Abstract:
The study of demography is an area of actuarial science that many students do not have an opportunity to study as an undergraduate. The study of a population and its characteristics, particularly its growth, is vital to the actuary. This discussion focuses on demography, particularly the aspect of the growth of a population, and ways in which it relates to the field of actuarial science. One way to examine demography is to compare models of population growth to the growth of a fund over time due to interest. There are a diversity of examples that demonstrate the relationship between population and theory of interest. One important aspect of demography is projections - estimating future populations. The mathematics of projections is similar to the theory of interest and is important to the actuary. In addition, population growth through the course of history is examined, including the views of Thomas Malthus, one of the first to identify negative aspects of population growth.
