Moment methods for decision analysis
Article Abstract:
The use of moments of output distributions for approximation in decisions analysis is examined relative to conventional methods. These involve the computation of value lotteries from discrete approximations for each continuous distribtuion involved in the decision model. However, these discrete approximations may haveuntoward effects. Comparison of three traditional approaches through a simple example led to a different approach, one which involves the computation of output distribution moments from the given assessed input distribution moments.The resulting moments represent information about the value lottery and certainequivalents and may thus be used to compute the approximate value lotteries andthe accompanying equivalents. An evaluation of the proposed model is presented.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1993
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A one-sided double screening procedure using individual unit misclassification error
Article Abstract:
A double screening method is developed which controls for individual unit misclassification error as well as average outgoing quality for quality control applications. Screening entails choosing items whose performance is within specifications based on examining one or more screening variable in place of the performance variable. Observation is sequential rather than simultaneous. One screening variable is used to accept, reject, or leave a move undecided. The second screening variable is then used to select the undecided items.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1988
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