Interpolation of the Default Probability 
Interpolation of the Default Probability
Use
Basically, the value of the stored risk commitment period nearest to the one that is to be determined is taken as the default probability. If no larger risk commitment period exists, then the system takes the next smallest value. In order use a more exact default probability value for determining the attributable amount, you can allow the system to calculate the default probability by linear interpolation between two risk commitment values.
Prerequisites
To be able to carry out interpolation you need to have made the following settings in Customizing:
In Basic Settings ® Definitions ® Define Determination Procedures you need to have set the interpolation of default probability indicator. Interpolation of the default probability is only meaningful if formulas that take the default probabilities into account are assigned to the determination procedure.Scope of Functions
The system performs interpolation if the determined risk commitment period falls between two values. This gives an accuracy of 1/30 month to four decimal places. If there is only one value, precisely this monthly value applies for the determination of the default probability.
