The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics Issue
Monte Carlo method is a probabilistic computer algorithm in which the value of one or more random variables is given by the density function, and the goal of which is to predict all the possible outcomes of a process it has been applied to and the probability of their occurrence. As such, the Monte...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Business in Osijek
2013-07-01
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| Series: | Ekonomski Vjesnik |
| Subjects: | |
| Online Access: | http://hrcak.srce.hr/file/159533 |
| _version_ | 1797329642889150464 |
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| author | Dominika Crnjac Milić Dino Masle |
| author_facet | Dominika Crnjac Milić Dino Masle |
| author_sort | Dominika Crnjac Milić |
| collection | DOAJ |
| description | Monte Carlo method is a probabilistic computer algorithm in which the value of one or more random variables is given by the density function, and the goal of which is to predict all the possible outcomes of a process it has been applied to and the probability of their occurrence. As such, the Monte Carlo method proves to be extremely useful in the process of decision- making under conditions of risk. This paper discusses an example of function optimization with the aim of finding a solution that will deliver the highest profits in the described agricultural economics-related problem under risk-free conditions. A Monte Carlo simulation is carried out and the solution under conditions of risk is also found. For that purpose, a special program code was written. |
| first_indexed | 2024-03-08T07:08:25Z |
| format | Article |
| id | doaj.art-2d46da4f5e814857bdda28028c6b59e8 |
| institution | Directory Open Access Journal |
| issn | 0353-359X 1847-2206 |
| language | English |
| last_indexed | 2024-03-08T07:08:25Z |
| publishDate | 2013-07-01 |
| publisher | Faculty of Economics and Business in Osijek |
| record_format | Article |
| series | Ekonomski Vjesnik |
| spelling | doaj.art-2d46da4f5e814857bdda28028c6b59e82024-02-03T03:46:14ZengFaculty of Economics and Business in OsijekEkonomski Vjesnik0353-359X1847-22062013-07-01XXVI1314314The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics IssueDominika Crnjac Milić0Dino Masle1Faculty of Electrical Engineering of University of OsijekFaculty of Electrical Engineering of University of OsijekMonte Carlo method is a probabilistic computer algorithm in which the value of one or more random variables is given by the density function, and the goal of which is to predict all the possible outcomes of a process it has been applied to and the probability of their occurrence. As such, the Monte Carlo method proves to be extremely useful in the process of decision- making under conditions of risk. This paper discusses an example of function optimization with the aim of finding a solution that will deliver the highest profits in the described agricultural economics-related problem under risk-free conditions. A Monte Carlo simulation is carried out and the solution under conditions of risk is also found. For that purpose, a special program code was written.http://hrcak.srce.hr/file/159533Monte Carlo simulationdecision-making techniquesrisklinear optimization with constraints |
| spellingShingle | Dominika Crnjac Milić Dino Masle The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics Issue Ekonomski Vjesnik Monte Carlo simulation decision-making techniques risk linear optimization with constraints |
| title | The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics Issue |
| title_full | The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics Issue |
| title_fullStr | The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics Issue |
| title_full_unstemmed | The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics Issue |
| title_short | The Possibility of Using Monte Carlo Method in the Case of Decision-Making under Conditions of Risk Concerning an Agricultural Economics Issue |
| title_sort | possibility of using monte carlo method in the case of decision making under conditions of risk concerning an agricultural economics issue |
| topic | Monte Carlo simulation decision-making techniques risk linear optimization with constraints |
| url | http://hrcak.srce.hr/file/159533 |
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