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This formula is for the statistically stupid. There is no such thing as average out-of-court settlement. One jury may find your company’s behavior as egregious

This formula is for the statistically stupid. There is no such thing as average out-of-court settlement. One jury may find your company’s behavior as egregious and decide to drive you out of business by awarding a trillion dollar judgment. Next your business insurance drops you for being uninsurable.

henry2023 2y ago
1. There are long tail distributions which have a statistical mean 2. Boeign exists
- rawgabbit 2y ago
  If a jury awards a trillion dollar judgment, that is not a long tail distribution. It blows up the distribution as it is an asymptote.
  - henry2023 2y ago
    When was the last time you heard about a jury awarding a trillion dollar settlement ? If any, fines tend to be in the low spectrum (1% a 3%) of net revenue. Get some data and graph it. It’s long tail
    - rawgabbit 2y ago
      You just made my point. Thank you. Good day.