Distorted Risk Measures with Application to Military Capability Shortfalls

Abstract

We consider the problem of selecting a appropriate distortion function and associated parameters to account for rare but catastrophic events that may result from a shortfall of military or security capabilities. Additionally, we describe the means by which a decision maker may allocate resources, subject to a finite budget constraint, while considering the impact of the risk of such shortfalls. The optimal decision is shown to be sensitive to the decision maker's level of risk aversion.

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Document Details

Document Type
Technical Report
Publication Date
Dec 15, 2005
Accession Number
ADA444691

Entities

People

  • Edwin J. Offutt
  • Jeffrey P. Kharoufeh
  • Richard F. Deckro

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Distortion
  • Efficiency
  • Electronic Mail
  • Factorial Design
  • Homeland Security
  • Linear Programming
  • Mathematical Programming
  • Military Capabilities
  • Probability
  • Probability Distributions
  • Random Variables
  • Risk
  • Risk Analysis
  • Security
  • Standards

Readers

  • Computational Modeling and Simulation
  • Control Systems Engineering.
  • Economics