Actuarial Mathematics I - ACS 314

Introduces the basis of actuarial Mathematics. Topics include Risk Aversion and the different Utility functions; Survival distribution for future lifetime as well as curtate future lifetime random variable; Force of Mortality and its relation to the survival function; Life tables and their use in calculating probabilities of survival; Expectation of future lifetime (Complete and Curtate); Assumptions regarding Fractional ages; Special Laws of Mortality (Gompertz, Makeham, etc); Ultimate Life tables; Life Insurance payable at the moment of death (continuous) or at the end of year of death (discrete); Term Insurance; Deferred Insurance and Endowment Insurance; Varying Benefit Insurance (Increasing/ Decreasing); Relation between expected present value of a benefit paid at the moment of death and that payable at the end of the year of death. Prerequisites: MAT 325 or MAT 326, MAT 206 or MAT 205.