ABSTRACT
The purpose of this chapter is to provide an introduction to the concepts and the technical methodology employed in earthquake loss estimation, also known as loss modeling. Loss estimation consists of the employment of mathematical models of the constitutive contributing elements of the loss process (that is, modeling) to arrive at estimates and associated confidence bounds of the potential losses that might result from an earthquake. Loss estimation is essentially a quantitative science, consisting of basic elements shown in Figure 31.1, defined using tools drawn from the natural sciences, engineering, economics, actuarial science, regional science, sociology, and the medical profession, and linked by the mathematics of probability and statistics.
