In the National Research Council (NRC) report, ''Flood Risk Management
and the American River Basin-An Evaluation,'' the use of expected pro
bability (accounting for sampling uncertainty) in estimating flood fre
quencies and average annual flood damages, as practiced by the Carps o
f Engineers, was concluded to be biased. Alternative procedures recomm
ended in the report are based on studies of samples drawn from a Gauss
ian population with a fixed damage function. There is no extension of
the study to diverse populations (many flood locations) with different
flow-damage functions, but conclusions drawn are that the recommended
procedures provide frequency and damage estimates that are nearly unb
iased. Rationale behind the report study is examined, and it is demons
trated herein that expected-probability procedures used by the Corps a
re indeed appropriate for flood-frequency estimation and for estimatio
n of average annual flood damages.