STOCHASTIC-COMPUTERIZED-ACTIVITY-BUDGETING FOR SHEEP ENTERPRISES*

Stephen J. Mill, John W. Longworth
1975 Australian Journal of Agricultural Economics  
Stochastic-computerized-activity-budgetii ( §CAB) facilitates and extends the traditional gross margins analysis for sheep activities. SCAB is one of the very few computerized management aids so far developed for Australian farm management situations. In the deterministic mode SCAB . calculates gross margins based on point estimates of all the relevant parameters. In stochastic mode it generates a distribution of pay-offs (gross margins) based on the manager's subjective probability
more » ... ability distribution for the relevant major uncertain paramaters. The variance of this distribution of pay-offs represents a measure of the risk associated with the activity given the manager's current knowledge and expectations.
doi:10.1111/j.1467-8489.1975.tb00150.x fatcat:rmkmujycufb4xe3h7iihfknxrm