Download STA 475

UCC/UGC/ECCC
Proposal for New Course
Please attach proposed Syllabus in approved university format.
1. Course subject and number: STA 475
2. Units:
See upper and lower division undergraduate course definitions.
3. College:
CEFNS
4. Academic Unit:
1
Mathematics & Statistics
5. Student Learning Outcomes of the new course. (Resources & Examples for Developing Course Learning
Outcomes)
Upon completion of the course, students will be able to :
1. Apply basic probability concepts in the context of insurance.
2. Apply methodology of probability distributions and specific probability distributions to problems arising in
insurance models.
3. Apply methodology of multivariate probability distributions and specific multivariate probability
distributions to problems arising in insurance models.
4. Solve applied probability problems similar to those encountered on professional actuarial exams.
6. Justification for new course, including how the course contributes to degree program outcomes,
or other university requirements / student learning outcomes. (Resources, Examples & Tools for Developing
Effective Program Student Learning Outcomes).
The course is intended to deepen students’ reasoning and problem solving abilities in the area of
actuarial applications of probability. The course will augment the material covered in STA 473
Mathematical Statistics I with a specific actuarial context and additional topics, and will provide
opportunities to enhance problem solving skills and reasoning skills for relevant problems, especially
in preparation for the first in a progression of professional examinations.
Thus, the course addresses the readiness of majors to enter the work-force in mathematical related
areas, specifically the actuarial profession, and it addresses the learning outcome of the major in the
area of mathematical reasoning, specifically mathematical problem solving, as well as an understanding of
the context and applications of mathematics.
7. Effective BEGINNING of what term and year?
See effective dates calendar.
Fall 2015
8. Long course title: PROBABILITY APPLICATIONS IN ACTUARIAL SCIENCE
(max 100 characters including spaces)
9. Short course title: PROBABILITY APPL IN ACT SCI
(max. 30 characters including spaces)
Effective Fall 2012
10. Catalog course description (max. 60 words, excluding requisites):
Application of probability concepts and methods suitable for preparation for careers in the actuarial
profession. Use of random variables, distribution theory, specific probabilistic distributions, expected
value, and related concepts in insurance models including deductibles, caps, premiums, and loss.
Letter grade only. Prerequisite or Corequisite: STA 473.
11. Will this course be part of any plan (major, minor or certificate) or sub plan (emphasis)?
Yes
If yes, include the appropriate plan proposal.
No
The course will not be required in any program, but it will count as elective hours toward the total
requirements of the BS in Mathematics.
12. Does this course duplicate content of existing courses?
Yes
No
If yes, list the courses with duplicate material. If the duplication is greater than 20%, explain why
NAU should establish this course.
The course will draw on material developed in STA 473 Mathematical Statistics I, but it will primarily
be focused on applying the content of that course in the actuarial context, and therefore the new
course is substantially different than STA 473.
13. Will this course impact any other academic unit’s enrollment or plan(s)?
Yes
No
If yes, describe the impact. If applicable, include evidence of notification to and/or response from
each impacted academic unit
14. Grading option:
Letter grade
Pass/Fail
Both
15. Co-convened with:
14a. UGC approval date*:
(For example: ESE 450 and ESE 550) See co-convening policy.
*Must be approved by UGC before UCC submission, and both course syllabi must be presented.
16. Cross-listed with:
(For example: ES 450 and DIS 450) See cross listing policy.
Please submit a single cross-listed syllabus that will be used for all cross-listed courses.
17. May course be repeated for additional units?
16a. If yes, maximum units allowed?
16b. If yes, may course be repeated for additional units in the same term?
18. Prerequisites:
STA 473
If prerequisites, include the rationale for the prerequisites.
The course relies heavily on the content and methodology of STA 473.
19. Co requisites:
STA 473
If co requisites, include the rationale for the co requisites.
Effective Fall 2012
Yes
No
Yes
No
The course relies heavily on the content and methodology of STA 473.
20. Does this course include combined lecture and lab components?
Yes
If yes, include the units specific to each component in the course description above.
21. Names of the current faculty qualified to teach this course:
No
Art DeGraw, John Hagood
22. Classes scheduled before the regular term begins and/or after the regular term ends may require
additional action. Review “see description” and “see impacts” for “Classes Starting/Ending
Outside Regular Term” under the heading “Forms”
http://nau.edu/Registrar/Faculty-Resources/Schedule-of-Classes-Maintenance/.
Do you anticipate this course will be scheduled outside the regular term?
Yes
No
23. Is this course being proposed for Liberal Studies designation?
If yes, include a Liberal Studies proposal and syllabus with this proposal.
Yes
No
24. Is this course being proposed for Diversity designation?
If yes, include a Diversity proposal and syllabus with this proposal.
Yes
Answer 22-23 for UCC/ECCC only:
FLAGSTAFF MOUNTAIN CAMPUS
Reviewed by Curriculum Process Associate
Date
Approvals:
Department Chair/Unit Head (if appropriate)
Date
Chair of college curriculum committee
Date
Dean of college
Date
For Committee use only:
UCC/UGC Approval
Effective Fall 2012
Date
No
Approved as submitted:
Yes
No
Approved as modified:
Yes
No
EXTENDED CAMPUSES
Reviewed by Curriculum Process Associate
Date
Approvals:
Academic Unit Head
Date
Division Curriculum Committee (Yuma, Yavapai, or Personalized Learning)
Date
Division Administrator in Extended Campuses (Yuma, Yavapai, or Personalized
Learning)
Date
Faculty Chair of Extended Campuses Curriculum Committee (Yuma, Yavapai, or
Personalized Learning)
Date
Chief Academic Officer; Extended Campuses (or Designee)
Date
Approved as submitted:
Yes
No
Approved as modified:
Yes
No
Effective Fall 2012
Department of Mathematics & Statistics
Adel Mathematics Building
PO Box 5717
Flagstaff, AZ 86011-5717
928-523-3481
928-523-5847 fax
www.math.nau.edu
STA 475 Probability Applications in Actuarial Science
Fall 2015
Instructor: Dr. Art DeGraw
Office: Adel Mathematics 119
Office Hours:
Course Description and Prerequisites. (1 credit hour) Application of probability concepts and
methods suitable for preparation for careers in the actuarial profession. Use of random variables,
distribution theory, specific probabilistic distributions, expected value, and related concepts in
insurance models including deductibles, caps, premiums, and loss. Letter grade only. Prerequisite or
Corequisite: STA 473. Meets weekly for a total of 15 hours during the term.
Student Learning Outcomes Upon completion of the course, students will be able to :
1. Apply basic probability concepts in the context of insurance.
2. Apply methodology of probability distributions and specific probability distributions to problems
arising in insurance models.
3. Apply methodology of multivariate probability distributions and specific multivariate probability
distributions to problems arising in insurance models.
4. Solve applied probability problems similar to those encountered on professional actuarial
exams.
Course structure/approach. A small portion of the class meetings will be devoted to introducing
terminology and concepts related to insurance. For most of the term, students will be given weekly
assignments of problems applying probability theory to insurance models, and class sessions will be
devoted to working through a portion of the assigned problems. The content is not arranged in a
linear order but rather is driven by problem collections that may draw on any of the concepts and
methods at any point in the term.
Textbook and required materials
1. Text: free for academic use – A Probability Course for the Actuaries: A Preparation for
Exam P/1, Marcel B. Finan (http://faculty.atu.edu/mfinan/actuarieshall/Pbook.pdf)
2. Society of Actuaries Exam P Sample Problems:
(http://www.beanactuary.org/exams/preliminary/exams/syllabi/ExamPSamplequestions.pdf)
3. Society of Actuaries approved calculator, currently Texas Instruments TI–30Xa or TI–30X
II* (IIS solar or IIB battery), or TI-30X MultiView (XS Solar or XB Battery) (see:
http://www.soa.org/education/exam-req/exam-day-info/edu-calculators.aspx)
Effective Fall 2012
Course Outline
1. Terminology and insurance models (one week)
2. Practice in applying probability to actuarial science and insurance models drawing on basic
probability theory and methods covered in STA 473. (fourteen weeks) The topics covered in
the presentation and applied in problems include:
a. Risk and Insurance: Basic notions, limits, deductibles, inflation, continuous severity.
b. General probability (applied to insurance): basic concepts including Bayes theorem.
c. Univariate distributions, especially binomial, negative binomial, geometric,
hypergeometric, Poisson, uniform, exponential, gamma, normal: mass and density
functions, cumulative distribution function, variance, moment generating functions,
transformation
d. Multivariate distributions (including the bivariate normal): joint mass and density
functions, joint cumulative distribution functions, Central Limit Theorem, conditional and
marginal distributions, moments, joint moment generating functions, variance for
marginal and conditional distributions, covariance and correlation, transformation and
order statistics, linear combinations of random variables
Assessment of Student Learning Outcomes
In addition to a comprehensive final exam, there will be weekly homework assignments and frequent
short quizzes. These will be weighted as follows.
 Homework and quizzes: 70%
 Final Exam: 30%
Grading System
Grades will be based on percentages as follows.
A: 90 – 100%; B: 80 – 89%; C: 70 – 79%; D: 60 – 69%; F: 0 – 59%
Course policies
Make-up quizzes will only be given with sufficient reasons for missing in the judgment of the
instructor.
University policies: Attach the Safe Working and Learning Environment, Students with Disabilities,
Institutional Review Board, and Academic Integrity policies or reference them on the syllabus. See
the following document for policy statements:
http://nau.edu/OCLDAA/_Forms/UCC/SyllabusPolicyStmts2-2014/
Effective Fall 2012