Paper
Financial Analysis of Well-known Disasters Using Utility and Reliability Values
- Authors:
- Laura Yue Liu; Chandrasekhar Putcha
- Abstract
- This paper is a significant extension of Putcha (2011), where detailed engineering analyses are conducted and reliability levels are calculated for well-known disasters. In this research, three methods, namely deterministic method, utility method, and probabilistic method, are developed to calculate the probability of a disaster associated with the calculation of reliability levels for various well-known disasters. Specifically, the probabilistic method is based on the limit state chosen, functional relationship between various dependent and independent parameters and the uncertainty in the associated parameters. Our analyses are done from the financial point of view based on the concept of utility functions (Ang and Tang, 2007) and previous literature such as Putcha et al. (2008).
- Keywords
- Probability, Reliability, Utility, Safety Index
- StartPage
- 99
- EndPage
- 106
- Doi
- 10.5963/IJEME0303001