Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset Management
Optimal control is a very significant field of modern control theory which has been applied in many areas like medicine, science, and finance. This work is based on realization of asset values as a benefit of asset management where a capital asset management problem is modelled and expressed mathema...
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| Format: | Article |
| Language: | English |
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Wiley
2018-01-01
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| Series: | Advances in Fuzzy Systems |
| Online Access: | http://dx.doi.org/10.1155/2018/4756520 |
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| author | Tolulope Latunde Olabode Matthias Bamigbola |
| author_facet | Tolulope Latunde Olabode Matthias Bamigbola |
| author_sort | Tolulope Latunde |
| collection | DOAJ |
| description | Optimal control is a very significant field of modern control theory which has been applied in many areas like medicine, science, and finance. This work is based on realization of asset values as a benefit of asset management where a capital asset management problem is modelled and expressed mathematically from the perspective of an investor whose income is generated by return and capital gains on investments with price and return on assets assumed to satisfy uncertainty process. This results in an optimal control model based on uncertainty theory which relates two or more parameters that measures the condition or state of individual’s investments. These parameters enable us to know the condition of risk involved in asset management and how to maintain and manage the assets in order to maximize expected present value of the utility of asset and minimize the risk involved to aid capital investment decision-making. Parameter sensitivity analysis is an approach given to a model so as to define significance of the factors related to the model where the whole parameter space is fully described. However, the model is applied to a real-life problem of capital asset management to deal with debt crisis of a nation’s economy and the sensitivity analysis to determine the effects of the input factors on the model is investigated such that relative significance and sensitivity of each parameter on the model results are presented using parameter estimations. Finally the optimal control decision policy is obtained and discussed. |
| format | Article |
| id | doaj-art-223828ec0e154d268e99808a724152ff |
| institution | Kabale University |
| issn | 1687-7101 1687-711X |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Advances in Fuzzy Systems |
| spelling | doaj-art-223828ec0e154d268e99808a724152ff2025-02-03T01:20:36ZengWileyAdvances in Fuzzy Systems1687-71011687-711X2018-01-01201810.1155/2018/47565204756520Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset ManagementTolulope Latunde0Olabode Matthias Bamigbola1Department of Mathematics, P.M.B 373, Federal University Oye-Ekiti, Oye-Ekiti, NigeriaDepartment of Mathematics, P.M.B 1515, University of Ilorin, Ilorin, NigeriaOptimal control is a very significant field of modern control theory which has been applied in many areas like medicine, science, and finance. This work is based on realization of asset values as a benefit of asset management where a capital asset management problem is modelled and expressed mathematically from the perspective of an investor whose income is generated by return and capital gains on investments with price and return on assets assumed to satisfy uncertainty process. This results in an optimal control model based on uncertainty theory which relates two or more parameters that measures the condition or state of individual’s investments. These parameters enable us to know the condition of risk involved in asset management and how to maintain and manage the assets in order to maximize expected present value of the utility of asset and minimize the risk involved to aid capital investment decision-making. Parameter sensitivity analysis is an approach given to a model so as to define significance of the factors related to the model where the whole parameter space is fully described. However, the model is applied to a real-life problem of capital asset management to deal with debt crisis of a nation’s economy and the sensitivity analysis to determine the effects of the input factors on the model is investigated such that relative significance and sensitivity of each parameter on the model results are presented using parameter estimations. Finally the optimal control decision policy is obtained and discussed.http://dx.doi.org/10.1155/2018/4756520 |
| spellingShingle | Tolulope Latunde Olabode Matthias Bamigbola Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset Management Advances in Fuzzy Systems |
| title | Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset Management |
| title_full | Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset Management |
| title_fullStr | Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset Management |
| title_full_unstemmed | Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset Management |
| title_short | Parameter Estimation and Sensitivity Analysis of an Optimal Control Model for Capital Asset Management |
| title_sort | parameter estimation and sensitivity analysis of an optimal control model for capital asset management |
| url | http://dx.doi.org/10.1155/2018/4756520 |
| work_keys_str_mv | AT tolulopelatunde parameterestimationandsensitivityanalysisofanoptimalcontrolmodelforcapitalassetmanagement AT olabodematthiasbamigbola parameterestimationandsensitivityanalysisofanoptimalcontrolmodelforcapitalassetmanagement |