A metamodel approach to sensitivity analysis of capital project valuation.: An article from: Engineering Economist
Book Details
Author(s)David E. Sartori, Alice E. Smith
ISBN / ASINB00097UHXE
ISBN-13978B00097UHX8
AvailabilityAvailable for download now
Sales Rank13,561,855
MarketplaceUnited States 🇺🇸
Description
This digital document is an article from Engineering Economist, published by Institute of Industrial Engineers, Inc. (IIE) on September 22, 1997. The length of the article is 6469 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the author: A method is presented for using statistical experiment design and multiple regression in the sensitivity analysis of engineering economy or capital budgeting studies where multiple factors are subject to uncertainty. Rather than an enumeration of all combinations of possible changes, a metamodel of the behavior of the project is constructed. Application of this methodology can lead to more specific and useful understanding of the effects of various factors on the project value than is practical with Monte Carlo simulation. In addition, the metamodel can be combined with simulation to provide a distribution of outcomes upon which the project's overall risk can be assessed. The method is illustrated using two actual case studies - a municipal building project and an industrial equipment project.
Citation Details
Title: A metamodel approach to sensitivity analysis of capital project valuation.
Author: David E. Sartori
Publication:Engineering Economist (Refereed)
Date: September 22, 1997
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: v43 Issue: n1 Page: p1(24)
Distributed by Thomson Gale
From the author: A method is presented for using statistical experiment design and multiple regression in the sensitivity analysis of engineering economy or capital budgeting studies where multiple factors are subject to uncertainty. Rather than an enumeration of all combinations of possible changes, a metamodel of the behavior of the project is constructed. Application of this methodology can lead to more specific and useful understanding of the effects of various factors on the project value than is practical with Monte Carlo simulation. In addition, the metamodel can be combined with simulation to provide a distribution of outcomes upon which the project's overall risk can be assessed. The method is illustrated using two actual case studies - a municipal building project and an industrial equipment project.
Citation Details
Title: A metamodel approach to sensitivity analysis of capital project valuation.
Author: David E. Sartori
Publication:Engineering Economist (Refereed)
Date: September 22, 1997
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: v43 Issue: n1 Page: p1(24)
Distributed by Thomson Gale
