Offshore Oil/Gas Lease Bidding and the Weibull Distributions

Abstract

It is the purpose of this paper to study the use of the Weibull distribution as an acceptable model for the distribution of the bids on a lease. A multi-sample test procedure of the Weibull-bids hypothesis will be given and implemented to show that the Weibull distribution provides a better statistical fit than does the lognormal distribution for the group of 13-, 14-, 15-, and 16-bid leases.