Publication Date

7-2019

Comments

Technical Report: UTEP-CS-19-78

To appear in V. Kreinovich (ed.), Statistical and Fuzzy Approaches to Data Processing, with Applications to Econometrics and Other Areas, Springer, Cham, Switzerland.

Abstract

To make an adequate decision, we need to know the probabilities of different consequences of different actions. In practice, we only have partial information about these probabilities -- this situation is known as imprecise probabilities. A general description of all possible imprecise probabilities requires using infinitely many parameters. In practice, the two most widely used few-parametric approximate descriptions are p-boxes (bounds on the values of the cumulative distribution function) and interval-valued moments (i.e., bounds on moments). In some situations, these approximations are not sufficiently accurate. So, we need more accurate more-parametric approximations. In this paper, we explain what are the natural next approximations.

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