cost function


Also found in: Financial, Encyclopedia, Wikipedia.

cost function

a mathematical formula created for the purpose of estimating a cost, e.g. the cost of making an observation when it varies from stratum to stratum of a collection of data.
References in periodicals archive ?
The experiments are conducted for ten times, the average performance of cost function is considered as the final results.
Das and Das (2007) used a multi-product Fourier flexible cost function specification to investigate scale economies, cost complementarities and technical progress of Indian banks during the post reform period 1992 to 2003.
In addition, this chapter considers three major methods to construct the cost function and the corresponding robustness.
Nonparametric regression techniques estimate the conditional mean locally, allowing the data to "speak for themselves" in determining the shape of the cost function without imposing a priori assumptions on the structure of the data.
The optimal resource alocation by shifts shown in Table 1b gives the optimal value of added cost function [F.
Section 2 discusses the standard incorporation of sunk costs into the total cost function and the resulting problem of measuring economic profits.
Numerous studies (Verry and Layard 1975; Cohn, Rhine, and Santos 1989; deGroot McMahon, and Volkin 1991; Nelson and Hevert 1992; Lloyd, Morgan, and Williams 1993; Dundar and Lewis 1995; Koshal and Koshal 1995, 1999) have investigated, as in the case of firms, the multiple-product cost function of producing the vector of outputs on undergraduate and graduate education and research.
This algorithm relies on finding cluster centers by trying to minimize a cost function of dissimilarity (or distance) measure.
0], in which the cost function J(x) obtains optimum value.
A vital component of every MPC controller is a discrete-time model (with constraints) and a cost function (mostly quadratic).
The selection is often made using a choice function and this process continues until a stopping condition is satisfied and the best solution is determined based on the value of the cost function.