Recent Findings from University of Texas Provides New Insights into Risk Management (Modeling Correlated Discrete Uncertainties in Event Trees with…

Recent Findings from University of Texas Provides New Insights into Risk Management (Modeling Correlated Discrete Uncertainties in Event Trees with Copulas)

By a News Reporter-Staff News Editor at Insurance Weekly News -- Investigators discuss new findings in Risk Management. According to news reporting from Austin, Texas, by VerticalNews journalists, research stated, "Modeling the dependence between uncertainties in decision and risk analyses is an important part of the problem structuring process. We focus on situations where correlated uncertainties are discrete, and extend the concept of the copula-based approach for modeling correlated continuous uncertainties to the representation of correlated discrete uncertainties."

The news correspondents obtained a quote from the research from the University of Texas, "This approach reduces the required number of probability assessments significantly compared to approaches requiring direct estimates of conditional probabilities. It also allows the use of multiple dependence measures, including product moment correlation, rank order correlation and tail dependence, and parametric families of copulas such as normal copulas, t-copulas, and Archimedean copulas."

According to the news reporters, the research concluded: "This approach can be extended to model the dependence between discrete and continuous uncertainties in the same event tree."

For more information on this research see: Modeling Correlated Discrete Uncertainties in Event Trees with Copulas. Risk Analysis, 2016;36(2):396-410. Risk Analysis can be contacted at: Wiley-Blackwell, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - www.wiley.com/; Risk Analysis - onlinelibrary.wiley.com/journal/10.1111/(ISSN)1539-6924)

Our news journalists report that additional information may be obtained by contacting T.Y. Wang, Univ Texas Austin, McCombs Sch Business, Austin, TX 78712, United States. Additional authors for this research include J.S. Dyer and J.C. Butler.

Keywords for this news article include: Texas, Austin, United States, Risk Management, North and Central America

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2016, NewsRx LLC