83-469: Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance , pension , finance , investment and other industries and professions. Actuaries are professionals trained in this discipline. In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations focused in fields such as probability and predictive analysis. Actuarial science includes
166-591: A set whose elements are unspecified, of operations acting on the elements of the set, and rules that these operations must follow. The scope of algebra thus grew to include the study of algebraic structures. This object of algebra was called modern algebra or abstract algebra , as established by the influence and works of Emmy Noether . Some types of algebraic structures have useful and often fundamental properties, in many areas of mathematics. Their study became autonomous parts of algebra, and include: The study of types of algebraic structures as mathematical objects
249-614: A foundation for all mathematics). Mathematics involves the description and manipulation of abstract objects that consist of either abstractions from nature or—in modern mathematics—purely abstract entities that are stipulated to have certain properties, called axioms . Mathematics uses pure reason to prove properties of objects, a proof consisting of a succession of applications of deductive rules to already established results. These results include previously proved theorems , axioms, and—in case of abstraction from nature—some basic properties that are considered true starting points of
332-669: A fruitful interaction between mathematics and science , to the benefit of both. Mathematical discoveries continue to be made to this very day. According to Mikhail B. Sevryuk, in the January ;2006 issue of the Bulletin of the American Mathematical Society , "The number of papers and books included in the Mathematical Reviews (MR) database since 1940 (the first year of operation of MR)
415-404: A mathematical problem. In turn, the axiomatic method allows for the study of various geometries obtained either by changing the axioms or by considering properties that do not change under specific transformations of the space . Today's subareas of geometry include: Algebra is the art of manipulating equations and formulas. Diophantus (3rd century) and al-Khwarizmi (9th century) were
498-422: A mathematical statement that is taken to be true without need of proof. If a mathematical statement has yet to be proven (or disproven), it is termed a conjecture . Through a series of rigorous arguments employing deductive reasoning , a statement that is proven to be true becomes a theorem. A specialized theorem that is mainly used to prove another theorem is called a lemma . A proven instance that forms part of
581-402: A more general finding is termed a corollary . Numerous technical terms used in mathematics are neologisms , such as polynomial and homeomorphism . Other technical terms are words of the common language that are used in an accurate meaning that may differ slightly from their common meaning. For example, in mathematics, " or " means "one, the other or both", while, in common language, it
664-554: A number of interrelated subjects, including mathematics, probability theory , statistics, finance, economics , financial accounting and computer science . Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes since the 1980s due to the proliferation of high speed computers and the union of stochastic actuarial models with modern financial theory. Many universities have undergraduate and graduate degree programs in actuarial science. In 2010,
747-535: A population mean with a given level of confidence. Because of its use of optimization , the mathematical theory of statistics overlaps with other decision sciences , such as operations research , control theory , and mathematical economics . Computational mathematics is the study of mathematical problems that are typically too large for human, numerical capacity. Numerical analysis studies methods for problems in analysis using functional analysis and approximation theory ; numerical analysis broadly includes
830-541: A range of applications outside the traditional fields of insurance, pensions, etc. One notable example is the use in some US states of actuarial models to set criminal sentencing guidelines. These models attempt to predict the chance of re-offending according to rating factors which include the type of crime, age, educational background and ethnicity of the offender. However, these models have been open to criticism as providing justification for discrimination against specific ethnic groups by law enforcement personnel. Whether this
913-487: A result, actuarial science developed along a different path, becoming more reliant on assumptions, as opposed to the arbitrage-free risk-neutral valuation concepts used in modern finance. The divergence is not related to the use of historical data and statistical projections of liability cash flows, but is instead caused by the manner in which traditional actuarial methods apply market data with those numbers. For example, one traditional actuarial method suggests that changing
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#1732783411778996-411: A separate branch of mathematics until the seventeenth century. At the end of the 19th century, the foundational crisis in mathematics and the resulting systematization of the axiomatic method led to an explosion of new areas of mathematics. The 2020 Mathematics Subject Classification contains no less than sixty-three first-level areas. Some of these areas correspond to the older division, as
1079-424: A single unknown , which were called algebraic equations (a term still in use, although it may be ambiguous). During the 19th century, mathematicians began to use variables to represent things other than numbers (such as matrices , modular integers , and geometric transformations ), on which generalizations of arithmetic operations are often valid. The concept of algebraic structure addresses this, consisting of
1162-418: A statistical action, such as using a procedure in, for example, parameter estimation , hypothesis testing , and selecting the best . In these traditional areas of mathematical statistics , a statistical-decision problem is formulated by minimizing an objective function , like expected loss or cost , under specific constraints. For example, designing a survey often involves minimizing the cost of estimating
1245-532: A study published by job search website CareerCast ranked actuary as the #1 job in the United States. The study used five key criteria to rank jobs: environment, income, employment outlook, physical demands, and stress. In 2024, U.S. News & World Report ranked actuary as the third-best job in the business sector and the eighth-best job in STEM . Actuarial science became a formal mathematical discipline in
1328-452: A variety of theoretical and practical reasons. Elementary mutual aid agreements and pensions arose in antiquity. Early in the Roman empire , associations were formed to meet the expenses of burial, cremation, and monuments—precursors to burial insurance and friendly societies . A small sum was paid into a communal fund on a weekly basis, and upon the death of a member, the fund would cover
1411-477: A wide expansion of mathematical logic, with subareas such as model theory (modeling some logical theories inside other theories), proof theory , type theory , computability theory and computational complexity theory . Although these aspects of mathematical logic were introduced before the rise of computers , their use in compiler design, formal verification , program analysis , proof assistants and other aspects of computer science , contributed in turn to
1494-703: Is Fermat's Last Theorem . This conjecture was stated in 1637 by Pierre de Fermat, but it was proved only in 1994 by Andrew Wiles , who used tools including scheme theory from algebraic geometry , category theory , and homological algebra . Another example is Goldbach's conjecture , which asserts that every even integer greater than 2 is the sum of two prime numbers . Stated in 1742 by Christian Goldbach , it remains unproven despite considerable effort. Number theory includes several subareas, including analytic number theory , algebraic number theory , geometry of numbers (method oriented), diophantine equations , and transcendence theory (problem oriented). Geometry
1577-471: Is a field of study that discovers and organizes methods, theories and theorems that are developed and proved for the needs of empirical sciences and mathematics itself. There are many areas of mathematics, which include number theory (the study of numbers), algebra (the study of formulas and related structures), geometry (the study of shapes and spaces that contain them), analysis (the study of continuous changes), and set theory (presently used as
1660-403: Is commonly used for advanced parts. Analysis is further subdivided into real analysis , where variables represent real numbers , and complex analysis , where variables represent complex numbers . Analysis includes many subareas shared by other areas of mathematics which include: Discrete mathematics, broadly speaking, is the study of individual, countable mathematical objects. An example
1743-513: Is defined by the set of all similar objects and the properties that these objects must have. For example, in Peano arithmetic , the natural numbers are defined by "zero is a number", "each number has a unique successor", "each number but zero has a unique predecessor", and some rules of reasoning. This mathematical abstraction from reality is embodied in the modern philosophy of formalism , as founded by David Hilbert around 1910. The "nature" of
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#17327834117781826-407: Is either ambiguous or means "one or the other but not both" (in mathematics, the latter is called " exclusive or "). Finally, many mathematical terms are common words that are used with a completely different meaning. This may lead to sentences that are correct and true mathematical assertions, but appear to be nonsense to people who do not have the required background. For example, "every free module
1909-467: Is generally provided on a renewable period, (such as a yearly). Coverage can be cancelled at the end of the period by either party. Property and casualty insurance companies tend to specialize because of the complexity and diversity of risks. One division is to organize around personal and commercial lines of insurance. Personal lines of insurance are for individuals and include fire, auto, homeowners, theft and umbrella coverages. Commercial lines address
1992-493: Is in Babylonian mathematics that elementary arithmetic ( addition , subtraction , multiplication , and division ) first appear in the archaeological record. The Babylonians also possessed a place-value system and used a sexagesimal numeral system which is still in use today for measuring angles and time. In the 6th century BC, Greek mathematics began to emerge as a distinct discipline and some Ancient Greeks such as
2075-586: Is mostly used for numerical calculations . Number theory dates back to ancient Babylon and probably China . Two prominent early number theorists were Euclid of ancient Greece and Diophantus of Alexandria. The modern study of number theory in its abstract form is largely attributed to Pierre de Fermat and Leonhard Euler . The field came to full fruition with the contributions of Adrien-Marie Legendre and Carl Friedrich Gauss . Many easily stated number problems have solutions that require sophisticated methods, often from across mathematics. A prominent example
2158-404: Is not sufficient to verify by measurement that, say, two lengths are equal; their equality must be proven via reasoning from previously accepted results ( theorems ) and a few basic statements. The basic statements are not subject to proof because they are self-evident ( postulates ), or are part of the definition of the subject of study ( axioms ). This principle, foundational for all mathematics,
2241-1192: Is now more than 1.9 million, and more than 75 thousand items are added to the database each year. The overwhelming majority of works in this ocean contain new mathematical theorems and their proofs." Mathematical notation is widely used in science and engineering for representing complex concepts and properties in a concise, unambiguous, and accurate way. This notation consists of symbols used for representing operations , unspecified numbers, relations and any other mathematical objects, and then assembling them into expressions and formulas. More precisely, numbers and other mathematical objects are represented by symbols called variables, which are generally Latin or Greek letters, and often include subscripts . Operation and relations are generally represented by specific symbols or glyphs , such as + ( plus ), × ( multiplication ), ∫ {\textstyle \int } ( integral ), = ( equal ), and < ( less than ). All these symbols are generally grouped according to specific rules to form expressions and formulas. Normally, expressions and formulas do not appear alone, but are included in sentences of
2324-547: Is often held to be Archimedes ( c. 287 – c. 212 BC ) of Syracuse . He developed formulas for calculating the surface area and volume of solids of revolution and used the method of exhaustion to calculate the area under the arc of a parabola with the summation of an infinite series , in a manner not too dissimilar from modern calculus. Other notable achievements of Greek mathematics are conic sections ( Apollonius of Perga , 3rd century BC), trigonometry ( Hipparchus of Nicaea , 2nd century BC), and
2407-433: Is one of the oldest branches of mathematics. It started with empirical recipes concerning shapes, such as lines , angles and circles , which were developed mainly for the needs of surveying and architecture , but has since blossomed out into many other subfields. A fundamental innovation was the ancient Greeks' introduction of the concept of proofs , which require that every assertion must be proved . For example, it
2490-567: Is sometimes mistranslated as a condemnation of mathematicians. The apparent plural form in English goes back to the Latin neuter plural mathematica ( Cicero ), based on the Greek plural ta mathēmatiká ( τὰ μαθηματικά ) and means roughly "all things mathematical", although it is plausible that English borrowed only the adjective mathematic(al) and formed the noun mathematics anew, after
2573-549: Is statistically correct or a self-fulfilling correlation remains under debate. Another example is the use of actuarial models to assess the risk of sex offense recidivism. Actuarial models and associated tables, such as the MnSOST-R, Static-99, and SORAG, have been used since the late 1990s to determine the likelihood that a sex offender will re-offend and thus whether he or she should be institutionalized or set free. Traditional actuarial science and modern financial economics in
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2656-418: Is the purpose of universal algebra and category theory . The latter applies to every mathematical structure (not only algebraic ones). At its origin, it was introduced, together with homological algebra for allowing the algebraic study of non-algebraic objects such as topological spaces ; this particular area of application is called algebraic topology . Calculus, formerly called infinitesimal calculus,
2739-405: Is the set of all integers. Because the objects of study here are discrete, the methods of calculus and mathematical analysis do not directly apply. Algorithms —especially their implementation and computational complexity —play a major role in discrete mathematics. The four color theorem and optimal sphere packing were two major problems of discrete mathematics solved in the second half of
2822-508: Is true regarding number theory (the modern name for higher arithmetic ) and geometry. Several other first-level areas have "geometry" in their names or are otherwise commonly considered part of geometry. Algebra and calculus do not appear as first-level areas but are respectively split into several first-level areas. Other first-level areas emerged during the 20th century or had not previously been considered as mathematics, such as mathematical logic and foundations . Number theory began with
2905-586: The Babylonians and Egyptians began using arithmetic, algebra, and geometry for taxation and other financial calculations, for building and construction, and for astronomy. The oldest mathematical texts from Mesopotamia and Egypt are from 2000 to 1800 BC. Many early texts mention Pythagorean triples and so, by inference, the Pythagorean theorem seems to be the most ancient and widespread mathematical concept after basic arithmetic and geometry. It
2988-568: The Financial Accounting Standards Board , (FASB) in the US and Canada, which regulates pensions valuations and funding. Historically, much of the foundation of actuarial theory predated modern financial theory. In the early twentieth century, actuaries were developing many techniques that can be found in modern financial theory, but for various historical reasons, these developments did not achieve much recognition. As
3071-768: The Golden Age of Islam , especially during the 9th and 10th centuries, mathematics saw many important innovations building on Greek mathematics. The most notable achievement of Islamic mathematics was the development of algebra . Other achievements of the Islamic period include advances in spherical trigonometry and the addition of the decimal point to the Arabic numeral system. Many notable mathematicians from this period were Persian, such as Al-Khwarizmi , Omar Khayyam and Sharaf al-Dīn al-Ṭūsī . The Greek and Arabic mathematical texts were in turn translated to Latin during
3154-511: The Pythagoreans appeared to have considered it a subject in its own right. Around 300 BC, Euclid organized mathematical knowledge by way of postulates and first principles, which evolved into the axiomatic method that is used in mathematics today, consisting of definition, axiom, theorem, and proof. His book, Elements , is widely considered the most successful and influential textbook of all time. The greatest mathematician of antiquity
3237-536: The Renaissance , mathematics was divided into two main areas: arithmetic , regarding the manipulation of numbers, and geometry , regarding the study of shapes. Some types of pseudoscience , such as numerology and astrology , were not then clearly distinguished from mathematics. During the Renaissance, two more areas appeared. Mathematical notation led to algebra which, roughly speaking, consists of
3320-694: The asset allocation mix of investments can change the value of liabilities and assets (by changing the discount rate assumption). This concept is inconsistent with financial economics . The potential of modern financial economics theory to complement existing actuarial science was recognized by actuaries in the mid-twentieth century. In the late 1980s and early 1990s, there was a distinct effort for actuaries to combine financial theory and stochastic methods into their established models. Ideas from financial economics became increasingly influential in actuarial thinking, and actuarial science has started to embrace more sophisticated mathematical modelling of finance. Today,
3403-446: The controversy over Cantor's set theory . In the same period, various areas of mathematics concluded the former intuitive definitions of the basic mathematical objects were insufficient for ensuring mathematical rigour . This became the foundational crisis of mathematics. It was eventually solved in mainstream mathematics by systematizing the axiomatic method inside a formalized set theory . Roughly speaking, each mathematical object
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3486-459: The deterministic methods they had used in the past. The introduction and development of the computer further revolutionized the actuarial profession. From pencil-and-paper to punchcards to current high-speed devices, the modeling and forecasting ability of the actuary has rapidly improved, while still being heavily dependent on the assumptions input into the models, and actuaries needed to adjust to this new world . Mathematics Mathematics
3569-400: The 17th century, when René Descartes introduced what is now called Cartesian coordinates . This constituted a major change of paradigm : Instead of defining real numbers as lengths of line segments (see number line ), it allowed the representation of points using their coordinates , which are numbers. Algebra (and later, calculus) can thus be used to solve geometrical problems. Geometry
3652-405: The 19th century, mathematicians discovered non-Euclidean geometries , which do not follow the parallel postulate . By questioning that postulate's truth, this discovery has been viewed as joining Russell's paradox in revealing the foundational crisis of mathematics . This aspect of the crisis was solved by systematizing the axiomatic method, and adopting that the truth of the chosen axioms is not
3735-532: The 20th century. The P versus NP problem , which remains open to this day, is also important for discrete mathematics, since its solution would potentially impact a large number of computationally difficult problems. Discrete mathematics includes: The two subjects of mathematical logic and set theory have belonged to mathematics since the end of the 19th century. Before this period, sets were not considered to be mathematical objects, and logic , although used for mathematical proofs, belonged to philosophy and
3818-637: The Middle Ages and made available in Europe. During the early modern period , mathematics began to develop at an accelerating pace in Western Europe , with innovations that revolutionized mathematics, such as the introduction of variables and symbolic notation by François Viète (1540–1603), the introduction of logarithms by John Napier in 1614, which greatly simplified numerical calculations, especially for astronomy and marine navigation ,
3901-679: The US have different practices, which is caused by different ways of calculating funding and investment strategies, and by different regulations. Regulations are from the Armstrong investigation of 1905 , the Glass–Steagall Act of 1932 , the adoption of the Mandatory Security Valuation Reserve by the National Association of Insurance Commissioners , which cushioned market fluctuations, and
3984-583: The beginnings of algebra (Diophantus, 3rd century AD). The Hindu–Arabic numeral system and the rules for the use of its operations, in use throughout the world today, evolved over the course of the first millennium AD in India and were transmitted to the Western world via Islamic mathematics . Other notable developments of Indian mathematics include the modern definition and approximation of sine and cosine , and an early form of infinite series . During
4067-487: The calculations as easy as possible, for example "commutation functions" (essentially precalculated columns of summations over time of discounted values of survival and death probabilities). Actuarial organizations were founded to support and further both actuaries and actuarial science, and to protect the public interest by promoting competency and ethical standards. However, calculations remained cumbersome, and actuarial shortcuts were commonplace. Non-life actuaries followed in
4150-511: The concept of a proof and its associated mathematical rigour first appeared in Greek mathematics , most notably in Euclid 's Elements . Since its beginning, mathematics was primarily divided into geometry and arithmetic (the manipulation of natural numbers and fractions ), until the 16th and 17th centuries, when algebra and infinitesimal calculus were introduced as new fields. Since then,
4233-399: The current language, where expressions play the role of noun phrases and formulas play the role of clauses . Mathematics has developed a rich terminology covering a broad range of fields that study the properties of various abstract, idealized objects and how they interact. It is based on rigorous definitions that provide a standard foundation for communication. An axiom or postulate is
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#17327834117784316-512: The debate. Financial economists argue that pension benefits are bond-like and should not be funded with equity investments without reflecting the risks of not achieving expected returns. But some pension products do reflect the risks of unexpected returns. In some cases, the pension beneficiary assumes the risk, or the employer assumes the risk. The current debate now seems to be focusing on four principles: Essentially, financial economics state that pension assets should not be invested in equities for
4399-569: The derived expression mathēmatikḗ tékhnē ( μαθηματικὴ τέχνη ), meaning ' mathematical science ' . It entered the English language during the Late Middle English period through French and Latin. Similarly, one of the two main schools of thought in Pythagoreanism was known as the mathēmatikoi (μαθηματικοί)—which at the time meant "learners" rather than "mathematicians" in the modern sense. The Pythagoreans were likely
4482-428: The expansion of these logical theories. The field of statistics is a mathematical application that is employed for the collection and processing of data samples, using procedures based on mathematical methods especially probability theory . Statisticians generate data with random sampling or randomized experiments . Statistical theory studies decision problems such as minimizing the risk ( expected loss ) of
4565-571: The expenses of rites and burial. These societies sometimes sold shares in the building of columbāria , or burial vaults, owned by the fund—the precursor to mutual insurance companies . Other early examples of mutual surety and assurance pacts can be traced back to various forms of fellowship within the Saxon clans of England and their Germanic forebears, and to Celtic society. However, many of these earlier forms of surety and aid would often fail due to lack of understanding and knowledge. The 17th century
4648-464: The father of demography , John Graunt , who showed that there were predictable patterns of longevity and death in a group, or cohort , of people of the same age, despite the uncertainty of the date of death of any one individual. This study became the basis for the original life table . One could now set up an insurance scheme to provide life insurance or pensions for a group of people, and to calculate with some degree of accuracy how much each person in
4731-567: The first to constrain the use of the word to just the study of arithmetic and geometry. By the time of Aristotle (384–322 BC) this meaning was fully established. In Latin and English, until around 1700, the term mathematics more commonly meant " astrology " (or sometimes " astronomy ") rather than "mathematics"; the meaning gradually changed to its present one from about 1500 to 1800. This change has resulted in several mistranslations: For example, Saint Augustine 's warning that Christians should beware of mathematici , meaning "astrologers",
4814-592: The following 200 years. Equitable Life was the first to use the word "actuary" for its chief executive officer in 1762. Previously, "actuary" meant an official who recorded the decisions, or "acts", of ecclesiastical courts. Other companies that did not use such mathematical and scientific methods most often failed or were forced to adopt the methods pioneered by Equitable. In the 18th and 19th centuries, calculations were performed without computers. The computations of life insurance premiums and reserving requirements are rather complex, and actuaries developed techniques to make
4897-495: The footsteps of their life insurance colleagues during the 20th century. The 1920 revision for the New-York based National Council on Workmen's Compensation Insurance rates took over two months of around-the-clock work by day and night teams of actuaries. In the 1930s and 1940s, the mathematical foundations for stochastic processes were developed. Actuaries could now begin to estimate losses using models of random events, instead of
4980-403: The group should contribute to a common fund assumed to earn a fixed rate of interest. The first person to demonstrate publicly how this could be done was Edmond Halley (of Halley's comet fame). Halley constructed his own life table, and showed how it could be used to calculate the premium amount someone of a given age should pay to purchase a life annuity. James Dodson 's pioneering work on
5063-623: The insurance needs of businesses and include property, business continuation, product liability, fleet/commercial vehicle, workers compensation, fidelity and surety, and D&O insurance. The insurance industry also provides coverage for exposures such as catastrophe, weather-related risks, earthquakes, patent infringement and other forms of corporate espionage, terrorism, and "one-of-a-kind" (e.g., satellite launch). Actuarial science provides data collection, measurement, estimating, forecasting, and valuation tools to provide financial and underwriting data for management to assess marketing opportunities and
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#17327834117785146-491: The interaction between mathematical innovations and scientific discoveries has led to a correlated increase in the development of both. At the end of the 19th century, the foundational crisis of mathematics led to the systematization of the axiomatic method , which heralded a dramatic increase in the number of mathematical areas and their fields of application. The contemporary Mathematics Subject Classification lists more than sixty first-level areas of mathematics. Before
5229-400: The introduction of coordinates by René Descartes (1596–1650) for reducing geometry to algebra, and the development of calculus by Isaac Newton (1643–1727) and Gottfried Leibniz (1646–1716). Leonhard Euler (1707–1783), the most notable mathematician of the 18th century, unified these innovations into a single corpus with a standardized terminology, and completed them with the discovery and
5312-435: The late 17th century with the increased demand for long-term insurance coverage such as burial, life insurance , and annuities. These long term coverages required that money be set aside to pay future benefits, such as annuity and death benefits many years into the future. This requires estimating future contingent events, such as the rates of mortality by age, as well as the development of mathematical techniques for discounting
5395-534: The long term insurance contracts under which the same premium is charged each year led to the formation of the Society for Equitable Assurances on Lives and Survivorship (now commonly known as Equitable Life ) in London in 1762. William Morgan is often considered the father of modern actuarial science for his work in the field in the 1780s and 90s. Many other life insurance companies and pension funds were created over
5478-409: The manipulation of numbers , that is, natural numbers ( N ) , {\displaystyle (\mathbb {N} ),} and later expanded to integers ( Z ) {\displaystyle (\mathbb {Z} )} and rational numbers ( Q ) . {\displaystyle (\mathbb {Q} ).} Number theory was once called arithmetic, but nowadays this term
5561-400: The natural numbers, there are theorems that are true (that is provable in a stronger system), but not provable inside the system. This approach to the foundations of mathematics was challenged during the first half of the 20th century by mathematicians led by Brouwer , who promoted intuitionistic logic , which explicitly lacks the law of excluded middle . These problems and debates led to
5644-451: The nature of the risks. Actuarial science often helps to assess the overall risk from catastrophic events in relation to its underwriting capacity or surplus. In the reinsurance fields, actuarial science can be used to design and price reinsurance and retrocession arrangements, and to establish reserve funds for known claims and future claims and catastrophes. There is an increasing trend to recognize that actuarial skills can be applied to
5727-536: The objects defined this way is a philosophical problem that mathematicians leave to philosophers, even if many mathematicians have opinions on this nature, and use their opinion—sometimes called "intuition"—to guide their study and proofs. The approach allows considering "logics" (that is, sets of allowed deducing rules), theorems, proofs, etc. as mathematical objects, and to prove theorems about them. For example, Gödel's incompleteness theorems assert, roughly speaking that, in every consistent formal system that contains
5810-521: The pattern of physics and metaphysics , inherited from Greek. In English, the noun mathematics takes a singular verb. It is often shortened to maths or, in North America, math . In addition to recognizing how to count physical objects, prehistoric peoples may have also known how to count abstract quantities, like time—days, seasons, or years. Evidence for more complex mathematics does not appear until around 3000 BC , when
5893-431: The profession, both in practice and in the educational syllabi of many actuarial organizations, is cognizant of the need to reflect the combined approach of tables, loss models, stochastic methods, and financial theory. However, assumption-dependent concepts are still widely used (such as the setting of the discount rate assumption as mentioned earlier), particularly in North America. Product design adds another dimension to
5976-658: The proof of numerous theorems. Perhaps the foremost mathematician of the 19th century was the German mathematician Carl Gauss , who made numerous contributions to fields such as algebra, analysis, differential geometry , matrix theory , number theory, and statistics . In the early 20th century, Kurt Gödel transformed mathematics by publishing his incompleteness theorems , which show in part that any consistent axiomatic system—if powerful enough to describe arithmetic—will contain true propositions that cannot be proved. Mathematics has since been greatly extended, and there has been
6059-657: The study and the manipulation of formulas . Calculus , consisting of the two subfields differential calculus and integral calculus , is the study of continuous functions , which model the typically nonlinear relationships between varying quantities, as represented by variables . This division into four main areas—arithmetic, geometry, algebra, and calculus —endured until the end of the 19th century. Areas such as celestial mechanics and solid mechanics were then studied by mathematicians, but now are considered as belonging to physics. The subject of combinatorics has been studied for much of recorded history, yet did not become
6142-568: The study of approximation and discretization with special focus on rounding errors . Numerical analysis and, more broadly, scientific computing also study non-analytic topics of mathematical science, especially algorithmic- matrix -and- graph theory . Other areas of computational mathematics include computer algebra and symbolic computation . The word mathematics comes from the Ancient Greek word máthēma ( μάθημα ), meaning ' something learned, knowledge, mathematics ' , and
6225-672: The theory under consideration. Mathematics is essential in the natural sciences , engineering , medicine , finance , computer science , and the social sciences . Although mathematics is extensively used for modeling phenomena, the fundamental truths of mathematics are independent of any scientific experimentation. Some areas of mathematics, such as statistics and game theory , are developed in close correlation with their applications and are often grouped under applied mathematics . Other areas are developed independently from any application (and are therefore called pure mathematics ) but often later find practical applications. Historically,
6308-487: The title of his main treatise . Algebra became an area in its own right only with François Viète (1540–1603), who introduced the use of variables for representing unknown or unspecified numbers. Variables allow mathematicians to describe the operations that have to be done on the numbers represented using mathematical formulas . Until the 19th century, algebra consisted mainly of the study of linear equations (presently linear algebra ), and polynomial equations in
6391-508: The two main precursors of algebra. Diophantus solved some equations involving unknown natural numbers by deducing new relations until he obtained the solution. Al-Khwarizmi introduced systematic methods for transforming equations, such as moving a term from one side of an equation into the other side. The term algebra is derived from the Arabic word al-jabr meaning 'the reunion of broken parts' that he used for naming one of these methods in
6474-430: The value of funds set aside and invested. This led to the development of an important actuarial concept, referred to as the present value of a future sum. Certain aspects of the actuarial methods for discounting pension funds have come under criticism from modern financial economics . Actuarial science is also applied to property , casualty , liability , and general insurance . In these forms of insurance, coverage
6557-458: Was a period of advances in mathematics in Germany, France and England. At the same time there was a rapidly growing desire and need to place the valuation of personal risk on a more scientific basis. Independently of each other, compound interest was studied and probability theory emerged as a well-understood mathematical discipline. Another important advance came in 1662 from a London draper ,
6640-462: Was first elaborated for geometry, and was systematized by Euclid around 300 BC in his book Elements . The resulting Euclidean geometry is the study of shapes and their arrangements constructed from lines, planes and circles in the Euclidean plane ( plane geometry ) and the three-dimensional Euclidean space . Euclidean geometry was developed without change of methods or scope until
6723-414: Was introduced independently and simultaneously by 17th-century mathematicians Newton and Leibniz . It is fundamentally the study of the relationship of variables that depend on each other. Calculus was expanded in the 18th century by Euler with the introduction of the concept of a function and many other results. Presently, "calculus" refers mainly to the elementary part of this theory, and "analysis"
6806-437: Was not specifically studied by mathematicians. Before Cantor 's study of infinite sets , mathematicians were reluctant to consider actually infinite collections, and considered infinity to be the result of endless enumeration . Cantor's work offended many mathematicians not only by considering actually infinite sets but by showing that this implies different sizes of infinity, per Cantor's diagonal argument . This led to
6889-571: Was split into two new subfields: synthetic geometry , which uses purely geometrical methods, and analytic geometry , which uses coordinates systemically. Analytic geometry allows the study of curves unrelated to circles and lines. Such curves can be defined as the graph of functions , the study of which led to differential geometry . They can also be defined as implicit equations , often polynomial equations (which spawned algebraic geometry ). Analytic geometry also makes it possible to consider Euclidean spaces of higher than three dimensions. In
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