[[Actuarial Notes Wiki|Wiki]] / ==Actuarial Math== > The **Mathematics of Actuarial Science** is motivated by the problem of how to evaluate and manage [[risk]], especially in financial and insurance contexts. | Domain | Description | | ------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | [[Probability Theory]] | Events and how likely they are to occur. | | [[Statistics]] | Data collection and interpretation. | | [[Financial Mathematics]] | Models of money, value, and price. | | [[Life Contingencies]] | Models of cash flows that depend on human survival.^[[Life Contingencies Study Note for CAS Exam S](https://www.casact.org/sites/default/files/old/studynotes_exams-contingencies-study-note-0115.pdf) - Tom Struppeck] | | [[Risk Measurement]] | Uncertainty and its costs. | | [[Credibility Theory]] | Aggregate information based on its credibility to improve predictions. | | [[Stochastic Processes]] | Systems that evolve over time. | | [[Economics]] | Models of markets and human behaviour. | | [[Machine Learning]] | Algorithms that learn patterns from data and make predictions. | | [[Optimization]] | Methods to find the best solution under constraints. | | [[Simulation]] | Models of real-world systems. | | [[Decision Theory]] | Rational choices under uncertainty. | Note that each domain makes [[Actuarial Assumptions|assumptions]].