What Issues Must Be Considered When Determining Whether or Not

question 120

Essay

What issues must be considered when determining whether or not an uninsured loss from tornado destruction should be treated as an extraordinary item?

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Definitions:

P-Value

The likelihood of observing results as extreme or more extreme than those actually experienced, under the assumption that the null hypothesis holds.

Predictor Variables

Variables used in statistical models to predict outcomes or responses.

Coefficient Of Determination

A statistical measure, often denoted as R^2, that represents the proportion of the variance in the dependent variable that is predictable from the independent variables in a regression model.

Stepwise Regression

An approach to developing regression models where the identification of forecasting variables is performed automatically.