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analytic risk modeling method

The analytic risk modeling method is a type of risk model where solutions can be determined "in closed form" by solving a set of equations.

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analytic risk modeling method

The analytic risk modeling method is a type of risk model where solutions can be determined "in closed form" by solving a set of equations.

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These methods usually require a restrictive set of assumptions and mathematically tractable assumed probability distributions. The principal advantage over simulation methods is ease and speed of calculation.