Abstract
The problem of how to best utilize site and regional flood data to infer the shape parameter of a flood distribution is considered. One approach to this problem is given in Bulletin 17B of the U.S. Water Resources Council (1981) for the log‐Pearson distribution. Here a lesser known distribution is considered, namely, the power normal which fits flood data as well as the log‐Pearson and has a shape parameter denoted by λ derived from a Box‐Cox power transformation. The problem of regionalizing λ is considered from an empirical Bayes perspective where site and regional flood data are used to infer λ. The distortive effects of spatial correlation and heterogeneity of site sampling variance of λ are explicitly studied with spatial correlation being found to be of secondary importance. The end product of this analysis is the posterior distribution of the power normal parameters expressing, in probabilistic terms, what is known about the parameters given site flood data and regional information on λ. This distribution can be used to provide the designer with several types of information. The posterior distribution of theT‐year flood is derived. The effect of nonlinearity in λ on inference is illustrated. Because uncertainty in λ is explicitly allowed for, the understatement in confidence limits due to fixing λ (analogous to fixing log skew) is avoided. Finally, it is shown how to obtain the marginal flood distribution which can be used to select a design flood with specified exceedance probability.

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