Industrial Control Systems

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chapter seven

Risk analysis andestimation

techniques

The problem considered in this chapter is that of estimating the nature of

the size distribution of petroleum reservoirs and their values.

The method used consists of a Bayesian technique for parameter esti-

mation. A sampling procedure based on minimizing the mean square

error (MSE) of the posterior Bayesian estimator is developed using the

beta density function to model the prior distribution. This Bayesian

approach provides several typical representative distributions which

are broad enough in scope, to provide a satisfactory economic analy-

sis. These dist ...