Book Review: Stochastic Modeling: Theory and Reality
نویسنده
چکیده
For decades, actuaries have historically used statistical and financial models that were inherently considered deterministic in the sense that random fluctuations are often ignored, although some type of sensitivity of the parameter and model assumptions have been employed to have a sense of the possible variation in the results. Today, such sensitivity analysis is unacceptably appropriate when reality is becoming more complex with increasing uncertainty. There is an undeniable need for risk analysis, the primary task of an actuary, to better reflect reality by adopting stochastic modeling. With today’s availability and convenience of advanced computing architecture, there is no excuse for actuaries in practice to avoid the use of stochastic methods.
منابع مشابه
Effectiveness of Multimedia E-book and Augmented Reality on Knowledge and Skill of Health Science Students: A Systematic Review
Background: The field of health sciences is always related to practical activities in the laboratory. The limited ability of educational institutions to prepare pretty expensive practicum materials makes it essential to use other methods as a substitute or minimize the use of excessive practicum materials because they must be done repeatedly. Accordingly, the present systematic review seeks to ...
متن کاملApplications of TP2 Functions in Theory of Stochastic Orders: A Review of some Useful Results
In the literature on Statistical Reliability Theory and Stochastic Orders, several results based on theory of TP2/RR2 functions have been extensively used in establishing various properties. In this paper, we provide a review of some useful results in this direction and highlight connections between them.
متن کاملProbability, stochastic processes, and queueing theory - the mathematics of computer performance modeling
What do you do to start reading probability stochastic processes and queueing theory the mathematics of computer performance model? Searching the book that you love to read first or find an interesting book that will make you want to read? Everybody has difference with their reason of reading a book. Actuary, reading habit must be from earlier. Many people may be love to read, but not a book. I...
متن کاملOptimality Of Monetary And Fiscal Policies In Iran: An Application Of The Stochastic Optimal Control Theory
متن کامل
A New Method for Characterization of Biological Particles in Microscopic Videos: Hypothesis Testing Based on a Combination of Stochastic Modeling and Graph Theory
Introduction Studying motility of biological objects is an important parameter in many biomedical processes. Therefore, automated analyzing methods via microscopic videos are becoming an important step in recent researches. Materials and Methods In the proposed method of this article, a hypothesis testing function is defined to separate biological particles from artifact and noise in captured v...
متن کامل