Mathematical models in finance, banking and insurance
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The same mathematical model can be applied to many different situations, not all of which are obviously related. For example, landscape generators are able to create realistic shapes of objects as diverse as mountains, trees, rocks, grass and shells, with a single general model, even though the growth and construction processes of these objects are very diverse.even though the growth and construction processes of these objects are very diverse. If, instead of creating a new model, we are able to approximate a problem to an old known model, we immediately obtain a mass of very useful data. A large part of the job is therefore to recognize that a known model applies, or to extend the known properties of a particularly useful class of model.
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The same mathematical model can be applied to many different situations, not all of which are obviously related. For example, landscape generators are able to create realistic shapes of objects as diverse as mountains, trees, rocks, grass and shells, with a single general model, even though the growth and construction processes of these objects are very diverse.even though the growth and construction processes of these objects are very diverse. If, instead of creating a new model, we are able to approximate a problem to an old known model, we immediately obtain a mass of very useful data. A large part of the job is therefore to recognize that a known model applies, or to extend the known properties of a particularly useful class of model.
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