Advantages of fuzzy approach compared to probabilistic approach in project evaluation
Uncertainty is often encountered in relation to randomness or fuzziness. In the case of randomness, it can be described by means of a probability distribution; in the case of fuzziness, the fuzzy theory is applied. In the theoretical part, the authors deal with basic tools for describing both types...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Entrepreneurship and Sustainability Center
2022-09-01
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| Series: | Entrepreneurship and Sustainability Issues |
| Online Access: | https://jssidoi.org/jesi/article/1008 |
| _version_ | 1797364776673738752 |
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| author | Simona Hašková Petr Šuleř Tomáš Krulický |
| author_facet | Simona Hašková Petr Šuleř Tomáš Krulický |
| author_sort | Simona Hašková |
| collection | DOAJ |
| description | Uncertainty is often encountered in relation to randomness or fuzziness. In the case of randomness, it can be described by means of a probability distribution; in the case of fuzziness, the fuzzy theory is applied. In the theoretical part, the authors deal with basic tools for describing both types of uncertainty. Probability and fuzzy method are interpreted in the context of their analogies and principal differences. Both techniques are applied in order to quantify the present expected value of a specific development project. The probabilistic solution leads to the point value E[PV], the fuzzy solution establishes the triangular fuzzy number with the subjective E[PV] not burdened with possible exaggerated expectations. The fuzzy approach proved to extend the probabilistic outcome by other additional information useful for decision-makers with different risk propensity. |
| first_indexed | 2024-03-08T16:40:56Z |
| format | Article |
| id | doaj.art-33683da5042f489784c22ca5c8b2c7b0 |
| institution | Directory Open Access Journal |
| issn | 2345-0282 |
| language | English |
| last_indexed | 2024-03-08T16:40:56Z |
| publishDate | 2022-09-01 |
| publisher | Entrepreneurship and Sustainability Center |
| record_format | Article |
| series | Entrepreneurship and Sustainability Issues |
| spelling | doaj.art-33683da5042f489784c22ca5c8b2c7b02024-01-05T10:19:28ZengEntrepreneurship and Sustainability CenterEntrepreneurship and Sustainability Issues2345-02822022-09-0110148349310.9770/jesi.2022.10.1(27)Advantages of fuzzy approach compared to probabilistic approach in project evaluationSimona Haškováhttps://orcid.org/0000-0002-4971-7972Petr Šuleřhttps://orcid.org/0000-0001-7562-0659Tomáš Krulickýhttps://orcid.org/0000-0002-0378-2699Uncertainty is often encountered in relation to randomness or fuzziness. In the case of randomness, it can be described by means of a probability distribution; in the case of fuzziness, the fuzzy theory is applied. In the theoretical part, the authors deal with basic tools for describing both types of uncertainty. Probability and fuzzy method are interpreted in the context of their analogies and principal differences. Both techniques are applied in order to quantify the present expected value of a specific development project. The probabilistic solution leads to the point value E[PV], the fuzzy solution establishes the triangular fuzzy number with the subjective E[PV] not burdened with possible exaggerated expectations. The fuzzy approach proved to extend the probabilistic outcome by other additional information useful for decision-makers with different risk propensity.https://jssidoi.org/jesi/article/1008 |
| spellingShingle | Simona Hašková Petr Šuleř Tomáš Krulický Advantages of fuzzy approach compared to probabilistic approach in project evaluation Entrepreneurship and Sustainability Issues |
| title | Advantages of fuzzy approach compared to probabilistic approach in project evaluation |
| title_full | Advantages of fuzzy approach compared to probabilistic approach in project evaluation |
| title_fullStr | Advantages of fuzzy approach compared to probabilistic approach in project evaluation |
| title_full_unstemmed | Advantages of fuzzy approach compared to probabilistic approach in project evaluation |
| title_short | Advantages of fuzzy approach compared to probabilistic approach in project evaluation |
| title_sort | advantages of fuzzy approach compared to probabilistic approach in project evaluation |
| url | https://jssidoi.org/jesi/article/1008 |
| work_keys_str_mv | AT simonahaskova advantagesoffuzzyapproachcomparedtoprobabilisticapproachinprojectevaluation AT petrsuler advantagesoffuzzyapproachcomparedtoprobabilisticapproachinprojectevaluation AT tomaskrulicky advantagesoffuzzyapproachcomparedtoprobabilisticapproachinprojectevaluation |