Capital allocation principles are used in various contexts in which a risk capital or a cost of an aggregate position has to be allocated among its constituent parts. We study capital allocation principles in a performance measurement framework. We introduce the notation of suitability of allocations for performance measurement and show under different assumptions on the involved risk measures ...

This paper presents an overview of various aspects of uncertainty quantification in prognostics and health management. Since prognostics deals with predicting the future behavior of engineering systems and it is almost practically impossible to precisely predict future events, it is necessary to account for the different sources of uncertainty that affect prognostics, and develop a systematic f...

This paper examines, whether market participants differently assess the information uncertainty associated with earnings management depending on the degree of income smoothing. Hypothesis tests using annual data for 850 firms listed on German stock exchanges for the years 1990 to 2003 show that firm years with low (high) degrees of earnings management display lower (higher) degrees of informati...

Environmental risk assessment is typically uncertain due to different perceptions of the risk problem and limited knowledge about the physical, chemical, and biological processes underlying the risk. The present paper provides a systematic overview of the implications of different types of uncertainty for risk management, with a focus on risk-based management of river basins. Three different ty...

Many decisions, of an entrepreneurial as well as an institutional or personal character, have to be made on the basis of incomplete or partial information about the outcomes and results and, hence, under conditions of rist and uncertainty. Among the numerous proposals for dealing with uncertainty Bayesianism has gained a prominent role. Although originally founded in decision theory, where for ...

In decision-making under uncertainty there are two main questions that need to be evaluated: (i) What are the future consequences and associated uncertainties of an action, and (ii) what is a good (or right) decision or action. Philosophically these issues are categorized as epistemic questions (i.e. questions of knowledge) and ethical questions (i.e. questions of moral and norms). This paper d...

Prior work on revision identification typically uses a pipeline method: revision extraction is first conducted to identify the locations of revisions and revision classification is then conducted on the identified revisions. Such a setting propagates the errors of the revision extraction step to the revision classification step. This paper proposes an approach that identifies the revision locat...

In this paper, we focus our attention on the processing of the uncertainty encountered in the natural langusge. Firstly, we explore the uncertainty concept and then we suggest a new approach which enables a representation of the uncertainty by using linguistic values. The originality of our approach is that it allows to reason on the symbolic uncertainty interval ~Certain, Totally uncertain]. T...

Uncertainty in conceptual model structure and in environmental data is of essential interest when dealing with uncertainty in water resources management. To make quantification of uncertainty possible is it necessary to identify and characterise the uncertainty in geological and hydrogeological data. This paper discusses a range of available techniques to describe the uncertainty related to geo...