Brief Descriptions
of
Actuarial Courses


This document contains brief descriptions of various courses required or recommended in the Actuarial Studies concentration, presented from the perspective of the actuarial program. For official information on these classes, you should see The Undergraduate Catalog of The University of Texas at Austin (and the Course Schedule for information on a particular semester's offerings). For information on the SoA/CAS exams mentioned in the descriptions, see the page on professional exams.

Contained below is information on:

  • Actuarial Foundations classes offered by the Mathematics Department:
  • ACF309 Interest theory
  • Mathematics classes:
  • M408C & D Calculus
  • M311 & 340L Linear algebra
  • M362K Probability
  • M378K & M358K Statistics
  • M339U (= M389U) Actuarial contingent payments I
  • M439J (= M389J) Probability models with actuarial applications
  • M439V (= M389V) Actuarial contingent payments II
  • M349P (= M389P) Actuarial statistical estimates I
  • Business and Economics classes:
  • ACC311-312 Accounting (or the weaker ACC310F Foundations of accounting)
  • ECO304K & L and 320K Economics
  • FIN357 Business finance (or the weaker FIN320F Foundations of finance)
  • FIN367 Investment management
  • RM357E Risk management
  • RM369K Pensions and health & life insurance
  • RM377 Property & casualty insurance
  • Computer programming classes:
  • ASE201 Introduction to computer programming (in C++)
  • CS304P Computer science I
  • MIS304 Introduction to business programming (in C++)


    • Descriptions

  • Actuarial Foundations classes offered by the Mathematics Department:
    ACF309 Interest theory
    This covers the mathematical interest-theory content for SoA/CAS Exam 2, which also examines over economics and finance. Offered spring only, it requires one semester of calculus as a prerequisite. The material is not sophisticated mathematically, but most students find the word problems and the mass of computational formulas challenging. Actuarial students should take this as early as possible in their careers.
  • Mathematics classes:
    M408C & D Calculus
    This covers the standard college sequence on calculus (needed, along with probability, for SoA/CAS Exam 1) for mathematics, science, and engineering students; both classes are offered every semester. Business College students should note that the Business College gladly accepts these as substitutes for the Business Calculus sequence M403K & L, but those Business Calculus classes are not adequate preparation for the actuarial exams or actuarial program. In some cases, students with strong performances in M403K may be allowed to take M408D without M408C.
    M311 & 340L Linear algebra
    Each of these courses by itself covers the linear algebra to help understand the probability and statistics of several variables and is offered every semester; calculus is the prerequisite. M311 is required of Math majors. M311 is taught in classes of about 25, while M340L is taught in classes of about 120. M340L covers more facts about solving problems using linear algebra, while M311 emphasizes understanding the underlying ideas and is restricted to Mathematics majors.
    M362K Probability
    This is the standard college calculus-based course on mathematical probability, and provides adequate coverage in conjunction with M408C & D of the material on the SoA/CAS Exam 1. Its prerequisite is calculus, and this course should be taken early in the career of any actuarial student. It is usually offered every semester.
    M378K & M358K Statistics
    M378K is the standard college course on mathematical statistics, while the new M358K covers much of the same material but with a more applied orientation; both assume a calculus-based probability course (M362K) as a prerequisite. Either provides the introductory statistical background needed by actuaries, and specifically is prerequisite to M349P. Each is usually offered every long semester (and some summer terms).
    M339U = M389U Actuarial contingent payments I
    In conjunction with M439J and M439V, this covers the content of SoA/CAS Exam 3 on actuarial models. Probability (M362K) is a prerequisite, and interest theory (ACF309 is recommended; students that haven't taken ACF309 can easily pick up (from review notes provided) that part of interest theory needed for this class. Topics covered: simulation of random variables; single-status survival models; present-value random variables for life insurance and annuities. Meets with M389U, the corresponding graduate-course number. Offered every fall starting in 1999.
    M439J = M389J Probability models with actuarial applications
    In conjunction with M339U and M439V, this covers the content of SoA/CAS Exam 3 on actuarial models. Probability (M362K) is a prerequisite. Topics covered: Markov chains; Brownian motion; the Black-Scholes formula; frequency- and severity-of-loss random variables; compound distributions; ruin theory. Meets with M389J, the corresponding graduate-course number. Offered every fall starting in 1999.
    M439V = M389V Actuarial contingent payments II
    In conjunction with M339U and M439J, this covers the content of SoA/CAS Exam 3 on actuarial models. M339U is a prerequisite. Topics covered: the mathematics of insurance premiums and reserves; multiple-status survival models; multiple-decrement survival models; applications to such areas as life insurance and property/casualty insurance. Meets with M389V, the corresponding graduate-course number. Offered every spring starting in 2000.
    M349P = M389P Actuarial statistical estimates I
    This covers 40% of the content of SoA/CAS Exam 4 on actuarial modeling, primarily the portion of special interest to property and casualty actuaries. M439J is a prerequisite. Topics covered: statistical estimates for frequency- and severity-of-loss random variables; credibility theory; statistics of simulation. Meets with M389P, the corresponding graduate-course number. Offered every spring starting in 2000.
  • Business and Economics classes:
    ACC311-312 (or 310F) Accounting
    Since an actuary is a business person, a basic knowledge of accounting can be quite useful (although there is no formal actuarial exam on the topic); this is especially true for actuaries working for insurance companies. The two-semester sequence ACC311-312 is required by the Business College for its majors and can be taken by Mathematics majors with the special advising code (available from Professor Daniel) for actuarial Math students. Others must seek special permission from the College of Business Administration or take the weaker non-majors course ACC310F. ACC311-312 is prerequiste to FIN357 (although Math-major actuarial students may substitute ACC310F), and FIN357 covers most of the finance on SoA/CAS Exam 2.
    ECO304K & L and 320K Economics
    Since an actuary is a business person, a basic knowledge of economics can be quite useful; ECO304K & L and 320K together cover most of the economics on SoA/CAS Exam 2.
    FIN357 (or 320F) Finance
    Since an actuary is a business person, a basic knowledge of finance can be quite useful; FIN357 covers most of the finance on SoA/CAS Exam 2. FIN357 is required by the Business College for its majors and can be taken by Mathematics majors with the special advising code (available from Professor Daniel) for actuarial Math students. Others must seek special permission from the College of Business Administration or take the weaker non-majors course FIN320F. The prerequisites for FIN357 are ECO304K & L, ACC311-312, and STA309 (for which M362K may often be substituted).
    FIN367 Investment management
    Since an actuary is a business person, a basic knowledge of investments can be quite useful, and material on investments is covered in some of the advanced actuarial exams. FIN367 can be taken by Mathematics majors with the special advising code (available from Professor Daniel) for actuarial Math students. Its prerequisite is FIN357.
    RM357E Risk management
    This is an excellent non-mathematical introduction to the business side of the risk-management questions that actuaries analyze. It can be taken by Business College students as well as by Mathematics majors that have the special advising code (available from Professor Daniel) for actuarial Math students. Others will have to get special permission from the instructor of RM357E to enroll---which is usually granted for actuarial students.
    RM369K Pensions and health & life insurance
    This course builds on the prerequisite RM357E by examining those practice areas for which the SoA Exams (as opposed to the CAS Exams) are relevant. It can be taken by Business College students as well as by Mathematics majors that have the special advising code (available from Professor Daniel) for actuarial Math students.
    RM377 Property & casualty insurance
    This course builds on the prerequisite RM357E by examining those practice areas for which the CAS Exams (as opposed to the SoA Exams) are relevant. It can be taken by Business College students as well as by Mathematics majors that have the special advising code (available from Professor Daniel) for actuarial Math students.
  • Computer programming classes:
    ASE201 Introduction to computer programming
    This is a course in the fundamentals of programming, usually using C++ or sometimes FORTRAN. Computer skills, including programming, have become a necessity for those seeking entry-level actuarial jobs. Students wishing to stress their programming skills may want to take additional programming classes that teach additional languages such as C or COBOL or FORTRAN. Students should also obtain microcomputer skills with word-processing and spreadsheets.
    CS304P Computer sciences I
    This is a first course in fundamental computer-science concepts and algorithms, using PASCAL or something similar as its programming language. Although practicing actuaries rarely use PASCAL, it is an excellent language in which to learn about programming. And computer skills, including programming, have become a necessity for those seeking entry-level actuarial jobs. Students wishing to stress their programming skills may want to take additional Computer Sciences Department classes, which have CS304P as a prerequisite, or others' classes that teach additional languages such as C or COBOL or FORTRAN. Students should also obtain microcomputer skills with word-processing and spreadsheets.
    MIS304 Introduction to business programming
    This is a course in the fundamentals of programming, using C++. Computer skills, including programming, have become a necessity for those seeking entry-level actuarial jobs. Students wishing to stress their programming skills may want to take additional programming classes that teach additional languages such as C or COBOL or FORTRAN. Students should also obtain microcomputer skills with word-processing and spreadsheets.


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