Alternative Form of Dempster's Rule for Binary Variables

Abstract

This article develops an alternative form of Dempster’s rule of combination for binary variables. This alternative form does not only provide a closed form formulae for efficient computation but also enables researchers to develop closed form analytical formulae for assessing risks such as information security risk, fraud risk, audit risk, independence risk, etc., involved in assurance services. We demonstrate the usefulness of the alternative form in calculating the overall information security risk and also in developing an analytical model for assessing fraud risk.