The development of Target MOTAD models require the definition of two risk parameters: the target income level (T) and O, or the maximum amount of deviation allowed.
In turn, O can be parameterized to yield different solutions reflecting varying degrees of risk aversion.
Low O values indicate little tolerance for risk-bearing combinations of production activities.
As O is allowed to increase, the risk constraint is relaxed and new mixes of production activities associated with larger deviations from T but with a higher potential for profit are selected.