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Margin Calculation: Random Component
The margin that would be needed to ensure a coverage of at least 95%
(
)
p
p
σ
σ
µ
= =
=
,0 ,95.0
norminv
(
)
2
2
,0 ,95.0
norminv
σ
σ
σ
µ
+ = =
=
p
p
M =
1.64√(σ
2
+σ
p
2
) − 1.64σ
p
M =
0.7σ