Capital Budgeting in the Chemical Industry

 ExxonMobil Chemical Baytown Olefins Plant

Background Modules for ChE473K
Process Design and Operations

at the
University of Texas at Austin

Gerald G. McGlamery, Jr., Ph.D., P.E.

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Review of Elementary Principles of Statistics

To understand the principles and practice of stochastic modeling, you need to have an effective working knowledge of a few simple concepts from statistics. If you have taken a statistics class, you should find the following to be a quick review. If not, then I hope you will find my approach here to be relatively qualitative and therefore quickly grasped.

The following five topics make up this module:

The Probability Density Function

The Cumulative Distribution Function

Some Useful Probability Distributions

The Normal Distribution

The Log-Normal Distribution

The Chi-Square Distribution

The Triangular Distribution

The Central Limit Theorem

A Useful Result of the Central Limit Theorem

PowerPoint slides of this material, for your class notes, are available here.

 

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Updated: Sunday, March 7, 2010

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Gerald G. McGlamery, Jr.
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