Skip to content

Normal loss model input record

Keep the parameter basis and estimation status beside the declared normal-law calculation.

Omni Finance AcademyBy Omni Finance Academy
On this page

Use the original static example

The CSV includes mean loss 0, dispersion 10 and 95% confidence in one stated hypothetical period. It records the positive-loss convention and declared-normal status. Blank evidence fields invite source review rather than supplying invented observations.

Retain the model identity

Input-record fields
FieldPurpose
Mean lossLocation in the chosen loss unit
Standard deviationNonnegative dispersion of the same loss
Horizon/unitCompatible parameter basis
Distribution statusDeclared assumption or assessed evidence
Source/estimatorWhere input numbers came from
Exposure basisHow the loss variable was constructed

Resolve incompatible source objects

If a source supplies return moments, currency losses or variance, record the required transformation and units. A numerical field being accepted does not establish that it represents the expected quantity.

Keep comparison versions

When changing the mean, dispersion or confidence, retain separate records. The CSV is static documentation with no market feed, automatic formulas or distribution-fitting engine.

Further references