Analysis of economic and mathematical modeling of industrial enterprise functioning at multicollinearity based on parameterization

Abstract

Purpose. Investigation of multicollinearity in multifactorial economic and mathematical regression models of activity of Inhu lets Mining and Processing Plant and reduction of its negative influence based on application of the parameterization method.Methodology. To reduce the negative impact of multicollinearity in multifactorial regression models, a technique is developed that is based on the transition from the function of several variables to its parametric representation by analyzing the correlation matrix between factors in order to eliminate mutual correlation.findings. Economic and mathematical modeling of the activity of the JSC Inhulets Mining and Processing Combine showed that the presence of multicollinearity when applying a multifactor regression model leads to a distortion of the obtained results, which reduces the practical value of the model. The application of the parametrization method made it possible to reduce the in fluence of multicollinearity by providing parametric representations of the economicmathematical model of holding the real economic process. The application of the parameterization method makes it easier to construct an economicmathematical mod el in the form of regression equations, to reduce the negative impact of multicollinearity in the implementation and meaningful analysis of features of economic and mathematical modeling using multivariate regression equations. originality. For the first time, the application of the parameterization method is proposed, which allows us to simplify the construction of an economicmathematical model in the form of regression equations. Using the parameterization method allows reducing the uncertainty in the synthesis of multivariate regression equations, ensuring appropriate adequacy.Practical value. The analysis of the obtained results of economic and mathematical modeling of the activity of the Inhulets Mining and Processing Plant based on significant statistical material using the developed algorithm of elimination of multicol linearity confirmed the effectiveness of the proposed approach. It is recommended to include the developed algorithm for elimina tion of multicollinearity by parametrization in the practice of management of economic activity of mining enterprises.

Model investigations into assessing optimal power consumption modes for major pump stations of iron ore underground mines

“…The latter will allow mining enterprises to generate their own electric power. The algorithm of major pump stations functioning is as follows: during 'economical time periods' water is pumped from the mine into the surface to corresponding water storage ponds, while during 'non-economical' ones, part of water from those ponds is pumped to the mine and pump motors start generating power [11][12][13][14]. In other words, the power supply complex structure is transformed into the distributed power generation pattern [8].…”