presentation - VirtualRDC @ Cornell - Cornell University

Implementation of multiplicative noise
model
■ a random fuzz factor δ j is drawn for each establishment j
p (δ j ) =
F (δ j ) =
⎧
⎪⎨
⎪⎩
⎧
⎪⎨
⎪⎩
(b − δ)/(b − a) 2 , δ ∈ [a, b]
(b + δ − 2)/(b − a) 2 , δ ∈ [2 − b, 2 − a]
0, otherwise
[
0, δ < 2 − b
(δ + b − 2) 2 / 2 (b − a) 2] , δ ∈ [2 − b, 2 − a]
[
0.5, δ ∈ (2 − a, a)
0.5 + (b − a) 2 − (b − δ) 2] , δ ∈ [a, b]
1, δ > b
where a = 1 + c/100 and b = 1 + d/100 are constants chosen
such that the true value is distorted by a minimum of c
percent and a maximum of d percent.
August 10, 2005 - p. 9/31