Study On Application Of Entropy-Weight Method To Investment Decision In Real Estate

With the further reform and the establishment of mechanism of market system, the economic would still develop fast and stable in China. With the process of city modernizing, there is brilliant prospect and immense market demand in the real estate in the future.The real estate investment is characteristic of high risk and high yield. Investing the real estate would face many uncertain factors, it is affected by all kinds of aspects In fact, the risk lies in all joints and all period of investment program, it lies in the whole develop process. How to find and analyze all kinds of the factors, and how to analyze the risk factors quantitatively, then to evaluate the risk level, compare the risk levels of all investment projects, finally, make the risk-decision, these are the main contents and questions that the thesis would like to solve and discuss.In detail, the paper mainly discuss such following content:First, the paper introduce motive, meaning, research condition and initiation.Second, This part introduce conception of risk, and describe the definition, the measurement of risk.Third, we introduce the conception of entropy, and apply the maximum entropy rule to the evaluation of risk. And, the paper analyses some factors' probability distributions. In the end, a model is erected for real estate risk evaluation.Forth, this chapter mainly introduces the multi-objective decision, and building up the entropy weight model.Fifth, according to a practical case, using the entropy weight and subjective weight together to formulate the compound weight and make risk-decision according to the risk decision rule.Finally, the paper make a conclusion about the whole thesis, and discuss some questions that still need to study and solve.