An actuary is a mathematician or statistician who computes future risks for insurance companies. An actuary's job is a blend of mathematics, statistics, economics, investing and finance in combination with business and managerial skills. It's a good career choice: a recent Jobs Rated Almanac ranked over three hundred jobs based on such factors as salary, work environment, stress level, opportunity for advancement, and security. Based on these criteria, the actuarial profession was ranked first--ahead of all other professions, including physician, lawyer, and even professional football player.

Although Kansas State has no formal degree in actuarial science (very few institutions do), we have the means for training students interested in the profession. Most actuaries have at least a B.A. or B.S. in mathematics. Interested students are advised to take additional courses in accounting, computer science, economics, finance, and statistics. With this, students have more than sufficient background to enter the field.

But a prospective actuary needs to do more than this. Actuaries must advance through a long series of accrediting exams administered by the Society of Actuaries. Actuaries begin taking these at the start of their career and can take as long as ten years to finish. In fact, some never finish. Career advancement is based almost entirely on exam results.

In order to give students a jump on this, the mathematics department has developed a one-credit actuarial exam preparation course. This course uses study manuals designed for preparation for these exams and covers the material necessary for the first two examinations. The first of these covers calculus, differential equations, and linear algebra-- in short, the core of our undergraduate curriculum. The second covers basic probability and statistics. Some semesters there is even time for an introduction to material on a subsequent exam: mathematics of compound interest. While this subject is more relevant to the work of an actuary, and it is worthwhile to expose students to this material, the course emphasizes what is most important for those wishing to enter the field: passing the first two examinations.

The exams seem to be difficult in that the questions aren't always as straightforward as those that students encounter in their calculus or statistics courses. But with practice, a student can learn the recurring themes and little tricks of the test. In the course students practice working problems in the study manuals. This course provides an excellent review of much of what students learn in the undergraduate mathematics curriculum, and is even recommended to any mathematics major.