What kind of Maths does Actuarial Studies involve?

[Ilovemathsmeth]

I'm currently a year 12 student who is keen on pursuing Actuarial Studies at Melbourne University in 2010/2011. I was wondering, what is the Maths involved? Is it more based on statistics or on calculus/functions or probability?

Thanks! I'd appreciate your thoughts

[darlok]

All of the above, but it usually relates back to stats/probability as being an actuary is about managing risk using statistical modelling.

[AppleXY]

Basically what actuaries do is manage risk using quantitative methods. Hence, probability, statisitics and calculus is utilised.

[zzdfa]

calculus and probability and functions, are all used heavily in statistics. obviously probability is closely related to statistics, and i think a large part of probability is based on calculus, you would have seen this last year in methods. and functions are tied to calculus.

an example of statistics:
http://en.wikipedia.org/wiki/Black%E2%80%93Scholes

[AppleXY]

I don't think actuaries are *too* concerned with option pricing (I mean its apart of their learning), rather more with insurance like risk theory and catastrophe modelling.

Option pricing and volatility determination (and other financial market mathematics) is really the work of quants (quantitative analysts).

[dcc]

Don't do actuarial studies.

[dejan91]

Don't do actuarial studies.

?

[Toothpaste]

I attached stuff.

[lacoste]

Does actuarial studies require you to actually have knowledge in Specialist Math. or do they only say that you must have spesh as a pre-req, so that they know you are 'strong' in maths?

[zzdfa]

its the latter
even if stuff is covered in spesh maths thats used in actuarial, they will cover it again.

Don't do actuarial studies.

listen to this guy

[Ilovemathsmeth]

hey i just found out you can do actuarial without spesh but need to take Calc 1 in sem 1, calc 2 in sem 2 and linear algebra in the summer hols. however when do you do intro to actuarial studies then if you are doing calculus 2 at the same time?

[zzdfa]

https://app.portal.unimelb.edu.au/CSCApplication/view/2009/300-101

"Students who do not meet the pre-requisite may enrol with 620-155 Calculus 2 as a co-requisite."

[AppleXY]

Here is the most recent salary surveys from QED, these should help in your decision making to undertake actuarial or not (remember it takes on average 8 years to obtain FIAA).

http://www.qedactuarial.com.au/salary_survey_off/QED%20Aust%20Survey%202007%20Report.pdf
http://www.qedactuarial.com.au/images/QED%20WEB%20Survey%202006%20Report.pdf

[Gloamglozer]

hey i just found out you can do actuarial without spesh but need to take Calc 1 in sem 1, calc 2 in sem 2 and linear algebra in the summer hols. however when do you do intro to actuarial studies then if you are doing calculus 2 at the same time?

They're two different subjects.  By doing Calc 2 in semester 2, one of final - year students told me that you forfeit "Introduction to Actuarial Studies".  However, he hinted that you can always buy the textbook for the subject, ask one of the lecturers which chapters are relevant and read over the book over the holidays. 

In second year, you will have to do "Financial Maths I".  Because you didn't do "Introduction to Actuarial Studies", the student said that you may find the subject a little bit hard but after semester 1 in second year, you will no longer be disadvantaged.

[Ilovemathsmeth]

I see, so there are disadvantages of not taking Specialist. What a pity.

But yeah I'd be perfectly willing to read over the relevant chapters in my free time so that problem would be solved. Thanks so much!