Numerical modeling of economic uncertainty
Subject Areas : Mathematical Optimization
1 - Professor, Copenhagen University College of Engineering, Denmark
Keywords: fuzzy number, Modeling, Probability, Economic uncertainty, stochastic, Interval, Triple esti-mate, Discounted Cash Flow,
Abstract :
Representation and modeling of economic uncertainty is addressed by different modeling methods, namely stochastic variables and probabilities, interval analysis, and fuzzy numbers, in particular triple estimates. Fo-cusing on discounted cash flow analysis numerical results are presented, comparisons are made between alter-native modeling methods, and characteristics of the methods are discussed.