1 Matching Annotations
  1. Oct 2019
    1. probability compounds

      compound probability = 1 - (1 - annual probability of excedence)^n where:

      • annual probability = 0.01
      • n = exposure period = 10 years

      by other hand Mean Recurrence Interval - MRI = Return Period = 1 / annual probability of exceedence, but only if MRI >= 10 years, if not then:

      annual probability of excedence = 1-e(-1/MRI)