When Do I Take Which Distribution?: A Statistical Basis for Entrepreneurial Applications

This book provides the statistical basis for quantitative risk management by presenting and explaining the most important distributions. They are a prerequisite for risk aggregation, risk analysis, and risk assessment as required by German revision standards.

Format: Paperback / softback
Length: 43 pages
Publication date: 20 July 2022
Publisher: Springer International Publishing AG

This comprehensive book serves as a valuable resource for quantitative risk management, providing a solid statistical foundation by presenting and elucidating the most important distributions. Distributions play a crucial role in describing the occurrence and impact of risks, serving as a fundamental prerequisite for risk aggregation, risk analysis, and risk assessment as mandated by German revision standards such as IDW PS 340, StaRUG, and FISG.

Within its pages, this book vividly portrays the distributions that underpin enterprise risk management, showcasing their applications and usage scenarios. These distributions encompass a wide range of phenomena, including Bernoulli distributions, binomial distributions, Poisson distributions, uniform distributions, triangular distributions, PERT distributions, modified PERT distributions, trapezoidal distributions, custom distributions, normal distributions, lognormal distributions, Weibull distributions, expert distributions, poly distributions, and compound distributions. Furthermore, the book delves into the process of parameterization of these distributions, offering insights into how expert estimates or algorithmic calibration can be employed to derive meaningful insights and predictions from risk data.

By offering a comprehensive and in-depth exploration of these distributions, this book serves as a valuable tool for risk professionals, financial analysts, and anyone seeking to understand and apply statistical principles in risk management. Its clear explanations and practical examples make it accessible to a wide audience, regardless of their prior statistical knowledge. Whether you are working in the fields of insurance, finance, or business, this book will provide you with the essential knowledge and skills to effectively manage and mitigate risks in today's complex and ever-changing world.

Weight: 103g
Dimension: 235 x 155 (mm)
ISBN-13: 9783031073298
Edition number: 1st ed. 2022