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Generally, the IV method needs the FRF data at so many frequencies that the computational cost is high, and it is also very time consuming to measure the FRF.
When the FRF matrix describing the dynamical behavior of a structure is available, the operational loads can be determined by multiplying the pseudo-inverse of the FRF matrix by the operational responses (displacements, velocities or accelerations).
Thus, in the FRF case, this value becomes constant.
The frequencies were measured by moving the cursor to the peaks of the FRF.
In this way, the damping estimation becomes straightforward from the FRF data.
Overall, in the FRF case, the parameters provide almost an identical impact as in a classical real options call.
In the FRF case, it acts like the common real options model: the ROV increases and the AET lengthens.
Subsequently, the derivation of the RD based method follows the concept of the FRF approach to achieve the theoretical basis of the FRF defined for the RD signatures.
The FRF is found analytically by using an appropriate Green's function.
The half-power bandwidth method is employed to extract damping ratios from the FRF estimates.
Unlike linear systems, the FRF derivation for nonlinear systems is not trivial due to their complex behaviors.
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