Risk Prediction of Automobiles Article Example | Topics and Well Written Essays - 2500 words

Risk Prediction of Automobiles - Article ExampleIn this case, the research will take into describe the two different estimate values namely the insurance risk rating and the normalized losses. While the occasion determines the degree to which an automobile is risky than its price indicates, the latter provides the estimate of the relative average loss of wages per insured vehicle year.One of the most prominent risk analysis methods that are in make use of today in various insurance companies is the insurance risk factor write technique. ... usually achieved by analyzing info that has been collected over a period of quantify for insured entities. The information collected is unintegrated according to a number of variables. In the case of automobiles, the variables usually consist of both numerical and flat data entries and most often such data may also have noise characteristics. However, the relative incidence of noise in the analysis and values is minimized by using software profiling tools that back up in finding out specific patterns within variables, correlations among different sets of variables and the relationships between a set of variables as the need be (William Mendenhall, 2001). Most often, these tools utilize the help of artificial intelligence logic such as neural networks and incremental learning that in addition to determining useful results, helps use existing data to determine trends for the future. However, the varied efficiency in reducing noise for different sets of data is one privation of these risk profiling tools. The use of software tools facilitates the extraction and processing of large volumes of data and requires minimum cost, time and effort (Douglas L. Reilly, 1996). An example of such profiling is as shown belowFig risk factor profiling technique (Found at www.roselladb.com) However, the above method demonstrates the fact that there would be a large divagation in the case where the insurance claim would be dependent o n a number of factors/reasons. As such, the construction