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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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  "authorName": "L.E.K.",
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      "text": "L.E.K. has used statistics to estimate the regional level cost volatility that is consistent with the national level cost volatility used by Oxera. If two or more sets of data are added together data-point by data-point, then the standard deviation of the result can be calculated if the standard deviation of each data set and the covariance between each pair of data sets is known. Covariance is closely related to a more intuitive parameter, the correlation coefficient (corr).",
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      "text": "Percentage increase in cost volatility",
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      "text": "Moving from a national level EBS mechanism to a regional level mechanism would increase the level of underlying cost volatility. However, the impact of this depends on the covariance between the costs in different regions",
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      "text": "Source: L.E.K. analysis; ORR/ATOC/Network Rail. Rail industry cost and revenue sharing.",
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      "text": "Percentage increase in cost volatility at regional level compared to national level",
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      "text": "Option 2: Outperformance only EBS",
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