Evaluating Conceptual Plays
123
The preceding examples demonstrated the impact of correlation
on the mean of a pool-size distribution when the sample covariance
matrix had been computed and used. The population covariance
matrix should be computed using MDSCV (see Chapter 3).
1
1
10
100
1000
A
B
10
0.01
10
20
30
40
50
60
70
80
90
100
0.1
1
POOL SIZE, 10
6 m
3
10
100
1000
100
1000
POOL AREA, ha
AVERAGE NET PAY, m
CUMULATIVE FREQUENCY
GREATER THAN, %
10000
Figure 5.6. (A, B) Diagrams showing the correlation between random variables
of pool area in hectares and average net pay in meters (A), and the pool-size
distribution (B). The solid line indicates the pool-size distribution (mean = 13 ×
10
6 m
3
) derived by omitting the covariance shown in (A). Circles indicate the
pool-size distribution (mean = 32 × 10
6 m
3
) derived by including the covariance
between pool area and average net pay. Data from the Western Canada
Sedimentary Basin.