If you take 12 hundred people, which i think walton did, then basically you're left with virtually no noise. It goes down by the square root of n, where n is e number of observations. This is completely different from when you're looking at errors that are made on frent cases. So if you have an underwriter who overestimates one risk and underestimates the other risk, these errors don't cancel out. He's made two errors, and both of them are independently costly.

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