Reduce Distribution

A DPL outcome risk profile is a probability distribution. If you would like to use this distribution as an input to another model, you can ask DPL to reduce it to a single chance event or node. The distribution of probability/value pairs for the chance event will have the same first 2n-1 moments as the distribution being reduced, where n is the number of states for the newly created chance event from the reduction.

Reducing a Distribution

To reduce a distribution to a chance event, make the Risk Profile Chart you wish to reduce active in the Model Window and choose Data | Distributions | Reduce. DPL will display the Reduction dialog:

  • Select the Risk Profile you would like to reduce from the Drop down.
  • Specify a name for the generated chance event.
  • Specify the number of event states for the generated chance event. You may specify between two and six states. The more states, the more accurate the approximation will be.
  • If desired, check Display in log. The results of the reduction are written to the Session Log.
  • If desired, check Copy as text to clipboard. The chance event from the reduced distribution will be placed on the clipboard in text format. This can be copied to a DPL Program.
  • For special situations, you may want many branches for the chance node using the ranw intervals from the risk profile. To do this, check the Also create chance event from raw intervals. Note, typically its best to leave this option off.
  • If desired, specify a model to which to paste the chance node created from the reduction. Use the drop-down list to select the desired destination model.

The reduction results include the probabilities and values for each outcome of the output chance event.

Versions: DPL Professional, DPL Enterprise, DPL Portfolio

See Also

Risk Profile Data

Risk Profile Charts