Latest posts
-
How Insurance Premiums Are Calculated Probability Basics
How Insurance Premiums Are Calculated Probability Basics How insurance premiums are calculated probability wise comes down to one core formula: multiply the chance an event happens by what it would cost to pay the claim, then add a margin for the insurer’s costs and profit. That result, called the expected loss plus loading, becomes the…
-
Percentage Change vs Percentage Points: Why It Matters
Percentage Change vs Percentage Points: Why It Matters When interest rates rise from 4 percent to 5 percent, headlines often call that a 1 percent increase, but the honest number is a 1 percentage point increase, which is actually a 25 percent relative jump. Percentage points measure the raw difference between two percentages, while percentage…
-
What Does Statistically Significant Mean? In Plain English
What Does Statistically Significant Mean? Plain English So what does statistically significant mean in plain terms. It means a result is unlikely to have happened by random chance alone, based on the data you collected. It does not mean the result is proven true, guaranteed to repeat, or important in a real world sense. It…