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Re: seaint Digest for 30 Nov 2001

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After reading quite a few incorrect versions of PML definitions, I wanted
to post the accurate definition for all of you who may be reading and
aren't sure of the actual definition.  "PML is the expected maximum
monetary loss, usually represented as a percentage of building replacement
cost, which will not be exceeded for 9 out of 10 similarly constructed
buildings given a specific Modified Mercalli Intensity."  PML is the most
often used loss identifier when discussing/requesting an earthquake loss
analysis or earthquake risk analysis.  Other measurements of loss are
reported as Probable Loss, Mean Loss, Annualized Estimated Loss, Annual
Loss and Median Loss.  These analyses are used to help make decisions
regarding earthquake risk for specific structures or groups of structures
(portfolios).  The level of hazard (earthquake expected) coupled with the
vulnerability (expected building performance) provide the earthquake risk
for a given structure.

Kevin Moore, SE
Project Engineer/Risk Technology Specialist
Degenkolb Engineers

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