Describe the rationale for the sigma and N scaling in the optimization statement of Equation XXXXXXXXXXDoes the scaling meet your equal concern interpretation? If the modeled y-deviation is included...

Describe the rationale for the sigma and N scaling in the optimization statement of Equation (45.10). Does the scaling meet your equal concern interpretation?

If the modeled y-deviation is included in the first term on the RHS, is there a need for the third term on the RHS of the OF?