Separate overlapping hazard events from expected consequences
Hazard describes a potentially damaging process and its occurrence or intensity; exposure identifies what lies in its path, and vulnerability concerns how those exposed things respond. A geological susceptibility map is not automatically a calibrated annual probability map, nor does identical hazard imply identical consequences for different sites.
Learning outcome: Check the complete probability partition before calculating loss. Vary intersection at a fixed joint consequence, then vary consequence at fixed probabilities. Explain why probability, exposed value and expected loss cannot share one unlabeled axis.
Starting recap
Retain resource inventories, physical force and reaction boundaries, chronological alternatives and explicit decision constraints. Conditional teaching results do not certify actual site suitability.
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At intersection 0.05 and joint loss 80, state probabilities are 0.75,0.15,0.05,0.05. At least one event has probability 0.25; expected loss is 0.15×40+0.05×60+0.05×80=13 million units/year. Independence would instead require intersection 0.02.
Open the experimentPredict
Can changing dependence alter the event-union probability even when both marginal probabilities stay fixed?
Experiment
Check the complete probability partition before calculating loss. Vary intersection at a fixed joint consequence, then vary consequence at fixed probabilities. Explain why probability, exposed value and expected loss cannot share one unlabeled axis.
Retain overlapping-event probability and capped losses
Worked teaching model · synthetic values · Fictional annual states: P(flood)=0.2, P(slide)=0.1, intersection a. Flood-only loss 40, slide-only 60, both loss b. States are exclusive after partitioning. Supplied joint loss need not equal the sum because assets may overlap. Not actual hazard calibration or monetary advice.
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Adding marginal probabilities double-counts the joint state.
Expected loss uses exhaustive mutually exclusive states. Dependence can change event-union probability and overlap consequences; probability is not loss, and one average does not represent tail severity, distributional equity or a forecast of next year.
Neither: Probability 0.75; conditional loss 0
Flood only: Probability 0.15000000000000002; conditional loss 40
Slide only: Probability 0.05; conditional loss 60
Both: Probability 0.05; conditional loss 80
| Quantity | Value | Unit |
|---|---|---|
| At least one event | 0.2500000 | probability |
| Expected flood-only loss | 6.000000 | million units/year |
| Expected slide-only loss | 3 | million units/year |
| Expected joint-state loss | 4 | million units/year |
| Total expected loss | 13 | million units/year |
| Joint probability if independent | 0.02000000 | probability |
Original instructional packets and diagrams, not actual site measurements, legal limits or professional clearance.
Adding marginal probabilities double-counts the joint state.
Expected loss uses exhaustive mutually exclusive states. Dependence can change event-union probability and overlap consequences; probability is not loss, and one average does not represent tail severity, distributional equity or a forecast of next year.
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Public practice checks a specific claim. It does not establish independent mastery.
With intersection 0.1 and joint loss 60, calculate the union probability and expected loss.
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