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Evaluation of scenario-generation methods for stochastic programming (2003)

Abstract
In this paper, we discuss the evaluation of quality/suitability of scenario-generation methods for a given stochastic programming model. We formulate minimal requirements that should be imposed on a scenario-generation method before it can be used for solving the stochastic pro-gramming model. We also show how the requirements can be tested. The procedure of testing a scenario-generation method is illustrated on a case from portfolio management. In addition, we provide a short overview of the most common scenario-generation methods.

Publication details
Download http://edoc.hu-berlin.de/series/speps/2003-14/PDF/14.pdf
Publisher Humboldt University Berlin, Germany
Repository Humboldt University of Berlin, GERMANY, Document Server (Germany)
Keywords Mathematik, stochastic programming, scenario generation, scenario tree
Type Text, report
Language eng

Cited publications (2)
EVPI-Based Importance Sampling Solution Procedures for Multistage Stochastic Linear Programmes on Parallel MIMD Architectures (1999)
Integration quadratures in discretization of stochastic programs (2002)