Project Economics and Decision Analysis, Volume 2 - Probabilistic Models

Description

This comprehensive guide provides all the necessary concepts of capital investment evaluation, capital budgeting, and decision analysis. Divided into two complementary volumes, Volume II deals with the concepts of decision analysis (incorporating risk and uncertainty as applied to capital investments). Solved real-life examples and end-of-chapter assignment material are included. This text will allow the reader to assess the external risk of investing through easy-to-understand statistical analysis; design and use decision trees to profile and reduce risk; and determine risk probabilities by using probability distribution tables. Content: Front Matter • Preface • Table of Contents 1. Introduction 2. Statistics and Probability Concepts 3. Expected Value and Decision Trees 4. Incorporating Attitudes toward Risk 5. Determining Venture Participation 6. Simulation in Decision Analysis • Afterword Appendices Index