By MJ the Fellow Actuary
What you will learn
☑ We will discuss what a model is and why actuaries make them. We will look at their components and discuss their limitations. We will also compare the stochastic model to the deterministic model and determine how to choose between them. We will also consider stress testing, scenario analysis and sensitivity testing before looking at Time Horizons and communication.
This is a theoretical course for the Actuarial Exams.
The course answers the following questions
- What is a model and why do Actuaries make them?
- What are the components of a model?
- What are the limitations of models?
- Deterministic vs Stochastic: Whats the difference?
- What is the Time Horizon?
- What is Stress Testing?
- What is Scenario Analysis?
- What is Sensitivity Testing?
- How do we communicate a Model’s results?
- Almost all actuarial subjects involve models and so this subject is appropriate for them all.
Introduction to Actuarial Modelling
Components of an Actuarial Model
Limitations of Models
Deterministic vs Stochastic Models
Model Analysis (Stress, Sensitivity, Scenario Analysis)
Communicating Model Results
Resources: Slides and Notes