The distribution of losses in a confidence interval generally follow the shape of a lognormal curve. Unlike a normal curve, the mean of a lognormal curve will almost always fall to the right of the median. While a normal curve would have a mean at 50%, a lognormal curve’s mean is usually greater than 50% due to the tail to the right. The amount that the lognormal mean is greater than 50% varies based upon the standard deviation, but it generally falls between 55%-65% for most loss projections.
Articles in this section
- How do I copy a forecast in Loss Forecaster?
- How do I import an Excel file to Loss Forecaster?
- How do I share a Loss Forecaster file in RISK66? How do I share an entire client (folder) in RISK66?
- How do I import a PC Loss Forecaster (LF3) file?
- How do I convert a Loss Projection into a Reserve Analysis?
- How do I export a Loss Forecaster file to Excel?
- What is a Loss Projection?
- What is a Reserve Analysis?
- Does Loss Forecaster limit development on individual claims that have exceeded the retention/loss limit?
- Does Loss Forecaster have the capability to produce Loss Development Triangles?