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Statistics and Actuarial Science

Probability and statistics is an important scientific discipline essential to all fields of study that rely on information obtained from data. In a world 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 varied 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 areas of asset/liability management and risk 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 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

• Major in statistics (Bachelor of Science)
• Major in actuarial science (Bachelor of Science)
• Minor in statistics

Bachelor of Science: Statistics

The Bachelor of Science with a major in statistics requires a minimum of 120 s.h., including a minimum of 49 s.h. of work for the major. Students complete 10 core courses that provide essential instruction in statistical methods, applications, and theory. In addition, they concentrate on their particular interest areas by completing four courses in one of the following three emphasis tracks: the statistics in business, industry, government, and research track; the statistical computing track; or the mathematical statistics track (see "Emphasis Tracks" below for track descriptions and course lists).

All students must complete the College of Liberal Arts and Sciences General Education Program.

The major in statistics requires the following course work.

Core Courses

All students complete the following.

Computer science:

Mathematics—all of these:

Statistics—all of these:

The department recommends that well-prepared students who elect the mathematical statistics track take 22S:153 (STAT:4100) Mathematical Statistics I and 22S:154 (STAT:4101) Mathematical Statistics II in place of 22S:130 (STAT:3100) Introduction to Mathematical Statistics I and 22S:131 (STAT:3101) Introduction to Mathematical Statistics II to satisfy the core requirement in statistics.

Emphasis Tracks

Students complete four courses in their choice of one of the following three emphasis tracks.

Statistics in Business, Industry, Government, and Research Track

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

Three of these: 

Statistical Computing Track

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.

Two of these: 

Mathematical Statistics Track

The mathematical 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.  

Three of these:

If 22S:153 (STAT:4100) Mathematical Statistics I and 22S:154 (STAT:4101) Mathematical Statistics II are used to satisfy the core requirements, they may not be used to satisfy the track requirement.

Bachelor of Science: Actuarial Science

The Bachelor of Science with a major in actuarial science requires a minimum of 120 s.h., including 62 s.h. of work for the major. The program prepares students for careers as actuaries. It also helps them learn material that is included in professional examinations administered by the Casualty Actuarial Society and/or the Society of Actuaries, which actuaries must pass in order to achieve professional status.

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.

Students also must complete the College of Liberal Arts and Sciences General Education Program.

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 (MATH:3770) Fundamental Properties of Spaces and Functions I and 22S:130 (STAT:3100) Introduction to Mathematical Statistics I. 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 do well in prerequisite math courses 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 major in actuarial science requires the following course work.

Computer science:

Economics—both of these:

Mathematics—all of these:

Statistics and actuarial science—all of these:

In exceptional cases, the advisor may grant permission to waive 22S:130 (STAT:3100) Introduction to Mathematical Statistics I and/or 22S:131 (STAT:3101) Introduction to Mathematical Statistics II.

Students may choose to complete 22S:176 (ACTS:6580) Credibility and Survival Analysis and 22S:177 (ACTS:6480) Loss Distributions (both courses) instead of 22S:183 (ACTS:4380) Mathematics of Finance II, except honors students, who must complete all three courses. Students also may choose to complete 22S:180 (ACTS:3080) Mathematics of Finance I instead of 22S:179 (ACTS:3085) Introduction to Mathematics of Finance.

Four-Year Graduation Plan

The following checkpoints list the minimum requirements students must complete by certain semesters in order to stay on the University's Four-Year Graduation Plan. (Courses in the major are those required to complete the major; they may be offered by departments other than the major department.)

Much of the course work in statistics and in actuarial science 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.: Statistics

Courses must be taken in sequence, so students must begin work early.

Before the third semester begins: at least one-fourth of the semester hours required for graduation

Before the fifth semester begins: at least four courses in the major, including 22M:025 (MATH:1850) Calculus I, 22M:026 (MATH:1860) Calculus II, and 22S:030 (STAT:2010) Statistical Methods and Computing, 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.: Actuarial Science

Before the third semester begins: 22M:025 (MATH:1850) Calculus I, 22M:026 (MATH:1860) Calculus II, 22M:027 (MATH:2700) Introduction to Linear Algebra, and at least one-quarter of the semester hours required for graduation

Before the fifth semester begins: 22C:016 (CS:1210) Computer Science I: Fundamentals, 22M:028 (MATH:2850) Calculus III, 22M:055 (MATH:3770) Fundamental Properties of Spaces and Functions I, 22S:130 (STAT:3100) Introduction to Mathematical Statistics I, 22S:131 (STAT:3101) Introduction to Mathematical Statistics II, 22S:179 (ACTS:3085) Introduction to Mathematics of Finance, and at least one-half of the semester hours required for graduation

Before the seventh semester begins: 22S:153 (STAT:4100) Mathematical Statistics I, 22S:154 (STAT:4101) Mathematical Statistics II, 22S:174 (ACTS:4130) Quantitative Methods for Actuaries, 22S:181 (ACTS:4180) Life Contingencies I, 22S:183 (ACTS:4380) Mathematics of Finance II, and at least three-quarters of the semester hours required for graduation

Before the eighth semester begins: 22S:182 (ACTS:4280) Life Contingencies II

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

Qualified undergraduate students majoring in statistics or actuarial science may work toward graduation with honors. Honors students in statistics and in actuarial science must be members 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). They also must maintain a g.p.a. of at least 3.40 in departmental courses.

To graduate with honors in the statistics major, students must complete an honors project or a suitable alternative. Statistics honors students should consult with the statistics honors advisor.

To graduate with honors in the actuarial science major, students must complete the following five courses in addition to all courses required for the major. 

Actuarial science honors students may not elect to complete 22S:176 (ACTS:6580) Credibility and Survival Analysis and 22S:177 (ACTS:6480) Loss Distributions instead of 22S:183 (ACTS:4380) Mathematics of Finance II in fulfilling requirements for the actuarial science major. They must complete 22S:183 (ACTS:4380) as part of the major, and they must complete 22S:176 (ACTS:6580) and 22S:177 (ACTS:6480) for honors credit.

Minor in Statistics

The minor in statistics requires a minimum of 15 s.h. in statistics courses, including 12 s.h. in 100-level courses taken at The University of Iowa. Students must maintain a g.p.a. of at least 2.00 in the minor. Course work in the minor may not be taken pass/nonpass. The minor requires the following courses:

Two of these:

Three of these:

Graduate Programs

• Master of Science in statistics (actuarial science subtrack available)
• Doctor of Philosophy in statistics

Master of Science

The Master of Science program in statistics requires 34 s.h. of graduate credit. The program prepares students for careers as professional statisticians or for entry into the Ph.D. program. It includes a solid foundation in statistical computing, statistical modeling, experimental design, and mathematical statistics plus electives in statistical methods and/or theory. Students have the opportunity to concentrate on theory or applications or a combination of the two.

In addition to required course work, students must pass the two-part graduate core examination and complete the M.S. creative component. The examination and creative component constitute the M.S. final (comprehensive) examination required by the Graduate College.

M.S. students in statistics must maintain a g.p.a. of at least 3.00 in all work toward the degree and in additional relevant course work. Students must take a computer programming proficiency test during the first semester of study; those who display inadequate programming skills are assigned activities to build their proficiency.

The Master of Science program in statistics requires the following work.

Statistics Courses

All of these:

At least three of these:

M.S. students planning to enter the doctoral program may wish to include 22S:190 (STAT:5120) Mathematical Methods for Statistics in their course selections, since it is part of the required Ph.D. core.

Graduate Core Examination

The graduate core examination consists of two parts: one covers the topics presented in 22S:193 (STAT:5100) Statistical Inference I and 22S:194 (STAT:5101) Statistical Inference II; the other part covers the topics presented in 22S:164 (STAT:5200) Applied Statistics I, 22S:165 (STAT:5201) Applied Statistics II, and 22S:166 (STAT:5400) Computing in Statistics. Each part includes a few optional problems that test readiness for the Ph.D. program. Students planning to enter the doctoral program must pass the examination at the Ph.D. encouragement level.

Graduate core exams are offered the week before classes begin in August and in January. Study guides are available in the department office. Students who do not succeed the first time they take the exam may repeat it once.

Students must complete all requirements and be granted the Master of Science within one calendar year of passing the graduate core examination; those who do not meet this deadline are required to take the exam again.

Creative Component

The M.S. creative component is related to each student's individual application and career interests. The student writes a report (8-15 pages) on a suitable topic, under an advisor's supervision, enrolling twice in 22S:197 (STAT:6990) Readings in Statistics, normally during the fall and spring semesters of the second year in the program. The student completes a draft of the paper by the end of the first enrollment and a polished version by mid-semester of the second enrollment. He or she presents the paper orally in a public seminar, and the paper is evaluated by a faculty committee.

Students who will enter the doctoral program may satisfy the M.S. creative component requirement by completing the creative component of the Ph.D. program; see "Doctor of Philosophy" below.

M.S. with Actuarial Science Subtrack

The Master of Science program in statistics with actuarial science subtrack requires 36 s.h. of graduate credit. 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. It also helps them learn material included in the professional examinations administered by the Casualty Actuarial Society and/or the Society of Actuaries, which actuaries must pass in order to achieve professional status.

Students in the actuarial science subtrack complete required courses and an M.S. final (comprehensive) examination.

The M.S. in statistics with actuarial science subtrack requires the following course work.

One of these sequences: 

All of these: 

M.S. Final Examination

The M.S. final (comprehensive) examination is offered the weekend before classes begin in January. The exam covers the material presented in 22S:171 (ACTS:6160) Topics in Actuarial Science, 22S:181 (ACTS:4180) Life Contingencies I, 22S:182 (ACTS:4280) Life Contingencies II, and 22S:183 (ACTS:4380) Mathematics of Finance II. Students who do not succeed the first time they take the exam may repeat it once.

Doctor of Philosophy

The Doctor of Philosophy program in statistics requires a minimum of 72 s.h. of graduate credit, including work done for the master's degree. The program prepares students for careers in research, applications, and teaching.

Ph.D. students complete required course work, including four courses in one of four concentration areas: biostatistics, probability/mathematical statistics, statistical modeling and computing, or actuarial science/financial mathematics (see "Concentration Areas" below for area descriptions and course lists). They may take course work or seminars in other departments to relate an area of specialization to other fields of knowledge, to acquire the ability to use electronic digital computing equipment, or to learn non-English language skills necessary for reading scientific journals and communicating with scholars in other languages.

They also take the two-part graduate core examination and complete the Ph.D. creative component. Students are admitted to Ph.D. candidacy upon successful completion of the graduate core exam and creative component. 

Students complete the program by passing the Ph.D. final (comprehensive) examination and writing and defending a dissertation. Students usually complete the program three years after earning the master's degree.

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

Ph.D. students in statistics must maintain a g.p.a. of at least 3.00 in all work toward the degree and in additional relevant course work.

Each semester a Ph.D. student in statistics registers for at least 6 s.h., he or she must include at least one 2 s.h. course offered by the department, excluding 22S:197 (STAT:6990) Readings in Statistics and 22S:299 (STAT:7990) Reading Research.

The Doctor of Philosophy in statistics requires the following work.

Statistics Courses

Ph.D. core included in the M.S. program—all of these:

Additional Ph.D. core—all of these:

Concentration Areas

Students take at least four courses in one of the following concentration areas; at least two of the four courses must be at the Ph.D. level (numbered 200 or above).

Biostatistics

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

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 and Computing

Statistical modeling and computing 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

Actuarial science/financial mathematics emphasizes the theory of actuarial science, finance, and risk management. It is excellent preparation for academic positions in universities that offer actuarial science programs and for positions in the insurance, pension, and financial industries. Most students who choose this concentration area are admitted after earning an M.S. in statistics with actuarial science emphasis at The University of Iowa.

Graduate Core Examination

The graduate core examination is usually taken during the M.S. program. It consists of two parts: one covers the topics presented in 22S:193 (STAT:5100) Statistical Inference I and 22S:194 (STAT:5101) Statistical Inference II, the other covers the topics presented in 22S:164 (STAT:5200) Applied Statistics I, 22S:165 (STAT:5201) Applied Statistics II, and 22S:166 (STAT:5400) Computing in Statistics. Each examination includes a few optional problems that test readiness for the Ph.D. program. Students planning to enter the doctoral program must pass the examination at the Ph.D. encouragement level.

Graduate core examinations are offered the week before classes begin in August and in January. Study guides are available in the department's office. Students who do not succeed the first time they take the exam may repeat it once.

Students entering the Ph.D. program who already have taken the equivalent of the first-year courses may take the graduate core examination before beginning further studies.

Creative Component

The Ph.D. creative component is research oriented and related to a potential dissertation topic. The student chooses a faculty advisor for the component and writes a research paper (8-15 pages), enrolling in 22S:197 (STAT:6990) Readings in Statistics twice, normally during the fall and spring semesters of the second year in the program. The student completes a draft of the paper by the end of the first enrollment and a polished version by mid-semester of the second enrollment. He or she presents the paper orally in a public seminar, and the paper is evaluated by a faculty committee.

Students must complete the creative component within one calendar year of passing the graduate core examination at the Ph.D. encouragement level; those who do not meet this deadline are required to take the exam again. 

Ph.D. Final Examination

Students typically take the Ph.D. final (comprehensive) examination at the beginning of the third year of graduate study, during the week before fall classes begin. Students who do not succeed the first time they take the exam may repeat it once.

The comprehensive examination consists of a written core examination and an oral examination in two of the following four areas:

statistical inference [topics in 22S:253 (STAT:7100) Advanced Inference I];

linear models [topics in 22S:255 (STAT:7200) Linear Models];

probability [topics in 22S:195 (STAT:6300) Probability and Stochastic Processes I and 22S:203 (STAT:7300) Foundations of Probability I]; and

statistical modeling and computing [topics in 22S:248 (STAT:7400) Computer Intensive Statistics and concentration courses in modeling].

Ph.D. students in the actuarial science/financial mathematics concentration area may qualify to take an examination designed by their advisors and approved by the director of graduate studies.

Ph.D. Committee

Upon passing the Ph.D. final exam, the candidate chooses a committee of at least five members, which is approved by the advisor.  One of the committee members must be from outside the student's home discipline and may not serve as the committee's chair.

Prospectus

Within 12 months of passing the Ph.D. final exam, the candidate presents a written and oral prospectus to the committee. The prospectus describes the problems the student is considering for the thesis, relevant background material, ideas for solving the problems, and any preliminary results.

Financial Support

Funds are available to help support outstanding applicants. Fellowships, teaching assistantships, and research assistantships provide an attractive stipend plus resident tuition status and tuition scholarships for students who are appointed at least one-quarter time. In some cases, full tuition waivers are granted.

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.

Admission

Applicants must meet the admission requirements of the Graduate College; see the Manual of Rules and Regulations of the Graduate College or the Graduate College section of the Catalog.

Facilities

The Department of Statistics and Actuarial Science is housed in Schaeffer Hall, adjacent to Old Capitol, a National Historic Landmark and the center of campus. The department operates two computer labs in Schaeffer Hall. One, which also is used as an electronic classroom, contains 28 Windows PCs. The second houses 18 high-end UNIX workstations. Students use these labs for both class work and research.

Courses

Primarily for Undergraduates

Once students have earned credit in a Department of Statistics and Actuarial Science course numbered above 105, they may not earn credit in one numbered below 105. Students may earn credit for only two of these: 22S:002 (STAT:1010) Statistics and Society, 22S:008 (STAT:1030) Statistics for Business, 22S:025 (STAT:1020) Elementary Statistics and Inference (same as 07P:025), and 22S:030 (STAT:2010) Statistical Methods and Computing. Credit for 22S:002 (STAT:1010) Statistics and Society may be earned only if the course is taken before 22S:008 (STAT:1030) Statistics for Business, 22S:025 (STAT:1020) Elementary Statistics and Inference (same as 07P:025), or 22S:030 (STAT:2010) Statistical Methods and Computing. Students may receive credit for only one course from each of these pairs:  22S:030 (STAT:2010) Statistical Methods and Computing and 22S:105 (STAT:4200) Statistical Methods and Computing, 22S:101 (STAT:3510) Biostatistics and 22S:102 (STAT:5543) Introduction to Statistical Methods, and 22S:120 (STAT:3120) Probability and Statistics and 22S:130 (STAT:3100) Introduction to Mathematical Statistics I.

For Undergraduate and Graduate Students

Primarily for Graduate Students