The Actuarial Revelation

When I was brushing my teeth morning, looking at my reflection in the mirror, I finally paid attention to the design of the t-shirt I was wearing. I remembered I ordered this t-shirt from the actuarial club when I was a sophomore. Since it was too big for me, I always tried to avoid wearing it.

Finally I realised the D.A.S.S. letters are four actuarial symbols. (As you can see from the toothpaste stint on the left hand side, you can imagine my jaw was dropped when I had the actuarial revelation. :))

nDx - I don't think I learned about this big nDx in Course M. I used ndx more often.

ndx is the number of people die between age x and age x+n.

a double dot x- This is the annuity that pays a unit amount at the beginning of each year that the annuitant at age x survives.

s double dot- an actuarial accumulated value at the end of a life annuity-due of 1 per year, payable while (x) survives.

Actually these symbols came a long way.My professor used to tell us that- once upon a time, some actuaries decided to develop some symbols in order to have a "common language" for actuaries from all over the world to communicate the actuarial concepts.


Anonymous said...

Professor Klugman has also said that we use actuarial notation for job security! By having overly cumbersome notation it prevents all the statisticians and CFAs from stepping into our jobs.