Question
You are given the following ELT. The model was run with 10 simulation years. Year Event Number Loss 1 1 5 2 1 10 2
You are given the following ELT. The model was run with 10 simulation years.
| Year | Event Number | Loss |
| 1 | 1 | 5 |
| 2 | 1 | 10 |
| 2 | 2 | 2 |
| 3 | 1 | 3 |
| 5 | 1 | 20 |
| 7 | 1 | 25 |
| 7 | 2 | 10 |
| 9 | 1 | 5 |
| 9 | 2 | 2 |
| 10 | 1 | 8 |
| 10 | 2 | 12 |
| 10 | 3 | 10 |
What is the annual frequency of events?
What is the average severity of events?
What is the average annual loss (AAL)?
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
