Break-even Analysis under Randomness with Heavy-tailed Distribution

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F17%3A10236540" target="_blank" >RIV/61989100:27510/17:10236540 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.7327/cerei.2017.09.01" target="_blank" >http://dx.doi.org/10.7327/cerei.2017.09.01</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.7327/cerei.2017.09.01" target="_blank" >10.7327/cerei.2017.09.01</a>

Result language
angličtina
Original language name
Break-even Analysis under Randomness with Heavy-tailed Distribution
Original language description
Break-even analysis is a tool suitable for making short-term decisions about the quantity of production. Traditional break-even analysis is based on certain assumptions among which the most important are the following limitations: variable costs are linearly dependent on sales volume, price of the product is stable, fixed costs do not change. Moreover, we assume that all the input variables (variable costs per unit, fixed costs and price of the product) are known with certainty. However, these variables may be random and thus not known in advance. For instance, a firm can be price-taker – the price of the product is a random variable determined by market, variable costs per unit depends on the price of raw materials, which again cannot be known in advance with certainty. In our paper, we discuss the break-even analysis introducing randomness. We focus on two input variables – the price of the product, which influences the revenues, and the variable costs per unit, which influences the costs. Both random inputs are supposed to follow joint normal distribu-tion and NIG distributions joined together by copula function.
Czech name
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Czech description
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Project
<a href="/en/project/GA13-13142S" target="_blank" >GA13-13142S: Verification of suitability of particular Lévy models for selected issues of financial modeling</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical
Ekonomická revue - Central European Review of Economics Issues
ISSN
1212-3951
e-ISSN
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Volume of the periodical
20
Issue of the periodical within the volume
3
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
8
Pages from-to
91-98
UT code for WoS article
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EID of the result in the Scopus database
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