- Part 1. Introduction to MM4XL
- Part 2. MM4XL Tools
- 1. Strategic Tools
- BCG Matrix
- Brand Mapping
- Brand Switch
- Decision Tree
- Forecast Manager
- McKinsey Matrix
- Profile Manager
- Quality Manager
- Risk Analyst
- Risk Analyst Expert in a Few Minutes
- Introduction to Decision Analysis
- Introducing Risk Analyst with an example
- 1. How to run Risk Analyst
- 2. Simulation Never heard of it
- 3. Examples
- 4. Functions
- 1. Property Functions
- 2. Utility Functions
- 3. Distribution Functions
- mmBETA (Scale, Shape)
- mmBETAGEN (Scale, Shape, [Optional: Lower], [Optional: Upper])
- mmBINOMIAL (Trials, Successes)
- mmCHI2 (Degrees)
- mmDISCRETE (InputRange, Probabilities)
- mmERF (Mean)
- mmERLANG (Scale, Shape)
- mmEXPON (Mean)
- mmEXTVAL (ModalValue, StDeviation)
- mmGAMMA (Scale, Shape)
- mmGAUSSINV (Mean, Scale)
- mmGEO (Trials)
- mmHYPERGEO (Sample, Defects, BatchSize)
- mmINTUNI (Lower, Upper)
- mmLOGISTIC (Mean, StDeviation)
- mmLOGNORMAL (Mean, StDeviation)
- mmNEGBIN (Failures, Successes)
- mmNORMAL (Mean, StDeviation)
- mmPARETO (Location, ModalValue)
- mmPARETO2 (Location, ModalValue)
- mmPERT (Lower, ModalValue, Upper)
- mmPOISSON (Mean)
- mmRANDBETWEEN (Lower, Upper)
- mmRAYLEIGH (ModalValue)
- mmSTUDENT (Degrees)
- mmTRI (Lower, ModalValue, Upper)
- mmUNIFORM (Lower, Upper)
- mmWEIBULL (Life, Shape)
- Probability functions
- Technicalities
- Sources
- 2. Analytical Tools
- Business Formulas
- mmBASS, Bass Diffusion Model
- mmBEI, Brand Equity Index
- mmBEP, Break-Even Point
- mmBEPR, Break-Even Point with Fixed Rate of Return
- mmBUYRATE, Purchase Rate Model
- mmCAGR, Compound Annual Growth
- mmCHIp, Chi Squared Test
- mmCODING, Coding of variables
- 1. Customer Satisfaction
- 2. Database Functions
- mmDHMS, Number to Time
- mmEI, Evolution Index
- mmEXPECT, Expected values
- 3. Forecast Errors
- mmGROWTH
- mmGROWTHBACK
- mmGRP, Gross Rating Points
- mmHERF, Herfindahl Index
- mmINTERPOLE, Linear Interpolation
- mmLEARN, Learning Curve
- mmMSAR, Market Share to Advertising Ratio
- 4. Opportunity Index
- 5. Performance Ranking
- 6. Project Management
- mmPREMIUM, Price Premium
- mmPRESS, Product Performance Index
- 7. Price Indexes
- 8. Queuing Theory
- mmRANGE
- mmREBUY, Repeat Purchase Rate
- mmREBUYS, Estimated Number of Re-Purchases
- mmRELATIVE
- mmSAMPLE, Sample Size
- mmSAMPLEMIN, Minimum Sample for Significant Values
- mmSEASON, Seasonality Indexes
- mmSHARE
- mmSIGNIF, Significance Test
- mmVARc, Coefficient of Variation
- Cluster Analysis
- CrossTab
- Descriptive Analyst
- Gravitation Analysis
- Proportion Analyst
- Sample Manager
- Segmentation Tree
- Variation Analyst
- 3. Charts and Maps
- mytest
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- contribute
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- excel market analysis software
- finance
- download dbx
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- help
- Part 1. Introduction to MM4XL
- Part 2. MM4XL Tools
- 1. Strategic Tools
- BCG Matrix
- Brand Mapping
- Brand Switch
- Decision Tree
- Forecast Manager
- McKinsey Matrix
- Profile Manager
- Quality Manager
- Risk Analyst
- 1. How to run Risk Analyst
- 2. Simulation Never heard of it
- 3. Examples
- 4. Functions
- 1. Property Functions
- 2. Utility Functions
- 3. Distribution Functions
- mmBETA (Scale, Shape)
- mmBETAGEN (Scale, Shape, [Optional: Lower], [Optional: Upper])
- mmBINOMIAL (Trials, Successes)
- mmCHI2 (Degrees)
- mmDISCRETE (InputRange, Probabilities)
- mmERF (Mean)
- mmERLANG (Scale, Shape)
- mmEXPON (Mean)
- mmEXTVAL (ModalValue, StDeviation)
- mmGAMMA (Scale, Shape)
- mmGAUSSINV (Mean, Scale)
- mmGEO (Trials)
- mmHYPERGEO (Sample, Defects, BatchSize)
- mmINTUNI (Lower, Upper)
- mmLOGISTIC (Mean, StDeviation)
- mmLOGNORMAL (Mean, StDeviation)
- mmNEGBIN (Failures, Successes)
- mmNORMAL (Mean, StDeviation)
- mmPARETO (Location, ModalValue)
- mmPARETO2 (Location, ModalValue)
- mmPERT (Lower, ModalValue, Upper)
- mmPOISSON (Mean)
- mmRANDBETWEEN (Lower, Upper)
- mmRAYLEIGH (ModalValue)
- mmSTUDENT (Degrees)
- mmTRI (Lower, ModalValue, Upper)
- mmUNIFORM (Lower, Upper)
- mmWEIBULL (Life, Shape)
- Probability functions
- Risk Analyst Expert in a Few Minutes
- Introduction to Decision Analysis
- Introducing Risk Analyst with an example
- Technicalities
- Sources
- 2. Analytical Tools
- Business Formulas
- 1. Customer Satisfaction
- 2. Database Functions
- 3. Forecast Errors
- 4. Opportunity Index
- 5. Performance Ranking
- 6. Project Management
- 7. Price Indexes
- 8. Queuing Theory
- mmBASS, Bass Diffusion Model
- mmBEI, Brand Equity Index
- mmBEP, Break-Even Point
- mmBEPR, Break-Even Point with Fixed Rate of Return
- mmBUYRATE, Purchase Rate Model
- mmCAGR, Compound Annual Growth
- mmCHIp, Chi Squared Test
- mmCODING, Coding of variables
- mmDHMS, Number to Time
- mmEI, Evolution Index
- mmEXPECT, Expected values
- mmGROWTH
- mmGROWTHBACK
- mmGRP, Gross Rating Points
- mmHERF, Herfindahl Index
- mmINTERPOLE, Linear Interpolation
- mmLEARN, Learning Curve
- mmMSAR, Market Share to Advertising Ratio
- mmPREMIUM, Price Premium
- mmPRESS, Product Performance Index
- mmRANGE
- mmREBUY, Repeat Purchase Rate
- mmREBUYS, Estimated Number of Re-Purchases
- mmRELATIVE
- mmSAMPLE, Sample Size
- mmSAMPLEMIN, Minimum Sample for Significant Values
- mmSEASON, Seasonality Indexes
- mmSHARE
- mmSIGNIF, Significance Test
- mmVARc, Coefficient of Variation
- Cluster Analysis
- CrossTab
- Descriptive Analyst
- Gravitation Analysis
- Proportion Analyst
- Sample Manager
- Segmentation Tree
- Variation Analyst
- 3. Charts and Maps
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mytest > help > Part 2. MM4XL Tools > 1. Strategic Tools > Decision Tree > 4. Anatomy of a Decision Tree Output Report > Technicalities > Utility Functions > Logarithmic Utility Function
Decision Tree Logarithmic Utility Function Investors with large amounts of funds available may find risk more attractive (decreasing risk aversion) than other less wealthy individuals. Such situations are typically handled with a logarithmic utility function of the form: When the EMV is maximized, DTree adds R to the expression in order to not take the logarithm of a negative number, which would return an error. Should you get a negative value, use a large enough R value so that x+R is not less than zero. The picture above compares logarithmic utility functions. Changing the value of R simply shifts the curve up the Utility axis. |
