Mathematics, Actuarial Science and Statistics

1. Mathematics, Actuarial Science and Statistics University of Southampton Dr Sujit Sahu School of Mathematics

2. School of Mathematics • Large student centred school • Expertise across mathematical physics, applied mathematics, operational research, pure mathematics and statistics • Active links with business, industry, science and technology • A centre for interdisciplinary research and teaching • Large graduate school with three thriving MSc programmes and many research students 2

3. Mathematics students • 550 MMath & BSc students • 85 MSc students • 48 PhD students 3

4. Teaching & Assessment • Lectures • Tutorials • Supervisions • Computing Labs • Consolidation Class • Private study • Exams • Coursework • Projects • Presentations • In-class tests 4

5. Course structure Topology Hyperbolic Geometry Mathematical Programming Simulation and Queues Design and Analysis of Experiments Algebra Analysis Calculus Differential Equations Geometry Mathematical Modelling Probability and Statistics Applications of Mathematics in Biology Number Theory and Cryptography Mathematical Finance Relativity, Black Holes and Cosmology Rings and Fields Gravitational Waves Optimization Metric Spaces Differential Geometry and its Applications Complex Function Theory Groups and Symmetry 5

6. Programmes of Study • Mathematics for Arts: • Mathematics with Music • Mathematics and French, German, Spanish • Mathematics for Science: • Mathematics with: • Astronomy, Biology • Physics, Computer Science • Single Honours: • BSc: Mathematics • MMath: Mathematics • BSc: Mathematical Studies • Mathematics for Business: • Mathematics with: • Actuarial Science, Economics, Finance • Management Sciences, Statistics, • Operational Research, Computer Science 6

7. Some money making ideas with Mathematics • Google search • Pricing financial options • iPod and MP3 • “Green logistics” • Formula 1 pit stop strategies • Financial Portfolios • Encryption of credit cards • Airline pricing • Linear Algebra • Differential Equations • Analysis • Operational Research • Optimization • Statistics • Number Theory • Linear Programming

8. Mathematics with Actuarial Science • Our most popular programme! • Lets learn a bit more about it!

9. Actuarial Science Why choose Mathematics with Actuarial Science? • Actuarial Studies focus on the study of Mathematics and Statistics integrated with: • Economics, • Finance, • Demography and • Actuarial Science • For most people the excellent career prospects are the main reason for choosing Mathematics + Actuarial Science

10. EXAMPLES OF ACTUARIAL SCIENCE QUESTIONS • Mr Patel is 65 and had a heart attack 3 years ago – how much should his travel insurance to the USA for 2 weeks cost? • How many children in India will require elementary schooling in 2015? • Could health insurance for my pet cat be included free as part of my house insurance? • How much will it cost if it rains at the Olympics in 2012? • How much funding should the Indian Government put aside for building new roads for the next 10 years?

11. TEST YOURSELVES…….. • Should health insurance be cheaper or more expensive for smokers? MUCH CHEAPER • How old do you have to be to have a 50% chance of dying in the next 6 months? 103 • If you are 80 what chance do you have of living until 81? 97%

12. How much do Actuaries earn? • Lots! • Typical Actuarial salaries start at about £60,000 (Rs 48 Lakh) • Many Actuaries earn well over £150,000 (Rs 1.2 Crore!) • The profession is very carefully regulated • It also has a high professional profile • And high professional standards • -Actuaries are needed worldwide

13. Does India need more Actuaries? • There are about 6000 professional actuaries for 6 crore UK citizens. • There are about 100 crore Indians. How many actuaries are needed? • See an article in rediff.com: For a 7-figure salary, be an actuary • Many banks such as HSBC will pay very highly to Southampton graduates. • Southampton is a brand name!

14. Top ten subjects studied by new entrants to the Actuarial profession in 2004-7

15. How does the system of exemptions work? • One of the major attractions of a Mathematics with Actuarial Science programme is the “exemptions” • The professional examinations to become a fully-qualified Actuary are long and difficult • If a degree programme grants exemptions from some of these then it may be possible to qualify as an Actuary much quicker than normal • A Southampton Maths with Actuarial Science graduate can earn the maximum number of exemptions!

16. Exemptions from Actuarial Professional Examinations The new examination structure consists of: • 8 exams at Core Technical stage (CT1 to CT8) • 3 exams at Core Applications stage (CA1 to CA3) • 2 exams at Specialist Technical stage (2 from ST1 to ST6) • 1 exam at Specialist Application stage (1 from SA1 to SA6) A total of 14 examinations must therefore be passed to qualify as an Actuary. Exemption from some of the Specialist exams by undertaking acourse of study or a research dissertation as an alternative is now possible.

17. Actuarial Professional Examinations: CT stage CT1 Financial Mathematics CT2 Finance and Financial Reporting CT3 Probability and Mathematical Statistics CT4 Models CT5 Contingencies CT6 Statistical Methods CT7 Economics CT8 Financial Economics

18. Agreement with the IoA It has been agreed with the Institute of Actuaries that students achieving a suitable performance in certain units will get an exemption from the corresponding subject in the professional examinations. A maximum of 8 exemptions out of the 8 CT stage units is possible THE SOUTHAMPTON PROGRAMME OFFERS ALL 8 EXEMPTIONS This means that after completing our programme you would be over half way to qualifying as an actuary

19. What about Statistics? “All knowledge is, in final analysis, history. All sciences are, in the abstract, mathematics. All judgements are in, in their rationale, statistics.” Prof C. R. Rao

20. What is Statistics? • Statistics is the scientific application of mathematical principles to the collection, analysis, and presentation of numerical data, and the interpretation of the results. • Statisticians provide crucial guidance in determining what information is reliable and which predictions can be trusted. They often help search for clues to the solution of a scientific mystery and sometimes keep investigators from being misled by false impressions. • Many economic, social, political, and military decisions cannot be made without statistical techniques, such as the design of experiments to gain government approval of a newly manufactured drug.

21. What Do Statisticians Do? • Produce trustworthy data • Analyse data to make their meaning clear • Draw practical conclusions from data • Principles of 4-R’s: Reading, wRiting, aRithmetic and • “Reasoning under Uncertainty”

22. Job Characteristics • Use data to solve problems in a wide variety of fields • Apply mathematical and statistical knowledge to social, economic, medical, political, and ecological problems • Work individually and/or as part of an interdisciplinary team • Travel to consult with other professionals or attend conferences, seminars, and continuing education activities • Advance the frontiers of statistics, mathematics, and probability through education and research • If you enjoy any of these, a career in statistics may be right for you!

23. Examples of Statistics Careers • Medicine Search for improved medical treatments based on carefully designed experiments. • Environment Produce data on the abundance and location of plants and animals, on the spread of pollution from its sources, and on the possible effects of changes in human activities. • Industry Maintain quality of goods and services and the efficiency with which they are produced and delivered. • Government Surveys How many people are unemployed this month? What do we export to China, and what do we import? Are rates of violent crime increasing or decreasing? • Market Research Are consumer tastes in television programs changing? What are promising locations for a new retail outlet?

24. What do I do as a Statistician? • Sulfate pollution map of the Eastern US in 2001

25. Annual map for the North Atlantic Ocean

26. Scholarships and Bursaries • Golden Jubilee Scholarships • Two scholarships comprising the full value of tuition fees for the normal duration of study in the School of Mathematics. • School Scholarships • Scholarships of up to £5,000 per annum will be awarded automatically to any international student who is accepted on an undergraduate degree programme. These scholarships will be awarded on the basis of examination performance: more than 80% in XII exams. Golden Jubilee Scholar Pradeep Subedi (06-09)

27. What happens to our graduates?

28. * Source: HESA 2006 & Soton data

29. Southampton Mathematics Department is 2nd in the Country for graduate employment 6 months after graduation. (Better than Bristol, Cambridge, Durham, Edinburgh, Imperial, Nottingham, Oxford and Warwick) www.unistats.com (2008)

30. Destinations Academia, Accountancy, Actuarial, Aircraft Design, Banking, Brokerage, City Quant, Crime Analysis, Computer Game Design, Financial Analysis, Fusion Research, (ex-) Home Secretary, IT, Logistics, Management Consultancy, Marketing, Medical Research, Merchant Banking, Meteorology, Oceanography, Oil Industry, Pharmaceuticals, Security Service, Simulation, Statistician, Systems Analysis, Tax, Teaching, Transport Planner, Underwriter, Uranium production....

31. What we offer • A student centred community • A caring staff, committed to teaching and sustaining an active learning environment • An international research programme inspiring a leading edge curriculum • An extremely broad undergraduate curriculum, feeding into a range of postgraduate opportunities • A track record of success in graduate employment and training