Thursday, July 5, 2007

The Actuarial Probability


Actuarial science applies mathematical and statistical methods to finance and insurance, particularly to risk assessment. Actuaries are professionals who are qualified in this field through examinations and experience.
Actuarial science includes a number of interrelating disciplines, including probability and statistics, finance, and economics. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes during the last 30 years due to the proliferation of high speed computers and the synergy of stochastic actuarial models with modern financial theory (Frees 1990).

Actuarial science became a formal mathematical discipline in the late 17th century with the increased demand for long-term insurance coverages such as Burial, Life insurance, and Annuities. These long term coverages required that money be set aside to pay future benefits, such as annuity and death benefits many years into the future. This requires estimating future contingent events, such as the rates of mortality by age, as well as the development of mathematical techniques for discounting the value of funds set aside and invested. This led to the development of an important actuarial concept, referred to as the Present value of a future sum.

In the history of warfare, nuclear weapons have been used only twice, both during the closing days of World War II. The first event occurred on the morning of 6 August 1945, when the United States dropped a uranium gun-type device code-named "Little Boy" on the Japanese city of Hiroshima. The second event occurred three days later when the United States dropped a plutonium implosion-type device code-named "Fat Man" on the city of Nagasaki. The use of these weapons, which resulted in the immediate deaths of around 120,000 people and even more over time, was and remains controversial. (See Atomic bombings of Hiroshima and Nagasaki for a full discussion).
Since the Hiroshima and Nagasaki bombings, nuclear weapons have been detonated on over two thousand occasions for testing and demonstration purposes. The only countries known to have detonated such weapons are (chronologically) the United States, The former Soviet Union, the United Kingdom, France, The People's Republic of China, India, Pakistan, and North Korea.
Various other countries may hold nuclear weapons but have never publicly admitted possession, or their claims to possession have not been verified. For example, Israel has modern airborne delivery systems and appears to have an extensive nuclear program with hundreds of warheads (see Israel and weapons of mass destruction), though it officially maintains a policy of "ambiguity" with respect to its actual possession of nuclear weapons. According to some estimates, it possesses as many as 200 nuclear warheads. Iran currently stands accused by the United Nations of attempting to develop nuclear capabilities, though its government claims that its acknowledged nuclear activities, such as uranium enrichment, are for peaceful purposes. South Africa also secretly developed a small nuclear arsenal, but disassembled it in the early 1990s (For more information see List of states with nuclear weapons).

In October 2004, the Iraqi interim government warned the U.S. that nearly 380 tons of conventional explosives had been removed from the Al-Qa'qaa facility. The Bush Administration was criticized for failing to guard known weapons stashes of this size after the invasion. Critics of the Bush Administration claimed that U.S. forces were to blame for the looting, which put weapons that were formerly under UN control into the hands of insurgents.
The Bush Administration asserted before the 2004 U.S. election that the explosives were either removed by Iraq before invaders captured the facility, or properly accounted for by US forces[1], even while White House and Pentagon officials acknowledged that they had vanished after the invasion.[2]
MSNBC News wrote:
"Whether Saddam Hussein’s forces removed the explosives before U.S. forces arrived April 3, 2003, or whether they fell into the hands of looters and insurgents afterward — because the site was not guarded by U.S. troops — has become a key issue in the campaign."[3]
Time Magazine reported the sequence of events: "In late April IAEA's chief weapons inspector for Iraq warned the U.S. of the vulnerability of the site, and in May 2003, an internal IAEA memo warned that terrorists could be looting "the greatest explosives bonanza in history." Seventeen months later, on Oct. 10, in response to a long-standing request from the IAEA to account for sensitive materials, the interim Iraqi government notified the agency that al-Qaqaa had been stripped clean. The White House learned about the notification a few days later."[4]
Evidence indicated that the explosives were most likely removed after invading US forces captured the facility. The looting was witnessed by U.S. Army reservists and National Guardsman from separate units as well as officials of the new Iraqi government.[5] Frank Rich editorialized in the New York Times (May 15, 2005):

Russia possesses the largest stockpile of weapons of mass destruction in the world. Russia declared an arsenal of 40,000 tons of chemical weapons in 1997 and is said to have around 16,000 nuclear weapons stockpiled in 2005 with perhaps only 7,200 of them operational, and around 8,800 inactive, making its stockpile the largest in the world. The Soviet Union ratified the Geneva Protocol on January 22, 1975 with reservations. The reservations were later dropped on January 18, 2001.

As of 2005, Russia is estimated to have around 7,200 active nuclear warheads in its arsenal, and around 8,800 inactive or on "inactive reserve," for a total nuclear arsenal of around 16,000 warheads.[1] Russia is one of the five "Nuclear Weapons States" (NWS) under the Nuclear Non-Proliferation Treaty, which Russia ratified (as the Soviet Union) in 1968.
Following the dissolution of the Soviet Union in 1991, a number of Soviet-era nuclear warheads remained on the territories of Belarus, Ukraine, and Kazakhstan. Under the terms of the Lisbon Protocol to the NPT, and following the 1995 Trilateral Agreement between Russia, Belarus, and the USA, these were transferred to Russia, leaving Russia as the sole inheritor of the Soviet nuclear arsenal. It is estimated that the USSR had approximately 35,000 nuclear weapons stockpiled at the time of its collapse.


USSR/Russian nuclear warhead stockpiles, 1949-2002.
In 2002, the United States and Russia agreed to reduce their stockpiles to not more than 2200 warheads each in the SORT treaty. In 2003, the US rejected Russian proposals to further reduce both nation's nuclear stockpiles to 1500 each. Many say that this refusal was a sign of US aggression and accuse the US of thus leaving the danger of US and Russia's mutual destruction. On the other hand, Russia is actively producing and developing new nuclear weapons. Since 1997 it manufactures Topol-M (SS-27) ICBMs which current US air defence systems are unable to destroy.

This is not a plea of WMD propaganda...this is simply a factual look at probabilities...if something can...IT WILL.

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