Abstract
Engineering managers must routinely make decisions on how to allocate limited resources to achieve the most benefit. Energy conservation and increased or new productivity are two areas which compete for operating and capital budgets. This paper will describe how these objectives can be compared and properly addressed to result in a more satisfactory and reliable decision when allocating budget monies. Comparisons are made using a model to evaluate risk vs. return. The model numerically expresses alternatives in terms of confidence ratios or relative payouts modified by achievement probability.
Gaffney, B. J.; Inyard, F. H. (1983). Relative Investment Risks and Returns of Energy Management and Production Projects. Energy Systems Laboratory (http://esl.tamu.edu); Texas A&M University (http://www.tamu.edu). Available electronically from
https : / /hdl .handle .net /1969 .1 /94497.