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Stochastic Simulations using Spreadsheet Software

By Margie Rosenberg and Howard Young


The combination of mathematical theory, statistical theory, and conlputers will enhance the educational process of actuaries and equip actuaries to enter industry better prepared to analyze data. Some actuarial models can be studied analytically; now with the ease of working with computers, these models and others can also be stud-ied as stochastic processes by using simulated data. Actuaries in the workplace use spreadsheets on a daily basis. Classroom preparation on model building using spreadsheet packages would provide valuable experience. This paper suggests ways of presenting ideas from the the-ory of compound interest and actuarial mathematics using simulation on spreadsheets. 73

Year: 2008
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