THE APPLICATION OF MONTE CARLO SIMULATION FOR A DECISION PROBLEM
The ultimate goal of the standard decision tree approach is to calculate the expected value of a selected performance measure. In the real-world situations, the decision problems become very complex as the uncertainty factors increase. In such cases, decision analysis using standard decision tree a...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Pamukkale University
2001-01-01
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| Series: | Pamukkale University Journal of Engineering Sciences |
| Subjects: | |
| Online Access: | http://dergipark.ulakbim.gov.tr/pajes/article/view/5000089854 |
| Summary: | The ultimate goal of the standard decision tree approach is to calculate the expected value of a selected performance measure. In the real-world situations, the decision problems become very complex as the uncertainty factors increase. In such cases, decision analysis using standard decision tree approach is not useful. One way of overcoming this difficulty is the Monte Carlo simulation. In this study, a Monte Carlo simulation model is developed for a complex problem and statistical analysis is performed to make the best decision. |
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| ISSN: | 1300-7009 2147-5881 |