This project conducts a Cost-Benefit Analysis (CBA) for two proposed dam construction projects:

• Dam #1 in Southwest Georgia
• Dam #2 in North Carolina

The analysis evaluates the feasibility of both projects by assessing their estimated benefits and costs across multiple categories. Using simulations, statistical modeling, and probability distributions, the project identifies the more viable dam for construction.

1. Estimate Benefits and Costs:

   • Categorize and quantify benefits (e.g., navigation, hydroelectric power, recreation).
   • Calculate annualized costs (capital and maintenance).

2. Simulation:

   • Generate 10,000 simulations of benefit-cost ratios for each dam using the triangular distribution.

3. Statistical Analysis:

   • Evaluate variability, skewness, and kurtosis of benefit-cost ratios.
   • Fit theoretical probability distributions to observed data.

4. Goodness-of-Fit Testing:

   • Conduct chi-squared tests to validate the fit of theoretical distributions.

5. Recommendation:

   • Compare results to recommend the most economically viable project.

• Data Analysis: Microsoft Excel
• Statistical Techniques:
  
  • Triangular distribution modeling
  • Chi-squared goodness-of-fit test
• Simulations: Monte Carlo simulation (10,000 iterations)

• Benefit-Cost Ratio (BCR):
  
  • Mean: 1.435
  • Variance: 0.032
  • Standard Deviation: 0.181
• Key Insights:
  
  • Higher proportion of favorable BCR outcomes.
  • Greater consistency in economic performance.

• Benefit-Cost Ratio (BCR):
  
  • Mean: 1.403
  • Variance: 0.025
  • Standard Deviation: 0.158
• Key Insights:
  
  • Slightly lower mean BCR compared to Dam #1.
  • Less favorable probability distribution of high BCR outcomes.

Based on the analysis, Dam #1 is recommended due to its higher benefit-cost ratio and probability of favorable economic outcomes.

. ├── Data/ │ ├── Cost_Benefit_Analysis.xlsx ├── Analysis/ │ ├── Probability_Calculations.xlsx ├── Visualizations/ │ ├── BCR_Distributions.png ├── Reports/ │ ├── Cost_Benefit_Analysis.pdf ├── README.md

For a detailed analysis, please refer to the full report:
📄 Cost-Benefit Analysis Report

Feel free to reach out with questions, feedback, or collaboration ideas!
LinkedIn: Dr. Syed Faizan

Author: Syed Faizan
Master’s Student in Data Analytics and Machine Learning