Application of risk and decision analysis - PetroWiki


Managers and engineers alike are concerned about the bottom-line indexes net present value (NPV) and return on investment (ROI) and use these measures to aid in their decision-making, but they also worry about capital requirements and, in our business, reserves. Of course it is the uncertainty in these estimates that makes the "solution" of these problems and making a decision, based on the prediction, so interesting.