Representation and calculation of economic uncertainties: Intervals, fuzzy numbers, and probabilities

摘要

Management and decision making when certain information is available may be a matter of rationally choosing the optimal alternative by calculation of the utility function. When only uncertain information is available (which is most often the case) decision-making calls for more complex methods of representation and calculation and the basis for choosing the optimal alternative may become obscured by uncertainties of the utility function. In practice, several sources of uncertainties of the required information impede optimal decision making in the classical sense.