Benefit of Accuracy Improvement Under Uncertainty Economic Dispatch Example

The probabilistic expected cost benefit of accuracy improvement in some data or procedures used in an economic optimization process can be greatest when the other data used in the process is most inaccurate. A simplified economic dispatch example is used to show the cost benefit of improving the accuracy of component data. Mathematically, what is examined are cases where Cost Penalty ??(??b)², and Penalty ??|??b|. ??b is the error in b. In both of the above cases two subcases are examined: b = BH and b = M + F, where b, B, H, M, and F are statistically uncertain variables.