Career That Requires Mathematics and Uses it Often

Actuaries The Jobs Rated Almanac has printed five editions from 1998 to 2001 (Society of Actuaries, n.d.). In two of these editions, "actuary" was rated as the best career in terms of environment, income, employment, outlook, physical demands, security, and stress. In two other editions, "actuary" was rated as the second best career. In only one other edition was it rated fourth. The data used to calculate these findings came from trade association and industry group studies, as well as government sources such as the U.S.

Census Bureau and the U.S. Bureau of Labour and Statistics. In addition, Actuaries were rated number six by PayScale.com in terms of highest salary (Braverman & Jeffries, 2009). The average actuary makes around $129,000 a year and a top actuary make around $257,000. This paper will further explore the role and purpose of an actuary, the use of mathematics within this career, and how it influences the world around us.

The role of an actuary is to assemble and analyze various statistics to calculate the probabilities of injury, sickness, disability, property loss, retirement, unemployment, and death (Kouba, n.d.). Furthermore, an actuary will design creative ways of reducing the likelihood of these events occurring and ways of decreasing the impact of these events when they do occur. For example, although death cannot always be avoided, the financial impact felt by the families who lose a loved one can be reduced.

Actuaries work in all sectors of the economy; however, most work in the insurance industry or for a company related to this industry (Department of Mathematics, n.d.). "They are heavily involved in insurance because that is society's most powerful answer for managing risk" (Society of Actuaries, n.d.). Furthermore, actuaries work with the insurance companies to ensure that they have reserved enough funds to process claims, and they provide these companies with advice and strategies on how to best invest their assets.

Many actuaries also work for the state and federal government and consulting firms, and some are self-employed. A solid understanding of mathematics is needed to work as an actuary (Department of Mathematics, n.d.). Students studying to be an actuary are required to have a solid understanding of calculus, matrix algebra, probability, statistics, economics, and business.

The career itself requires a solid understanding of mathematics in order to analyze statistics, make recommendations and generalizations based on those statistics, monitor the financial situation of the companies they work for, and provide consultation on investment strategies (Society of Actuaries, n.d.). They also use statistical analysis to infer the probability of an undesirable event from occurring, and the likely cost related to such an event.

Furthermore, they address many financial questions such as how much money should one contribute to a pension plan and how often to produce a certain retirement income level by a specified time. Finally, actuaries use their statistical, financial, and business knowledge to help design savings plans, pension plans, insurance policies, and other financial programs to help protect people and their assets from potential risks. Actuaries are highly valued individuals (Society of Actuaries, n.d.).

Their expertise is needed by society to ensure that we are protected from many of life's undesirable events. Their creativity and knowledge creates strategies to prevent such events from occurring, which relieves us of emotional pain and financial burden. Undesirable events which do occur do not have as strong of an impact on us as because of the work they do. "Actuaries…are the brains behind the financial safeguards we have implemented in our personal lives, so we can go about our daily.