**The Master of Arts program in Actuarial Science requires 32-34 credit hours.**

**Degree Requirements:**

MATH 551- Mathematics of Finance (4)

MATH 552 - Mathematics of LIfe Contingencies 1 (4)

MATH 553 - Mathematics of Life Contingencies 2 (4)

MATH 557 - Actuarial Models 1 (4)

MATH 559 - Models in Financial Economics (3)

MATH 620 - Mathematical Theory of Statistics 1 (4)

MATH 692 - Actuarial Science Exit Survey (0)

**3-8 hours from**

FIN 500 - Corporation Finance (3)

MATH 528 - Regression and Time Series Models (3)

MATH 554 - Mathematics of Investments (3)

MATH 558 - Actuarial Models 2 (3)

MATH 621 - Mathematical Theory of Statistics 2 (4)

MATH 625 - Probability Theory and Applications (3)

MATH 626 - Probability and Stochastic Process (3)

MATH 627 - Generalized Linear Models with Applications (4)

MATH 628 - Computational Methods in Statistics (4)

MATH 655 - Topics in Actuarial Science (1-4)

MATH 658 - Risk Theory (3)

RMI 570 - Risk Management and Insurance (3)

More hours from this list will be required if courses are waived due to undergraduate or actuarial exam credit.

**Research Component 3-6 Hours from:**

MATH 659 - Research Seminar in Actuarial Science (3)

THES 698 - Thesis (1-6)

**Related Links**
Graduate Course Offering Schedule (PDF)

**528 Regression and Time Series Models (3)**

Addresses regression topics that include simple and multiple linear regression, polynomial regression, regression diagnostics, and forecasting. Also introduces time series topics that include exponential smoothing, auto-regressive, integrated, moving average (ARIMA) models, and forecasting.

*Prerequisite: *MATH 321 or the equivalent

*Not open to *students who have credit in MATH 428.

**551 Mathematics of Finance (4)**

Mathematical theory of compound interest, force of interest, annuities, equations of value, yield rates, amortization, sinking funds, bonds, market derivatives, depreciation, and current topics in finance.

*Prerequisite: *MATH 166

*Not open to *students who have credit in MATH 351.

**552 Mathematics of Life Contingencies 1 (4)**

Survival distributions, life tables; the mathematics of life insurance, life annuities, net premiums, and new premium reserves.

*Prerequisite: *MATH 321

*Parallel: *MATH 551

*Not open to *students who have credit in MATH 452.

**553 Mathematics of Life Contingencies 2 (4)**

Mathematics of expense loaded premiums and reserves, asset shares, multiple life functions, multiple decrement models, discrete time Markov Chain models, and simulation.

*Prerequisite: *MATH 552

*Not open to *students who have credit in MATH 453.

**554 Mathematics of Investments (3)**

Mathematical analysis and actuarial principles of investments and asset management.

*Prerequisite: *MATH 320 or MATH 620 and MATH 351 or MATH 551, or permission of the department chairperson.

*Not open to *students who have credit in MATH 454

**557 Actuarial Models 1 (4)**

Loss and frequency distributions, limited expected value, effects of inflation, parametric and non-parametric models, identification procedures for insurance company data, bootstrapping, Bayesian analysis, compund frequency, methods for censored and truncated data, classical and Bayesian credibility models, experience rating.

*Prerequisite: *MATH 321 or MATH 620

*Not open to *students who have credit in MATH 457.

**558 Actuarial Models 2 (3)**

Basic functions related to actuarial models, common parametric models, maximum likelihood estimation for censored or truncated data, nonparametric estimation, hypothesis testing, models with co-variables, simulation, and other topics as time permits.

*Prerequisite: *MATH 321 and MATH 557; one year of mathematical probability and statistics.

*Not open to *students who have credit in MATH 458.

**559 Models in Financial Economics (3)**

Mathematical and economic analysis of financial instruments and the management of financial and investment risk.

*Prerequisite: *MATH 320 or MATH 620 and MATH 351 or MATH 551; or permission of the department chairperson.

**620 Mathematical Theory of Statistics 1 (4)**

Probability set functions, random variables, density and distribution functions, mathematical expectations, marginal and conditional distributions, sampling distributions, and limiting distributions. The mathematical rigor requires a strong background in calculus.

*Prerequisite: *MATH 166 and MATH 215.

**621 Mathematical Theory of Statistics 2 (4)**

Estimation theory and statistical tests of hypothesis. Topics include: classical and Bayesian estimation, sufficiency, completeness, uniqueness, likelihood function, exponential families, Rao-Blackwell Theorem, Rao-Cramer inequality, hypothesis testing, Neyman-Pearson Lemma, likelihood ratio tests, goodness-of-fit, contingency tables, nonparametric tests, distribution of quadratic forms, and correlation and regression, bootstrapping.

*Prerequisite: *MATH 620

**625 Probability Theory and Applications (3)**

Basic probability theory, random variables, conditional probability and conditional expectation, Poisson process, interarrival time, and waiting time distributions.

*Prerequisite: *MATH 166 or equivalent.

**626 Probability and Stochastic Processes (3)**

Discrete and continuous time Markov chains, queuing theory, renewal theory.

*Prerequisite: *MATH 625 or equivalent.

**627 Generalized Linear Models with Applications (4)**

Methods needed to analyze non-normal data. Topics include exponential family of distributions, an overview of generalized linear models. Models for: continuous data with constant variance, binary data, polytomous data, count data, time to events or survival data.

*Prerequisite: *MATH 621 or permission of the department chairperson.

**628 Computational Methods in Statistics (4)**

Theory and application of simulation techniques used in statistics. The use of statistical software such as SAS and R in statistical analysis.

*Prerequisite*: MATH 620 or permission of the department chairperson.

**655 Topics in Actuarial Science (1-4)**

Focuses on advanced studies in actuarial science. Actuarial science uses knowledge from many areas including mathematics, statistics, and finance. It also continually expands its scope to include latest developments from multiple areas. The instructor will have flexibility to determine course content.

*Prerequisite*: permission of the department chairperson

A total of 4 hours of credit may be earned.

**658 Risk Theory (3)**

Individual and collective risk theory. Probabiilty of ruin. Probability distributions of random numbers of random variables.

*Prerequisite: * MATH 552.

**659 Research Seminar in Actuarial Science (3)**

Research study in actuarial subjects of current interest in life, property/casualty, health, pension, and/or financial risk management. Literature searches on selected topics. Articles from research journals may be read and discussed. Will use actuarial skills from several courses. A paper will required. Case studies and special projects will be completed and results presented on a team basis.

*Prerequisite: *MATH 557

*Parallel: *MATH 553

**692 Actuarial Science Exit Survey (0)**

This 0-credit course consists of an exit survey that should be completed by all students who attain an MA in Actuarial Science from Ball State University. The survey will ask students about professional actuarial exams completed prior to graduation, actuarial internships held during their time in the program, and their employment or education plans after graduation.

*Prerequisite: *students will either have completed all course requirements for an MA in Actuarial Science or will complete all requirements by the end of the current semester.

**Finance (FIN)**

**500 Corporation Finance (3)**

Principles underlying the financial management of nonfinancial corporations. Topics include: goals of the firm; financial planning, forecasting, and control; principles of valuation; investment decisions under certainty and uncertainty; captial structure decisions and cost of capital; dividend policy; management of current assets; sources of short-term funds and security law.

*Prerequisite: *admission to a graduate or certification program of the university; ACC 201 or ACC 501 or equivalent.

*Not open to *students who have credit in FIN 300 or equivalent.

**Risk Management and Insurance (RMI)**

**570 Risk Management and Insurance (3)**

Examination of business and individual risk management and insurance, risk financing techniques, enterprise risk management, and additional related topics.

*Prerequisite: *full admission to a graduate or certification program of the university or permission of the department chairperson.

**Thesis (THES)**

**698 Thesis**

This plan requires the candidate to present a thesis embodying the results of a study of some subject directly related to the area of specialization. The thesis must show that the candidate possesses the abilities to pursue a research problem successfully and to draw valid and significant conclusions from the data. The student must have a committee of three faculty members seleced in consultation with the department chairperson.

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Robert Bell Building (RB), room 465

Ball State University

Muncie, IN 47306