, 581-6148, ethier@math.utah.edu. Office hours MWF 10--11, or by appointment.

Prerequisite: Math 5010, Introduction to Probability. In fact, if you did not get at least a B in 5010, you will have trouble with this course.

Text: Actuarial Models: The Mathematics of Insurance, by Vladimir I. Rotar. Available for $71.96 (new) at amazon.com. Available for $95.95 (new) or $71.95 (used) at U. Bookstore.

Aim of course: First, students will be exposed to an interesting and useful area of applied probability, namely actuarial mathematics.

Second, and on a more practical level, students will get partial preparation for the third actuarial exam given by the Society of Actuaries. Exam P is Probability (this should be familiar to you), Exam FM is Financial Mathematics, and Exam M is Actuarial Models (this will be our emphasis). For complete information and syllabi for these exams, go to the Society of Actuaries. We will emphasize route 1 (for a one-semester course) in the text, but students who plan to take Exam M should study routes 1 and 2 (for a two-semester course).

Homework: Weekly assignments will be given. Work should be done independently of the other students. Assignments will be posted Fridays on this page. They will be due the following Friday. Answers (but not complete solutions) can be found in the book.

Grades: There will be a midterm exam at a time to be announced. Grades will be based on homework (30%), midterm (30%), and final exam (40%).

Week 1 (Jan. 12--16). We're following Route 1 in the book, and we got to page 83. Assignment for next week: Chapter 1, Exercises 1, 2, 4.
Week 2 (Jan. 21--23). We got through Section 3.4.1 of Chaper 1. Assignment for next week: Chapter 1, Exercises 13, 17, 59.
Week 3 (Jan. 26--30). We got through Section 1.2 of Chapter 2 (p. 147). Assignment for next week: Chapter 2, Exercises 9, 11, 13.
Week 4 (Feb. 2--6). We finished Section 2.2 (p. 165). Assignment for next week: Chapter 2, Exercises 20, 25, 27.
Week 5 (Feb. 9--13). We finished Chapter 3 (section 1 only). Assignment for next week: Chapter 3, Exercises 6, 11, 12.
Week 6 (Feb. 18--20). We got to page 245. Assignment for next week: Chapter 4, Exercises 6, 21, 27.
Week 7 (Feb. 23--27). We finished Chapter 4 and started Chapter 5. Assignment for next week: Chapter 4, Exercises 31, 33, 34. Also, prepare for midterm exam on Route 1, Chapters 1--4.
Week 8 (Mar. 2--6). We got to about page 280. Assignment for next week: Chapter 5, Exercises 9, 15, 18. (This may require Monday's lecture.)
Week 9 (Mar. 9--13). We got through Section 2.1 of Chapter 7. Assignment for next week: Enjoy the Spring break. Remember, no class Monday, March 23.
Week 10 (Mar. 25--27). We got through Chapter 7, Section 2.4.2, p. 386. Assignment for next week: Chapter 7, Exercises 9, 13, 14.
Week 11 (Mar. 30--Apr. 3). We got to Section 1.5 in Chapter 8. Assignment for next week: Chapter 8, Exercises 12, 17, 22. (Number 22 might require Monday's lecture.)
Week 12 (Apr. 6--10). We gave an overview of Section 2 of Chapter 9, and will give the details next week. Assignment for next week: Chapter 9, Exercises 14, 21, 24. (You will likely need Monday's lecture for these.)
Week 13 (Apr. 13--17). We started Chapter 10, getting to about page 509. Last assignment, due Apr. 27: Chapter 10, Exercises 1, 27, 31.
Week 14 (Apr. 20--24). We started Chapter 11, getting to about page 543. No new assignments.
Week 15 (Apr. 27--29). We finished Chapter 11 (Route 1 only). Final exam, Friday, May 1, 10:30--12:30. You may bring two crib sheets. You will need a calculator.

Extra credit problem: Complete the Life Table by filling in this spreadsheet. Do not just enter numbers, but rather enter formulas. Due Mon. Apr. 13 as an .xls file.