@RISK allows you to use historical data to fit data to a probability distribution. The process is very simple: first select the range where the data is located, and then select the Distribution Fitting button. @RISK will guide through the fitting process where you can select a variety of statistical tests such as Chi-Square, Anderson-Darling, Kolmogorov Smirnov, and the Root-Mean Squared Error. View a short tutorial about Distribution Fitting in risk analysis models below.
While the Distribution Fitting functionally is very useful, in some real life cases we need to fit hundreds of distributions, or create filters for certain date ranges or conditions. If we are to do this manually, the fitting process can be overwhelming. A batch fitting function streamlines the process in your risk modeling software.
Palisade’s Custom Development Team has been helping many of our customers automate this process using the @RISK Developers Kit. With a custom batch fitting add-in, we are able to extract information from external databases and organize data so that the fitting process can be done automatically. The resulting distributions can be dropped with ease into risk analysis models.
If you are interested in this type of consulting support for risk analysis models, please let us know. Feel free to contact your Palisade sales representative.
Javier Ordóñez, Ph.D
Director of Custom Solutions