<p>Lil Wayne Fan:
I passed actuarial first exam on my 2nd trial. To make long story short, I under-estimated the difficulty of the test in the first time because I think I had a very solid math background (straight A from calculus to upper division differential equation) so I didn’t do much practise before the 1st time and thus failed. I retook it in the second time about half year later (I did study here and there whenever i want, didn’t actually count the time… like may be once a week or sometimes 3 days a week for few hours… etc) </p>
<p>The first exam is similar to an upper division probability course but math course is more theory based while this exam is more like applying the concepts in the context of insurance and risk management. (this test is not at the lower division probability level; it requires deeper understanding than the so called introductory probability). It requires calculus, mainly single and double integration especially involving e^x… lots of exponential distribution with 1, 2 or more variables (the calculation is messy once you have more than 2 ormore variables, very easy to make mistakes so becareful). Also, from my observation, the real exam is much harder than the practise exam but keep practising with it can lead you the right way to study! </p>
<p>For the 2nd exam that i’m practising, TONS of SERIES!!! You need solid understanding on the common series especially geometric ones to analyze the cash flow. 1 simple example with 1 simple cash flow:
present value = Future value (1 + interest)^(-# of years from now to the future) .
As you have more than 1 cash flow, you would have a series so it becomes:
NET present value = future cash flow 1 (1+interest)^(-n1) + future cash flow 2 (1+ interest)^(-n2) + … + future cash flow y (1+ interest)^(-ny)…+ may go to infinity (if so it it is called perpetual cash flow)
This is the 1 of the most useful concept that applies to different financial analysis like mortgage, bond, valuation of this and that …
Beside that, we would have an advanced topics called “derivative”. Let put it this way, Wall Street people like hedge fund managers use all these concepts in this topic. </p>
<p>For example 3 or 4, everything is more and more applied to specific area based on probability and financial math. </p>
<p>Also, 1 tips for you all, do NOT UNDER-estimate the test! It is not as easy to pass it as you might think! However, do not give up when you fail. Lots of people have failed at least 1 time. I personally know many great students who failed in their first trial including math majors with 3.7+ or higher so better prepare well for it before you register the exam with 175 dollars! Also check your school, they might have reinbursement if you pass the exam! </p>
<p>Anyone who want to challenge, who love math, who want to use extensive math in the work, who want to earn good salary, who want to enjoy the work…actuary is really the career for you! It is really dynamic path that requires you lots of skills (statistics, finance, some accounting, some laws, some communication, and of course crazy math modeling).</p>
<p>About passing scores:
The scale range from 1 to 10. You need a 6 to pass but 6 does NOT mean 60%. The test has about 30 questions, the general thumb rule of passing is 21 (like a magic # or something) but the actual # of correct answers required to pass really depends on specific exam at specific time. You can learn more at <a href=“http://www.soa.org%5B/url%5D”>www.soa.org</a> .
For my score, of course I got higher than a 6 to pass but sorry i don’t want to disclose that information in the public here.</p>
<p>I really hope I bring some helpful information to you who are considering joining actuary profession. Let me know how you choose your major… are you still going for engineering or actuary now?</p>