Distribution theory tells us that the area under the curve at three standard deviations from the most likely value
($130) is 99% of the total area under the curve.
In this case, an anthropic argument would hold that the observed value is pushed away from the a priori most likely value
by anthropic considerations.
Known minimum value approach: This approach is to be used when the outcome and cost uncertainties are so great that it is premature to estimate an expected value or most likely value
. This approach only identifies those costs that are reasonably certain to be incurred.
A triangular distribution allows for identification of the minimum, maximum, and most likely values
. Therefore, in this case, the minimum input value is set at 1%, the maximum input value is set at 6%, and the most likely input value is set at 3%, as depicted in Figure 1.
If each input is examined at three levels (i.e., high, low, and most likely value
), then 2,187 different combinations of the model would need to be tested.
Most likely value
of subject relative to comparable, assuming the only errors are in the measurement of the parameters is: 89,000
For expenses, a manager would normally be able to estimate the minimum, maximum, and most likely values
without having to do a detailed analysis, so we'll use a symmetrical triangle distribution.
"The fact that she most likely values
her family and community life above the accolades, perks, and satisfactions of her profession."
The triangular distribution is commonly used in situations in which the exact form of the distribution is not known, but estimates for the minimum, maximum, and most likely values
This method permits to determine the most likely values
of the coefficients for the prior function based on the theoretical consideration regarding the phenomena of the process for which we obtain the experimental data.
Now, Alexander Vilenkin of Tufts University in Medford, Mass., has taken an alternative approach to determining the most likely values
of the fundamental constants of nature -- one rooted in quantum cosmology.
An appraiser may elect to utilize this model to develop a nonparametric analysis; report high, low, and most likely values
; or alternatively simply report a mean and standard deviation, depending upon the needs and sophistication of the client.