COST PREDICTION BASED ON CER UTILIZATION

Abstract

It has been generally recognized that a need exists for more precise and comprehensive methods of predicting weapon system total costs. This costing problem becomes greatly magnified in the case of postulated weapon systems which are radically different from any system on which actual cost data is available. Since historical costs provide the most reasonable basis for projecting future costs, it is desirable to develop historical data relationships. These relationships are generally referred to as Cost Factors or Cost Estimating Relationships (CER's). The CER's are developed by gathering and processing historical data and applying various statistical techniques. This paper reviews the statistical techniques that are most appropriate for accomplishing this task and provides illustrations of the application of these techniques. Some of the pitfalls or difficulties in developing and utilizing CER's are also discussed.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 1962
Accession Number
AD0662018

Entities

People

  • Alan D. Yaross

Tags

Communities of Interest

  • Air Platforms
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Aircraft Equipment
  • Aircrafts
  • Airframes
  • Computations
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Electronic Equipment
  • Engineering
  • Engines
  • Investments
  • Manufacturing
  • Regression Analysis
  • Statistical Analysis
  • Turbojet Engines
  • Weapon Systems

Readers

  • Life Cycle Cost Analysis
  • Systems Analysis and Design