## Bachelor of Science in Actuarial Science

### General Education Requirements

Students must satisfy the university general education requirements. Many of the courses for the degree may be used to fulfill math proficiency, information literacy, social science, and math and life/natural sciences requirements. There is no foreign language requirement for the degree.

### Satisfactory/Unsatisfactory Option

Courses required for the major may not be taken on a satisfactory/unsatisfactory basis.

### Required Courses

Candidates for the B.S. in Actuarial Science degree must complete a program of 62 credit hours of required courses. Each required course must be completed with a grade of C- or better and students must maintain a GPA of 2.0 for courses required for the degree.

ACCTNG 2400 | Fundamentals of Financial Accounting | 3 |

CMP SCI 1250 | Introduction to Computing | 3 |

ECON 1001 | Principles of Microeconomics | 3 |

ECON 1002 | Principles of Macroeconomics | 3 |

ECON 4100 | Introduction to Econometrics | 4 |

ECON 4120 | Time Series Econometrics for Economics and Finance | 4 |

or ECON 4130 | Business and Economic Forecasting | |

FINANCE 3500 | Financial Management | 3 |

FINANCE 3521 | Financial Engineering: Applying Derivatives | 3 |

FINANCE 3561 | Principles of Insurance | 3 |

INFSYS 2800 | Information Systems Concepts and Applications | 3 |

MATH 1800 | Analytic Geometry And Calculus I | 5 |

MATH 1900 | Analytic Geometry And Calculus II | 5 |

MATH 2000 | Analytic Geometry And Calculus III | 5 |

MATH 1320 | Introduction to Probability and Statistics | 3 |

or ECON 3100 | Economic Statistics | |

MATH 3010 | Financial Mathematics I | 3 |

MATH 3020 | Financial Mathematics II | 3 |

MATH 4200 | Mathematical Statistics I | 3 |

MATH 4210 | Mathematical Statistics II | 3 |

Total Hours | 62 |

### Recommended Courses

Students are strongly encouraged to take as many of the following courses as possible.

CMP SCI 2250 | Programming and Data Structures | 3 |

ECON 3001 | Intermediate Microeconomics | 3 |

ECON 3002 | Intermediate Macroeconomics | 3 |

ECON 4110 | Applied Econometrics | 4 |

ECON 4995 | Internship in Actuarial Science | 1-3 |

or MATH 4995 | ||

MATH 2450 | Elementary Linear Algebra | 3 |

MATH 4260 | Introduction to Stochastic Processes | 3 |

### Certificate in Actuarial Studies

Actuaries use the tools of economics, finance, and mathematics to evaluate and price risk. They are employed by insurance companies, pension funds, consulting firms, and a variety of other financial institutions. The actuarial profession has consistently been ranked as one of the most desirable professions in which to be employed. To become an actuary one must satisfy certain educational requirements, pass exams offered by the Society of Actuaries, and complete professional courses.

The Certificate in Actuarial Studies is designed to provide the education needed for entry level employment in the actuarial profession. Those who complete the certificate will satisfy some of the Validation by Educational Experience requirement of the Society of Actuaries and be prepared to take the first two actuarial examinations (P and FM).

Completion of the certificate requires the following courses. Please note that many of these courses have prerequisites so anyone pursuing the certificate should work carefully with an academic advisor.

#### Required Courses

FINANCE 3500 | Financial Management | 3 |

FINANCE 3521 | Financial Engineering: Applying Derivatives | 3 |

MATH 3010 | Financial Mathematics I | 3 |

MATH 3020 | Financial Mathematics II | 3 |

MATH 4200 | Mathematical Statistics I | 3 |

MATH 4210 | Mathematical Statistics II | 3 |

Total Hours | 18 |

Residency Requirement: Of the above required six courses at least five must be taken at the University of Missouri-St. Louis.

First Year | |||
---|---|---|---|

Fall | Hours | Spring | Hours |

ENGL 1100 | 3 | ECON 1001 | 3 |

INFSYS 1800 | 3 | CMP SCI 1250 | 3 |

INTDSC 1003 | 1 | MATH 1800 | 5 |

MATH 1045 | 5 | CORE - US History & Government | 3 |

CORE - Communication Proficiency | 3 | ||

15 | 14 | ||

Second Year | |||

Fall | Hours | Spring | Hours |

ECON 1002 | 3 | ACCTNG 2400 | 3 |

INFSYS 2800 | 3 | MATH 1320 | 3 |

MATH 1900 | 5 | MATH 2000 | 5 |

EXPLORE - Humanities & Fine Arts | 3 | EXPLORE - Humanities & Fine Arts | 3 |

14 | 14 | ||

Third Year | |||

Fall | Hours | Spring | Hours |

ECON 4100 | 4 | FINANCE 3521 | 3 |

ENGL 3100 or 3120 | 3 | MATH 3020 | 3 |

FINANCE 3500 | 3 | MATH 4200 | 3 |

MATH 3010 | 3 | EXPLORE - Social Sciences | 3 |

EXPLORE - Humanities & Fine Arts | 3 | Cultural Diversity Requirement | 3 |

16 | 15 | ||

Fourth Year | |||

Fall | Hours | Spring | Hours |

ECON 4120 or 4130 | 4 | Recommended course list, elective or minor | 16 |

FINANCE 3561 | 3 | ||

MATH 4210 | 3 | ||

Recommended course list, elective or minor | 6 | ||

16 | 16 | ||

Total Hours: 120 |

## Actuarial Science Program Outcomes

The Actuarial Science Program offers a bachelor of science degree and has identified what students will know and be able to do after completing the program. Explore this page to learn more about the program outcomes.

### Bachelor of Science (B.S.) in Actuarial Science

- Learn basic programming techniques for use in actuarial applications.
- Understand the fundamental concepts of financial mathematics and how those concepts are applied in present and accumulated values for various streams of cash flow.
- Develop the fundamental probability tools for quantitatively assessing risk.
- Use the concepts of statistical inference, such as estimation and hypothesis testing, required for actuarial modeling.
- Become familiar with regression models to analyze and forecast time series data.
- Use economic reasoning to explain individual decision-making and economy-wide outcomes.
- Understand and apply accounting concepts and knowledge of financial instruments and how they are utilized.
- Develop knowledge of the theoretical basis of actuarial models and the application of those models to insurance and other financial risks.

## **Undergraduate Certificate in Actuarial Studies**

- Understand the fundamental concepts of financial mathematics and how those concepts are applied in present and accumulated values for various streams of cash flow.
- Develop the fundamental probability tools for quantitatively assessing risk.
- Use the concepts of statistical inference, such as estimation and hypothesis testing, required for actuarial modeling.
- Understand financial instruments and how they are utilized.

### Accounting

**ACCTNG 2400 Fundamentals of Financial Accounting: 3 semester hours**

Prerequisites: MATH 1030 and completion of 27 credit hours. MATH 1030 may be taken concurrently. This is a one semester course in financial accounting theory and practice. The primary emphasis is on the corporate financial statements of income, financial position and cash flow-their content and interpretation; and the impact of financial transactions upon them.

### Computer Science

**CMP SCI 1250 Introduction to Computing: 3 semester hours**

Prerequisites: MATH 1030 or MATH 1045 with B- or better, or MATH 1100, or MATH 1800, or a 70% on the proctored UMSL ALEKS Math Placement obtained at most one year prior to enrollment in this course. This course provides an introduction to the concepts of computation, problem solving, and computer systems. It covers fundamental programming constructs, basic data types, and modularization using a modern high level language. Problem solving skills are developed through a progression of programming projects.

**CMP SCI 2250 Programming and Data Structures: 3 semester hours**

Prerequisite: CMP SCI 1250. Continuation of CMP SCI 1250. Discusses properties and implementation of abstract data types such as lists, trees, stacks and queues. Introduces procedural and class abstraction, basic program architecture, use of interfaces, modular programming, and file processing.

### Economics

**ECON 1001 Principles of Microeconomics (MOTR ECON 102): 3 semester hours**

Prerequisite: MATH 1030. Introduction to the determinants of household demand, production and cost, and market prices. Applies the principles of individual decision-making behavior to understanding goods, services and resource markets.

**ECON 1002 Principles of Macroeconomics (MOTR ECON 101): 3 semester hours**

Prerequisite: MATH 1030 and ECON 1001. Introduction to the determination of levels of and changes in aggregate income, output, employment and prices. Applies economic principles of choice to the formulation and achievement of public policies that affect national employment, income distribution, and economic growth.

**ECON 3001 Intermediate Microeconomics: 3 semester hours**

Prerequisite: MATH 1030 and ECON 1001. Analysis of prices in terms of equilibrium of the business firm and consumer demand in markets of varying degrees of competition.

**ECON 3002 Intermediate Macroeconomics: 3 semester hours**

Prerequisite: MATH 1030, ECON 1001 and ECON 1002; ECON 3200 is recommended. Study of national income, expenditure and the forces determining the level of economic activity. Special emphasis on the theory of income determination and its application to public policy.

**ECON 4100 Introduction to Econometrics: 4 semester hours**

Prerequisites: ECON 1001 and ECON 1002; ECON 3100 or MATH 1320 or SCMA 3300; MATH 1800 or MATH 1100. An introduction to quantitative analysis of economic behavior. The ordinary least squares technique and the assumptions underlying it are developed. Methods designed to detect and correct for the violations of these assumptions are examined. Special emphasis is given to the practical application of the procedures discussed through the use of computer exercises.

**ECON 4120 Time Series Econometrics for Economics and Finance: 4 semester hours**

Prerequisites: ECON 4100 or equivalent and a solid foundation in statistics. Introduction to application of econometric methods to timeseries data. Emphasis on model specification as it appears to macroeconomic or financial data. Topics include: Stationary and non-stationary time-series, seasonality, random walks, unit roots, Dickey-Fuller tests, cointegration, ARCH/GARCH models, and general to specific modeling (ADLs). Specific applications to macro-economics, international economics and/or financial markets.

**ECON 4130 Business and Economic Forecasting: 4 semester hours**

Prerequisites: ECON 4100 or equivalent. Alternative forcasting methodologies for economic time series will be analyzed and discussed. The focus of the course will be: (1) the development of time-series (ARIMA) models and their application to forcasting; (2) the use of standard econometric models for forecasting; and (3) evaluation and comparison of these methods and the conditions under which each is the appropriate methodology. This course includes laboratory work in quantitative economic analysis.

**ECON 4995 Internship in Actuarial Science: 1-3 semester hours**

Same as MATH 4995. Prerequisites: Junior standing and consent of program director. Supervised off-campus training in a private or public sector position in which the student applies the knowledge and skills learned in their actuarial science coursework. The internship is monitored by a faculty member and the student must provide a written report at the end of the project. This course may be repeated for a maximum of 6 credit hours.

### Finance

**FINANCE 3500 Financial Management: 3 semester hours**

Prerequisites: ECON 1002, MATH 1105, ACCTNG 2400, INFSYS 2800, and a minimum overall GPA of 2.0. The study of a firm's need for funds; the institutions, instruments and markets concerned with raising funds; and the techniques of analysis used to determine how effectively these funds, once raised, are invested within the firm.

**FINANCE 3521 Financial Engineering: Applying Derivatives: 3 semester hours**

Prerequisites: FINANCE 3500. Students engage in a comprehensive investigation of advanced risk management techniques. Futures, forwards, options and synthetic securities are explored to determine their effectiveness in generating the desired risk exposure. A comprehensive study of speculative market conditions and characteristics are assessed in conjunction with a variety of financial innovations. Valuation techniques and hedging theories are combined with mathematical models to determine their effectiveness in practical situations. Special topics are introduced as market conditions dictate. It is recommended that students take Investments (FINANCE 3520) prior to enrolling in FINANCE 3521.

**FINANCE 3561 Principles of Insurance: 3 semester hours**

Prerequisites: FINANCE 3500 and a 2.0 campus GPA. This is a survey course intended to introduce students to the basic concepts of insurance. Topics include the nature of risks, types of insurance carriers and markets, insurance contracts and policies, property and casualty coverages, life and health insurance, and government regulations. The functions of underwriting, setting premiums, risk analysis, loss prevention, and financial administration of carriers are emphasized.

### Information Systems

**INFSYS 2800 Information Systems Concepts and Applications: 3 semester hours**

Prerequisites: INFSYS 1800 or satisfactory performance on proficiency exam. This course provides an overview of the field of information systems including concepts of systems analysis and design, ethics in information systems usage, electronic business, database management, enterprise systems, information security, and JavaScript programming concepts. Business cases will be utilized to illustrate how information systems improve decision-making. Students will also gain valuable strategies for career development and networking.

### Mathematics

**MATH 1800 Analytic Geometry and Calculus I: 5 semester hours**

Prerequisites: MATH 1030 and MATH 1035, or MATH 1040 and MATH 1035, or MATH 1045, or a satisfactory score on the UMSL ALEKS Math Placement Examination, obtained at most one year prior to enrollment in this course, or approval of the department. This course provides an introduction to differential and integral calculus. Topics include limits, derivatives, related rates, Newton's method, the Mean-Value Theorem, Max-Min problems, the integral, the Fundamental Theorem of Integral Calculus, areas, volumes, and average values.

**MATH 1900 Analytic Geometry and Calculus II: 5 semester hours**

Prerequisite: MATH 1800. Topics include conic sections, rotation of axes, polar coordinates, exponential and logarithmic functions, inverse (trigonometric) functions, integration techniques, applications of the integral (including mass, moments, arc length, and hydrostatic pressure), parametric equations, infinite series, power and Taylor series.

**MATH 2000 Analytic Geometry and Calculus III: 5 semester hours**

Prerequisite: MATH 1900. Topics include vectors, cylindrical and spherical coordinates, vector-valued functions, arc length and curvature, functions of several variables, partial and directional derivatives, gradients, extrema, Lagrange multipliers, multiple integrals, change of variables, surface area, vector fields, Stokes' Theorem.

**MATH 1320 Introduction to Probability and Statistics: 3 semester hours**

Prerequisites: MATH 1030 or MATH 1040 or MATH 1045 or consent of the department. The course will cover basic concepts and methods in probability and statistics. Topics include descriptive statistics, probabilities of events, random variables and their distributions, sampling distributions, estimation of population parameters, confidence intervals and hypothesis testing for population means and population proportions, chi-square tests. A student may not receive credit for more than one of MATH 1310, MATH 1320 and MATH 1105.

**MATH 2450 Elementary Linear Algebra: 3 semester hours**

Prerequisite: MATH 1100 or MATH 1900. An introduction to linear algebra. Topics will include complex numbers, geometric vectors in two and three dimensions and their linear transformations, the algebra of matrices, determinants, solutions of systems of equations, eigenvalues and eingenvectors.

**MATH 3020 Financial Mathematics II: 3 semester hours**

Prerequisites: MATH 3010. This course introduces the premium-discount formula for bonds, bond amortization, term structure of interest rates and pricing theory for options.

**MATH 4200 Mathematical Statistics I: 3 semester hours**

Prerequisites: MATH 1320 and MATH 2000. Introduction to the theory of probability and statistics using concepts and methods of calculus.

**MATH 4210 Mathematical Statistics II: 3 semester hours**

Prerequisites: MATH 4200. Continuation of MATH 4200. Sampling distributions, estimation theory, properties of estimators, hypothesis testing, NeymanPearson Theorem, likelihood ratio tests, introduction of analysis of variance and linear models. Basics of some nonparametric procedures.

**MATH 4260 Introduction to Stochastic Processes: 3 semester hours**

Prerequisites: MATH 4200. Basic theory and applications of stochastic processes. Markov chains, recurrent and transient states, stationary distributions, ergodic theorem, renewal processes, discrete martigales and stationary processes.

**MATH 4995 Internship in Actuarial Science: 1-3 semester hours**

Same as ECON 4995. Prerequisites: Junior standing and consent of program director. Supervised off-campus training in a private or public sector position in which the student applies the knowledge and skills learned in their actuarial science coursework. The internship is monitored by a faculty member and the student must provide a written report at the end of the project. This course may be repeated for a maximum of 6 credit hours.