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Exact probability distribution function for the volatility of cumulative production

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  • Rubina Zadourian
  • Andreas Klumper

Abstract

In this paper we study the volatility and its probability distribution function for the cumulative production based on the experience curve hypothesis. This work presents a generalization of the study of volatility in [1], which addressed the effects of normally distributed noise in the production process. Due to its wide applicability in industrial and technological activities we present here the mathematical foundation for an arbitrary distribution function of the process, which we expect will pave the future research on production and market strategy.

Suggested Citation

  • Rubina Zadourian & Andreas Klumper, 2017. "Exact probability distribution function for the volatility of cumulative production," Papers 1708.02605, arXiv.org.
    • Handle: RePEc:arx:papers:1708.02605
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