Page 125 - RISK Management IC 86

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The median of a distribution is the value in the middle, i.e
the value around which the number of lower observations
equals the number of higher observations.

To find the median of a probability distribution, the
procedure is to locate the value below (or above) which
50% of the observations fall. This is done by summing
the cumulative probabilities in the distribution and finding
the value associated with the required cumulative
probability.

The mode of distribution is the only single value which is
most likely to occur.

(ii) Dispersion or degree of variability from the point around
which. The lesser the dispersion, the closer would be the
result with the breakdown of the organisation and visual
of a Roman who will the original value, and hence lesser
risk in prediction of the result. There are usually two
methods of deviation, standard deviation, and coefficient
of variation.

The principal contribution of probability is to make the
problem more manageable by focusing only on certain

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