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On Modeling Correlated Random Variables in Risk Assessment
Journal article   Peer reviewed

On Modeling Correlated Random Variables in Risk Assessment

Charles Haas
Risk analysis, v 19(6), pp 1205-1214
Dec 1999
PMID: 10765457

Abstract

dioxins Monte Carlo correlation bivariate distributions Environment copulas Environmental Management
Monte Carlo methods in risk assessment are finding increasingly widespread application. With the recognition that inputs may be correlated, the incorporation of such correlations into the simulation has become important. Most implementations rely upon the method of Iman and Conover for generating correlated random variables. In this work, alternative methods using copulas are presented for deriving correlated random variables. It is further shown that the particular algorithm or assumption used may have a substantial effect on the output results, due to differences in higher order bivariate moments.

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Web of Science research areas
Mathematics, Interdisciplinary Applications
Public, Environmental & Occupational Health
Social Sciences, Mathematical Methods
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