Measurement Of Cost Of Uncertainty In Stochastic Dynamic Programming Models

Measurement of Cost of Uncertainty in Stochastic Dynamic Programming Models

Cost Modelling

Cost models underlie all the techniques used in construction cost and price forecasting. An understanding of the various types of models is vital to the success of forecasting, implications of design decisions and to effective cost control.

Proceedings of the 1991 Symposium on Systems Analysis in Forest Resources

“A stochastic model is presented to generate daily values of precipitation, solar radiation, maximum temperature and minimum temperature. Precipitation is modeled by a Markov chain-exponential model. Solar radiation, maximum and minimum temperature are modeled using a multivariate generating model conditioned on the wet or dry state of the day and time period. The model is formulated such that outputs can be used in simulation exercises to test the effect of changing climatic conditions on forest ecosystem processes.”