Details

Autor(en) / Beteiligte

• Lorance, Randal B
• Wendling, Robert V

Titel

Basic techniques for analyzing and presentation of cost risk analysis

Ist Teil von

• Cost engineering (Morgantown, W. Va.), 2001-06, Vol.43 (6), p.25-31

Ort / Verlag

Morgantown: American Association of Cost Engineers

Erscheinungsjahr

2001

Quelle

BSC - Ebsco (Business Source Ultimate)

Beschreibungen/Notizen

• The need to assess alternatives and make significant business decisions with limited information causes many companies to address strategic capital decisions with quantitative processes. These processes require inputs to be generated from several areas within the competency in the building of mathematical models, and probabilities are developed for the assumptions in the model based upon the uncertainty of each input before the models are analyzed. A capital estimate is a quantification and presentation of the monetary resources (investment costs or dollars) required to achieve a business objective. This article discusses techniques for analyzing and presenting a more complete picture of all the possible resource requirements and outcomes using the accepted quantitative process known as simulation with Monte Carlo analysis.