Page 45 - EBOOK RISK MANAGEMENT
P. 45
Table 4.5 Example 2: Calculating Standard Deviation for Frequency Distribution
Claims No. of claims,
fx x² fx²
amount, x f
200 8 1,600 40,000 320,000
300 6 1,800 90,000 540,000
400 10 4,000 160,000 1,600,000
500 4 2,000 250,000 1,000,000
Σx = 1,400 Σf = 28 Σfx =9,400 540,000 Σfx² = 3,460,000
2
2
= ∑ - ∑ ²
∑ ∑
3,460,000 − 9,400
= √ ²
28 28
= √123,571.42 − 112,704.08
= √10,867.34
= 104.25
“The science linking the increased frequency and severity of
extreme weather to the climate crisis has a matured
tremendously in the last couple of years.”
- Al Gore -
36
