Expectations of linear functions with respect to truncated multinormal distributions – With applications for uncertainty analysis in environmental modelling
This paper discusses results concerning multivariate normal distributions that are subject to truncation by a hyperplane and how such results can be applied to uncertainty analysis in the environmental sciences. We present a suite of results concerning truncated multivariate normal distributions, so...
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| Published in | Environmental modelling & software : with environment data news Vol. 22; no. 7; pp. 915 - 923 |
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| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Elsevier Ltd
01.07.2007
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| Subjects | |
| Online Access | Get full text |
| ISSN | 1364-8152 1873-6726 |
| DOI | 10.1016/j.envsoft.2006.05.021 |
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| Abstract | This paper discusses results concerning multivariate normal distributions that are subject to truncation by a hyperplane and how such results can be applied to uncertainty analysis in the environmental sciences. We present a suite of results concerning truncated multivariate normal distributions, some of which already appear in the mathematical literature. The focus here is to make these types of results more accessible to the environmental science community and to this end we include a conceptually simple alternative derivation of an important result. We illustrate how the theory of truncated multivariate normal distributions can be employed in the environmental sciences by means of an example from the economics of climate change control. |
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| AbstractList | This paper discusses results concerning multivariate normal distributions that are subject to truncation by a hyperplane and how such results can be applied to uncertainty analysis in the environmental sciences. We present a suite of results concerning truncated multivariate normal distributions, some of which already appear in the mathematical literature. The focus here is to make these types of results more accessible to the environmental science community and to this end we include a conceptually simple alternative derivation of an important result. We illustrate how the theory of truncated multivariate normal distributions can be employed in the environmental sciences by means of an example from the economics of climate change control. Expectations of linear functions with respect to truncated multinormal distributions are analyzed. The use of truncated multivariate normal distributions can be employed in the environmental sciences by means of an example from the economics of climate change control. The results provide a way of calculating the expected values of some of the functions commonly used in environmental modeling, when the underlying distribution is taken to be multivariate normal, subject to a truncation or cut-off condition. It is found that the cut-off conditions arise naturally in many instances in environmental and other sciences and the associated variables can often be characterized as being approximately normally distributed. |
| Author | Sharples, J.J. Pezzey, J.C.V. |
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| Keywords | Truncated normal distribution Greenhouse gas control Expectation Uncertainty analysis Environmental economics |
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| Snippet | This paper discusses results concerning multivariate normal distributions that are subject to truncation by a hyperplane and how such results can be applied to... Expectations of linear functions with respect to truncated multinormal distributions are analyzed. The use of truncated multivariate normal distributions can... |
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| StartPage | 915 |
| SubjectTerms | Environmental economics Expectation Greenhouse gas control Truncated normal distribution Uncertainty analysis |
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| Title | Expectations of linear functions with respect to truncated multinormal distributions – With applications for uncertainty analysis in environmental modelling |
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