4 Relating Domain Expertise to "Statistical Signatures": Modelling the Management of Critical Incidents
Now the model was set up to yield very large numbers of incidents of greater and lesser complexity. The relative probabilities of the occurrence of each type of event were obtained from the company concerned. The absolute probabilities were much higher so that statistically meaningful results could be obtained relatively quickly with the available computational resources. By "much higher" here is meant a level which, if realized by the company concerned, would involve loss of licenses, jail terms for the directors and public enquiries. However, we did obtain a "statistical signature" derived from a well validated representation of agent cognition and an empirically accurate specification of company structure, systems and procedures.
Is this statistical signature in some sense accurate? We have no criteria by which to give an answer. The statistical signature, like the stylized fact, is clearly a useful notion but, for the sake of clarity and to give us confidence in the implications of our models, we should pin down what we mean by it in some formal or consistent way. One possibility is to show that models representing the time scales involved more realistically can be parameterized to yield low RMSEs and MAPEs or similar measures of simulation accuracy and that condensing the time scales and either aggregating or reducing the numbers of agents have predictable effects.
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