STAT2001 / STAT5008: Compute the Total Quantity of Petroleum Commercially: Mathematical Statistics Assignment, ANU, Australia
|Subject||STAT2001 / STAT5008: Mathematical Statistics|
Compute the total quantity of petroleum commercially recoverable from two fields.
Let X be a random variable, define 𝑃(alpha) as 𝑃[x> p(alpha)]=𝛼. For example, if 𝑋~𝑁(200, 10^2), p0.9 is defined as 𝑃[x>p0.9]=0.9. A simple calculation will show that 𝑃0.9= 187.1845
In the petroleum industry, 𝑃0.9 is denoted as P90 and is considered as proved reserves value for practical purposes.
Let xa and 𝑋b be the quantity of petroleum commercially recoverable from field A and field B with the parameters defined as below
Are You Searching Answer of this Question? Request Australian Writers to Write a plagiarism Free Copy for You.
(a) Compute 𝑃𝟗𝟎𝑨 value for fields A defined as 𝑃[𝑋𝑨 >𝑃𝟗𝟎𝑨]= 0.9
(b) Compute 𝑃𝟗𝟎𝑩 value for fields B defined as 𝑃[𝑋𝑩 >𝑃𝟗𝟎𝑩]= 0.9
(c) Assuming fields A and B are independent, specify the distribution of 𝑋a+ 𝑋b and compute its parameter values. Compute 𝑃𝟗𝟎𝑨+B, where 𝑃[𝑋𝑨 + xB >𝑃𝟗𝟎𝑨]= 0.9.
(d) Assuming 𝑋a and 𝑋b have correlation 𝜌, Specify the distribution of 𝑋a + 𝑋b and compute its parameter values. Compute 𝑃𝟗𝟎 a+b for various correlation values. Plot your results with a range of correlation values from (‐1, 1) on the x-axis and corresponding values of 𝑃𝟗𝟎𝑨+B on the y-axis. Compare the values of P90a+ P90b with that of 𝑃𝟗𝟎𝑨+B.
(a) Explain how the feedback from part I is incorporated in this submission. Your submission will not be marked if you do not submit an answer to this question.
(b) An oil and gas company, PetroMath is thinking of purchasing both fields A and B. Based on the above results write a short report (max 100 words + figure) for the business manager of PetroMath providing useful information to help with a business decision.
(c) Research the terms “Value‐at‐Risk” and “risk diversification”. Explain how the above results apply in this context…
(d) Manager of PetroMath thinks that your assumption of normality may not be valid, however, the mean and variance may remain the same. It is anticipated that the distribution for fields A and B are log‐normal and gamma respectively. How would this assumption change the results? Write an update for the manager (max 50 words+ figure optional) to make sure you are highlighting the key differences in the new results.
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
We are a trusted and reliable assignment help provider in Australia. Students who are pursuing their degree from ANU university in (STAT2001 / STAT5008) mathematical statistics, need to solve so many complex calculations in their assignments. And they often fail to solve these problems and looking for someone to help with assignments. Our well-trained assignment experts help such students with Statistics Assignments writing at an affordable price.
Recent Solved Questions
- HI5002: Research And Fact-Finding Of Australian Financial Products: Finance For Business Assignment, DU, Australia
- BSBADM506: Identify, and Document, the Organizational and Legislative Requirements for Information: Manage Business Document Design And Development Assignment, VU, Australia
- MIS602: The Doctor Either Prescribes Medicine Or Admits The Patient: Data Modelling & Database Design Report, VU, Australia
- BIZ101A: Using The Full Report Format Studied: Business Communications Assignment, LTU, Australia
- Management Accounting Coursework Writings – University of Australia
- Global Financial Crisis on US
- Sociology of Difference and Deviance – University of Australia
- Economics Assessment Questions – University of Australia
- SITXFIN003: For This Assessment Task, Students Are Required To Read And Case Study: Manage Finances Within A Budget Assignment, VU, Australia
- CSE1SPX: Discuss The Important Social And Environmental Issues: Sustainability Practices Assignment, DU, Australia