University of Wisconsin-Whitewater
Curriculum Proposal Form #4A
Change in an Existing Course
Type of Action (check all that apply)
Course Revision (include course description & former and new syllabus)
Grade Basis
Contact Hour Change and or Credit Change
Repeatability Change
Diversity Option
Other: new course title,
new course number, pre-requisite change
General Education Option
area: Select one: *
* Note: For the Gen Ed option, the proposal should address how this course relates to specific core courses, meets the goals of General
Education in providing breadth, and incorporates scholarship in the appropriate field relating to women and gender.
Effective Term: 2151 (Spring 2015)
Current Course Number (subject area and 3-digit course number): MATH 446/646
Current Course Title:
Actuarial Mathematics
Sponsor(s):
Julie Letellier, Khyam Paneru, Tom Karthausser
Department(s):
Mathematical & Computer Sciences
College(s):
Letters and Sciences
List all programs that are affected by this change:
Math Stats Emphasis (Mathematics major)
If programs are listed above, will this change affect the Catalog and Advising Reports for those
programs? If so, have Form 2's been submitted for each of those programs?
(Form 2 is necessary to provide updates to the Catalog and Advising Reports)
NA
Yes
Proposal Information:
I.
They will be submitted in the future
(Procedures for form #4A)
Detailed explanation of changes (use FROM/TO format)
FROM:
MATH 446 ACTUARIAL MATHEMATICS
3u
This course will discuss the actuarial profession and the insurance industry, provide direction
to students wishing to take the first few actuarial examinations, thoroughly cover the theory of
interest, and introduce the basic concepts of actuarial mathematics.
Prereq: MATH 441 or concurrent registration.
1
TO:
MATH 346/546 THEORY OF INTEREST
3u
This course will cover the topics of interest theory listed in the SoA/CAS syllabus for
Exam FM/2. Topics include the time value of money, annuities, loans, bonds, general
cash flows and portfolios, and immunization schedules.
Prereq: MATH 254 with a grade of C or better.
II.
Justification for action
Every 5 years or so, the Society of Actuaries (SoA) and the Casualty Actuarial Society (CAS)
review and revise the exams taken by future and current actuaries. We are revising this
course to reflect these changes and to allow our students’ to enroll earlier in this course. By
doing so, students can then compete for actuarial internships many of which require the
passage of at least one SoA/CAS exam. Ultimately, they will enhance their opportunities in
the profession upon graduation.
III.
Syllabus/outline (if course revision, include former syllabus and new syllabus)
Former Syllabus:
Math 446 Actuarial Mathematics
Section 01
Spring 2008
This section of Math 446 Actuarial Mathematics will be team-taught by Drs. Julie Letellier and
Jonathan Kane. We will meet on Mondays at a time to be determined. Each class will consist of
a brief introduction to the new material followed by a question-and-answer session on the
problems assigned the previous week. It is your responsibility to read the text in advance, study
the material, and complete the homework. The contact information for both Drs. Kane and
Letellier follows:
Dr. Letellier
Office: 412 McCutchan Hall
Office phone: 472 – 5172
Office hours:
M, W 11 am – 12:30 pm
T, R
1 – 2 pm
or by appointment
E-mail:
letellij@uww.edu
Website:
math.uww.edu/~letellij
Dr. Kane
Office: McGraw Hall
Office phone: 472 – 5002
Office hours:
E-mail:
Website:
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kanej@uww.edu
math.uww.edu/~kanej
Prerequisite: Concurrent enrollment in Math 441 Probability and Math 355 Matrices and Linear
Algebra or my consent.
Text and Topics: The text for this course is Mathematical Interest Theory by Daniel and Vaaler
available through Textbook Rental. (You need to ask the staff where the text is located.) Topics
covered include the growth of money; equations of value and yield rates; annuities; loan
repayment; bonds; stocks and financial markets; and arbitrage, the term structure of interest
rates, and derivatives. A detailed course outline is given below.
Tentative Course Outline:
Week:
Class Meets: (M)
Material to be Introduced:
1
January 23
Chapter 1
2
January 28
Chapter 1
3
February 4
Chapter 2
4
February 11
Chapter 2
5
February 18
Chapter 3
6
February 25
Chapter 3
7
March 3
Chapter 3
8
March 10
Chapter 4
9
March 17
Chapter 4
Spring Break
March 24 – 28
No Class
10
March 31
Chapter 4
11
April 7
Chapter 5
12
April 14
Chapter 6
13
April 21
Chapter 7
14
April 28
Chapter 8
15
May 5
Chapter 8
16
May 12
Review
Final Exam
TBA
All course materials will be made available via D2L.
Homework: Homework will be assigned but not graded. Although the time allotted each week
will allow us to answer some of your questions on the assignments, it may be necessary for you
to see either Dr. Kane or Dr. Letellier during their office hours to answer any remaining questions.
Tests and Final Exam: Three 100-point tests will be given outside of class (time is yet to be
determined) on February 18th, March 17th, and April 21st. The comprehensive final exam (time
and date are yet to be determined) is worth 200 points.
Technology and Tables: You MUST have the use of a Texas Instruments BA II Plus calculator for
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this class. If you purchase the calculator, it will cost approximately $30.
Grading: Your course grade will be based on the number of points you earn out of a total of
500 points.
Important Dates: **Late drops (drops after Feb. 29th) will be recommended for students with
extreme circumstances only!! Failing the course does not qualify for extreme circumstances!!
Tuesday January 29
Last Day to Add a Semester Course
Monday February 4
Last Day to Change Grade Basis or
Cancel a Course to Avoid a "W"
Friday February 29
Last Day to Cancel a Semester Course**
The University of Wisconsin-Whitewater is dedicated to a safe, supportive and non-discriminatory learning
environment. It is the responsibility of all undergraduate and graduate students to familiarize themselves
with University policies regarding Special Accommodations, Misconduct, Religious Beliefs Accommodation,
Discrimination and Absence for University Sponsored Events. (For details please refer to the
Undergraduate and Graduate Timetables; the “Rights and Responsibilities” section of the Undergraduate
Bulletin; the Academic Requirements and Policies and the Facilities and Services sections of the Graduate
Bulletin; and the “Student Academic Disciplinary Procedures” [UWS Chapter 14]; and the “Student
Nonacademic Disciplinary Procedures” [UWS Chapter 17]).
New Syllabus:
Math 346 Theory of Interest
Spring 2015
Pre-requisite: Any student with a grade of C or better in MATH 254 may be enrolled in this course.
Text and Topics: The text for this course is Mathematical Interest Theory by Daniel and Vaaler
available through Textbook Rental. This course will cover the topics of interest theory listed on the
SoA/CAS syllabus for Exam FM/2. Included are the time value of money, annuities, loans, bonds,
general cash flows and portfolios, and immunization schedules. A weekly course outline is given below.
Student Learning Outcomes: Upon completion of this course, a student should be able to:
 Define and recognize basic definitions of interest theory.
 Solve time value of money equations.
 Calculate payments for annuities, loans, bonds, general cash flows and portfolios.
 Construct an immunization schedule.
 Construct an investment portfolio.
 Study independently and in preparation for taking Exam FM/2.
Week
Material Covered
1
Growth of money
2
Equations of value and yield rates
3
Basic annuities
4
More general annuities
4
5
Annuities with different payments and conversion periods
6
Continuously paying annuities, Exam 1
7
Loan repayment
8
Amortization and sinking funds
9
The price of a bond
10
Bond amortization schedules
Spring Break
No class
11
Common and preferred stock
12
Exam 2
13
Structure of interest rates
14
Duration and Convexity of interest rates
15
Immunization schedules
Final Exam
1 – 3 pm
All course materials will be made available through D2L.
Homework: Homework from both the text and practice SoA exams will be assigned. Since one of the
goals of this course is to prepare you for successfully taking Exam FM, it is imperative that you do the
homework. The more homework you do, the more prepared you will be for this exam. For the reasons I
have stated, homework will be collected each class period (with the exception of a class in which an exam
is given), graded, and awarded a maximum of 4 points per assignment. The two lowest homework
assignments will be dropped at the end of the semester. Feel free to ask me questions on the homework in
class, during my office hours, or via e-mail. It is your responsibility to learn the material and keep up
with the homework!
Exams: Two 100-point hour exams will be given during the weeks of February 20 th and April 10 th.
The material to be covered on the exams will be discussed in the class periods prior to the exam.
The final exam is comprehensive, multiple-choice (like Exam FM) and will be given on Wednesday
May 12th from
1 - 3 pm. It is worth 100 points.
Calculators: Students are strongly encouraged to purchase a Texas Instruments BA-35, BA II Plus, TI30X, TI-30Xa, or TI-30X II calculator. Any (and all) of the aforementioned calculators may be used for
the SoA/CAS exams. (In the past, the Society required that calculators carry the SoA logo on the back;
this is no longer the case and you are free to purchase your calculator(s) at the establishment of your
choice.) Please purchase (borrow) such a calculator before the start of the second week of class. We will
use these calculators extensively for the remainder of the semester.
Make-ups: You will need to contact me ASAP if you wish to take a make-up on an exam. Make-ups will
be granted for compelling reasons only. Documentation may be required.
SoA Exams: I will be handing out basic information on the SoA/CAS exams. More information on
these exams and the profession in general, can be obtained by visiting the Society’s website www.soa.org
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or the Casualty Actuarial Society’s website www.casact.org or the website www.beanactuary.org.
Determination of Course Grade: Your course grade will be based on the total number of points earned
from the possible 450 points (100 points from the best 25 homework assignments, 50 points from the
writing assignment, 200 points from exams, and 100 points from the final): 405 - 450 earns an A, 360 404 earns a B, 315 - 359 earns a C, 270 - 314 earns a D, and below 240 earns an F. Slight
adjustments of the above scale may be made at my discretion on an individual basis.
Extra Requirement for Graduate Credit (graduate students only):
$
Content: Graduate students are required to cover Chapter 10 Stochastic approaches to interest in
addition to the curriculum covered in class. A homework set from Chapter 10 will be assigned
and graded. (10 points)
$
Intensity: Each graduate student will demonstrate greater rigor in the course by delivering to the
class a 50-minute lecture consisting of solving at least five Exam FM problems from the area of
risk management in which integration of the course material is demonstrated. (50 points)
$
Self-Direction: Each graduate student will engage in self-learning by reading the SoA’s
publication on risk management concepts and then writing a 5-10 page paper on this topic. (100
points)
NOTE: If you are a student with a disability, please feel free to contact me early in the semester so that
proper accommodations can be made to assist you. Any student using the services of CSD should also
contact me early in the semester.
The University of Wisconsin-Whitewater is dedicated to a safe, supportive and non-discriminatory
learning environment. It is the responsibility of all undergraduate and graduate students to familiarize
themselves with University policies regarding Special Accommodations, Misconduct, Religious Beliefs
Accommodation, Discrimination and Absence for University Sponsored Events. (For details please refer
to the Undergraduate and Graduate Timetables; the “Rights and Responsibilities” section of the
Undergraduate Bulletin; the Academic Requirements and Policies and the Facilities and Services sections
of the Graduate Bulletin; and the “Student Academic Disciplinary Procedures” [UWS Chapter 14]; and
the “Student Nonacademic Disciplinary Procedures” [UWS Chapter 17]).
6