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Note that volumetric risk is present in each of these factors either through the load requirement, L, or the capacity term, K. The risk in this portfolio is the standard deviation. For convenience, we compute the variance with the understanding that the risk is the square root of the variance. Using Formulas 1, 2, and 3 from Section 10.3, we obtain the following expression for the variance. Var(R) = (p n)2Var(L) + Var(LP) + Var(D) + Var(I) + Var(K) 2(p n)(Cov(L,LP) 2Cov(L,D) 2Cov(L,I)) 2(p n)Cov(L,K) + 2Cov(LP,D) + 2Cov(LP,I) + 2Cov(LP,K ) + 2Cov(D,I) + 2Cov(D,K) + 2Cov(I,K) This expression is dif cult to analyze without making simplifying assumptions. In this section we make simplifying assumptions that allow for a perspective on individual risk components. Cases are developed that allow us to focus on price risk and load risk separately In all of these cases the objective is to minimize the risk of a portfolio with market instruments. The use of market instruments to minimize risk is called hedging. The concept of risk mitigation is depicted in the following graphs. The rst graph in Figure 10.7 depicts the discrete probabilities of a given retailer portfolio,

12.7 CONCLUSIONS This chapter has described several approaches for computing shape measures and has showed how each of these can then be applied to generate a variety of speci c shape measures such as convexity, rectangularity, and so on. Figure 12.9 illustrates some of the geometric primitives that have been inscribed, circumscribed, or otherwise tted to example data, and which are then used to generate shape measures. Our survey is not complete, as there exist some methodologies in the literature that we have not covered. Here, for instance, Information Theory has been used to measure convexity [41] and complexity [17,40,44]. Projections are a common tool in image processing, and in the context of the Radon transform have also been used

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Task 1: Report Software Status Establishing a Measurement Team Creating an Inventory of Existing Project Measurements Developing a Consistent Set of Project Metrics Defining Process Requirements Developing and Implementing the Process Monitoring the Process Task 2: Report Interim Test Results Function/Test Matrix Functional Testing Status Report Functions Working Timeline Report Expected Versus Actual Defects Uncovered Timeline Report

The result is that nearly all the good cars on the market are withdrawn, leaving only bad and okay cars Now consider how that situation changes what buyers are willing to offer If all the good cars are withdrawn from the market, a 50/50 chance now exists that a car is okay or bad In such a case, how much are you going to offer to pay if you re a buyer Well, with a 50/50 chance of the car being worth 10,000 or 5,000, you probably offer the average of these two values: 7,500 But when you do, the market becomes even more dysfunctional After all, how are the sellers of okay cars going to react to being offered 7,500 They re going to reject the offer and withdraw their vehicles from the market too.

[Table not available in this electronic edition.]

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In the knowledge work era, many information goods like software or research reports are created from scratch. In the web work era, you can create many things of value by putting together pieces that already exist. For example, a web application startup developer can reassemble existing capabilities online into a new service or a blogger can link to what s already been written on a subject and add her own opinion.

The sad result is that with the good cars and then the okay cars withdrawn from the market, the only cars left are the bad ones, the lemons Because of the asymmetric information problem, the used car market ends up being a market for lemons Buyers are aware of this situation, and so they offer only 5,000 for any car on the market And because only bad cars are offered, sellers accept the 5,000 So although bad cars end up being priced correctly in the used car market, no market exists for good or even okay used cars That s a problem because people both buyers and sellers want to trade (and would be much happier trading) good and okay cars But unless some solution can be found to the asymmetric information problem, they re all left out in the cold.