I am given two data sets containing dates and losses (in some currency).
Given a distribution for the amount of losses and an (a,b,0) distribution for frequency of losses, how can I use Monte Carlo simulations to get a distribution for aggregate losses?
The papers and books I see online seem to state how to simulate aggregate losses (by simulating # of losses and losses given such #), but how do I come up with a distribution given all that data?
There's this book I found "Operational Risk with Excel and VBA". It describes the procedure and ends with the mean, standard deviation and other moment stuff. Is that sufficient to describe the distribution of aggregate losses?