Probabilistic analysis of long-term loss incorporating maximum entropy method and analytical higher-order moments

Quantifying economic losses of civil infrastructures subjected to various hazards under a life-cycle context is of vital importance for risk assessment and management. In previous studies, the expected long-term loss has been widely applied as a standard decision criterion during the life-cycle analysis. However, the expectation may not be informative enough to illustrate uncertainties associated with the long-term loss. Therefore, the higher-order moments and the probability distribution should be investigated. In this paper, a probabilistic analysis framework is proposed to construct the probability density function and cumulative distribution function of long-term loss by assessing the analytical statistical moments. The stochastic renewal process is utilized to assess the long-term loss by considering uncertainties associated with stochastic occurrence and frequency of the hazards. Based on the maximum entropy method, the proposed approach shows superior efficiency to assess the probability distribution of long-term loss than crude Monte Carlo simulation. The probability distribution can be essential information for decision-making process of risk management. An illustrative example is investigated to show the probability density function of long-term loss of civil infrastructure subjected to hurricane hazards. A good agreement of results obtained by the proposed approach and Monte Carlo simulation has verified the accuracy and effectiveness of the proposed method.