Initial capital needed to survive in a minimum chance scenario
Input(s)
Z: Number of Standard Deviation corresponds to a Certain Change (dimensionless)
\(\sigma\): Standard Deviation of a Risky Job reduced to Present Value (fraction)
\(X_{E}\): Present Worth Expectation per a Risky Job ($)
Output(s)
\(\mathrm{M}_{\mathrm{G}}\): Initial Capital Needed to Survive in a Minimum Chance Scenario (dimensionless)
Formula(s)
\[
\mathrm{M}_{\mathrm{G}}=\frac{(\mathrm{Z} \cdot \sigma)^{2}}{4 \mathrm{X}_{\mathrm{E}}}
\]
Reference(s)
Serpen, U., Petroleum Economics, Course Notes, ITU Petroleum and Natural Gas Engineering, Istanbul, Turkey, (2008) Page: 99.