Definition: The word "actuaries" comes from the Italian word "audi", meaning to listen, and "scales," meaning a small book or device used for measuring money. It was developed by Giuseppe Iori in the 16th century as a way to understand the economic effects of changing monetary values. In the context of statistics, actuaries are people who study the relationship between economic changes and their impact on financial markets. They use statistical tools such as regression analysis, forecasting models, and Monte Carlo simulation to estimate the probabilities that prices will rise or fall given different sets of economic assumptions. Actuaries also contribute to public policy by providing information about the economic conditions in a particular area, including measures for reducing inflation, improving public finances, and managing financial stress. They help governments make informed decisions about how to allocate resources and implement economic policies. In summary, actuaries are people who use statistical tools to estimate the probable outcomes of changes in economic values, which can have significant implications for individuals, businesses, and society as a whole.
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