Risk inclination formula
The risk inclination formula component uses the principle of moments, or Varignon’s theorem, () to calculate the first factorial moment of probability in order to define this center point of balance among all confidence weights (i.e., the point of risk equilibration).
The formal derivation of the RIF is divided into three separate calculations: (1) calculation of 1st factorial moment, (2) calculation of inclination, and (3) calculation of the risk inclination score.
- Coxeter, H. S. M. (1967). Quadrangles: Varignon's Theorem. Geometry Revisited. Washington, D.C.: The Mathematical Association of America. pp. 51–55.
- Sharma, D. P. (2010). Engineering Mechanics. New Delhi, India: Dorling Kindersley. pp. 8–9.
- Jack, B.M.; Hung, K.M.; Liu, C.J.; Chiu, H.L. Utilitarian Model of Confidence Testing for Knowledge-based Societies. ERIC. ED519174.,