Insurance industry actuaries price policies for

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Unformatted text preview: ions in the face of uncertainty. • Insurance industry: Actuaries price policies for natural disasters, life insurance, medical insurance, disability insurance, liability insurance, and other policies, pertaining to persons, houses, automobiles, oil tankers, aircraft, major concerts, sports stadiums and so on, in the face of much uncertainty about the future. • Reservation systems: Electronic reservation systems dynamically set prices for hotel rooms, airline travel, and increasingly for shared resources such as smart cars and electrical power generation, in the face of uncertainty about future supply and demand. • Reliability of major infrastructures: The electric power grid, including power generating stations, transmission lines, and consumers is a complex system with many redundancies. Still, breakdowns occur, and guidance for investment comes from modeling the most likely sequences of events that could cause outage. Similar planning and analysis is done for communication networks, transportation n...
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