Careers in Applied Math and Stats Presentation

OPERATIONS RESEARCH ANALYSTHTTP://MONEY.USNEWS.COM/CAREERS/BEST-JOBS/OPERATIONS-RESEARCH-ANALYSTEARCH ANALYST • Operations research analysts are high-level solvers who use advanced techn

CAREER OPPORTUNITIES IN MATHEMATICAL SCIENCES

Dongming Wei Professor of Mathematics School of Science and Technology, Nazarbayev University

dongming.wei@nu.edu.kz

CAREERCAST.COM JOB SURVEYS

147 Stress pts: Quotas (5), Deadlines (9),

Advocacy (5), Win or lose situations (5), Working in public eye (5), Competitiveness (15), Heavy lifting (5), Physical demands (14), Environmental

Conditions (13), Machines and tools (5), Speed

required (5), Hazards (5), Own life at risk (8), Other lives at risk (10), Precision required (5), Initiative required (5), Outdoor work (5), Confinement (5),

Detail (5), Public meetings (8)

CAREERCAST.COM 2014 BEST JOBS

Rank Job BLS Median Annual Salary Stress

CAREERCAST.COM 2012 BEST JOBS

HTTP://WWW.AMSTAT.ORG/CAREERS/BIOSTATISTICS.CFM

• Biostatisticians with advanced degrees can look forward to excellent career

opportunities in government, industry, and academia The shortage of

biostatisticians is noted in Objectives for the Nation and the Seventh

Report to the President and Congress on the Status of Health Personnel in the United States.

• Job prospects for new graduates with master's and PhD degrees in

biostatistics are excellent Typical starting salaries range from $35,000 to

$65,000 for master's-level graduates and $55,000 to $85,000 for PhD-level graduates.

• Recent graduates have found positions with employers as diverse as

pharmaceutical companies, university research groups, hospitals, and

health-related industries.

OPERATIONS RESEARCH ANALYST

HTTP://MONEY.USNEWS.COM/CAREERS/BEST-JOBS/OPERATIONS-RESEARCH-ANALYSTEARCH ANALYST

• Operations research analysts are high-level solvers who use advanced techniques, such as

problem-optimization, Queueing, data mining, statistical

analysis and mathematical modeling, to develop

solutions that help businesses and organizations

operate more efficiently and cost-effectively

• UPS uses operations research to chart the flow of

packages, provide real-time route guidance to drivers and help plan and manage distribution In the health care field, the Memorial Sloan-Kettering Cancer Center

in New York used operations research to design a

radiation treatment plan for prostate patients using

sophisticated modeling and computation techniques.

• Operations research originated with military planners

in World War II, according to INFORMS, but businesses and other organizations soon began adopting the

techniques Today, operations research analysts can be found in virtually every industry, from manufacturing

to finance and throughout the spectrum of government agencies Demand for these professionals should

remain high for years to come, as companies and

governments seek greater efficiency and cost savings The Bureau of Labor Statistics projects employment

growth of nearly 27 percent for operations research

analysts between 2012 and 2022, much faster than

average for all occupations During that time period, 19,500 new jobs will need to be filled

HTTP://MONEY.USNEWS.COM/CAREERS/BEST-JOBS/OPERATIONS-RESEARCH-ANALYST

• According to the BLS, the median annual salary for operations research

analysts was $74,630 in 2013 The highest-paid in the profession earned more than $130,210, while the lowest-paid made less than $42,070 The top-paying operations research analysts work in the securities and

commodity contracts sphere of the financial industry, and the paying metropolitan areas are New York City; San Jose, California; and San Diego.

highest-• Salary Range

• 75th Percentile$99,210

• Median$74,630

• 25th Percentile$55,110

HTTP://MONEY.USNEWS.COM/MONEY/CAREERS/ARTICLES/2008/12/11/JOB-UNIVERSE-ACTUARY

• Through their knowledge of statistics, finance, and

business, actuaries assess the risk of events occurring and help create policies that minimize risk and its

financial impact on companies and clients Most

actuaries are employed in the insurance industry,

specializing in either life and health insurance or

property and casualty insurance  Employment of

actuaries is expected to increase by about 24 percent over the 2006-16 period, which is much faster than the average for all other occupations Employment growth in the insurance industry—the largest employer of

actuaries is expected to continue at a stable pace, and more significant growth in actuarial jobs is likely in other industries, such as healthcare and consulting firms.

•  Actuaries need a strong foundation in

mathematics, statistics, and general business

They generally have a bachelor's degree and are required to pass a series of exams in order to

become certified Usually, actuaries earn an

undergraduate degree in mathematics, statistics,

or actuarial science, or in a business-related field such as finance, economics, or business Median annual earnings of actuaries were $82,800 in May

2006 The middle 50 percent earned between

$58,710 and $114,570 The lowest 10 percent

had earnings of less than $46,470, while the top

10 percent earned more than $145,600.

HTTP://WWW.BEANACTUARY.ORG/

https://www.actuaryjobs.com/

Tracks:

Property & Casualty  |  Health  | 

QUANTS:QUANTITATIVE ANALYSTS

HTTP://WWW.INVESTOPEDIA.COM/ARTICLES/FINANCIALCAREERS/08/QUANTS-QUANTITATIVE-ANALYST.ASP

• A blend of mathematics, finance and computer skills

- quants are in great demand and able to command very high salaries.

• Demand for quants is high and driven by multiple trends:

• Rapid growth of hedge funds and automated trading

systems

• Increasing complexity of both  liquid  and  illiquid  securities

• Need to give traders, accountants and sales reps access

to pricing and risk models

• Ongoing search for  market-neutral  investment strategies.

• Compensation in the field of finance tends to be very high, and quantitative analysis follows this trend It is not

uncommon to find positions with posted salaries of $250,000

or more and with bonuses, $500,000+ is achievable As with most careers, the key to landing the high-paying jobs is a

resume filled with experience, including well-known

employers, and reliance on both recruiting firms and

professional networking for opportunities. 

• The highest-paid positions are  with hedge funds  or other

trading firms, and part of the compensation is dependent

upon the earnings of the firm, also known as the  P&L  (profit and loss) At the other end of the pay scale, an entry-level quant position may earn only $125,000 or $150,000, but this type of position provides a fast learning curve and plenty of room for future growth in both responsibilities and salary.

INTRODUCTION TO TRADING ALGORITHMS,

EDWARD A LESHIK AND JANE CRALLE, WILEY, 2010

“two major hedge funds such as J Simons’

Renaissance and D.E Shaw’s funds which

generally produce extraordinary returns on capital year in, year out It is rumored that each of these highly successful operations employ a staff of

something over 50 PhD-level mathematicians,

statisticians and physicists and run some of the

most powerful and advanced computer hardware.”

Quantitative analysts and financial engineers spend their time determining fair prices for derivative products This involves some deep mathematical theory including probability, measure theory, stochastic calculus and partial differential equations Thus to become a quant analyst it is necessary to have a strong mathematical background in mathematics, usually through an undergraduate degree in mathematics, physics or engineering.

HTTPS://WWW.QUANTSTART.COM/ARTICLES/SELF-STUDY-PLAN-FOR-BECOMING-A-QUANTITATIVE-ANALYST

or market.

• A quant should understand the following mathematical

concepts:

• Calculus (including differential, integral and stochastic)

• Linear algebra and differential equations

• Probability and statistics

• Key financial topics include:

• Portfolio theory

• Equity and interest rate  derivatives , including  exotics

• Credit-risk products

• Some quants will specialize in specific products, such as 

commodities , foreign exchange or  asset-backed securities

• Computer Competency

Software skills are also critical to job performance C++ is typically used for high-frequency trading applications, and offline statistical analysis would be performed in Matlab, SAS, S-PLUS/R or a

similar package Pricing knowledge may also be embedded in

trading tools created with Java, NET or VBA, and are often

integrated with Excel Monte Carlo techniques are essential

• Education and Certifications

Most firms look for at least a Master's degree or preferably a PhD in

a "quantitative" subject, such as Mathematics, Economics, Finance

or Statistics Master's degrees in Financial Engineering or

Computational Finance are also effective entry points for quant

careers Generally, an MBA is not enough by itself to obtain a quant position, unless the applicant also has a very strong mathematical or computational skill set in addition to some solid experience in the real world

• Consulting firms such as Daniel H Wagner Associates and McKinsey and Company

• Aerospace and transportation equipment manufacturers such as

Boeing; Ford; General Motors; Lockheed Martin; and United

• Communications services providers such as Clear Channel

Communications; CenturyLink; and Verizon

• Chemical or pharmaceutical manufacturers such as DuPont;

GlaxoSmithKline; Merck & Co., Inc.; Pfizer

• Medical device companies such as Baxter Healthcare; Boston

Scientific; and Medtronic;

• Producers of petroleum and petroleum products such as Exxon

Research and Engineering; Petróleo Brasileiro S/A/ Petrobras; Shell; and Chevron

• Academic institutions such as the Institute for Advanced Study; the Institute for Mathematics and Its Applications (IMA); and the

Mathematical Sciences Research Institute (MSRI)

• Consumer products companies such as Procter & Gamble and Mars

NYU MATHEMATICS OF FINANCE PROGRAM

7 PDE for Finance

8 Interest Rates & FX Models

9 Scientific Computing

• 10 Advanced Risk Management

11 Continuous Time Finance 12 Time Series Analysis And

Statistical Arbitrage

13 Case Studies in Financial Modeling

14 Computational Methods in Finance

15 Project & Presentation

THE MASTER OF SCIENCE IN OPERATIONS RESEARCH PROGRAM

COLUMBIA UNIVERSITY

• Operations Research: Deterministic

Models, Stochastic Models

• Simulation

• Introduction to Probability and Statistics

Logistics & Supply Chain Management Concentration

Management Courses (at least two):

• The Manufacturing Enterprise

• Studies in Operations Research

• Resource Allocation: Models, Algorithms,

and Applications

• Quality Control and Management

• Project Management

• Applied Systems Engineering

• Entrepreneurial Business Creation for

Engineers

• Decision Models and Applications

• Managing Technological Innovation and

Entrepreneurship

Technical Courses (at least three):

• Service Operations

• Supply Chain Management

• Demand and Supply Analytics

• Production and Operations Management

• Advanced Engineering and Corporate Economics

• Production Scheduling

• Logistics and Transportation Management

• Operations Management: With Application to Healthcare Management

• Machine Learning for OR & FE

• Applied Integer Programming

• Dynamic Pricing and Revenue Management

• Quantitative Risk Management

• Service Engineering

THE UNIVERSITY OF MINNESOTA, SCHOOL OF PUBLIC HEALTH, DIVISION OF BIOSTATISTICS (MS CORE COURSES)

o Latent Variable Models

○ Latent Variable Models

○ Statistical Methods for Correlated Data

○ Statistics in Genetics and Molecular Biology

○ Introduction to Bayesian Data Analysis

○ Statistics for Translational and

Clinical Research

○ Modern Non-parametrics

○ Applied Multivariate Methods

○ Nonparametric Methods

BOSTON UNIVERSITY MASTER OF SCIENCE IN

ACTUARIAL SCIENCE

HTTP://WWW.BU.EDU/MET/COURSES/GRADUATE/ACTUARIAL-SCIENCE/

Probability and Statistics

•MET MA 581 PROBABILITY

•MET MA 582 MATHEMATICAL STATISTICS

•MET MA 603 SAS WITH STATISTICAL

APPLICATIONS

•Mathematical Finance

•MET AT 721 MATHEMATICS OF COMPOUND

INTEREST

•MET AT 722 FINANCE FOR ACTUARIES

•MET AT 731 ACTUARIAL MATHEMATICS I

•MET AT 732 ACTUARIAL MATHEMATICS II

•MET AT 741 ACTUARIAL STATISTICS I

•MET AT 742 ACTUARIAL STATISTICS II

• MET AT 751 INDIVIDUAL INSURANCE APPLICATIONS OF ACTUARIAL PRINCIPLES

• MET AT 752 GROUP INSURANCE APPLICATIONS

OF ACTUARIAL PRINCIPLES

• MET AT 754 CASUALTY INSURANCE PRINCIPLES

• MET AT 761 MATHEMATICS FOR INVESTMENT

AND PORTFOLIO THEORY

• MET AT 762 MATHEMATICAL FINANCE FOR ACTUARIAL SCIENCE

• MET AT 782 PENSION MATHEMATICS AND MORTALITY TABLES

ORGANIZATIONS THAT HIRE APPLIED

MATHEMATICIANS

• Government labs and research offices such as Air Force Office of Scientific Research;

Lawrence Berkeley National Laboratory; Los Alamos National Laboratory; Oak Ridge National Laboratory; Pacific Northwest National Laboratory; and Sandia National Laboratories

• U.S government agencies such as Institute for Defense Analyses Center for Communications Research, National Center for Computing Sciences; National Institute of Standards and

Technology (NIST); National Security Agency (NSA); Naval Surface Warfare Center, Dahlgren Division; and the U.S Department of Energy

• International government agencies such as the Defence Science and Technology

Organisation, DSTO (Australia); French Alternative Energies and Atomic Energy Commission (changed name); and National Research Council Canada

• Federally funded contractors such as the Mitre Corporation; RAND Corporation; and the

• Energy systems firms such as Lockheed-Martin Energy Research Corporation and the Schatz Energy Research Center (SERC)

• Electronics and computer manufacturers such as Alcatel-Lucent; Hewlett-Packard;

Honeywell; IBM Corporation; Motorola Mobility and Motorola Solutions; Philips Research; and SGI

INTERNSHIP AND CAREER INFORMATION IN INDUSTRY, RESEARCH INSTITUTIONS,

AND GOVERNMENT LABS

HTTP://WWW.SIAM.ORG/CAREERS/

• Corporate Organizations

• AT&T Laboratories – Research

• Bell Labs, Alcatel-Lucent

• The Boeing Company

• Birkhäuser

• Booz Allen and Hamilton

• General Motors Corporation

• NEC Laboratories America, Inc.

• Palo Alto Research Center

• Philips Research

• Schlumberger-Doll Research

• SAIC

• Springer

• Government and Non-Profit Institutions

• The Aerospace Corporation

• Air Force Office of Scientific Research

• American Institute of Mathematics

• Argonne National Laboratory

• Defence Science and Technology Organization

• Institute for Computational Engineering and Sciences

• Institute for Defense Analyses

• Johns Hopkins Applied Physics Laboratory

• Lawrence Berkeley National Laboratory

• Lawrence Livermore National Laboratory

• Los Alamos National Laboratory

• Mathematical Sciences Research Institute

• National Aeronautics and Space Administration

• National Institute of Standards and Technology

• National Research Council Canada

• National Security Agency

• Naval Surface Warfare Center

• Oak Ridge National Laboratory

• Sandia National Laboratories

• United States Department of Energy

• U.S Army Corps of Engineers, Engineer Research and Development Center