Method for applying usage based data

A method for measuring volatility of usage based data. Usage based data are measureable parameters of a system and parameters in which the system operates in order to infer the manner in which the system is operated. The method allows for inferences regarding the operator or operators of the system and the environment in which it operates. This invention is described with reference to consumer automobiles and drivers in typical environments, primarily for application in the automobile insurance industry where measuring volatility to determine behavior. However, this method may be applied to other systems including commercial automobiles and trucks, motorcycles, all terrain automobiles, snow mobiles, water craft, air craft, space craft, assembly line operation, robotic devices, remote operational devices, and military automobiles. This method may also be applied to applications other than assessing risk including, but not limited to, marketing, profiling, sales, optimization, operations and control.