2 Evaluating the capital at risk

W e wi l l now illustrate how the formulae which were derived i n the

previous section can be used, wi th some numerical examples of the

evaluation of the var ia t ion range of the aggregate c la im amount and

the capital required to cover such variat ion. The constraints of

section 6.1 st i l l apply, i.e. we are concerned only wi th the stochasticity

of the c la im process.