Abstract
About ten years ago, when the advent of the computer was dawning, writers, pundits and prophets were giving readers a picture of life during the age of the computer. Some writers envisioned the inevitable takeover of mankind by malevolent gray boxes intent on world domination. | Time has dulled the sharp edge of our recollection of these wild statements which were based on securing readership rather than on provable fact. Yet, it is now true that computers are doing more jobs well than any of the starry-eyed visionaries ever predicted. Daily new applications are conceived for and executed by third generation computers. One generation of man is usually pegged at 33 years. In an industry yet to celebrate its twentieth birthday, the father has been replaced by a more efficient son, and a still more efficient grandson. This is a real phenomenon, even in this century of fast technological change. | What the hindsight of several years experience has given us is the distinct assurance that the little black box, (or six other decorator colors) crammed full of electronic components, can consistently accomplish something of value as a management tool for its users and owners. | This paper is limited to a discussion of just one application for the computer: The use of computers to maintain an investment portfolio for life insurance companies.