Capital Budgeting in the Chemical Industry

 

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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The Triangular Distribution

The triangular distribution is a simple distribution that has no real source in nature. It is most, if not exclusively, useful for stochastic modeling rather than statistical analysis because of its artificial nature. It is a three-parameter distribution described by two zero-probability endpoints and a most probable point (mode). The intensity of the mode can be proven to be

The triangular PDF and CDF are shown below, respectively:

 

In stochastic modeling, the triangular distribution is best used to model variables with both upper and lower bounds near the range of interest. The distribution does not need to be, and frequently is not, symmetric.

 

Updated: Sunday, March 7, 2010

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