问题如下:
The 95-percentile of a loss distribution is 20. Use the power law to obtain the 99-percentile if the α parameter is 5.
选项:
解释:
We know that
0.05= K × 20-5
so that K = 160,000. The 99-percentile is obtained by solving the following equation for x:
0.01= 160000X-5
It is 27.6.
请问参数K代表什么意思呢?