College of Liberal Arts and Sciences

Courses

Statistics and Actuarial Science

During the 20th century, probability and statistics developed into an important scientific discipline essential to all fields of study that rely on information obtained from data. Author H.G. Wells acknowledged the importance of statistical reasoning when he stated, "Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write."

Today's world is bombarded with numerical information. Informed decisions rely on the ability to separate fact from fiction by applying valid statistical analyses. Statisticians can provide crucial guidance in determining what information is reliable and which predictions may be trusted. They often help search for clues to the solution of a scientific mystery and sometimes keep investigators from being misled by false impressions.

The work of a statistician may range from the theoretical (developing new methodologies and statistical theory) to the applied (working with scientists and decision makers to collect, analyze, and interpret data). Regardless of the areas in which they work, statisticians need a strong background in mathematics and computer use. Because uncertainty and data arise in many settings, statisticians have the opportunity to work on a variety of projects in industry, education, government, and research. Thousands of statisticians work in medicine, law, agriculture, public policy, marketing, manufacturing, engineering, and other fields in the social and natural sciences. The diversity of applications is an exciting aspect of the field and is one reason why the demand for well-trained statisticians continues to be strong.

An actuary is a business executive, professionally trained in the mathematical sciences. Actuaries specialize in the evaluation of financial risk--most often in the context of life, health, and casualty insurance, where they design, analyze, and refine various programs to meet the insurance needs of society. Most actuaries are employed by insurance companies, where they have responsibilities for all phases of the development and maintenance of their company's products. They have considerable influence on the financial soundness of their company through work in pricing insurance policies and in compiling data for financial statements.

Many actuaries are employed as consultants. Their actuarial services are used by smaller insurance companies and by individual employers who need actuarial guidance in establishing insurance and retirement programs for their employees. A growing number of actuaries work in the area of asset/liability management. Some of these actuaries are employed by investment and consulting firms; others are employed by insurance companies.

Actuaries have been called financial architects and social mathematicians, because their combined analytical and business skills help to solve a growing variety of financial and social problems. The actuarial profession is a demanding yet rewarding career choice.

Graduates of the Department of Statistics and Actuarial Science have enjoyed great success in finding employment at all levels of the profession's fields.

Undergraduate Programs

Bachelor of Science in Statistics

Statistics in business, industry, government, and research: This track emphasizes statistical applications and data analysis. It is appropriate for students interested in careers as applied statisticians.

Statistical computing: The statistical computing track emphasizes statistical applications and requires additional course work in computing. It prepares students for statistical work that requires computing expertise for data management, analysis, and reporting.

Mathematical statistics: The mathematics statistics track provides a solid foundation in statistical theory and applications. It requires additional course work in mathematics and is good preparation for graduate study in statistics.

The B.S. in statistics requires the following course work.

CORE COURSES

Computer Science

Mathematics

Statistics

*The department recommends that well-prepared students who elect the Mathematical Statistics track take 22S:153 and 22S:154 in place of 22S:130 and 22S:131 to satisfy the core requirement in statistics.

Special Emphasis Tracks

STATISTICS IN BUSINESS, INDUSTRY, GOVERNMENT, AND RESEARCH

Three of these:

22S:133 Quality Control

3 s.h.

22S:138 Bayesian Statistics

3 s.h.

22S:156 Applied Time Series Analysis

3 s.h.

22S:161 Applied Multivariate Analysis

3 s.h.

22S:162 Applied Generalized Regression

3 s.h.

22S:167 Environmental and Spatial Statistics

3 s.h.

22S:168 Intermediate Experimental Design

3 s.h.

22S:173 Statistical Consulting

3 s.h.

171:174/22S:160 Introductory Longitudinal Data Analysis

3 s.h.

STATISTICAL COMPUTING

Two of these:

22C:072 Elementary Numerical Analysis

3 s.h.

22S:138 Bayesian Statistics

3 s.h.

22S:156 Applied Time Series Analysis

3 s.h.

22S:161 Applied Multivariate Analysis

3 s.h.

22S:162 Applied Generalized Regression

3 s.h.

22S:166 Computing in Statistics

3 s.h.

22S:167 Environmental and Spatial Statistics

3 s.h.

22S:168 Intermediate Experimental Design

3 s.h.

22S:173 Statistical Consulting

3 s.h.

171:174/22S:160 Introductory Longitudinal Data Analysis

3 s.h.

MATHEMATICAL STATISTICS

One of these:

22M:028 Calculus III

4 s.h.

22M:056 Fundamental Properties of Spaces and Functions II

4 s.h.

Two of these:

22S:138 Bayesian Statistics

3 s.h.

*22S:153-22S:154 Mathematical Statistics I-II

6 s.h.

22S:156 Applied Time Series Analysis

3 s.h.

22S:161 Applied Multivariate Analysis

3 s.h.

22S:162 Applied Generalized Regression

3 s.h.

22S:167 Environmental and Spatial Statistics

3 s.h.

22S:168 Intermediate Experimental Design

3 s.h.

22S:173 Statistical Consulting

3 s.h.

22S:195-22S:196 Probability and Stochastic Processes I-II

6 s.h.

*If 22S:153 and 22S:154 are used to satisfy the core requirements, they may not be used to satisfy the emphasis requirement.

Bachelor of Science in Actuarial Science

The B.S. in actuarial science requires 59 s.h. in the major. It prepares students for careers in the actuarial profession and helps them learn material included in the professional examinations. Students take a variety of actuarial science courses. In addition, preparation for business aspects of the actuarial profession requires the study of accounting, law, finance, insurance, and economics. Courses relating to communication skills, such as writing and speaking, are also important.

Due to the demanding nature of the actuarial science major and the difficulty of the professional examinations, the department maintains a selective admission program for actuarial science. Students must apply and be admitted to the major.

Students interested in becoming actuaries should declare an interest in actuarial science as their major when they enter the University. Ordinarily, students apply for admission to the actuarial science major in the fall semester of their sophomore year, after they have taken 22M:055 and 22S:130. Students should apply no later than the end of the spring semester of their junior year.

Students admitted to the actuarial science major usually have completed at least 40 s.h. at the University or at another postsecondary institution, including a three- or four-course calculus sequence, a course in linear algebra, and a calculus-based course in probability and statistics. The admission decision is based on the student's performance in these courses and other courses relevant to success in the major. The student's grades from semester to semester also are considered. ACT or SAT scores are considered in evaluating transfer students. Factors such as work ethic, enthusiasm, and commitment may be considered.

Students who have a thorough understanding of mathematics, as reflected by their performance in prerequisite math course work, tend to be most successful in actuarial science.

For application forms and more information about selective admission, contact the Department of Statistics and Actuarial Science.

Permission to substitute course work taken at another institution for required courses at Iowa is decided case-by-case.

The B.S. in actuarial science requires the following course work.

Computer Science

Economics

Mathematics

Statistics and Actuarial Science

In exceptional cases, the advisor may grant permission to waive 22S:130 and/or 22S:131.

Sample Schedule

FIRST YEAR

Fall Semester

Spring Semester

SECOND YEAR

Fall Semester

Spring Semester

THIRD YEAR

Fall Semester

Spring Semester

FOURTH YEAR

Fall Semester

Four-Year Graduation Plan

Much of the work in the discipline is sequential, so students must begin requirements for the major as soon as possible. Individual study plans must be made carefully. Students who first enroll for a spring semester must consult the department to confirm a four-year plan.

B.S. in Statistics

Before the third semester begins: three courses in the major, including 22M:025 and 22M:026 and 22S:030; and at least one-quarter of the semester hours required for graduation

Before the fifth semester begins: four courses in the major and at least one-half of the semester hours required for graduation

Before the seventh semester begins: seven or eight courses in the major and at least three-quarters of the semester hours required for graduation

Before the eighth semester begins: nine or ten courses in the major

During the eighth semester: enrollment in all remaining course work in the major, all remaining General Education courses, and a sufficient number of semester hours to graduate

B.S. in Actuarial Science

Before the fifth semester begins: 22M:055 and 22M:056, 22S:130 and 22S:131, and at least one-half of the semester hours required for graduation

Before the seventh semester begins: 22C:016, 22S:153 and 22S:154, 22S:174, 22S:175, 22S:180 and 22S:181, and at least three-quarters of the semester hours required for graduation

Before the eighth semester begins: 22S:182

During the eighth semester: enrollment in all remaining course work in the major, all remaining General Education courses, and a sufficient number of semester hours to graduate

Honors

To graduate with honors in statistics or in actuarial science, a student must be a member of the University of Iowa Honors Program which requires that students maintain a cumulative University of Iowa g.p.a. of at least 3.33 (contact the University of Iowa Honors Program for more information).

Honors students in statistics also must have a g.p.a. of at least 3.40 in departmental courses required for the major and must complete an honors project or suitable alternative. A student planning to graduate with honors should contact the statistics honors advisor.

Honors students in actuarial science also must have a g.p.a. of at least 3.40 in all departmental courses numbered 120 and above and a cumulative University of Iowa g.p.a. of at least 3.40. They must complete the following three courses in addition to the requirements for the B.S.

22S:171 Topics in Actuarial Science

3 s.h.

22S:176 Credibility and Loss Distributions

3 s.h.

22S:183 Mathematics of Finance II

3 s.h.

Minor

There is no minor in actuarial science.

Graduate Programs

Master of Science in Statistics

M.S. students may choose to write a thesis, which substitutes for two courses. The thesis defense usually replaces the master's final exam.

Each M.S. student has a committee of three or four members, which is responsible for recommending action on the student's degree. For nonthesis programs, the committee's recommendation usually is based on two written examinations on topics covered in the required courses. For thesis programs, the committee's final recommendation usually is based on an oral defense of the thesis, although it also may be based on a single written examination over the topics covered in the student's program of study.

NONTHESIS PROGRAM

Each semester in which a graduate student registers for at least 6 s.h., he or she must include at least one 2 s.h. course offered by the Department of Statistics and Actuarial Science, excluding 22S:191, 22S:197, and 22S:299.

22S:164-22S:165 Applied Statistics I-II

7 s.h.

22S:166 Computing in Statistics

3 s.h.

22S:173 Statistical Consulting

3 s.h.

22S:193-22S:194 Statistical Inference I-II

6 s.h.

22S:195 Probability and Stochastic Processes I

3 s.h.

At least four of these:

22S:138 Bayesian Statistics

3 s.h.

22S:156 Applied Time Series Analysis

3 s.h.

22S:161 Applied Multivariate Analysis

3 s.h.

22S:162 Applied Generalized Regression

3 s.h.

22S:163 Nonparametric Statistical Methods

3 s.h.

22S:167 Environmental and Spatial Statistics

3 s.h.

22S:168 Intermediate Experimental Design

3 s.h.

22S:190 Mathematical Methods for Statistics

3 s.h.

22S:196 Probability and Stochastic Processes II

3 s.h.

Any 200-level statistics course

An elective approved by the advisor

THESIS PROGRAM

Each semester in which a graduate student registers for at least 6 s.h., he or she must include at least one 2 s.h. course offered by the Department of Statistics and Actuarial Science, excluding 22S:191, 22S:197, and 22S:299.

22S:164-22S:165 Applied Statistics I-II

7 s.h.

22S:166 Computing in Statistics

3 s.h.

22S:173 Statistical Consulting

3 s.h.

22S:191 Individual Study

6 s.h.

22S:193-22S:194 Statistical Inference I-II

6 s.h.

22S:195 Probability and Stochastic Processes I

3 s.h.

At least two of these:

22S:138 Bayesian Statistics

3 s.h.

22S:156 Applied Time Series Analysis

3 s.h.

22S:161 Applied Multivariate Analysis

3 s.h.

22S:162 Applied Generalized Regression

3 s.h.

22S:163 Nonparametric Statistical Methods

3 s.h.

22S:167 Environmental and Spatial Statistics

3 s.h.

22S:168 Intermediate Experimental Design

3 s.h.

22S:190 Mathematical Methods for Statistics

3 s.h.

22S:196 Probability and Stochastic Processes II

3 s.h.

Any 200-level statistics course

An elective approved by the advisor

The typical thesis is a statistical presentation of the results of a meaningful research project in another field, or a study of the characteristics of a new statistical method. The thesis work is directed by a supervising professor. Students earn academic credit for thesis work by registering for 22S:191 Individual Study.

Master of Science in Actuarial Science

The program prepares students for actuarial careers by emphasizing the theory that underlies risk processes and the application of this theory to practical problems of insurance pricing and management. The required course work helps students prepare for the professional examinations administered by the Society of Actuaries and/or the Casualty Actuarial Society.

Each M.S. student has a committee of three or four members, which is responsible for recommending action on the student's degree. For nonthesis programs, the committee's recommendation usually is based on two written examinations on topics covered in the required programs.

Required courses include the following.

Each semester in which a graduate student registers for at least 6 s.h., he or she must include at least one 2 s.h. course offered by the Department of Statistics and Actuarial Science, excluding 22S:191, 22S:197, and 22S:299.

One of these sequences:

22S:153-22S:154 Mathematical Statistics I-II

6 s.h.

22S:193-22S:194 Statistical Inference I-II (for well-prepared students)

6 s.h.

All of these:

22S:150 Regression, Time Series, and Forecasting

3 s.h.

22S:171 Topics in Actuarial Science

3 s.h.

22S:174 Quantitative Methods for Actuaries

3 s.h.

22S:175 Actuarial Models

3 s.h.

22S:176 Credibility and Loss Distributions

3 s.h.

22S:180 Mathematics of Finance I

4 s.h.

22S:181-22S:182 Life Contingencies I-II

6 s.h.

22S:183 Mathematics of Finance II

3 s.h.

Doctor of Philosophy in Statistics

Biostatistics emphasizes exposure to various biostatistical methods, such as survival analysis, categorical data analysis, and longitudinal data analysis. It prepares students for consulting and other positions in industry.

Probability/mathematical statistics emphasizes a broad, solid foundation in techniques and underpinnings of mathematical statistics. Its focus on breadth and depth is intended to produce well-rounded, knowledgeable scholars. It is excellent preparation for academic positions in mathematical statistics and industrial or government positions that require broadly trained statisticians with a strong understanding of statistical theory.

Statistical modeling emphasizes the theory and application of a broad array of statistical models, such as linear, generalized linear, nonlinear, categorical, spatial, correlated response, and nonparametric regression models. This concentration area prepares students to specify and choose appropriate models; fit the models using available statistical software; and make sound statistical conclusions and interpretive statements. It is excellent preparation for students interested in academic, industrial, or government positions that involve data modeling and analysis.

Actuarial science/financial mathematics emphasizes the theory of actuarial science, finance, and asset-liability management. It is excellent preparation for academic positions in universities that offer actuarial science programs or for positions in the insurance, pension, and financial industries.

The actuarial science/financial mathematics program is highly mathematical and selective. Most students are admitted after earning an M.S. in actuarial science at The University of Iowa.

The Ph.D. in statistics requires the following course work.

Each semester in which a graduate student registers for at least 6 s.h., he or she must include at least one 2 s.h. course offered by the Department of Statistics and Actuarial Science, excluding 22S:191, 22S:197, and 22S:299.

CORE COURSES

CONCENTRATION AREA

Biostatistics

Probability/Mathematical Statistics

Statistical Modeling

Actuarial Science/Financial Mathematics

OTHER COURSE WORK

COMPREHENSIVE EXAM

The comprehensive examination consists of a written core examination and an oral examination on statistical inference, linear models, and probability. These topics are generally covered in 22S:193, 22S:194, 22S:195, 22S:203, 22S:253, and 22S:255. Study guides for the core examination are available from the department. Ph.D. students in the actuarial science track may qualify to take an exam designed by their advisor and approved by the director of graduate studies.

A program that does not conform to the prescribed requirements but is of high quality may be approved by the department chair.

Financial Support

Students who wish to be considered for financial assistance for their third year in the program should request a Ph.D. candidacy review no later than the spring semester of their second year.

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