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Marginal Risk Constraint Linear Program for Activity Analysis
Author(s) -
Chen Joyce T.,
Baker C. B.
Publication year - 1974
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238617
Subject(s) - constraint (computer aided design) , covariance , range (aeronautics) , parametric statistics , boundary (topology) , mathematics , econometrics , mathematical optimization , statistics , mathematical analysis , engineering , geometry , aerospace engineering
A dichotomous Marginal Risk Constraint (MRC) criterion is proposed to take explicit account of activity income covariance relationships and to restrict the choice of activities within the range of rational combinations. A parametric LP solution procedure is also presented. The E,V boundary approximated is satisfactorily close to that generated from QP.