Journal of Risk Analysis and Crisis Response

Volume 3, Issue 1, May 2013, Pages 13 - 21

Risk Scenes of Managerial Decision-Making with Incomplete Information: An Assessment in Forecasting Models Based on Statistical and Neural Networks Approach

Authors
Dusan Marcek
Corresponding Author
Dusan Marcek
Available Online 1 May 2013.
DOI
https://doi.org/10.2991/jrarc.2013.3.1.2How to use a DOI?
Keywords
Confidence interval; Entropy; Prediction models; Neural networks; ARIMA/ARCH models; Managerial decision; Risk assessment
Abstract
The paper is concerned with measuring of risks in managerial decision-making. It builds upon the uncertainty of economic information, which is converted into the concept of risk expressed in terms of probability and using confidence intervals and standard deviations of the predicted quantities. The paper explains the relation of a degree of risk expressed by the classical information measure, bit, by the concept of confidence intervals, or possibly by the standard deviation. Forecasting models are applied which are based on a statistical theory and a neural approach. The aim is also to examine whether potentially highly non-linear neural network models outperforms the advanced statistical methods and better reduce risk in managerial decision-making, or they yield competitive results. A method for finding the forecasting horizon within which the risk is minimal is also presented.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Journal
Journal of Risk Analysis and Crisis Response
Volume-Issue
3 - 1
Pages
13 - 21
Publication Date
2013/05
ISSN (Online)
2210-8505
ISSN (Print)
2210-8491
DOI
https://doi.org/10.2991/jrarc.2013.3.1.2How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - JOUR
AU  - Dusan Marcek
PY  - 2013
DA  - 2013/05
TI  - Risk Scenes of Managerial Decision-Making with Incomplete Information: An Assessment in Forecasting Models Based on Statistical and Neural Networks Approach
JO  - Journal of Risk Analysis and Crisis Response
SP  - 13
EP  - 21
VL  - 3
IS  - 1
SN  - 2210-8505
UR  - https://doi.org/10.2991/jrarc.2013.3.1.2
DO  - https://doi.org/10.2991/jrarc.2013.3.1.2
ID  - Marcek2013
ER  -