Hazard Rate Models

Hazard rate models are tools used to estimate the likelihood of an event happening at a specific moment, given it hasn't occurred yet. Imagine tracking how risky it is for a machine to break down on each day of operation— the hazard rate quantifies that risk. These models help predict the timing of events like failures, deaths, or defaults by analyzing data over time. They’re widely used in areas like healthcare, engineering, and finance to assess and manage risks effectively.