Re: Sample average approximation (SAA)

Hi,

as said at

https://en.wikipedia.org/wiki/Stochastic_programming

 

The SAA problem is a function of the considered sample and in that sense is random. For a given sample ξ 1 , ξ 2 , … , ξ N {displaystyle xi ^{1},xi ^{2},dots ,xi ^{N}} xi ^{1},xi ^{2},dots ,xi ^{N} the SAA problem is of the same form as a two-stage stochastic linear programming problem with the scenarios ξ j {displaystyle xi ^{j}} xi ^{j}., j = 1 , … , N {displaystyle j=1,dots ,N} j=1,dots ,N, each taken with the same probability p j = 1 N {displaystyle p_{j}={frac {1}{N}}} p_{j}={frac {1}{N}}.

So your approach looks good.

Tiny example of stochastic optimization at https://www.ibm.com/developerworks/community/forums/html/topic?id=7ce856ee-be78-4258-aede-fd9c4c9e464c&ps=25

regards

 

Source: Re: Sample average approximation (SAA)