Linking statistical estimation and decision making through simulation

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review

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Author(s)

Detail(s)

Original languageEnglish
Title of host publicationProceedings of the 2013 Winter Simulation Conference - Simulation: Making Decisions in a Complex World, WSC 2013
Pages766-777
StatePublished - 2013
Externally publishedYes

Conference

Title43rd Winter Simulation Conference, WSC 2013 - Simulation: Making Decisions in a Complex World
PlaceUnited States
CityWashington, DC
Period8 - 11 December 2013

Abstract

Models that are built to help make decisions usually involve input parameters, which need to be estimated statistically using data. However, submitting these estimated parameters directly to the model may result in biased decisions because the estimated parameters are biased or the model is nonlinear. We propose a new parameter estimator called Simulation-Based Inverse Estimator (SBIE) to link the statistical estimation and decision making together. The linkage is achieved by simulating the model and adjusting the estimated parameters such that the adjusted parameters can adapt to the specific model. We prove that SBIE can provide us with consistent and unbiased decisions under some conditions and this result is supported by numerical experiments in queuing models. © 2013 IEEE.

Citation Format(s)

Linking statistical estimation and decision making through simulation. / Fang, Jin; Hong, L. Jeff.

Proceedings of the 2013 Winter Simulation Conference - Simulation: Making Decisions in a Complex World, WSC 2013. 2013. p. 766-777 6721469.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review