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Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2023) 1.2 Q4
Journal Citation IndicatorTM (2023) 0.33 Q3
Received: 2022-05-18  |  Accepted: 2022-09-05  |  Published: 2022-09-30

Title

Advantages of fuzzy approach compared to probabilistic approach in project evaluation


Abstract

Uncertainty is often encountered in relation to randomness or fuzziness. In the case of randomness, it can be described by means of a probability distribution; in the case of fuzziness, the fuzzy theory is applied. In the theoretical part, the authors deal with basic tools for describing both types of uncertainty. Probability and fuzzy method are interpreted in the context of their analogies and principal differences. Both techniques are applied in order to quantify the present expected value of a specific development project. The probabilistic solution leads to the point value E[PV], the fuzzy solution establishes the triangular fuzzy number with the subjective E[PV] not burdened with possible exaggerated expectations. The fuzzy approach proved to extend the probabilistic outcome by other additional information useful for decision-makers with different risk propensity.


Keywords

uncertainty, expected value, fuzzy number, risk propensity, evaluation


JEL classifications

C02 , C11 , C45 , C46 , C63


URI

http://jssidoi.org/jesi/article/1008


DOI


Pages

483-493


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Hašková, Simona
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Šuleř, Petr
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Krulický, Tomáš
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

10


Number

1


Issue date

September 2022


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1499  |  PDF downloads: 572

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