Item 6
Attachment
3A
Date:
January 3, 2013
TO:
Faculty Executive Committee
Attention: Michael Meranze, Chair of the College Faculty Executive Committee
College of Letters & Science
A-265 Murphy Hall
FROM:
Dimitri Shlyakhtenko, Chair
Robert F. Brown, Undergraduate Studies Vice-Chair
Department of Mathematics
6356 Mathematics Sciences Building
155505
RE:
Establishing the Financial Actuarial Mathematics major from the Actuarial Plan
in the Mathematics/Applied Science major.
The Actuarial Plan within in the Mathematics/Applied Science major has existed and thrived
since 1979. By our estimates, there have been at least 600 students who have taken our actuarial
courses since 2000. Our recent graduates have either entered into the work force or continued
their education at top financial mathematical programs such as Cornell University, Carnegie
Mellon University, New York University and UCLA. As the actuarial field evolves and the
demand in the major have increased in recent years, the Mathematics Department requests the
FEC to approve this concentration as an official pre-major and major, thus giving the students
due credit on their diploma and expanding UCLA’s prominence in this important professional
field.
The goal of changing the Actuarial Plan into a certified major has been discussed among the
department’s faculty for many years. There was a period of hesitation to move forward with the
process due to budget cuts and staffing concerns. With the recent surge of student interest in the
topic, the eager involvement of professionals in the field, and positive feedback from recent
graduates in the current academic plan, the undergraduate vice-chair, Dr. Robert Brown, decided
to spearhead the process by first introducing the idea to the Mathematics Department’s
Undergraduate Studies Committee in fall 2011. With the committee’s unanimous support, Dr.
Robert Brown and Dr. Sorin Popa, the chair of the Mathematics Department at the time,
presented the proposal to Dr. Joseph Rudnick, Dean of the Physical Sciences, in winter 2012.
Dean Rudnick has expressed his support for the development of this new major to both past and
present chairs of the Mathematics Department.
The Department of Mathematics is requesting the approval for the application to establish the
Financial Actuarial Mathematics premajor and major. We request these changes to be effective
in fall 2013. The proposal for establishing the Financial Actuarial Mathematics major was
presented and unanimously approved in the annual department’s faculty retreat in September
2012.
Page 1 of 24
Item 6
PROPOSAL FOR A NEW UNDERGRADUATE DEGREE PROGRAM
Bachelor of Science Program in Financial Actuarial Mathematics
Submitted by the Mathematics Department: Dimitri Shlyakhtenko, Chair; Robert Brown,
Undergraduate Vice Chair; Loong Kong, Assistant Adjunct Professor and Director of the Actuarial
Program on January 3, 2013.
PROPOSAL TABLE OF CONTENTS
Section
Page Number
Section 1: Introduction and Rationale for New Degree . . . . . . . . . . . . . . . . . . .
1
Section 2: Program Requirements/Catalog Copy . . . . . . . . . . . . . . . . . . . . . . .
6
Section 3: Academic Staff and Organizational Structure . . . . . . . . . . . . . . . . .
13
Section 4: Proposed Courses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Section 5: Resource Requirements and Enrollment Plan . . . . . . . . . . . . . . . . .
14
Section 6: Changes in Senate Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Section 7: Library Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Enclosures:
1. Letter of Support: Dean of Physical Science
2. Letter of Support: Chair of Economics
3. Letter of Support: Chair of Anderson’s School of Management
4. Letter of Support: Chair of Statistics
Page 2 of 24
Item 6
Section 1: Introduction and Rationale for New Degree
(1) Objectives of the program
The Bachelor of Sciences in Financial Actuarial Mathematics will focus on the actuarial field.
However, the proposed curriculum will not only give students a solid foundation to pass the first five
preliminary exams required to become a certified actuary, but it will also allow them to enter other
mathematics related fields that require a strong understanding of economics, mathematics, and/or
statistics. The program will offer students a solid, quantitatively oriented background for employment
as actuaries or in fields such as Economics, Finance, Applied Mathematics and Statistics.
(2) History of the program
Ira L. Boyle graduated with honors from UCLA in 1972 with a Bachelor of Science in
mathematics. In 1978, he was faced with the difficulty of recruiting actuarial students to work for
Occidental Life Insurance Company (now Transamerica) located in downtown Los Angeles. That was
when Boyle approached Professor Ronald Meich, the mathematics department’s vice-chair at that time,
about offering actuarial science courses at UCLA. Together they began a training program for
actuaries using courses offered through the Department of Mathematics in May, 1979 by establishing
the Actuarial option under the Mathematics/Applied Sciences major.
Upon his death in 1993, Transamerica Life Companies established the Ira Boyle Transamerica
Scholarship in 1996 that would annually give an award to an outstanding student in the UCLA
Actuarial Program for a period of ten years. In 1997, the Ira L. Boyle Endowment for Actuarial
Science and Mathematics was established with income to be used for the purchase of books,
periodicals, and other library resources in actuarial studies and related areas in applied mathematics for
the Engineering and Mathematical Sciences Library.
During the 1990’s, even with the generous monetary support of the Boyle Family, the program
was dormant due to the lack of qualified instructors. All that changed in 2000, when Assistant Adjunct
Professor Loong Kong, Fellow of the Society of Actuaries, was appointed as Director of the Actuarial
Science Program. Under Kong’s tenure, the program has steadily gained strong student interests and
has grown substantially in the last few years.
Due to the program’s recent popularity and demand for more courses, the Ira and Patty Boyle
Endowed Actuarial Science Fund was established in 2008 with income to be used for the expansion of
the Actuarial Science Program and related high priority needs. It was also around this time that the
Actuarial Club (now the Bruin Actuarial Society) gained momentum in developing professional
networking relationship with local and national companies. Each year, the Society hosts several events
that involve various consulting and insurance companies’ participation. An example is the annual
career fair where companies come directly to UCLA to recruit and interview students for employment
and internship. To further strengthen the ties between the program and its stakeholders, the Actuarial
Advisory Council was formed in 2009 that consists of faculty, donors and various company
representatives.
(3) Timetable for the development of the program
Since all the necessary courses, faculty and staff support are already available within the
departments of Mathematics, Economics, Management and Statistics, the program can enroll students
as soon as it is approved. The department would like the formal announcement of the degree program
to appear in the 2013-2014 UCLA General Catalog.
1
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Item 6
(4) Relationship to existing programs
At present, there is an “Actuarial Plan” option for the Mathematics/Applied Science major
offered by the Mathematics Department that would be replaced by the proposed Financial Actuarial
Mathematics degree program. Because this program requires students to learn a fair amount of
mathematics, finance, economics and statistics, it should attract a number of students who would have
to double or triple major in order obtain a solid foundation in these areas. Students who graduate from
this program would be qualified to continue on in a graduate study in Actuarial Science, Economics,
Statistics, Business and/or Finance.
(5) Opportunities for placement of graduates
There has been a lack of qualified employees on the west coast for actuary companies to hire
since the late 1970’s. As popular as the field has become, because the west coast does not have major
insurance company headquarters, there has been a lack of well-established educational programs west
of the central United States. Since the 1990’s, UCLA’s Actuarial Plan has been maybe one of three
actuarial programs on the west coast. Though we cannot lay claim to being the first UC to establish
the Actuarial major (UCSB beat us to it about two years ago), we can, however, boast that our program
is much better established. Our program’s actuarial courses have always been taught by certified
actuarial professionals who are either still working as an actuary or recently retired from it. Though
our major course proposal gives students the option of exploring their foundational knowledge in other
areas of discipline, they also have the option of focusing their courses on those offered by the
Mathematics Department.
The attendance at our annual career fair is a good indicator of student and local company
interests in the field and program. In the last five years, the number of companies who have come to
recruit our students have grown from a handful to 16 companies. Non-mathematics majors have joined
the Bruin Actuarial Society because of their strong networking opportunities and educational
information sessions that are held several times throughout the quarter. We even have records of nonUCLA students attending some of our events because their home institution does not have an
established program such as ours or because we offer them more opportunities.
It is not just insurance companies or consulting firms that are interested in our actuarial
graduates. An important feature of our program is that it does not restrict students to only one industry
when they graduate. Many of our students have found employment in the business/financial industry
or have moved onto Masters or PhD programs . The preparation provided by this program would also
be ideal for students applying to an actuarial or economics Ph.D. program and/or finance programs in
management schools.
(6) Need for the new program
The increased interest in the actuarial field is demonstrated by the graduation statistics for the
last five years (Figure 1). Students, however, are not required to be any particular major in order to
work in the field as long as they pass the actuarial exams. Hence, a better indicator of student interest
in the field is the number of students enrolled in the department’s actuarial classes (Math 172ABC)
(Figure 2) because the syllabi of our actuarial courses closely follow those for the underlying actuarial
exams.
2
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Item 6
Actuarial Plan Graduation Rate (2008-2012)
45
42
40
34
Number of Students
35
30
25
20
16
16
16
2008
2009
2010
15
10
5
0
2011
2012
Year
Figure 1
Enrollment in Actuarial Courses (2008-2012)
180
168
Number of Students
160
142
140
120
135
111
100
80
69
60
40
20
52
61
42
39
38
18
20
2008
2009
14
0
172A
2010
2011
2012
Year
172B 172C
Figure 2
3
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Item 6
As UCLA continues to increase the enrollment of non-California residents, we have observed
an interesting trend in our demographic statistics for the major that suggest there is a strong
international interest in the program (Figure 3). And even though there are many well-established
actuarial programs in the central and eastern United States, students from all around the nation and
different countries have chosen the UCLA program. This recent interest in the actuarial program has
motivated the department to expand our course offerings in this field this academic year (i.e., Math
173AB - Casualty Loss Models I & II).
US Citizen vs. International Students
Number of Students
who Graduated
25
20
15
10
5
23
22
13
11
5
12
19
12
3
4
2008
2010
0
2008
2011
2012
Year
US
International
Figure 3
(7) Student demand for the program.
About 50 students a year graduate in the Mathematics/Applied Sciences major, almost all of
them in the Actuarial Plan. When the more popular mathematics based actuary courses (i.e., Math 172
series) are offered by popular instructors, total enrollment can reach more than 140 students. Most of
these students are already declared in the Actuarial Plan, Mathematics/Economics or Statistics major.
There are many more students who have taken the course and pursued the actuary profession without
obtaining a mathematics degree.
The student’s interests and demands for the actuarial field are illustrated by the following facts:
A.) A few years ago, the Mathematics Department established a reimbursement
program that would pay for the cost of the actuarial exams if the students passed.
Due to its huge success with respect to the number of students passing the exams
(some were even non-mathematics majors and/or graduate students) and requesting
the reimbursement, the program had to be discontinued because it was too
expensive.
B.) As of the 2012 school year, there are 187 members in the Bruin Actuarial Society.
60 of these members have passed one or more exams.
C.) This past fall, 16 companies participated in our fourth annual career fair. Four years
ago, there are only a handful of companies that participated.
D.) In the 2009-2010 school year, a second instructor joined the actuarial teaching staff
in order to allow the program to grow. In previous years, Professor Kong taught a
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Item 6
class of more than 60 students by himself, for two to three quarters a year, compared
to our normal upper division capacity of 40 students. By the 2012-2013 school
year, four additional instructors (all are Fellows of the Society of Actuaries) were
recruited to join the teaching staff and two additional courses were offered in order
to insure the quality of learning environment by keeping upper division courses to
normal size and the topics relevant. (By comparison, in the 1999-2000 school year,
only one section of the two actuarial courses were taught by one instructor.)
(8) Importance to the discipline
The continued development of finance and actuarial science depends on the training of talented
individuals, especially those with strong mathematical interests. As natural disasters continue to wreak
havoc on our lives and properties annually and presidential administration try to tackle the conundrum
of health care and pensions, there is always a need for well-qualified employees. UCLA, with its
highly qualified undergraduate body, should be an important source to satisfy such needs with one of
the nations’ top faculties and researchers educating the pool of candidates.
(9) Meeting the needs of society
Mathematically competent actuaries, with bachelor’s and advanced degrees are needed in the
industry and government. A well rounded knowledge of econometric techniques, models of pricing of
financial assets, actuarial models, and statistical modeling and prediction are skills which are highly
valued and useful to society. The proposed degree offers the appropriate education for these purposes.
(10)
Relationship to research interests of the faculty
Our Financial Actuarial Mathematics program can offer many departments well-qualified
student for their area of research. With their technical background of mathematics and programming,
students in the major can contribute to the Economics and Statistics Department’s faculty. These
faculties include members who are interested in mathematical finance, computer simulation of
economic phenomena, econometric, statistical modeling and predications, business analysis and other
aspects of actuarial mathematics.
(11)
Plans for assessment and evaluation
The Mathematics Department will be actively involved in assessing, evaluating, and improving
the operation of the Financial Actuarial Mathematics program. Improving the quality of the courses
relevant to the Actuarial profession is a major goal of this program. In addition, the Actuarial
Advisory Council, independent of the department, will continue to find new ways to improve the status
and relevancy of our program with respect to the standards of the Society of Actuaries and the
Casualty Actuarial Society.
These two entities are the ones that set the standards in the actuarial industry to recognize
individuals as the leading professionals in the modeling and management of financial risk and
contingent events. Hence, students who pass through the Financial Actuarial Mathematics program
can continue to be given professional designations by the Societies by completing a rigorous system of
examinations (topics that cover core mathematics related to actuarial science including probability,
statistics, interest theory, life contingencies, and risk models) along with earning credit by passing
approved college courses with a B- or better grade.
5
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Item 6
On the academic side, the faculty of the Mathematics Department is committed to making sure
the Financial Actuarial Mathematics program continues to be in compliance with the learning
outcomes that were proposed in 2010:
“The Mathematics/Applied Science major is designed for students with a substantial interest in
mathematics and its applications to a particular field. [In particular], Students majoring in this
[Actuarial] plan often pursue careers in actuarial science.
1.) They should have a strong mathematical content knowledge of single and multivariable differential and integral calculus and differential equations.
2.) They will be familiar with linear algebra, techniques of proof and the foundations
of real analysis.
3.) They will be able to perform basic computer programming, especially in C++”.
The first three points are in line with the rest of our mathematics majors. To reflect the changes
we are proposing to make from the plan to the major, the fourth point will be revised from: “They will
be able to pass the Society of Actuary Probability exam and be familiar with basic statistical analysis
(probability distributions, random variables, survey sampling, testing, data summary, sums of squares
principle, testing general linear hypothesis in regression, inference procedures)” to “They will be able
to pass at least the first four preliminary Society of Actuary exams and be familiar with basic statistical
analysis (probability distributions, random variables, survey sampling, testing, data summary, sums of
squares principle, testing general linear hypothesis in regression, inference procedures)”. This minor
change demonstrates our goal of maintaining academic excellence while producing students who are
able to meet industry standards above and beyond the minimum requirements.
Section 2: Program Requirements/Catalog Copy
(1) Preparation for the major
The following 12 proposed courses for the preparation of the major requirements total 54.0
units (all courses are 4.0 unless otherwise specified). Students must: (1) achieve grades of
C or better in all premajor mathematics sequenced courses (Mathematics 31A, 31B, 32A,
32B, 33A, 33B, Program in Computing 10A) with a minimum 2.5 grade-point average and
no more than two repeats and (2) achieve grades of C or better in all premajor economics
courses (Economics 1, 2, 11, Management 1A, 1B,) with a minimum 2.5 grade-point
average and no more than one repeat.
Mathematics Sequenced Courses:
Mathematics 31A (Differential and Integral Calculus)
Mathematics 31B (Integration and Infinite Series)
Mathematics 32A (Calculus of Several Variables - Differential Calculus)
Mathematics 32B (Calculus of Several Variables - Integral Calculus)
Mathematics 33A (Linear Algebra and Applications)
Mathematics 33B (Differential Equations)
Programming in Computing 10A (Introduction to Computers and Computing) –
5.0 units
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Item 6
Economics Courses:
Economics 1 (Principles of Economics – Microeconomics)
Economics 2 (Principles of Economics – Macroeconomics)
Economics 11 (Microeconomic Theory)
Management 1A (Principles of Accounting)
Management 1B (Principles of Accounting)
(2) Major
The following 11 proposed courses for the major requirements total 45.0 units. To
graduate, the eight mathematics courses must be completed with an overall grade-point
average of 2.0, with grades of C– or better in Mathematics 115A and 131A, as must the
three courses from the economics courses.
Mathematics Courses:
Mathematics 115A (Linear Algebra) – 5.0 units
Mathematics 131A (Analysis)
Mathematics 170A (Probability Theory) or Statistics 100A (Introduction to
Probability)
Mathematics 170B (Probability Theory) or Statistics 100B (Introduction to
Mathematical Statistics)
Mathematics 174A (Financial Economics for Actuarial Students) or
Mathematics 174E (Mathematics of Finance for Mathematics/Economics
Students) or Economics 141 (Topics in Microeconomics: Mathematical
Finance) or Statistics C183 (Statistical Models in Finance)
Mathematics 172A (Introduction to Financial Mathematics)
One two-term actuarial sequence chosen from:
Life Contingency Actuarial Models:
Mathematics 172B (Actuarial Models I)
Mathematics 172C (Actuarial Models II)
Or Casualty Loss Models:
Mathematics 173A (Casualty Loss Models I)
Mathematics 173B (Casualty Loss Models II)
Economics Courses:
Three upper division actuarial, statistics or economics courses chosen from Mathematics 172B
– Mathematics 173B, Statistics 100C, Economics 101 – 199B
7
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Item 6
(3) Catalog Copy
UCLA General Catalog 2012-13
strikethrough to be deleted
Undergraduate Majors
Proposed changes to the text in the next catalog
underlined to be added
Undergraduate Majors
The department offers five majors:
Mathematics, Applied Mathematics,
Mathematics of Computation,
Mathematics/Applied Science, and Mathematics
for Teaching. The department also participates
in the Mathematics/Economics
Interdepartmental Program, which offers a
Mathematics/Economics major, and in the
Mathematics/Atmospheric and Oceanic
Sciences Interdepartmental Program, which
offers a Mathematics/Atmospheric and Oceanic
Sciences major.
The department offers six majors: Mathematics,
Applied Mathematics, Mathematics of
Computation, Financial Actuarial Mathematics,
Mathematics/Applied Science, and Mathematics
for Teaching. The department also participates
in the Mathematics/Economics
Interdepartmental Program, which offers a
Mathematics/Economics major, and in the
Mathematics/Atmospheric and Oceanic
Sciences Interdepartmental Program, which
offers a Mathematics/Atmospheric and Oceanic
Sciences major.
The Mathematics major is designed for students
whose basic interest is mathematics; the Applied
Mathematics major for those interested in the
classical relationship between mathematics, the
physical sciences, and engineering; the
Mathematics of Computation major for
individuals interested in the mathematical theory
and the applications of computing; the
Mathematics/Applied Science major for those
with substantial interest in the applications of
mathematics to a particular outside field of
interest; and the Mathematics for Teaching
major for students planning to teach
mathematics at the high school level. As part of
the Mathematics/Applied Science major, the
department offers programs for students
interested in the fields of actuarial science,
mathematics/history of science, and medical and
life sciences.
The Mathematics major is designed for students
whose basic interest is mathematics; the Applied
Mathematics major for those interested in the
classical relationship between mathematics, the
physical sciences, and engineering; the
Mathematics of Computation major for
individuals interested in the mathematical theory
and the applications of computing; the Financial
Actuarial Mathematics for students interested in
working in the actuarial field or the application
of mathematics, finance, and statistics; the
Mathematics/Applied Science major for those
with substantial interest in the applications of
mathematics to a particular outside field of
interest; and the Mathematics for Teaching
major for students planning to teach
mathematics at the high school level. As part of
the Mathematics/Applied Science major, the
department offers programs for students
interested in the fields of mathematics/history of
science and medical and life sciences.
Each course taken to fulfill any of the
requirements for any of the mathematics majors
must be taken for a letter grade.
Each course taken to fulfill any of the
requirements for any of the mathematics majors
must be taken for a letter grade.
The Mathematics for Teaching major is a
designated capstone major. In their senior year
students complete a year-long course sequence
The Mathematics for Teaching major is a
designated capstone major. In their senior year
students complete a year-long course sequence
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Item 6
that culminates in a model lesson presentation,
paper, and portfolio. Through their capstone
work, students demonstrate their familiarity
with research and current issues in mathematics
education, as well as their capacities to problem
solve; reason quantitatively, geometrically, and
algebraically; construct viable arguments;
critique others’ reasoning; and use tools
strategically.
that culminates in a model lesson presentation,
paper, and portfolio. Through their capstone
work, students demonstrate their familiarity
with research and current issues in mathematics
education, as well as their capacities to problem
solve; reason quantitatively, geometrically, and
algebraically; construct viable arguments;
critique others’ reasoning; and use tools
strategically.
Financial Actuarial Mathematics B.S.
Financial Actuarial Mathematics Premajor
Students entering UCLA directly from high
school or first-term transfer students who want
to declare the Financial Actuarial Mathematics
premajor at the time they apply for admission
are automatically admitted to the premajor.
Current UCLA students need to file a petition
with the Undergraduate Advising Office in 6356
Math Sciences. All students are identified as
Financial Actuarial Mathematics premajors until
they satisfy the following minimum
requirements for the major: (1) achieve grades
of C or better in all premajor mathematics
sequenced courses (Mathematics 31A, 31B,
32A, 32B, 33A, 33B, Program in Computing
10A) with a minimum 2.5 grade-point average
and no more than two repeats, (2) achieve
grades of C or better in all premajor economics
courses (Economics 1, 2, 11, Management 1A,
1B) with a minimum 2.5 grade-point average
and no more than one repeat, and (3) file a
petition to declare the major before completing
160 quarter units.
Preparation for the Major
Required: Mathematics 31A, 31B, 32A, 32B,
33A, 33B, Program in Computing 10A,
Economics 1, Economics 2, Economics 11,
Management 1A, Management 1B. Each course
must be taken for a letter grade. The economics
preparation for the major courses (Economics 1,
2, 11, Management 1A, 1B) are calculated
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Item 6
separately from the mathematics preparation for
the major courses (Mathematics 31A, 31B, 32A,
32B, 33A, 33B, Program in Computing 10A).
The economics preparation courses must be
completed with a minimum overall 2.5 gradepoint average and a grade of C or better in each
course, as must the mathematics preparation
courses.
Repetition of more than one economics
preparation course, more than two mathematics
preparation courses, or of any economics or
mathematics preparation course more than once
results in automatic dismissal from the major.
Freshman Students
Students must petition to declare the Financial
Actuarial Mathematics major and can do so
once they have complete all of the mathematics
sequenced courses, all of the economics
preparation courses and submit an application to
enter the major before completing 160 quarter
units. Admission into the major is based on
student academic performance on the minimum
requirements.
Transfer Students
Transfer applicants to the Financial Actuarial
Mathematics major with 90 or more units must
complete as many of the following introductory
courses as possible prior to admission to UCLA:
two years of calculus for majors, one C++
programming course, one microeconomic theory
course, one macroeconomics course and two
quarters of accounting principle.
Transfer credit for any of the above is subject to
department approval; consult an undergraduate
counselor before enrolling in any courses for the
major.
Refer to the UCLA Transfer Admission Guide
at
http://www.admissions.ucla.edu/prospect/adm_t
r.htm for up-to-date information regarding
transfer selection for admission.
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Item 6
The Major
Required: Eight mathematics/statistics courses,
including 115A, 131A, 170A or Statistics 100A,
170B or Statistics 100B, 174A (or 174E or
Economics 141 or Statistics C183), 172A; one
two term sequence from the following
categories: Life Contingency Actuarial Models
– courses 172B and 172C, or Casualty Loss
Models – courses 173A and 173B; three courses
from 172B through Math 173B, Statistics 100C,
and Economics 101 through 199B. Each course
must be taken for a letter grade. Transfer credit
is subject to department approval; consult an
undergraduate counselor before enrolling in any
courses for the major.
To graduate, the eight Mathematics Department
courses must be completed with an overall
grade-point average of 2.0, with grades of C– or
better in Mathematics 115A and 131A, as must
the three courses from the Economics
Department.
It is strongly recommended that students take
Mathematics 115A as one of their first upper
division courses for the major.
Mathematics/Applied Science B.S.
Mathematics/Applied Science B.S.
The Mathematics/Applied Science major is
designed for students with a substantial interest
in mathematics and its applications to a
particular field. It is an individual major in that
students, in consultation with a faculty adviser,
design their own program. They may also select
one of the established programs: actuarial plan,
mathematics/history of science plan, or medical
and life sciences plan. In the past,
Mathematics/Applied Science majors have
combined the study of mathematics with fields
such as atmospheric and oceanic sciences,
biochemistry, biology, chemistry, economics,
geography, physics, psychology, and statistics.
The Mathematics/Applied Science major is
designed for students with a substantial interest
in mathematics and its applications to a
particular field. It is an individual major in that
students, in consultation with a faculty adviser,
design their own program. They may also select
one of the established programs:
mathematics/history of science plan or medical
and life sciences plan. In the past,
Mathematics/Applied Science majors have
combined the study of mathematics with fields
such as atmospheric and oceanic sciences,
biochemistry, biology, chemistry, economics,
geography, physics, psychology, and statistics.
Students interested in designing an individual
program should meet with the undergraduate
adviser, 6356 Math Sciences, during their
Students interested in designing an individual
program should meet with the undergraduate
adviser, 6356 Math Sciences, during their
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Item 6
sophomore year. A proposed program is drawn
up, then forwarded to the mathematics/applied
science curriculum committee for approval. All
programs must include the following
preparation for the major and major courses.
sophomore year. A proposed program is drawn
up, then forwarded to the mathematics/applied
science curriculum committee for approval. All
programs must include the following
preparation for the major and major courses.
Actuarial Plan
Preparation for the Major
Required: Mathematics 31A, 31B, 32A, 32B,
33A, 33B, Economics 1, 2, 11, Program in
Computing 10A. Each course must be taken for
a letter grade. The economics preparation for
the major courses (Economics 1, 2, 11) are
calculated separately from the mathematics
preparation for the major courses (Mathematics
31A, 31B, 32A, 32B, 33A, 33B, Program in
Computing 10A). The economics preparation
courses must be completed with a minimum
overall 2.5 grade-point average and a grade of C
or better in each course, as must the
mathematics preparation courses.
Repetition of more than one economics
preparation course, more than two mathematics
preparation courses, or of any economics or
mathematics preparation course more than once
results in automatic dismissal from the major.
The Major
Required: Seven mathematics courses,
including Mathematics 115A, 131A, 170A,
170B, 172A, 172B, 172C; four outside courses,
including Mathematics 174A (or 174E or
Economics 141 or Statistics C183), Statistics
100B, 100C, and one course from Economics
101 through 199B. Each course must be taken
for a letter grade. Transfer credit is subject to
department approval; consult an undergraduate
counselor before enrolling in any courses for the
major.
The seven Mathematics Department courses
must be completed with a minimum overall
grade-point average of 2.0, with grades of C- or
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Item 6
better in Mathematics 115A and 131A, as must
the four courses from the Economics and
Statistics Departments.
It is strongly recommended that students take
Mathematics 115A as one of their first upper
division courses for the major.
Section 3: Academic Staff and Organizational Structure
The proposal of the new major will not impact the Mathematics Department since the Actuarial
Concentration already exists. The program will be directly overseen by the department’s
undergraduate vice-chair. The Director of the Actuarial Program will oversee the curriculum of the
actuarial courses to make sure that the topics are current and relevant to the industry as it changes over
time. The Director will also be the one to recommend and oversee the instructors of the actuarial
mathematics courses since he or she is the resident expert in this field. Substantial changes in the
program will require approval of the full faculty in the Department of Mathematics.
Section 4: Proposed Courses
Course Number
Mathematics 31A
Mathematics 31B
Mathematics 32A
Mathematics 32B
Mathematics 33A
Mathematics 33B
Programming in
Computing 10A
Economics 1
Economics 2
Economics 11
Management 1A
Management 1B
Mathematics 115A
Mathematics 131A
Mathematics 170A
Or
Statistics 100A
Mathematics 170B
Or
Statistics 100B
Mathematics 174A
Or
Course Title
Differential and Integral Calculus
Integration and Infinite Series
Calculus of Several Variables - Differential
Calculus
Calculus of Several Variables - Integral
Calculus
Linear Algebra and Applications
Differential Equations
Introduction to Computers and Computing
Units
4.0
4.0
4.0
Instructor
Mathematics Faculty
Mathematics Faculty
Mathematics Faculty
4.0
Mathematics Faculty
4.0
4.0
5.0
Mathematics Faculty
Mathematics Faculty
Mathematics Faculty
Principles of Economics – Microeconomics
Principles of Economics –
Macroeconomics
Microeconomic Theory
Principles of Accounting
Principles of Accounting
Linear Algebra
Analysis
Probability Theory
Or
Introduction to Probability
Probability Theory
Or
Introduction to Mathematical Statistics
Financial Economics for Actuarial Students
Or
4.0
4.0
Economics Faculty
Economics Faculty
4.0
4.0
4.0
5.0
4.0
4.0
Economics Faculty
Management Faculty
Mathematics Faculty
Mathematics Faculty
Mathematics Faculty
Mathematics Faculty
Or
Statistics Faculty
Mathematics Faculty
Or
Statistics Faculty
Mathematics Faculty
Or
4.0
4.0
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Item 6
Mathematics 174E
Or
Economics 141
Or
Statistics C183
Mathematics 172A
Mathematics 172B
And
Mathematics 172C
Mathematics 173A
And
Mathematics 173B
Mathematics of Finance for
Mathematics/Economics Students
Or
Topics in Microeconomics: Mathematical
Finance
Or
Statistical Models in Finance
Introduction to Financial Mathematics
Actuarial Models I
And
Actuarial Models II
Casualty Loss Models I
And
Casualty Loss Models II
Mathematics Faculty
Or
Economics Faculty
4.0
4.0
Or
Statistics Faculty
Mathematics Faculty
Mathematics Faculty
4.0
Mathematics Faculty
The generic notation of “(Department) Faculty” is used in the instructor column because the
courses are taught by various faculty members throughout the year. Only mathematics courses and
core course requirements are listed. The descriptions of the required and alternative courses for the
program are appended to this proposal as Attachment #1 in the appendix. Since it is not expected that
the proposed program will have a major impact on the enrollment of these courses, staffing will
continue as at present. Once the major is in place, courses will be modified over time to enrich the set
of topics covered.
Section 5: Resource Requirements and Enrollment Plan
(1) Funding
As mentioned in Section 3 of the proposal, the new major will not impact the Economics,
Statistics, and Mathematics Department since the Actuarial Concentration already exists, as
well as the courses. Staff and advising resources will also remain the same.
A.) Management 1A and Management 1B
“Fellow of the Society of Actuaries" and "Associate of the Society of Actuaries” are
two designations the Society of Actuaries use to convey a person’s professional standing. Part of the
process of obtaining the Fellowship or Associate status requires the completion of specifically
approved educational requirements. Management 120A, 120B and 130A have been sanctioned by the
Society of Actuaries as demonstrating mastery in the topic of corporate finance for the past several
years. Though it is not required by the Actuarial Plan, many students choose to take these courses, and
their respective prerequisites (i.e., Management 1A and 1B), on their own to meet the requirement.
If the major is established, we anticipate an additional 25 students enrolling into Management
1A and 1B annually because it is now a major requirement. Whether the student chooses to progress
further into the management curriculum with upper division courses is strictly their choice.
(2) Projected Enrollment
Section 1.6, Figure #2 of the proposal illustrated an exponential growth in the major two years
ago; however, we anticipate the graduation rate to remain around 50-60 students a year for the next
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five years once the major is established. This translates to slight increases in enrollment for
economics, management, mathematics, and economics courses but it would be a minor impact since
students are currently exploring these courses for the Actuarial plan and our proposal for the new
major is only requiring two additional lower division courses that already exists (Management 1A and
Management 1B).
Section 6: Changes in Senate Regulations
No changes are required.
Section 7: Library Support
The Ira and Patty Boyle Endowed Actuarial Science Fund has been very generous in supporting
the program by purchasing study manuals for students to check out at the Science and Engineering
Library. As the program expands, so will the need of manuals which the donors have stated that they
are happy to continue to support.
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Item 6
Appendix
Proposed Courses (Attachment #1)
Mathematics 31A. Differential and Integral Calculus (4)
Lecture, three hours; discussion, one hour. Preparation: at least three and one-half years of high school
mathematics (including some coordinate geometry and trigonometry). Requisite: successful
completion of Mathematics Diagnostic Test or course 1 with grade of C- or better. Differential
calculus and applications; introduction to integration. P/NP or letter grading.
Mathematics 31B. Integration and Infinite Series (4)
Lecture, three hours; discussion, one hour. Requisite: course 31A with grade of C- or better. Not
open for credit to students with credit for course 3B. Transcendental functions; methods and
applications of integration; sequences and series. P/NP or letter grading.
Mathematics 32A. Calculus of Several Variables (4)
Lecture, three hours; discussion, one hour. Enforced requisite: course 31A with grade of C- or better.
Introduction to differential calculus of several variables, vector field theory. P/NP or letter grading.
Mathematics 32B. Calculus of Several Variables (4)
Lecture, three hours; discussion, one hour. Enforced requisites: courses 31B and 32A, with grades of
C- or better. Introduction to integral calculus of several variables, line and surface integrals. P/NP or
letter grading.
Mathematics 33A. Linear Algebra and Applications (4)
Lecture, three hours; discussion, one hour. Enforced requisite: course 3B or 31B or 32A with grade of
C- or better. Introduction to linear algebra: systems of linear equations, matrix algebra, linear
independence, subspaces, bases and dimension, orthogonality, least-squares methods, determinants,
eigenvalues and eigenvectors, matrix diagonalization, and symmetric matrices. P/NP or letter grading.
Mathematics 33B. Differential Equations (4)
Lecture, three hours; discussion, one hour. Enforced requisite: course 31B with grade of C- or better.
Highly recommended: course 33A. First-order, linear differential equations; second-order, linear
differential equations with constant coefficients; power series solutions; linear systems. P/NP or letter
grading.
Mathematics 115A. Linear Algebra (5)
Lecture, three hours; discussion, two hours. Requisite: course 33A. Techniques of proof, abstract
vector spaces, linear transformations, and matrices; determinants; inner product spaces; eigenvector
theory. P/NP or letter grading.
Mathematics 131A. Analysis (4)
Lecture, three hours; discussion, one hour. Requisites: courses 32B, 33B. Recommended: course
115A. Rigorous introduction to foundations of real analysis; real numbers, point set topology in
Euclidean space, functions, continuity. P/NP or letter grading.
Mathematics 170A. Probability Theory (4)
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Lecture, three hours; discussion, one hour. Requisites: courses 32B, 33A. Not open to students with
credit for Electrical Engineering 131A or Statistics 100A. Probability distributions, random variables
and vectors, expectation. P/NP or letter grading.
Mathematics 170B. Probability Theory (4)
Lecture, three hours; discussion, one hour. Enforced requisite: course 170A. Convergence in
distribution, normal approximation, laws of large numbers, Poisson processes, random walks. P/NP or
letter grading.
Mathematics 172A. Introduction to Financial Mathematics (4)
Lecture, four hours. Requisites: courses 32B, 33B. Designed to provide understanding of fundamental
concepts of financial mathematics and how those concepts are applied in calculating present and
accumulated values from various streams of cash flows as basis for future use in reserving, valuation,
pricing asset/liability management, investment income, capital budgeting, and valuing contingent cash
flows. Letter grading.
Mathematics 172B. Actuarial Models I (4)
Lecture, four hours. Requisites: courses 170A and 170B (or Statistics 100A and 100B), 172A.
Designed to provide understanding of theoretical basis of certain actuarial models and application of
those models to insurance, pensions, and other financial risks. Letter grading.
Mathematics 172C. Actuarial Models II (4) Lecture, four hours. Enforced requisite: course 172B.
Theoretical basis of certain actuarial models and application to insurance, pensions, and other financial
risks. Letter grading.
Mathematics 173A. Casualty Loss Models I (4)
Lecture, four hours. Enforced requisites: courses 170A and 170B (or Statistics 100A and 100B), 172A.
Designed to provide understanding of various casualty loss models. Coverage of steps involved in
modeling process and how to carry out these steps in solving business problems. Letter grading.
Mathematics 173B. Casualty Loss Models II (4)
Lecture, four hours. Enforced requisite: course 173A. Construction of parametric loss models and
introduction to credibility theory that provides tools to utilize collected information, such as past loss
information, to predict future outcomes. Use of simulation to model future events. Letter grading.
Mathematics 174A. Financial Economics for Actuarial Students (4)
Lecture, four hours. Enforced requisites: courses 170A and 170B (or Statistics 100A and 100B), 172A.
Not open for credit to students with credit for course 174E, Economics 141, or Statistics C183/C283.
Specifically designed to prepare students in actuarial science program to take Society of Actuaries
Models for Financial Economics (MFE) examination. Introduction to basic concepts of financial
economics, including interest rate models, rational valuation of derivative securities, and risk
management. Letter grading.
Mathematics 174E. Mathematics of Finance for Mathematics/Economics Students (4)
(Formerly numbered 174.) Lecture, three hours; discussion, one hour. Enforced requisites: courses
33A, 170A (or Statistics 100A), Economics 11. Not open for credit to students with credit for course
174A, Economics 141, or Statistics C183/C283. Modeling, mathematics, and computation for
financial securities. Price of risk. Random walk models for stocks and interest rates. No-arbitrage
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Item 6
theory for pricing derivative securities; Black/Scholes theory. European and American options. Monte
Carlo, trees, finite difference methods. P/NP or letter grading.
Statistics 100A. Introduction to Probability (4)
Lecture, three hours; discussion, one hour. Requisites: Mathematics 32B, 33A. Not open to students
with credit for Electrical Engineering 131A or Mathematics 170A; open to graduate students. Students
may receive credit for only two of following: course 100A, former course 110A, Biostatistics 100A.
Probability distributions, random variables, vectors, and expectation. P/NP or letter grading.
Statistics 100B. Introduction to Mathematical Statistics (4)
Lecture, three hours; discussion, one hour. Requisite: course 100A or Mathematics 170A. Survey
sampling, estimation, testing, data summary, one- and two-sample problems. P/NP or letter grading.
Statistics 100C. Linear Models (4)
Lecture, three hours; discussion, one hour. Requisite: course 100B. Theory of linear models, with
emphasis on matrix approach to linear regression. Topics include model fitting, extra sums of squares
principle, testing general linear hypothesis in regression, inference procedures, Gauss/Markov theorem,
examination of residuals, principle component regression, stepwise procedures. P/NP or letter grading.
Management 1A. Principles of Accounting (4)
Lecture, three hours; discussion, one hour. Not open to freshmen. Introduction to financial accounting
principles, including preparation and analysis of financial transactions and financial statements.
Valuation and recording of asset-related transactions, including cash, receivables, marketable
securities, inventories, and long-lived assets. Current liabilities. P/NP or letter grading.
Management 1B. Principles of Accounting (4)
Lecture, three hours; discussion, one hour. Requisite: course 1A. Not open to freshmen. Completion
of balance sheet with emphasis on debt and equity, including in-depth introduction to time value of
money concepts. Introduction to partnership and individual income tax accounting. P/NP or letter
grading.
Programming in Computing 10A. Introduction to Programming (5)
Lecture, three hours; discussion, two hours; laboratory, eight hours. Recommended requisite for
students with no prior computing experience: course 1. No prior programming experience assumed.
Basic principles of programming, using C++; algorithmic, procedural problem solving; program design
and development; basic data types, control structures and functions; functional arrays and pointers;
introduction to classes for programmer-defined data types. P/NP or letter grading.
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UCLA
UNIVERSITY OF CALIFORNIA, LOS ANGELES
BERKELEY • DAVIS • IRVINE • LOS ANGELES • RIVERSIDE • SAN DIEGO • SAN FRANCISCO
SANTA BARBARA • SANTA CRUZ
DEPARTMENT OF ECONOMICS
8283 BUNCHE HALL
BOX 951477
LOS ANGELES, CALIFORNIA 90095-1477
(310) 825-1011
FAX (310) 825-9528
January 18, 2013
Professor Michael Meranze
Chair of the College Faculty Executive Committee
College of Letters & Science
A-265 Murphy Hall
Dear Professor Meranze:
The Department of Economics is pleased to support the Department of Mathematics with its new
Financial Actuarial Mathematics Major. We understand that the new major will include the following
courses as part of the pre-major: Economics 1, Economics 2, and Economics 11, and will allow students
to take upper division courses in economics as electives in the new major. We are happy to welcome the
actuarial science students to our classes. We do not anticipate that the new major will result in significant
increases in the enrollments in economic courses as the pre-major courses were already required by the
current concentration in actuarial sciences.
We extend our best wishes to the Department of Mathematics as they launch this exciting new major.
Sincerely,
Professor Kathleen McGarry
Vice Chair, Department of Economics
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Item 6
Date:
January 3, 2013
TO:
Faculty Executive Committee
Attention: Michael Meranze, Chair of the College Faculty Executive Committee
College of Letters & Science
A-265 Murphy Hall
Dear Dr. Meranze:
I am writing to confirm that the following courses Management 1A - Principles of Accounting
and Management 1B - Principles of Accounting, to the best of our ability, will be regularly
offered by my department and that they will be open to the students in the new Financial
Actuarial Mathematics pre-major or major who have satisfied the appropriate prerequisites.
However, please be advised that if we need to add sections because of enrollment growths
beyond our present capacity, we cannot do this without added university support.
Sincerely,
Professor David Aboody
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Item 6
UCLA DEPARTMENT OF STATISTICS
8125 Math Sciences Bldg. Box 951554 Los Angeles, CA 90095-1554 Phone: (310) 825-8430 Fax:
(310) 206-5658 email: frederic@stat.ucla.edu
http://www.stat.ucla.edu/~frederic
Dimitri Shlyakhtenko
Chair, UCLA Department of Mathematics
Jan 25, 2013
Dear Dima,
The UCLA Department of Statistics approves the inclusion of our Department's courses in the proposed
undergraduate Financial Actuarial Mathematics Major, as outlined in your recent proposal. This seems to be
a promising new offering and we fully support it.
I hope this will lead to further positive collaborative projects between our two Departments and look
forward to working with you on other collaborations.
Sincerely,
Frederic Paik Schoenberg
Chair, UCLA Statistics
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