Praise for the Third Edition:"This book provides in-depth coverage of modelling techniques used throughout many branches of actuarial science... The exceptional high standard of this book has made it a pleasure to read." --Annals of Actuarial ScienceFocusing exclusively on material tested in the Society of Actuaries’ newly revamped Exam C (Short Term Actuarial Mathematics), Loss Models: From Data to Decisions, Fifth Edition supplies actuaries with a practical approach to the key concepts and techniques needed on the job. With updated material and extensive examples, the book successfully provides the essential methods for using available data to construct models for the frequency and severity of future adverse outcomes.This new edition continues to equip readers with the tools needed for the construction and analysis of mathematical models that describe the process by which funds flow into and out of an insurance system. Focusing on the loss process, the authors explore key quantitative techniques including random variables, basic distributional quantities, and the recursive method, and discuss techniques for classifying and creating distributions. Parametric, non-parametric, and Bayesian estimation methods are thoroughly covered along with advice for choosing an appropriate model.Throughout the book, numerous examples showcase the real-world applications of the presented concepts, with an emphasis on calculations and spreadsheet implementation, making Loss Models, Fifth Edition an indispensable resource for students and aspiring actuaries who are preparing to take the examinations, and is also a valuable reference for professional actuaries and anyone who works with loss and risk models.

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