Page 221 - Probability Demystified
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CHAPTER
Actuarial Science
Introduction
An actuary is a person who uses mathematics to analyze risks in order to
determine insurance rates, investment strategies, and other situations involving
future payouts. Most actuaries work for insurance companies; however,
some work for the United States government in the Social Security and
Medicare programs and others as consultants to business and financial
institutions. The main function of an actuary is to determine premiums for
life and health insurance policies and retirement accounts, as well as pre-
miums for flood insurance, mine subsidence, etc. Actuarial science involves
several areas of mathematics, including calculus. However, much of actuarial
science is based on probability.
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