Research Reports from the Department of Operations
Document Type
Report
Publication Date
10-1-1972
Abstract
Standard texts in Engineering Economy, and/or Economic Analysis develop and list equations for various cash flow analyses. In these texts the independent variables and/or parameters are assumed to be known deterministically. In practice, however, it is often possible to establish for such values the distribution and its parameters. This paper extends the stochastic formulations for each of the commonly used equations for various combinations and permutations of distributions in so far as the variances are concerned.
Keywords
Stochastic processes, Operations research, Cash flow--Mathematical models, Inflation (Finance), Distribution (Probability theory)
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 265
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Avtar, Ram; Rao, Arza K.; and Reisman, Arnold, "Variance Relationships for Stochastic Changes of Common Discounted Cash Flow Formula" (1972). Research Reports from the Department of Operations. 635.
https://commons.case.edu/wsom-ops-reports/635