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Applications of the Newton-Raphson Method in Decision Sciences and Education

Author

Listed:
  • Buu-Chau Truong

    (Faculty of Mathematics and Statistics, Ton Duc Thang University, Ho Chi Minh City, Vietnam)

  • Nguyen Van Thuan

    (Department of Postgraduate Studies, Vinh University, Vinh City, Vietnam)

  • Nguyen Huu Hau

    (Department of Training Management, Hong Duc University, Thanh Hoa City, Vietnam)

  • Michael McAleer

    (Department of Finance, Asia University, Taiwan)

Abstract

The Newton-Raphson (NR)methodis one ofthemostimportant and popularmethods to determine an optimal solution in many applications in the decision sciences and education. The NR method can be used for an optimal solution to obtain estimates in regression models, the maxima or minima of many functionsin both the one-dimensional and multi-dimensional cases, or to solve systems of equations with many unknowns in both the one-dimensional and multi-dimensional cases. Applications of the NR method cover a wide variety of interesting cases, including the decisionsciences and the teaching of mathematics-related subjects. The primary purpose of the paper is to provide a universal approach to the theory and practice of the NR method. In addition, we focus the discussion on applications in decision sciences, statistics, portfolio optimization, and education, among others Interesting potential research directions of the NR method are also discussed.

Suggested Citation

  • Buu-Chau Truong & Nguyen Van Thuan & Nguyen Huu Hau & Michael McAleer, 2019. "Applications of the Newton-Raphson Method in Decision Sciences and Education," Advances in Decision Sciences, Asia University, Taiwan, vol. 23(4), pages 52-80, December.
    • Handle: RePEc:aag:wpaper:v:23:y:2019:i:4:p:52-80
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    Cited by:

    1. Kim-Hung Pho & Ngoc-Hien Nguyen & Huu-Nhan Huynh & Wing-Keung Wong, 2021. "A Detailed Guide on How to Use Statistical Software R for Text Mining," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 92-110, September.
    2. Massoud Moslehpour & Shin Hung Pan & Aviral Kumar Tiwari & Wing Keung Wong, 2021. "Editorial in Honour of Professor Michael McAleer," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(4), pages 1-14, December.

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    More about this item

    Keywords

    : Newton-Raphson method; optimization; missing data; statistics; decision sciences; teaching; education.;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • G00 - Financial Economics - - General - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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