Actuarial science is a special discipline for training students to apply mathematical
skills and statistical techniques to study uncertain future events, especially those
of concern to insurance and pension programs. The Actuarial Sciences concentration
in the Professional Science major is a relatively new master’s program at MTSU. The
program offers training so that students can make practical use of probability theory
and statistical analysis for managing risks and solving problems. An internship takes
the place of writing a thesis. Actuaries may work for insurance companies, consulting
firms, government, employee benefit departments of large corporations, hospitals,
banks and investment firms, or, more generally, in businesses that need to manage
financial risk. A career as an actuary is better described as a "business" career
with a mathematical basis rather than as a "technical" mathematical career. The occupation
of actuary has been ranked for many years as one of the best jobs based on a variety
of factors.
Live outside of Tennessee? You could be eligible for in-state tuition and save thousands
of dollars.
Successful actuary alum helps program as advisor, mentor
MTSU alumnus John E. Daniel, FCAS, MAAA, is now a vice president and consulting actuary
in the Willis Casualty Actuarial Practice in Nashville. He also mentors people new
to the actuarial profession and serves as an advisory board member for the M.S. in
Professional Science program and as the Casualty Actuarial Society (CAS) college liaison
with the MTSU Actuarial Science program. "Every time a graduate of the program achieves
success in the actuarial field, the reputation of the program is enhanced and new
opportunities are created for current students," Daniel says. "Those opportunities
are constantly increasing." Daniel achieved the professional CAS designations of associate
in 1999 and fellow in 2004. "I had been working for years in insurance sales roles
and was looking for a career that would enable me to best use my analytical talents
and also build professional relationships," Daniel says. Daniel has worked 20 years
in the actuarial industry for several different types of insurance companies, with
experience in deriving pricing recommendations, establishing loss reserve targets,
and managing client relationships.
UCLA grad hired full-time through MTSU master's internship
Lucy Zhang, who earned her bachelor's degree from UCLA, chose the MTSU Actuarial Science
program to pursue an M.S. degree. After she completed her internship at SIGMA Actuarial
Consulting Group, Inc., the Brentwood company hired her full-time right after graduation
from the master's program in August 2014. Zhang was working as an adjunct instructor
teaching math learning support at Roane State Community College and decided to pursue
a master's degree in Tennessee where her parents live. "After doing some research,
I found out that MTSU was the only university in Tennessee to have a master's degree
in actuarial science," she says. The mandatory internship attracted her to the program
and gives students "a competitive edge," she says. Dr. Don Hong is active in helping
students obtain internships and job opportunities. "I am very glad to have chosen
this program over many others in the country," Zhang says.
Related Media
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MTSU College of Graduate Studies
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MTSU | The University of Opportunities
A master's degree from MTSU in Professional Science with a concentration in Actuarial
Sciences can lead to opportunities for becoming an actuary, a career that is well
paying and in high demand. Graduates are well positioned to fill the growing need
for individuals with this highly specialized training in the financial services and
consulting industries in addition to the traditional insurance and health care industries.
Examples of potential positions include
- Actuarial analyst
- Actuarial auditing
- Annuity pricing actuary
- Chief actuary and vice president
- Consulting actuary
- Data analyst
- Financial actuary
- General liability actuary
- Health actuary
- Investment researcher
- Investment valuation
- Life reinsurance pricing
- Life valuation
- Model validation financial actuary
- Mortality valuation
- Product actuary
- Risk and hedging
- Risk management
- Specialty pricing actuary
- Underwriting
Employers of MTSU alumni include
- Acuff & Associates
- Aetna
- Alfa Insurance
- American General Life and Accident Insurance Co.
- Bank of China
- Blue Cross Blue Shield of Tennessee
- BPS&M – Wells Fargo Commercial, Brentwood
- Caterpillar Finance
- China Actuarial Society
- China PingAn Insurance
- Cigna
- Consumers Insurance
- Direct General Group of Companies
- Farm Bureau Insurance
- Farmers Insurance
- First Acceptance Insurance
- Genworth Financial
- Humana Inc., Kentucky
- Humana Inc., Texas
- Lincoln Financial Group
- Nationwide Insurance
- Select Actuarial Services
- Sigma Actuarial Consulting Group, Inc.
- State Farm Insurance
- Tower and Watson, Memphis
- Tower and Watson, Atlanta
- Travelers Insurance
- Willis North America Inc.
- Zurich Insurance
The Master of Science (M.S.) with a major in Professional Science includes a business
core with specific concentrations in Actuarial Sciences, Biostatistics, Biotechnology, Engineering Management, Chemistry Analytics, Fermentation Science and Health Care Informatics.
The Professional Science Master's, as it is commonly called, combines the business
management skills commonly found in the traditional M.B.A. type program with advanced
learning in specific science fields.
This interdisciplinary program is a partnership among the College of Basic and Applied
Sciences, College of Behavioral and Health Sciences, College of Liberal Arts, and
the Jennings A. Jones College of Business.
The concentration in Actuarial Sciences offers preparation, basic knowledge, and professional
skills to individual who want to work as an actuary and to pass actuarial professional
examinations.
Applicants must have for unconditional admission
- An earned bachelor’s degree from an accredited university or college
- Completion of Multivariate Calculus with a grade of C (2.0) or better (MATH 3110 or
the equivalent).
- Completion of a course in Linear Algebra with a grade of C (2.0) or better (MATH 2010
or the equivalent).
- A Graduate Record Examination (GRE) score of 900 (old) or a combined 286 (new): Verbal
138, Quantitative 148. Miller Analogies Test (MAT) is not accepted.
- Appropriate undergraduate preparation for advanced study of actuarial sciences.
- Basic competency in word processing, electronic mail, library retrieval systems, presentation
graphics, spreadsheets, and databases
For complete curriculum details, click on the REQUIREMENTS button to the right.
Professional Science, Actuarial Science Concentration, M.S.
Saeed Foroudastan, Director
Master of Science in Professional Science Program
(615) 494-7618
Saeed.Foroudastan@mtsu.edu
For more information about the Actuarial Science concentration, contact:
Don Hong, Program Advisor/Coordinator
Actuarial Science Concentration
(615) 904-8339
Don.Hong@mtsu.edu
Suzanne Hicks, Internship Graduate Coordinator
Master of Science in Professional Science Program
(615) 904-8581
Suzanne.Hicks@mtsu.edu
The Actuarial Science concentration in the Master of Science in Professional Science degree offers preparation, basic knowledge, and professional skills to work as an actuary and to pass actuarial professional examinations.
Please see undergraduate catalog for information regarding undergraduate programs.
Admission Requirements
Admission to the Master of Science in Professional Science with a concentration in Actuarial Science requires
- an earned bachelor's degree from an accredited university or college with a course in multivariate calculus (MATH 3110 or the equivalent) with a grade of C (2.00) or better and a course in linear algebra (MATH 2010 or equivalent) with a grade of C (2.00) or better;
- basic competency in word processing, electronic mail, library retrieval systems, presentation graphics, spreadsheets, and databases;
- appropriate undergraduate preparation for advanced study of actuarial science.
Application Procedure
All application materials are to be submitted to the College of Graduate Studies.
Applicant must
- submit application with the appropriate application fee (online at www.mtsu.edu/graduate/apply.php). Once this initial application has been accepted, the applicant will receive directions on how to enter the graduate portal to be able to submit other materials.
- submit official transcripts from all collegiate institutions attended;
- submit three letters of reference;
- submit an official Graduate Record Examination (GRE) report. A composite GRE score of 286 is expected.
Degree Requirements
The Master of Science in Professional Science with a concentration in Actuarial Science requires completion of 36 semester hours.
Curriculum: Professional Science, Actuarial Science
The following illustrates the minimum coursework requirements.
Core Courses (15 hours)
ACTG 6100 - Accounting and Legal Issues for Managers
3credit hours
Surveys accounting skills and legal perspectives necessary for managers without undergraduate business degrees to enter the businessworld. Will not meet the requirements for the M.S. in Information Systems, M.Acc. in Accounting, or the M.B.A. degree programs.
BCED 6820 - Managerial Communication
3credit hours
Analysis of communication theory and communication processes with emphasis on development of executive communication skills essential for understanding organizational processes from a holistic perspective. Covers organizational theory, behavior, and interpersonal communication from both a domestic and global perspective.
BCED 6910 - Internship Program
3credit hours
A supervised program of related work experience. Provides experiential opportunities for the application of the theoretical concepts learned.
MGMT 6740 - Leadership and Motivation
3credit hours
Issues in leadership and motivation in business organizations. An examination of the theoretical framework for leadership and motivation processes serves as foundation. Emphasis on practical issues and applications of leadership development and motivation.
STAT 5140 - Probabilistic and Statistical Reasoning
3credit hours
Prerequisite: Must be enrolled in the Master of Science in Professional Sciences program; graduate level. Focuses on probability and statistics concepts. Topics include binomial and normal probabilistic modeling; important statistical concepts such as confounding, randomization, sampling variability and significance; statistical testing of significant differences and associations; and design experiments to test research hypotheses.
Concentration Courses (21 hours)
Required Courses (9 hours)
ACSI 6020 - Construction and Evaluation of Actuarial Models
3credit hours
Prerequisite: ACSI 6010 or permission of instructor. Topics include construction of empirical models, construction and selection of parametric models, construction of models in presence of truncation and censoring, interpolation and smoothing, credibility theory, and simulation.
ACSI 6030 - Actuarial Models for Life Contingencies
3credit hours
Prerequisites: STAT 3150 and ACSI 4230 or MATH 6604 or permission of instructor. Topics include survival distributions, life tables, life insurance, life annuities, and pensions, premiums and reserves, multiple lives, multiple decrements, models including expenses.
ACSI 6040 - Actuarial Models for Financial Economics
3credit hours
Prerequisite: ACSI 4200/ACSI 5200 or MATH 6603 or permission of instructor. Topics include applications of stochastic processes to actuarial models, Poisson process, Markov process, interest rate models, arbitrage free models, valuation of derivative securities, financial risk management.
12 hours from the following:
ACSI 5220 - Mathematics of Corporate Finance
3credit hours
Prerequisites: ACSI/MATH 4200/ACSI 5200/MATH 5200 and ECON 2410, 2420, or consent of instructor. Mathematics of capital budgeting and evaluation models in corporate finance. Topics include net present values, internal rate of return, profitability index; evaluation of projects, corporations, and stocks; capital asset pricing model; cost of capital; quantification of risk and uncertainty; capital budgeting; capital structure; income statement and financial planning.
ACSI 5230 - Mathematics of Compound Interest
3credit hours
Prerequisites: ECON 2410, ECON 2420, ACSI/MATH 4200/ACSI 5200/MATH 5200, or consent of instructor. Topics include measurement of interest (including accumulating and present value factors), annuities certain, yield rates, amortization schedules, sinking funds, and bonds and related securities.
ACSI 5240 - Mathematics of Interest Theory, Economics, and Finance
3credit hours
Prerequisites: ACSI 4230/ACSI 5230 or consent of instructor. Applies calculus and theory of interest tools to intermediate topics in microeconomics and macroeconomics and topics in finance. Topics include pricing activities, the simplified Keynesian model, interest and discount rates, valuation of payment streams, yield rates, amortization, cash flows and internal rate of return, stock and bond valuation, portfolio risks, the Capital Asset Pricing Model (CAPM), efficient markets, capital structure, leverage, financial performance measurement, and basic option pricing and the Black-Scholes model.
ACSI 5530 - Rate Making and Loss Reserving
3credit hours
Prerequisite: ACSI 4200 or consent of the instructor. Introduces the daily work as a P&C actuary in rate making and loss reserving, summarizing loss run data, compiling of loss triangles, computing loss development factors, incurred method, paid method, case method, Bornhuetter-Ferguson method, trend losses, rate making on losses and exposure, IBNR reserving, make loss payments plan, reporting and communication of analysis results.
ACSI 6010 - Introduction to Loss Models
3credit hours
Prerequisite: STAT 5190 or consent of instructor. Topics include statistical distributions for modeling insurance claims frequency and severity, aggregate claim distributions, effect of coverage modifications and inflations, and risk measures.
ACSI 6110 - Predictive Analysis
3credit hours
Prerequisite: ACSI 5140 or consent of instructor. Topics include generalized linear models, logistic regression, discriminant analysis, support vector machines, ridge regression, lasso, sparse modeling, variable selection, model selection, and other selected topics from computational statistics, machine learning, and data mining.
ACSI 6600 - Problems in Actuarial Science
1 to 6credit hours
Prerequisites: Mathematical maturity, preparation in actuarial science (normally nine semester hours of graduate study in actuarial science), and consent of instructor. Students wishing to enroll must select a topic in actuarial science prior to the semester in which ACSI 6600 is taken. Topics include, but are not limited to, applications of principles of actuarial mathematics to group and health insurance, retirement benefits, quantitative risk management, rate making, statistical methods in actuarial data analysis, interest rate models and their applications. Students must submit a written report. Course may be taken up to two times provided that the projects are completely different. Credits may total 1-12 hours.Credit will be based on the difficulty and complexity of the project as determined by the instructor. Pass/Fail grading.
DATA 6300 - Data Understanding
3credit hours
Applications used to understand the problem-solving process for data science. Data collection and cleansing techniques used to visualize and summarize the data in order to prepare it for modeling for various data types through statistical analysis with Python programming.
DATA 6310 - Data Exploration
3credit hours
Prerequisite: DATA 6300. Data science techniques to explore numerical and text data. Unsupervised learning and NLP applications used to explore data to understand its impact and use to make data-driven decisions.
ECON 6010 - Macroeconomics I
3credit hours
Core course in macroeconomic theory for students pursuing an M.A. in Economics. First part focuses on long-run economic growth. Topics include exogenous and endogenous growth theory, overlapping generations models, and the neoclassical growth model. Second part focuses on short-run economic fluctuations. Topics include real business cycle theory, traditional Keynesian theories, and New Keynesian models featuring rational expectation. Mathematical models used to address competing theories; comfort with multivariate calculus and linear algebra essential.
ECON 6020 - Microeconomics I
3credit hours
Core course in microeconomic theory for students pursuing an M.A. in Economics. First part develops the theory of consumer choice with extensions including the labor supply model, intertemporal choice, and choice under uncertainty. Second part models theory of the firm in both perfectly competitive and monopoly industry settings. Mathematical models used to derive theories; comfort with multivariate calculus and linear algebra essential.
ECON 6070 - Econometrics II
3credit hours
Second core course in econometrics for students pursuing an M.A. in Economics. Emphasizes methods of time series analysis, including Box-Jenkins methods, general-to-specific modeling, volatility models, vector autoregressions, unit roots and cointegration, unobserved component and state space models, and neural networks. Integrates practical applications in various computing environments including SAS, RATS, and MATLAB.
STAT 5190 - Mathematical Statistics II
3credit hours
Prerequisite: STAT 3150 or equivalent. Theory of statistical inference. Topics include sampling distributions, decision theory, estimation, test of hypothesis, regression analysis, analysis of variance, and selected applications.
STAT 5200 - Statistical Methods for Forecasting
3credit hours
Prerequisite: STAT 4190. Application of the regression model in forecasting regression and exponential smoothing methods to forecast nonseasonal time-series, seasonal series and globally constant seasonal models, stochastic time series models; and forecast evaluation. (Offers preparation to actuarial science students for the Society of Actuaries Exam #120 and Exam Part 3A administered by the Casualty Actuarial Society.)
STAT 5320 - Probability and Stochastic Processes
3credit hours
Prerequisite: Two semesters of calculus and STAT 3150 (or MATH 2050) or consent of instructor. Theoretical basis for stochastic processes and use as models of real-world phenomena. Topics include Markov chains, Poisson processes, and Brownian motion and stationary processes. Applications include Gambler's Ruin, birth and death models, hitting times, stock option pricing, and the Black-Scholes model.
STAT 5700 - Analysis of Large-Scale Data Sets
3credit hours
The analysis and applications of large-scale data sets. Scalable machine learning and data mining applications in a practical clinical environment. Statistical software used in the application of these techniques.
STAT 6160 - Advanced Mathematical Statistics I
3credit hours
Prerequisite: Two semesters of calculus or permission of instructor. Introduction to theoretical probability used in statistics with an emphasis on the mathematical theory. A rigorous treatment of random variables, their probability distributions, and mathematical exceptions in a univariate and multivariate setting. Includes conditional probabilities, stochastic independence, sampling theory, and limit laws.
STAT 6180 - Advanced Mathematical Statistics II
3credit hours
Prerequisite: STAT 6160 or permission of instructor. Theory of estimation and hypothesis tests. Topics include minimum variance unbiased estimation, methods of estimation, most powerful tests, likelihood ratio tests, decision theory, and sequential test procedures.
STAT 6605 - Problems in Statistics-SAS Programming
1 to 9credit hours
Prerequisite: Mathematical maturity, preparation in the area and (normally) nine semester hours of graduate study. Problems course dealing with theory, methods, and applications.
STAT 7400 - Computational Statistics
3credit hours
Prerequisites: COMS 6100 and MATH 2530 or equivalent. Statistical visualization and other computationally intensive methods. The role of computation as a fundamental tool of discovery in data analysis, statistical inference, and development of statistical theory and methods. Monte Carlo studies in statistics, computational inference, tools for identification of structure in data, numerical methods in statistics, estimation of functions (orthogonal polynomials, splines, etc.), statistical models, graphical methods, data fitting and data mining, and machine learning techniques.
MATH 6601 - Problems in Mathematics-Advanced Calculus
1 to 9credit hours
Prerequisite: Mathematical maturity, preparation in the area, and normally nine semester hours of graduate study. Problems course dealing with theory methods and applications.
MATH 6602 - Problems in Mathematics-Number Theory
1 to 9credit hours
Prerequisite: Mathematical maturity, preparation in the area, and normally nine semester hours of graduate study. Problems course dealing with theory methods and applications.
MATH 6603 - Problems in Mathematics-Mathematics of Finance
1 to 9credit hours
Prerequisite: Mathematical maturity, preparation in the area, and normally nine semester hours of graduate study. Problems course dealing with theory methods and applications.
MATH 6604 - Problems in Mathematics-Mathematics of Life Contingencies
1 to 9credit hours
Prerequisite: Mathematical maturity, preparation in the area, and normally nine semester hours of graduate study. Problems course dealing with theory methods and applications.
Our adjunct faculty bring outstanding professional experience to our programs. Many are industry leaders with decorated careers and honors. Importantly, they are innovative educators who offer hands-on learning to our students to prepare them to enter and thrive in a dynamic, and oftentimes emerging, industry and professional world. They inspire, instruct, and challenge our students toward academic and professional success.
Suggested Curriculum - Full Time
| Fall Year 1 (9 credits) |
Spring Year 1 (9 credits) |
- Core Course: BCEN 6820 or ACTG 6100 (3 credits)
- ACSI 5230 Mathematics of Compound Intrest (3 credits)
- ACSI 6010 Credibility Theory and Loss Distributions (3 credits)
OR
- ACSI 6040 Actuarial Models for Financial Economics/ MATH 6603 Problems in Mathematics-Mathematics
of Finance (3 credits)
|
- Core Course: MGMT 6740 (3 credits)
- ACSI 6020 construction and Evaluation of Actuarial Models (3 credits)
OR
- ACSI 5140 Mathematical Foundations of Actuarial Science (3 credits)
- ACSI 6030 Actuarial Models for Life Contingencies / MATH 6604 Problems in Mathematics-Mathematics
of Life Contingencies (3 credits)
OR
- ACSI 5330 Actuarial Mathematics I (3 credits)
|
| Fall Year 2 (9 credits) |
Spring Year 2 (9 credits) |
- Core Course: BCEN 6820 or ACTG 6100 (select the course not previously completed in
the first term) (3 credits)
- ACSI 6040 Actuarial Models for Financial Economics / MATH 6603 Problems in Mathematics-Mathematics
of Finance (3 credits)
OR
- ACSI 5630 Mathematics of Risk Management (3 credits)
OR
- STAT 5200 Statistical Methods for Forecasting (3 credits)
- ACSI 5340 Actuarial Mathematics II (3 credits)
OR
- ACSI 6030 Actuarial Models for Life Contingencies / MATH 6604 Problems in Mathematics-Mathematics
of Life Contingencies (3 credits)
|
- BCEN 6910 Internship (3 credits)
- ACSI 5220 Mathematics of Pricing Theory (3 credits)
- ACSI 5640 Mathematics of Options, Futures, and Other Derivatives (3 credits)
OR
- ACSI 5240 Mathematics of Interest Theory, Economics and Finance (3 credits)
OR
- ACSI 6040 Actuarial Models for Financial Economics / MATH 6603 Problems in Mathematics-Mathematics
of Finance (3 credits)
|
Suggested Curriculum - Part Time
| Fall Year 1 (6 credits) |
Spring Year 1 (6 credits) |
- Core Course: BCEN 6820 or ACTG 6100 (3 credits)
- ACSI 5220 Mathematics of Pricing Theory (3 credits)
|
- Core Course: MGMT 6740 (3 credits)
- ACSI 5140 Mathematical Foundations of Actuarial Science (3 credits)
- ACSI 6010 Credibility Theory and Loss Distributions (3 credits)
OR
- ACSI 6030 Actuarial Models for Life Contingencies (3 credits)
|
| Fall Year 2 (6 credits) |
Spring Year 2 (6 credits) |
- ACSI 6020 Construction and Evaluation of Actuarial Models (3 credits)
- ACSI 5230 Mathematics of Compound Interest (3 credits)
|
- ACSI 6030 Actuarial Models for Life Contingencies (3 credits)
- ACSI 6040 Actuarial Models for Financial Economics (3 credits)
|
| FALL YEAR 3 (6 CREDITS) |
SPRING YEAR 3 (6 CREDITS) |
- Core Course: BCEN 6820 or ACTG 6100 (3 credits)
- ACSI 6030 Actuarial Models for Life Contingencies (3 credits)
OR
- ACSI 6040 Actuarial Models for Financial Economics (3 credits)
|
- BCEN 6910 Internship (3 credits)
- STAT 5200 Statistical Methods for Forecasting (3 credits)
|
Student Research
Ye (Zoe) Ye
- MS graduate thesis: Tail Conditional Expectations for Extended Dispersion Models,
Middle Tennessee State University, Murfreesboro, TN. August 2014.
- Paper: Tail Conditional Expectations for Extended Dispersion Models, submitted manuscript,
08/2014. Submission ID number 14-21.
- Presentation given at the 48th Actuarial Research Conference: Trend Analysis Algorithms
and Applications to Health Rate Review, July 2013, Temple University, Philadelphia,
PA.
- Math Seminar presentation: Trend Analysis Tools and Applications to Rate Review Project,
September 2013, Middle Tennessee State University, Murfreesboro, TN.
Le Yin
- MS graduate thesis: Medical Trend Analysis Methods, Middle Tennessee State University,
Murfreesboro, TN, May 2014.
- Le Yin, D. Hong, and Q. Wu, Statistical Methods for Medical Trend Analysis in Health
Rate Review Process, North American Actuarial Journal, submitted manuscript 2014.
Submission ID NAAJ-1298.
- Math Seminar Presentation: Medical Trend Analysis Algorithms and Implementation, September
2013, Middle Tennessee State University, Murfreesboro, TN.
Xiong Lu
- Presentation given at the 49th Actuarial Research Conference: Using Monte Carlo Simulation
to Predict Captive Solvency, July 2014, University of California Santa Barbara, California.
- Chapter 4 of Ph.D. Dissertation: Statistical Computing Tools for Predicting Captive
Solvency, December 2014.
- Lu Xiong, Don Hong, and Qiang Wu, Statistical Computing Tools for Predicting Captive
Solvency, manuscript Using Monte Carlo Simulation to Predict Captive Insurance Solvency,
North American Actuarial Journal, submitted manuscript 2014.
Faculty Non-Publishable Industry-Related Research
- RATE REVIEW REPORT for Tennessee Department of Commerce and Insurance (TDCI): Health
Insurance Rate Review Project, by Don Hong, Ken Hollman, Harold Tuthill, and Qiang
Wu, the Program of Actuarial Science, Middle Tennessee State University, September
2012.
- Trend Analysis Software Package, by Le Yin, Brent Carpenetti, Don Hong, and Qiang
Wu, the Program of Actuarial Science, Middle Tennessee State University, October 2014.
Other research sources
Online or Hybrid Programs at a Glance
This program is available .
For More Information or Explore Your Options
Contact your department / program coordinator or advisor for more details about the program OR work one-on-one with your advisor to explore your options.
The Online Advantage
With over 25 years of experience in online teaching and learning, MTSU Online offers students access to innovative, high-quality programs. Designed with students in mind, our courses allow maximum flexibility for those unable to participate in person.
Resources and services for online students are available from MTSU Online or contact us at distance@mtsu.edu.
