Essentials of Excel, Excel VBA, SAS and Minitab for Statistical and Financial Analyses pp 685-698 | Cite as
Statistical Decision Theory
Chapter
First Online:
Abstract
This chapter was originally in Lee et al. (2013). It discusses the statistical decision theory. The main topics covered in this chapter are (1) Four Key Elements of a Decision, (2) Decisions Based on Extreme Values, (3) Expected Monetary Value and Utility Analysis, (4) Bayes Strategies, (5) Decision Trees and Expected Monetary Values, (6) Mean and Variance Trade-Off Analysis (Optional), and (7) The Mean and Variance Method for Capital Budgeting Decisions.
Keywords
Capital budgeting under uncertainty Decision theory Event Expected monetary value Internal rate of return IRR Net present value NPV Probability Statistical decision theory Statistical distribution method Utility analysis Variance of cash flowBibliography
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