Density height after a loss-unit change

Use one original economic law in two units

A normal loss model has mean 0 and dispersion 10 major currency units. Expressing the same losses in minor units multiplies both location and dispersion by 100, giving dispersion 1,000 minor units. No probability assumption changes.

Compare the central heights

Central density is approximately 0.039894 per major unit and 0.000398942 per minor unit. The wider numerical horizontal interval receives a proportionately lower density height. These heights are not probabilities of the mean loss.

Reconcile corresponding amounts

Keep interval probabilities unchanged

An interval transformed to the same economic endpoints has the same probability in either representation. The calculator’s standardized density figure therefore remains the same, while the loss output amounts scale with the entered unit.