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Actuarial Science
Overview
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The field of actuarial science applies mathematical principles and techniques to problems in the insurance industry. Progress in the field is generally based upon completion of examinations given by the Society of Actuaries (SOA). The Baruch College major is designed to prepare students to pass the first five examinations. Students interested in this highly structured program are urged to contact the Department of Mathematics as early as possible so that the department may assign an advisor to aid in formulating an appropriate course of study.
Program Learning Goals
Upon completion of the required core courses in actuarial mathematics, students will be able to:
Examine and solve problems dealing with discrete and continuous probability distributions.
Recognize when a specific probability distribution is applicable.
Determine an appropriate distribution to model a specific scenario in a risk-management context.
Compute equivalent interest and discount rates (both nominal and effective).
Write an equation of value for a set of cash flows. Estimate effective compound yield rates for the set of cash flows using a simple interest approximation.
Calculate present and future values for various types of annuities and perpetuities such as annuities-due, perpetuities-due, annuities-immediate, perpetuities-immediate, arithmetic or geometric annuities, and non-level annuities.
Determine the payment amount for a loan with a specific repayment structure.
Find the outstanding balance immediately after a payment on a loan.
Calculate the amount of principal and amount of interest in a payment for an amortized loan.
Perform an amortization on a coupon bond.
Compute yield rates for a callable bond at each of the call dates.
Calculate values, duration, and convexity for both zero-coupon bonds and coupon bonds.
Use first-order approximation methods based on duration to estimate the change in present value of a portfolio based on changes in interest rates.
Construct an investment portfolio to immunize a set of liability cash flows.
Calculate minimal variance portfolios with and without constraints.
Perform pricing and hedging of European and American type derivative securities in the context of one- and multi-period binomial models.
Construct arguments based on the no-arbitrage principle, and devise arbitrage strategies when this principle is violated.
Price European derivative securities in the context of the Black-Scholes model.
Derive a put-call parity relation, and use it for pricing and hedging.
Upon completion of elective courses in actuarial mathematics, students will be able to:
Find closed-form solutions to ordinary and partial differential equations derived from financial models.
Derive the celebrated Black-Scholes formula by solving the Black-Scholes PDE.
Compute values of European, American, and exotic options using finite difference numerical methods.
Download options market data and use it as input for codes generating implied volatility surfaces.
Describe and classify different kinds of short-term insurance coverage.
Explain the role of rating factors and exposure in pricing short-term insurance.
Create new families of distributions by applying the technique of multiplication by a constant, raising to a power, exponentiation, or mixing.
Calculate various measures of tail weight and interpret the results to compare tail weights.
Calculate risk measures, including Value at Risk and Tail Value at Risk, and explain their properties, uses, and limitations.
Calculate premiums using the pure premium and loss ratio methods.
Use Maximum Likelihood Estimation and Bayesian Estimation to estimate parameters for severity, frequency, and aggregate distributions for individual, grouped, truncated, or censored data.
Use hypothesis tests (e.g., Chi-square goodness-of-fit, Kolmogorov-Smirnov, and likelihood ratio tests) and score-based approaches (e.g., the Schwarz-Bayesian Criterion, the Bayesian Information Criterion, and the Akaike Information Criterion) to perform model selection on a collection of data.
Apply credibility models such as the Buhlmann and Buhlmann-Straub models, and explicate the relationship between these models and Bayesian models.
Explain the concepts of random sampling, statistical inference and sampling distribution.
State and use basic sampling distributions.
Describe and apply the main methods of estimation including matching moments, percentile matching, and maximum likelihood.
Describe and apply the main properties of estimators including bias, variance, mean squared error, consistency, efficiency, and UMVUE.
Construct confidence intervals for unknown parameters, including the mean, differences of two means, variances, and proportions.
Analyze data using basic statistical inference tools like confidence intervals and hypothesis testing for the population mean.
Apply tools such as analysis of variance, tests of significance, residual analysis, model selection, and predication in both the simple and multiple regression models.
Demonstrate proficiency in some basic programming skills in SAS and the time-series Forecasting interactive system. Perform time-series analysis using these tools.
Identify patterns in data such as trend or seasonality. Incorporate these patterns into the time-series analysis of the data, and perform error analysis of the data.
Explain K-means and hierarchical clustering, and interpret the results of a cluster analysis.
Common Objectives – Actuarial and Financial Mathematics
Upon completion of the required finance courses for the actuarial science and financial mathematics majors, students will be able to:
Expound on the governance of corporations.
Outline the operation of financial markets and institutions.
Measure corporate performance.
Analyze risk and return. Determine the opportunity cost of capital.
Perform capital budgeting using various techniques.
Compute the present and future values of investments with multiple cash flows.
Describe the mechanisms that cause fluctuation of bond yields.
Calculate internal rate of return.
Perform and interpret scenario analysis for a proposed investment.
Calculate financial break-even points.
Determine relevant cash flows for a proposed project.
Determine a firm’s overall cost of capital.
Requirements
In Residence at Baruch College
Liberal Arts and Sciences Content Courses
- 0912711
OR 0912731
OR 0912721 - 0912741
OR 0912751
OR 1093431
A course in this area must meet all of the following learning outcomes. A student will:
Read and listen critically and analytically, including identifying an argument's major assumptions and assertions and evaluating its supporting evidence.
Write clearly and coherently in varied, academic formats (such as formal essays, research papers, and reports) using standard English and appropriate technology to critique and improve one's own and others' texts.
Demonstrate research skills using appropriate technology, including gathering, evaluating, and synthesizing primary and secondary sources.
Support a thesis with well-reasoned arguments, and communicate persuasively across a variety of contexts, purposes, audiences, and media.
Formulate original ideas and relate them to the ideas of others by employing the conventions of ethical attribution and citation.
- 1163911
- 0931501
- 0931351
- 1370271
OR 1550491 - 0931551
- 0931571
- 0931601
- 0931331
- 1369911
- 1340191
OR 1340201 - 0946421
- 0931331
- 1557711
A course in this area must meet all of the following learning outcomes. A student will:
Interpret and draw appropriate inferences from quantitative representations, such as formulas, graphs, or tables.
Use algebraic, numerical, graphical, or statistical methods to draw accurate conclusions and solve mathematical problems.
Represent quantitative problems expressed in natural language in a suitable mathematical format.
Effectively communicate quantitative analysis or solutions to mathematical problems in written or oral form.
Evaluate solutions to problems for reasonableness using a variety of means, including informed estimation.
Apply mathematical methods to problems in other fields of study.
The following courses are no longer offered at Baruch, but do appear on students’ transfer evaluations. Any of these courses may be used to satisfy the Mathematical and Quantitative Reasoning requirement of the Pathways curriculum without appeal: MTH 2000; MTH 2300; MTH 2300; MTH 2301; MTH 2100; MTH 2150; MTH 2006; MTH 2206; and MTH 2630. MTH 3010 Calculus II is considered a STEM Variant course, and may also be used to satisfy this requirement without appeal.
** Zicklin students should not take MTH 2140 or MTH 2160, which do not meet the mathematics requirement for the BBA degree. Zicklin students must complete a course in precalculus (and must satisfy the prerequisites for whichever precalculus course they take). Therefore, these students usually take MTH 2003 or MTH 2009. Students who enter Baruch with a calculus placement (MTH 2207 or MTH 2610) may take STA 2000 to satisfy their Pathways requirement.
MTH 2140 and MTH 2160 are not appropriate for students within the Weissman School of Arts and Sciences whose major requires a statistics course or additional math courses (such majors include: Actuarial Science, Biological Sciences, Computer Science, Economics, Financial Mathematics, Natural Sciences ad hoc, and Statistics).
A course in this area must meet all of the following learning outcomes. A student will:
Identify and apply the fundamental concepts and methods of a life or physical science.
Apply the scientific method to explore natural phenomena, including hypothesis development, observation, experimentation, measurement, data analysis, and data presentation.
Use the tools of a scientific discipline to carry out collaborative laboratory investigations.
Gather, analyze, and interpret data and present it in an effective written laboratory or fieldwork report.
Identify and apply research ethics and unbiased assessment in gathering and reporting scientific data.
NOTE: The following courses are no longer offered at Baruch, but do appear on students’ transfer evaluations. Any of these courses may be used to satisfy the Life and Physical Sciences or the Scientific World requirement of the Pathways curriculum without appeal: BIO 1003; BIO 1005; CHM 1000; ENV 1020; ENV 1021; and PHY 1003. One course may not be used to satisfy both requirements.
STEM VARIANT COURSES
The following courses may be used to satisfy either the Life and Physical Sciences or the Scientific World requirement (one course may not satisfy both requirements). Students who wish to pursue a major or minor in the Natural Sciences should satisfy the Pathways science requirements with STEM Variant courses.
BIO 2010 Principles of Biology I
CHM 2003 General Chemistry I
PHY 2003 General Physics I
PHY 3010 Quantitative Physics I
The Department of Natural Sciences offers “stand-alone” sections of their Pathways courses ( BIO 1011L, BIO 1012, etc.), specifically designed for students who are only required to complete one half of the paired courses – lecture or lab, not both. For example, a student who transfers a Scientific World course, may satisfy the Life and Physical Sciences requirement with a stand-alone section of a Natural Sciences course in that category. These stand-alone sections are not open to students who enter Baruch as freshmen or to transfer students who have satisfied neither the Life & Physical Sciences nor the Scientific World requirement at the time they entered Baruch. Please consult the Department of Natural Sciences to request registration permission for any of their stand-alone sections (17 Lexington Ave, room 506; 646-660-6200)
A course in this area must meet at least three of the following additional learning outcomes. A student will:
Identify and apply the fundamental concepts and methods of a discipline or interdisciplinary field exploring world cultures or global issues, including, but not limited to, anthropology, communications, cultural studies, economics, ethnic studies, foreign languages (building upon previous language acquisition), geography, history, political science, sociology, and world literature.
Analyze culture, globalization, or global cultural diversity, and describe an event or process from more than one point of view.
Analyze the historical development of one or more non-U.S. societies.
Analyze the significance of one or more major movements that have shaped the world's societies.
Analyze and discuss the role that race, ethnicity, class, gender, language, sexual orientation, belief, or other forms of social differentiation play in world cultures or societies.
Speak, read, and write a language other than English, and use that language to respond to cultures other than one's own.
A course in this area must meet at least three of the following additional learning outcomes. A student will:
Identify and apply the fundamental concepts and methods of a discipline or interdisciplinary field exploring the U.S. experience in its diversity, including, but not limited to, anthropology, communications, cultural studies, economics, history, political science, psychology, public affairs, sociology, and U.S. literature.
Analyze and explain one or more major themes of U.S. history from more than one informed perspective.
Evaluate how indigenous populations, slavery, or immigration have shaped the development of the United States.
Explain and evaluate the role of the United States in international relations.
Identify and differentiate among the legislative, judicial, and executive branches of government and analyze their influence on the development of U.S. democracy.
Analyze and discuss common institutions or patterns of life in contemporary U.S. society and how they influence, or are influenced by, race, ethnicity, class, gender, sexual orientation, belief, or other forms of social differentiation.
Note: HIS 1004 History of American Civilization I is no longer offered at Baruch, but it does appear on students’ transfer evaluations. This course may be used to satisfy the U.S. Experience in its Diversity requirement of the Pathways curriculum without appeal.
A course in this area must meet at least three of the following additional learning outcomes. A student will:
Identify and apply the fundamental concepts and methods of a discipline or interdisciplinary field exploring creative expression, including, but not limited to, arts, communications, creative writing, media arts, music, and theater.
Analyze how arts from diverse cultures of the past serve as a foundation for those of the present, and describe the significance of works of art in the societies that created them.
Articulate how meaning is created in the arts or communications and how experience is interpreted and conveyed.
Demonstrate knowledge of the skills involved in the creative process.
Use appropriate technologies to conduct research and to communicate.
A course in this area must meet at least three of the following additional learning outcomes. A student will:
Identify and apply the fundamental concepts and methods of a discipline or interdisciplinary field exploring the relationship between the individual and society, including, but not limited to, anthropology, communications, cultural studies, history, journalism, philosophy, political science, psychology, public affairs, religion, and sociology.
Examine how an individual's place in society affects experiences, values, or choices.
Articulate and assess ethical views and their underlying premises.
Articulate ethical uses of data and other information resources to respond to problems and questions.
Identify and engage with local, national, or global trends or ideologies, and analyze their impact on individual or collective decision-making.
A course in this area must meet at least three of the following additional learning outcomes. A student will:
Identify and apply the fundamental concepts and methods of a discipline or interdisciplinary field exploring the scientific world, including, but not limited to: computer science, history of science, life and physical sciences, linguistics, logic, mathematics, psychology, statistics, and technology-related studies.
Demonstrate how tools of science, mathematics, technology, or formal analysis can be used to analyze problems and develop solutions.
Articulate and evaluate the empirical evidence supporting a scientific or formal theory.
Articulate and evaluate the impact of technologies and scientific discoveries on the contemporary world, such as issues of personal privacy, security, or ethical responsibilities.
Understand the scientific principles underlying matters of policy or public concern in which science plays a role.
Note: The following courses are no longer offered at Baruch, but do appear on students’ transfer evaluations. Any of these courses may be used to satisfy the Scientific World or the Life and Physical Sciences requirement of the Pathways curriculum without appeal: BIO 1003; BIO 1005; CHM 1000; ENV 1020; ENV 1021; and PHY 1003. One course may not be used to satisfy both requirements.
STEM VARIANT COURSES
The following courses may be used to satisfy either the Life and Physical Sciences or the Scientific World requirement (one course may not satisfy both requirements). Students who wish to pursue a major or minor in the Natural Sciences should satisfy the Pathways science requirements with STEM Variant courses.
course Principles of Biology I
course General Chemistry I
course General Physics I
course Quantitative Physics I
The Flexible Core is made up of six liberal arts courses, which must be taken in five different categories (numbered 4-8): 4) World Cultures and Global Issues; 5) U.S. Experience in its Diversity; 6) Creative Expression; 7) The Individual and Society; and 8) Scientific World.
In fulfilling the six-course requirement, students may not take more than two courses from any one department, discipline, or interdisciplinary field.
Please note that some departments offer courses in more than one category…
ANT and SOC courses are offered by the Department of Sociology and Anthropology;
ART, MSC, and THE courses are offered by the Department of Fine and Performing Arts
BLS and LTS (formerly HSP) courses are offered by the Department of Black and Latino Studies;
BIO, ENV, CHM, and PHY courses are offered by the Department of Natural Science; and
Within the Pathways Flexible Core, POL and PAF (formerly PUB) are considered to be a single field.
All Flexible Core courses must meet the following three learning outcomes. A student will:
Gather, interpret, and assess information from a variety of sources and points of view.
Evaluate evidence and arguments critically or analytically.
Produce well-reasoned written or oral arguments using evidence to support conclusions.
The learning goals or outcomes of each area within the Flexible Core are included above, followed by lists of applicable courses.
Baruch no longer restricts students to one course from any given discipline, department, or interdisciplinary field
- 1124101
OR 0912961 - 1124111
OR 0913001
4000-level CIC "capstone" course for one of the liberal arts minors
This course must be completed at Baruch.
Two 3000-level liberal arts courses towards the same liberal arts minor.
The College Option consists of as many as four courses (6, 9, or 12 credits), depending on how much coursework the student has completed at another institution.
- 0907261
OR 0907271
Students may not use proficiency and/or exemption exams to satisfy this requirement.
1st Foreign Language course (based on placement) and 2nd Foreign Language course (the same language as the 1st Foreign Language course)
Students who transfer language credits for languages not taught at Baruch College may use these credits for the foreign language requirement at Baruch College.
Placement Information:
Students should review the guidelines below, and see a faculty advisor in the Department of Modern Languages and Comparative Literature to confirm proper placement if they intend to continue a language to which they have prior exposure. Students have the option of taking a placement exam to ensure that they are placed at the correct level.
Please consult the Department of Modern Languages and Comparative Literature for assistance
- 0931651
- 0931661
- 0931651
- 1268821
MTH 3050 is not open to students who completed MTH 3020, MTH 3030, MTH 3035, or their equivalents.
- 0931601
- 0931651
- 0931661
- 0931601
- 0931651
- 1268821
- 0931551
- 0931641
- 0931681
- 0931571
OR 1557711 - 0931641
- 1353901
- 0931661
- 0931551
- 0931641
- 1353901
- 0931661
- 0931571
- 0931641
- 1353901
- 0931661
- 0931551
- 0931641
- 1353901
- 1268821
- 0931621
- 0931681
- 0899221
OR 0899231 - 0908551
OR 0908561 - 0908571
OR 0908581 - 0915221
OR 0915231 - 0915291
OR 0915301
- 0931731
- 0931881
- 0932081
- 0932091
- 0932101
- 0932111
- 1472651
- 1454231
- 1268851
- 0931891
- 0931901
- 0931911
- 0932091
- 0932101
- 1454231
- 0932111
- 1472651
- 0932121
- 1268861
- 1284421
You may need to take additional Liberal Arts Courses to complete the required credits for your degree.