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Daniel S. Wilks and Allan H. Murphy


The economic value of current and hypothetically improved seasonal precipitation forecasts is estimated for a regionally important haying/pasturing problem in western Oregon by modeling and analyzing the problem in a decision-analytic framework. Although current forecasts are found to be of relatively little value in this decision-making problem, moderate increases in the quality of the forecasts would lead to substantial increases in their value. The quality/value relationship is sensitive to changes in various economic parameters, including the decision maker's attitude toward risk.

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Allan H. Murphy, Wu-ron Hsu, Robert L. Winkler, and Daniel S. Wilks


This paper summarizes the results of an experiment in which National Weather Service forecasters formulated probabilistic quantitative precipitation forecasts (QPFs) during a 17-month period in 1981–82. These forecasts expressed the likelihood that certain threshold amounts of precipitation would be equaled or exceeded in 12-hour periods at four locations in Texas. The forecasters had no previous experience in quantifying the uncertainty in such forecasts, but they did receive feedback regarding their collective performance at the end of the first year of the experiment. In the evaluation of the experimental results, particular attention is focused on three issues: 1) the reliability and skill of the subjective QPFs; 2) the effects of feedback and experience on the quality of these forecasts; and 3) the relative performance of the subjective probabilistic QPFs and objective probabilistic QPFs produced by the model output statistics system.

The subjective probabilistic QPFs possess positive skill, although they exhibit considerable overforecasting for larger precipitation amounts. Moreover, the feedback provided to the forecasters evidently contributed to modest increases in the reliability and skill of their forecasts. In this regard, the quality of the subjective and objective QPFs is generally comparable in the first year of the experiment. However, after the receipt of the feedback, the skill of the subjective forecasts exceeded the skill of the objective forecasts. These results are considered to be encouraging regarding the ability of forecasters to formulate reliable and skillful probabilistic QPFS, but more extensive experiments should be undertaken to investigate this and related issues in greater detail.

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