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Assessing Probability Distributions from Data

  1. Victor Richmond R. Jose

Published Online: 15 JUN 2010

DOI: 10.1002/9780470400531.eorms0049

Wiley Encyclopedia of Operations Research and Management Science

Wiley Encyclopedia of Operations Research and Management Science

How to Cite

Jose, V. R. R. 2010. Assessing Probability Distributions from Data. Wiley Encyclopedia of Operations Research and Management Science. .

Author Information

  1. Georgetown University, McDonough School of Business, Washington, D.C.

Publication History

  1. Published Online: 15 JUN 2010

Abstract

Data can be a powerful tool in the process of probability elicitation, especially in situations where a decision maker has limited prior experience in dealing with the event considered. We provide an introductory discussion on how historical data can be used to generate probability assessments. We also discuss some methods that can be used to incorporate explanatory variables in assessing probability distributions.

Keywords:

  • elicitation;
  • fitting distributions;
  • data;
  • assessment of uncertainty