The Optimization Of Real Estate Investment Decision Based On Entropy Theory

This paper is about leading the entropy theory into real estate investment decision. First, this paper introduces the method of real estate investment decision briefly and points out the problems. Second, this paper introduces the origin of entropy theory and the extension of it, that are information entropy, maximum entropy and entropy weight. Through the analyze the applicability of leading the entropy theory into real estate investment decision, and get the conclusion that using entropy theory can solve the problems of real estate investment decision. Third, when counting the factor weight which influence the investment decision, use the analytic hierarchy process(AHP) to count the subjective weight and the entropy theory to count the objective weight. Then get the factor's synthesized weight from combine the two weights together. Ordered the investment plans by the comprehensive attributes. Use two ways to estimate the risk of real estate investment. One way is use maximum entropy to estimate the probability distribution. The another way is use entropy weight to count the risky factor's synthesized weight and measure the risky the project maybe faced. As a result of the researches above, forming a system of real estate investment decision based on entropy theory, in order to raise the decision accuracy and enrich the current method of real estate investment decision.