When determining how much weight to give various reserve indications, it is useful to use weights that reduce the variance of the resulting weighted reserve estimate.

The variance of the reserve for each method is important for the calculation of the optimal weights, as are the correlations between the methods. The indicated weighting itself can provide useful insight into the reserve analysis.

Chris will discuss this approach, as well as interpretations of various resulting weightings. He will also discuss practical considerations when applying this type of approach.