From Numerical Probabilities to Linguistic Probabilities: A Theoretical Justification of Empirical Granules Used in Risk Management

Authors

Beverly Rivera, The University of Texas at El PasoFollow
Francisco Zapata, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow

Publication Date

8-2014

Comments

Technical Report: UTEP-CS-14-61

Published in Applied Mathematical Sciences, 2014, Vol. 8, No. 144, pp. 7195-7200.

Abstract

In many risk management situations, instead of the exact probability values, specialists use a granule to which this probability belongs. Specifically, they use five granules, corresponding to thresholds 10%, 40%, 60%, and 90%. In this paper, we provide an explanation for such non-uniform granulation.