Modeling the Severity of Random Events With the SAS/ETS SEVERITY Procedure

The new SEVERITY procedure fits probability distributions for the severity (magnitude) of random events. Important examples include events with negative impact (such as the distribution of losses claimed under insurance policies, the magnitude of damages caused by natural disasters, and the severity of outbreaks of a disease) and events with positive impact (such as order sizes for products characterized by intermittent demand). The SEVERITY procedure can use any of eight different parametric families of probability distributions. If these eight built-in distributions are not sufficient for the problem, then one can extend the SEVERITY procedure to support any parametric family by specifying its CDF and PDF functions with SAS programming statements and the FCMP procedure.

Provided by: SAS Institute Topic: Big Data Date Added: Mar 2010 Format: PDF

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