The Application of Extreme Value Theory in Payment of Electrical Engineering
- 10.2991/lemcs-15.2015.248How to use a DOI?
- Electrical engineering; Extreme value theory; POT; Risk
Due to the owner and contractor's psychology of making a profit, the risks caused by enormous differences between actual payment and budget in electrical engineering indeed exist. However, it has not raised enough attention, and the relevant management of investment risk cannot solve it appropriately. A lot of problems are formed such as the rupture of capital chain, the delay of engineering, excessive investment and so on. Extreme value theory is a theory that studies the abnormal phenomenon in statistics, and it has been maturely used in risk analysis of financial field. The big differences between actual payment and budget can be treated as extremes. In this paper, researchers attempt to use the model of peaks over threshold based on extreme value theory to establish an early warning model, and the idea is to analyze the distribution of the extreme values, especially the tail which abnormal data assembles. This application notices the potential risk in electrical engineering and the method has the virtues of timeliness, veracity, easy operated that others do not have.
- © 2015, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Jingbo Liu AU - Xiangyu Zong AU - Ou Zhang AU - Di Wang PY - 2015/07 DA - 2015/07 TI - The Application of Extreme Value Theory in Payment of Electrical Engineering BT - Proceedings of the International Conference on Logistics, Engineering, Management and Computer Science PB - Atlantis Press SP - 1246 EP - 1250 SN - 1951-6851 UR - https://doi.org/10.2991/lemcs-15.2015.248 DO - 10.2991/lemcs-15.2015.248 ID - Liu2015/07 ER -