Abstract

ABSTRACT The efficiency of hydrologic data collection systems is relevant to solution of environmental problems, scientific understanding of hydrologic processes, model‐building and management of water resources. Because these goals may be overlapping and non‐commensurate, design of data networks is not simple. Identified are four elements of error or risk in such networks: (a) choice of variables and mathematical model for the same process, (b) accuracy of model parameter estimates, (c) acceptance of wrong hypothesis or rejection of correct hypothesis and (d) economic losses associated with error. Of these four, the classical hypothesis testing problem is specifically evaluated in terms of costs of type I and II errors for simple and composite hypotheses; mathematical models for these economic analyses also include costs of sample data and costs of waiting while new data is obtained. An illustrative computational example focuses on the hypothesis that natural recharge might be augmented by a system of pumping wells along an ephemeral channel. The relationship of the hypothesis testing problem to Bayesian decision theory is discussed; it is felt that the latter theory offers a more comprehensive framework for design and use of hydrologic data networks.

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