Explain the role of statistics in Actuarial science.(scope of statistics and type of data)
Answers
Answer:
Actuarial science applies probability analysis and statistics to define, analyze, and solve the financial impact of uncertain future events. Actuarial science helps insurance companies forecast the probability of an event occurring to determine the funds needed to pay claims.
ACTUARIAL SCIENCE IS A DISCIPLINE THAT MAKES USE OF MATHEMATICAL AND STATISTICAL METHODS TO DETERMINE FINANCIAL RISKS IN THE INSURANCE AND FINANCE FIELDS.
Explanation:
1. Actuarial science uses probability and statistical mathematics to define, and solve the financial implications of uncertain future events.
2. Traditional actuarial science actually revolves around mortality analysis and life table growth, and the application of compound growth.
3. Actuarial science covers various interrelated subjects, including mathematics, probability theory, statistics, accounting, economics and computer science.