A Simulation of Multiple Objective Budgeting Models Using Heteroscedastic ANOVA

Abstract

An important problem confronting managers and accountants is design of computer simulation experiments in settings where the assumptions usually made by statisticians are violated. One approach to this problem is to run the simulation 'until the budgeted money runs out' and hope for the best analysis of the simulated results. The present paper shows how, instead, to rationally design and analyze a computer simulation under minimal assumptions, using the Bishop-Dudewicz HANOVA (Heteroscedastic-ANOVA) Procedure. HANOVA also allows the experimenter to control Type II error in addition to the usually-controlled Type I error. The new procedure is applied to Lin's previous multiple objective budgeting simulation. It is shown that significant differences, not detected in a previous study, exist between profits under different accounting variance analysis techniques. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Nov 01, 1981
Accession Number
ADA107880

Entities

People

  • Edward J. Dudewicz
  • W. Thomas Lin

Organizations

  • Ohio State University

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Communities of Interest

  • Energy and Power Technologies
  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Analysis Of Variance
  • Classification
  • Commerce
  • Computational Science
  • Computer Programming
  • Computer Simulations
  • Computers
  • Data Science
  • Goal Programming
  • Hypotheses
  • Information Science
  • Linear Programming
  • Money
  • Probability
  • Simulations
  • Statistics

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