Weighting Tools And Alternative Techniques To Generate Weighted Probability Models In Valuation Theory

In risk analysis, different procedures based on weighted probability models are usual tools to reduce loss of the assessments in multivariate scenarios. In particular, the weighted distribution functions have been widely used to correct and fit the market value of an asset, through the valuation methods of the two functions, with respect to the appraisals from each component of the multidimensional quality index, in the field of the Valuation Theory.In this context, the weighting procedures are of interest to find the weights and consequently, to generate these weighted probability models.The main objective of this paper is to analyze the different weighting techniques used in the Valuation Theory, as well as to propose an alternative to calculate the weights and a new tool to generate these weighted probability models.First, the well-known weighting techniques to generate the weights are introduced, under both independence and dependence presence of the components of the quality index. Secondly, we expand these weighting techniques by the survival functions, which allows us to generate other weighted probability models.Likewise, we discuss a new tool to determine the weights of the components of the quality index, modal mean technique, based on the mode values of its marginal distribution functions, which extend the size of the possible weighted probability models to approach the market value of the asset.Finally, we give an application of these weighting techniques to generate weighted probability models in one example of land pricing, and thus we obtain the assessments of the land property according to each weighted probability model.