Arc entropy of uncertain random variables and its applications

Abstract

Due to the complexity of the real world, randomness and uncertainty are ubiquitous and interconnected in the real world. In order to measure the research objects that contain both randomness and uncertainty in practical problems, and extend the entropy theory of uncertain random variables, this paper introduces the arc entropy of uncertain random variables and the arc entropy of their functions. On this basis, the mathematical properties of arc entropy and two key formulas for calculating arc entropy are also studied and derived. Finally, two types of the mean variance entropy model with the risk and diversification are established, and the corresponding applications to rare book selection for the rare book market are also introduced.