The aims of Statistical hydrology is to provide appropriate statistical methods for analyzing and modeling various parts of the hydrological cycle. By analyzing the statistical properties of hydrologic records, such as rainfall or river flow, hydrologists can estimate future hydrologic phenomena. When making assessments of how often relatively rare events will occur, analyses are made in terms of the return period of such events. Other quantities of interest include the average flow in a river, in a year or by season.
These estimates are important for engineers and economists so that proper risk analysis can be performed to influence investment decisions in future infrastructure and to determine the yield reliability characteristics of water supply systems. Statistical information is utilized to formulate operating rules for large dams forming part of systems which include agricultural, industrial and residential demands.