The Application of Extreme Value Theory in Payment of Electrical Engineering

DOI

10.2991/lemcs-15.2015.248How to use a DOI?

Keywords

Electrical engineering; Extreme value theory; POT; Risk

Abstract

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.

Copyright

© 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/).

Download article (PDF)

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  -