Which component is NOT part of the 4 Parameters of Estimates?

The component that is not part of the 4 Parameters of Estimates is the Average Risk Ratio. The 4 Parameters of Estimates typically include:

1. Minimum Value: This denotes the lowest potential loss that could occur, considering all the possible factors involved.

2. Most Likely Value: This is the estimate that reflects the scenario that is deemed most probable to occur.

3. Maximum Value: This represents the upper limit of potential loss.

4. Confidence Level: This parameter expresses how confident one can be about the estimates made, often related to the statistical backing of the values chosen.

Average Risk Ratio does not fit within this framework because it is not a standard measurement of loss estimation; instead, it's a statistical method often used in risk assessment but not specifically a parameter for estimating loss range or likelihood. Recognizing the correct components helps in accurately understanding how to quantify risk, which is a crucial aspect of risk management and analysis in the Open FAIR framework.