Читать книгу Pricing Insurance Risk - Stephen J. Mildenhall - Страница 42

A risky outcome can be labeled explicitly by describing the facts and circumstances causing it. Or we can identify the outcome with its value. Or we can identify it with the probability of observing no larger value.

This section explores the mechanics, pros, and cons of these three representations. We call them the explicit, implicit, and dual implicit representations, respectively.