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Using ensemble forecasts to predict the size of forecast changes, with application to weather swap value at risk

✍ Scribed by Stephen Jewson; Christine Ziehmann


Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
125 KB
Volume
4
Category
Article
ISSN
1530-261X

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✦ Synopsis


Abstract

We show that the standard deviation of the distribution from which changes in the ensemble mean are drawn can be predicted using the ensemble spread. Such a forecast has direct application for companies that trade weather swaps and need to evaluate their risk. Copyright © 2003 Royal Meteorological Society. Published by Elsevier Ltd. All rights reserved.