Rules for assessing compliance with percentile standards commonly limit the number of exceedances permitted in a batch of samples taken over a defined assessment period. Such rules are commonly developed using classical statistical methods. Results from alternative Bayesian methods are presented (using beta-distributed prior information and a binomial likelihood), resulting in "confidence of compliance" graphs. These allow simple reading of the consumer's risk and the supplier's risks for any proposed rule. The influence of the prior assumptions required by the Bayesian technique on the confidence results is demonstrated, using two reference priors (uniform and Jeffreys') and also using optimistic and pessimistic user-defined priors. All four give less pessimistic results than does the classical technique, because interpreting classical results as "confidence of compliance" actually invokes a Bayesian approach with an extreme prior distribution. Jeffreys' prior is shown to be the most generally appropriate choice of prior distribution. Cost savings can be expected using rules based on this approach.
An assumption of scale is inherent in any environmental monitoring exercise. The temporal or spatial scale of interest defines the statistical model which would be most appropriate for a given system and thus affects both sampling design and data analysis. Two monitoring objectives which are strongly tied to scale are the estimation of average conditions and the evaluation of trends. For both of these objectives, the time or spatial scale of interest strongly influences whether a given set of observations should be regarded as independent or serially correlated and affects the importance of serial correlation in choosing statistical methods. In particular serial correlation has a much different effect on the estimation of long-term means than it does on the estimation of specific-period means. For estimating trends,a distinction between serial correlation and trend is scale dependent. An explicit consideration of scale in monitoring system design and data analysis is, therefore, most important for producing meaningful statistical information.
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