Calculation Process Overview

The following is a high-level overview of the calculations that Cognalysis MultiRate performs:

1)Create Factor Tables

a)Build necessary tables

b)Determine bin groupings, if not already determined

2)Load/Index data

3)Iterate

a)Determine Modified Exposure for each characteristic and bin (i.e. adjust exposure for all other variables)

b)Calculate the Credibility Weighted Factor for each characteristic bin, reflecting Credibility as well as any Smoothing that applies

c)Blend the factors with the results from the previous iteration

d)Balance the factors within each Characteristic to average 1

e)Recalculate the Base Factor

f)Check the maximum change in Factors. If this is less than the Convergence Threshold, stop iterations, otherwise continue iterating

4)Perform Curve Modification calculations

5)Calculate Root Mean Squared Error

6)Create Final Detail Output