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Stress testing incorporating causal dependency [25]

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Bullet points include: Supplied marginal / conditional probabilities may not be feasible Some sanity checks can be applied, e.g. Singlet condition: Doublet condition: Triplet condition:And behaviour if assumed to be (nearly) independent, causually dependent or incompatible should be (nearly) as earlier But even if these sanity checks are all applied the joint probabilities may not be feasible, and we may need to apply e.g. linear programming techniques to identify ‘nearest’ feasible solution

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