1. MONDAY, AUGUST 31, 2015 110 BUSINESS Actuarial Science Major Forum Last edited 8.29.15

2. Topics Introductions Career Opportunities Penn State Courses Actuarial Exams & VEE Actuarial Science Club Internships Questions

3. Penn State Actuarial Program # 1 Job in US (per WSJ )per WSJ # 1 School for Recruiters ( per BusinessWeek)per BusinessWeek Largest actuarial program in US  About 150 exam passers per year  About ½ from Smeal and ½ from Eberly (Math & Stat)  Center of Actuarial Excellence – only 15 in US Very Difficult Degree  Students with A’s in Calculus and Probability: pass exams, get jobs  Only 7% of students without exams, got a job last year.  Some employers (& grad schools) only look at students with GPA > 3.5  Take STAT 414 & SOA Probability Exam in Sophomore year  Eberly students can transfer to UP early to take STAT 414  We enforce the STAT 414 prerequisite for RM 410  Poor grades in Calc can hurt your GPA (reduce it below 3.20), which can block you from getting into any Smeal Major, so only try Actuarial Science if you are really good in Math

4. Faculty & Club Officers 4 Ron Gebhardtsbauer, FSA  Worked in Insurance, Pensions, Head of Retirement Practice-NYC Mercer  Spokesperson for US profession from 1996 to 2008, Actuary for Congress  Teach RM 410 (Financial Math) in Spring  Teach RM 411/412/415 (Pricing Life Insurance & Derivatives) Zhongyi Yuan, PhD in Actuarial Science  Teaches RM 410 (Financial Math) in Fall  Teaches RM 420 (C Exam = P&C and Health) in Spring Nan Zhu, PhD & FSA  Arrives in Fall Dick London, FSA  Former Head of UCONN’s actuarial program; founder of ACTEX; Ron’s professor  Teaching RM 411 this Spring Lisa Weaver, LLD  Retirement Consultant, Teaches RM 401 (Pensions) each Spring Lisa Posey and Dave Cather  Teach Insurance and Risk Management

5. The Good We Do For the World 5 Mutual Benefit Societies cared for Widows & Orphans Captains could build new ships & continue commerce Banks can make loans for tall buildings after 9/11 Actuaries’ project future so that Insurers can fulfill promises, stay solvent, & create products so:  You needn’t worry about needing an expensive operation  Parents needn’t worry about the financial consequences to their kids of parents dying early or becoming disabled  Car owners can get a new car if someone crashes into them  Homeowners needn’t worry about home burning down, or floods  Retirees don’t outlive their assets  Companies won’t go under if sued

6. Club Officers OfficerPositionInternship Luke YangPresidentCigna – Hartford, CT Matt MielnikVice PresidentLiberty Mutual – Boston, MA Robert HedgesTreasurerHighmark – Pittsburgh, PA Joe HayesSecretaryAIG – Houston, TX Luke PetersonCorporate LiaisonGen Re – Stamford, CT Brigh DesjardinsCorporate Outreach OfficerEY – Philadelphia, PA Joe PalladinoAlumni LiaisonTowers Watson–Philadelphia, PA Matt ReillyCommunication ChairMercer – Washington, D.C. Amanda ZigarovichStudent Relations LiaisonGen Re – Stamford, CT Peter ZhuPhilanthropy ChairAIG – New York, NY Max GuoWebmaster Jason XuResume Officer Feel free to email officers or Ron after talking to your mentor. You can get a mentor by using Google doc of Mentors or emailing Terron Graham.

7. Where Do Actuaries Work? Insurance 12-18 Month Rotational Programs Competitive study programs Clear reporting structure (one boss), Reasonable hours Consulting, Investment, and Accounting Firms Longer hours – especially during busy season Dynamic work environment Government & Academia Industry Life/Annuity Health Retirement Property/Casualty Reinsurance Finance/Investment Practice Area

8. Get Started Early!

9. Success in the Classroom and the Business World Profs and Bosses want students who understand why  Word problems; essay answers  Memorization helps but understanding is most important Preparation before class or meeting with boss  Read & do synopsis of material before class/meeting Work with others  Homework teams (plus good friends help after graduation) Confidence  Class Participation; Teaching HW problems; Be TA’s  Officers organize projects (not just put on resume) Good at self-study, internship, pass FSA exams  Projects (e.g., selling insurance to parents, your retirement projection)

10. International Students International students get jobs in US  CPT/OPT/H1-B/Green cards/Eb5 really help  If citizen or permanent resident, put near top of resume Communication as important as exams  Join HW groups with US students  Talk English all the time!  Having US roommates has worked well Important to pass Exam P in Sophomore year 3 exams to get Full-Time Job If can’t get internship or FT job  Try grad school (need good GPA), and then easier to get job PSU has Masters in Applied Statistics (MAS), and then you can be a TA with us

11. Sample Schedule YrFallSpring 1 st MATH 140* (Calc I) ECON 102 (Micro) - VEE MATH 141* (Calc II) ECON 104 (Macro) – VEE ACCTG 211 (Accounting–FIN 301 Pre-req) 2 nd MATH 231* (Calc III) MATH 220 (Matrices) helps in 412/MLC FIN 301 (Corp Finance) -VEE STAT 414* (Probability Theory) & RM 297 Take P Exam in May STAT 483# (better SAS class) 3 rd R M 410* (Financial Math) Excel Take FM in December STAT 415# (Math Stat) helps C/S R M 411* (Life Contingencies) VBA STAT 416# (Stochastic Processes) helps S 4 th R M 412* (Life Contingencies) Take MLC in late October STAT 462# (Regression Analysis) RM 420* (P&C/Health) Stat allows as sub. or RM401*(Pensions) STAT 463# (Applied Time Series) R Take C Exam in June or CAS S Exam in April To catch up, take Math 231 in summer at UP or World Campus or concurrent with STAT 414 Placing out of a course helps you take ACCTG 211 (or 211H) in 2 nd semester & FIN 301 in 3 rd semester * C or better required. If C’s, consider other options or majors # for STAT minor; 462/463 already needed for VEE & S. P&C and Health insurers tell us that STAT 483 and a Data Analytics course will help you get a job

12. Alternate Schedule with Stat Minor YrFallSpring 1 st MATH 141* (Calc II) ECON 102 (Micro) - VEE MATH 231* (Calc III) ECON 104 (Macro) – VEE ACCTG 211 (Accounting–FIN 301 Pre-req) 2 nd STAT 414* (Probability Theory) & RM297 Take P Exam in Jan for internship FIN 301 (Corp Finance) –VEE R M 410* (Financial Math) Excel Take FM Exam in June STAT 416# (Stochastic Processes) helps 412/415/S 3 rd R M 415 (Derivatives Markets) Take MFE in late November STAT 415# (Math Stat) helps 412/C/S R M 411* (Life Contingencies) VBA STAT 483# (better SAS class) MATH 220 (Matrices) helps in 412/MLC 4 th R M 412* (Life Contingencies) Take MLC Exam in late October STAT 462# (Regression Analysis) RM 420* (P&C/Health) Stat allows as substitute Take SOA C Exam in June STAT 463# (Applied Time Series) R Take CAS S Exam in Oct for P&C job If you pursue this plan, there is a risk that your ETM & Overall GPAs could be hurt beyond repair, making it impossible to pursue other Smeal Majors. Please make your decision carefully, taking into account your abilities & commitment to this rigorous plan. Students with 44 PSU credits can apply to ActSci Option & if admitted may schedule RM 410 (if have STAT 414 prerequisite). If 5 on AP exam, you can place out of MATH 140 (to take 231/414 sooner). If you got a 4, see this website on whether to place outthis website To catch up, take Math 231 at World Campus or UP in summer, or concurrent with STAT 414. Placing out of courses helps you to take ACCTG 211 in 2nd semester and FIN 301 in 3rd semester. P&C and Health insurers tell us that STAT 483 and other Data analytics courses help you get a job * C or better required. If C’s, consider other options or majors # for STAT minor; 462/463 needed for VEE & S

13. Smeal Major Required Courses Risk & Decisions R M 301* (Fall Only) Risk Management & Insurance R M 320W* (Spring Only) Life & Health Insurance RM 430* (Fall Only) * C or higher required

14. Smeal’s Business Core Act Sci students can skip Supply Chain 301 * C or higher required Instead of double majoring in Smeal’s Finance & Eberly’s Act Sci option, take Smeal’s Act Sci Option, RM 415, read the FIN 414 handouts at https://sites.google.com/site/lougattis/financial-modeling-files, and sign up for Penn State Asset Mgmt Club, PS Investment Assoc, PS Finance Society, or PS Econ Assochttps://sites.google.com/site/lougattis/financial-modeling-files SCM 200*: Statistics for Business MIS 204*: Business Information Systems FIN 301*: Finance ACCTG 211*: Accounting MKTG 301*: Marketing MGMT 301*: Management BA 411: Analyzing Business & Industry B LAW 341: Business Law BA 342: Business Ethics reference

15. Stat Major -Actuarial Option  Additional Statistics & Mathematics courses: ◦ MATH 230 instead of MATH 231 ◦ MATH 220: Matrices (good course for RM 412) ◦ STAT 415: Mathematical Statistics (good course for C exam) ◦ STAT 461: Analysis of Variance ◦ STAT 470W: Problem solving in Applied Statistics ◦ STAT 483: SAS (better than STAT 480) ◦ STAT 462/463:Applied Regression/Time Series Analysis-VEE ◦ 1 from CMPSC 101/102/121/200/201/202: C++, VB, Matlab, Fortran ◦ Select 9 credits from:  STAT 416: Stochastic Modeling  RM 420: Loss Models (needs a petition, which will be accepted)  STAT 440: Computational Statistics  STAT 464: Applied Nonparametric Statistics  STAT 466: Survey Sampling  MATH 436/441: Linear or Matrix Algebra  MATH 451/455: Numerical Computations & Numerical Analysis  IE 434/436: Quality Control/Industrial Engineering reference

16. Math Major -Actuarial Option Additional Mathematics & Statistics courses:  MATH 230 instead of MATH 231  MATH 311W & 312: Discrete Math & Real Analysis  MATH 251: Ordinary & Partial Differential Equations  MATH 220: Matrices (definitely take)  MATH/STAT 415: Mathematical Statistics (definitely take)  MATH/STAT 416: Stochastic Modeling (definitely take)  MATH 486: Game Theory or MATH 451: Numerical Computations  MATH 484: Linear Programming  CMPSC 101, 121, 201C: Computer Programming  IE 425: Operations Research  RM 415: Pricing Derivatives or 420: Loss Models (ask) reference

17. Eberly Majors -Actuarial Option  Business courses required: ◦ FIN 301: Corp Finance & Financial Markets ◦ RM 302: Risk & Insurance (Fall is a good time to take it) ◦ Replaces RM 301/320/430 ◦ RM 410*/411*/412*: Actuarial Courses ◦ ACCTG 211: Accounting (only Stat Majors)  Business courses not required: ◦ ACCTG 211: Math Majors don’t need for Fin 301 ◦ Business Core ◦ B LAW 341 & BA 342: Business Law & Ethics ◦ MIS 204: Intro to Business Information Systems * C or Higher required

18. Courses in Predictive Analytics (Data Science) P&C and Health Insurers say they’ll hire more students with these courses Regression: STAT 462 (taken for VEE) Time Series with Homework in R: STAT 463 (taken for VEE) GLM: STAT 511 and someday in STAT 462 (taken for VEE) SAS: STAT 483 much preferred (has some SQL) Monte Carlo: STAT 440 and 416, RM 411/412/415 (taken for MLC/MFE) Machine Learning (Decision Trees, Clusters, Neural Networks, Classification): CMPSC 448 & STAT 557 & https://www.coursera.org/learn/machine-learning Data Mining/Visualization: STAT 380 Survey sampling: STAT 466 Bayesian Computational Techniques/MCMC: STAT 440 (Computational Stat) Survival Tables/Cox/Proportional Hazards: STAT 525 Bootstrapping Methods: STAT 440 (Math 220 prereq) and/or 464 Design and Validation of Experiments/Outcomes: STAT 461 (Anal of Variance) See http://www.datasciencecentral.com/profiles/blogs/data-scientist-core-skills https://www.coursera.org/specializations/jhu-data-science https://www.udacity.com/courses/data-science reference

19. Other Good Courses to Take If controls allow (e.g., Eberly students can’t take FIN 305/408)  MATH 220: Matrices – great for Markov Chains & MLC  MATH 251:Differential Equations with PDEs  MATH 412: Partial Differential Equations  MATH 451 or 455: Numerical Computations/Analysis  MATH 486: Game Theory  FIN 305 (2 piece): Financial Mgmt of Business Enterprise  FIN 408 (2 piece): Financial Markets and Institutions  ECON 302/304: Intermediate Micro/Macro Economics  ECON 351: Money and Banking  HPA 057: Consumer Choices In Health Care for gym Gen Ed  FIN 414: https://sites.google.com/site/lougattis/financial-modeling-files and sign up for Penn State Asset Mgmt Club, PS Investment Assoc, PS Finance Society, or PS Econ Assoc instead https://sites.google.com/site/lougattis/financial-modeling-files reference

20. Courses with Programming  RM 297C/410/411/412: Excel & VBA  STAT 462/463: some Minitab, R, or SAS may be used  STAT 483: SAS & SQL - great for Health and P&C jobs  STAT 497: R  CMPSC 101/201: C++  CMPSC 200: MATLAB  CMPSC 203: Excel with some Access  MATH 451: MATLAB used lynda.psu.edu can also help with VBA reference

21. Actuarial Exams Given in Harrisburg, Philly, Pittsburg by:  Society of Actuaries (SOA)  Life/Pension/Health/Enterprise Risk Mgmt  MLC Exam is given at PSU  Casualty Actuarial Society (CAS)  Property/Casualty SOA exams satisfy CAS  Except MLC does not satisfy the CAS Exam S

22. Why should I take these exams? To get internships Internship + 2 or 3 exams for FT job Take FM Exam right after RM 410  Use breaks to pass exams  Tough passing FM exam when in RM 411 We cover all 5 exams here  Some pass all before graduation  Almost Associates in the SoA We pay you $100 if you pass exam  Take formal pass slip with score to 355 Business  Request right away. Right before graduation is too late

23. SOA/CAS Exams ExamCourse(s) Best Manual Use before & in course Take it when?Comments 1/P - Probability Theory STAT 414 & RM 497C Infinite Actuary, ACTEX, ADAPT, ActuaryExamTutor Sophomore year!! Sophomores: January Others in May 2/FM - Financial Mathematics RM 410ASM Sophomores:June Others in Dec Don’t take when in RM 411 3F/MFE – Financial Econ RM 415 ASM or ADAPT Study it before 415 Late November or July If 4 extra classes in Oct, can be done by late Nov MLC - Life Contingencies RM 411/412 Infinite Actuary or ADAPT cheap in last wk Late October Early May MLC no longer helps get ACAS 4/C – P&C and Health Ins RM 412/420 STAT 415/416 Infinite Actuary or ASM June Stan says easy after Zhongyi’s RM 420 S Exam (CAS) STAT 416, 462, 463 & RM 411 ?October 30, 2015 LC, Statistics, & Probability Models Tutorials at http://instruction.bus.wisc.edu/jfrees/UWCAELearn/default.aspxhttp://instruction.bus.wisc.edu/jfrees/UWCAELearn/default.aspx reference

24. Validation by Educational Experience: VEE Required by SOA, CAS, & Employers ECON 102/104 & FIN 301 required to graduate  ACCTG 211 (new VEE): Math Majors can take in Spring Must receive a grade of B- or better  Or 4 or 5 on AP tests Apply for VEE credit after passing P & FM  Or apply after you get job (& get a raise)  Other Campuses can use University Park VEE codes per SOA Can also get credit by exam through  ACTEX for Finance & Applied Stat VEE’s  CLEP for Econ VEE

25. VEE: Applied Statistical Methods  Accepted Courses: take one from each o Applied Regression  STAT 462, STAT 501, or ECON 306  ECON prerequisites can be satisfied by Stat 414 o Applied Time Series  STAT 463 (STAT 510 or ECON 483 if available) o You can mix and match  Get STAT Minor - if also take: o STAT 415 (Mathematical Statistics) already required for Math o STAT 416 (Stochastic Processes) maybe o STAT 480 (Intro to SAS - 1 credit) STAT 483 is better Some get ECON Minor: take ECON 302/304 & 6 credits of 400 level ECON such as 445 (Health Policy), 412 (Labor), 444 (Corp), & 457 (Banking)

26. Penn State Classes VEE/ExamCourse 1Course 2Other? VEE EconEcon 102Econ 104 VEE FinanceFIN 301 VEE StatisticsSTAT 462STAT 463 or STAT 501 or ECON 306/483 Exam P/1STAT 414 Exam FM/2R M 410 Exam MFE/3FR M 415 Exam MLCR M 411R M 412 Exam C/4 & SR M 411/2R M 420STAT 415/6 26 reference

27. Possible Changes  Mathematical Statistics (STAT 415)  New Exam or VEE  Applied Statistics (STAT 462/463)  May be elevated to Exam  Will need to know R and Generalized Linear Models (GLM)  Predictive Analytics  New Exam or Module  Creating Mortality Tables  Moving from C to MLC  Casualty Reserving and Ratemaking (pricing)  Being added to Exam C.  Reserving using Loss Development Factors and Triangles

28. Actuarial Science Career Fair Monday 9/19/16 from 4 to 7:30 PM in Atrium Over 35 companies Great place to find Internships  1 st yr students can get internships without exams if very good in Math To Attend:  Must do Mock Interview with Mentor  GPA>3.20, or A’s in Calculus, or Exam Passed  Pay Club Dues Some firms (like Met Life, NY Life, and AXA) don’t attend Career Fairs, so apply on their websites

29. Club Opportunities Résumé & Mock Interview Workshop  Wednesday 9/9: 6 – 7:30 PM in 107 Business  Put resumes on SmealConnect/SciOpps ASAP  Must use instructions on Club’s Resume webpage  RM 410 students must do mock interview ASAP Meeting for International Students  Monday 9/7: 6 – 7:30 PM in 102 Business  Ideas for internships, jobs, grad school (e.g., MAS) Mentors for Juniors (& interested Frosh/Soph)  If interested, email Terron Graham TCG5103@psu.edu

30. Actuarial Science Club Company Info Sessions (listed on Club’s Home Page) Exam Review Sessions (Club’s Review Sessions Page) Tutors for help on exams Field Trip to Actuarial Employers (Spring) Speakers Series THON involvement Social Events Panel Discussion

31. Actuarial Science Club Club website: http://www.psuactsci.com/http://www.psuactsci.com/ List Serve signup on home page Facebook group  Study Manual exchange  Questions about Actuarial Exams & PSU Classes Our Internships

32. Questions?