This paper provides an analytical and multivariate characteristic function based approach to linear breakeven analysis under risk. Explicit probability distributions for the breakeven points are given when all the relevant parameters are correlated. If analytical expressions for these distributions cannot be found, the multivariate characteristic function approach is suggested for determination of the relevant probability moments. A numerical example and a discussion of the risk implications on breakeven analysis studies are included as well.
|Original language||English (US)|
|Number of pages||10|
|Journal||Operational Research Quarterly|
|Issue number||4 ii|
|State||Published - Jan 1 1975|
ASJC Scopus subject areas
- Management of Technology and Innovation