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Efficient Handling of Probability Information for Decision Analysis under Risk
Author(s) -
Preckel Paul V.,
DeVuyst Eric
Publication year - 1992
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 - 10.2307/1242578
Subject(s) - probability distribution , computer science , econometrics , risk analysis (engineering) , statistics , mathematics , business
Abstract An approach is presented for “condensing” probability distributions so that as much distributional information as possible is preserved. We demonstrate that our approach may be substantially more efficient than alternative methods and, as a result, may permit more realistic modeling of risky decisions.