AN INTRODUCTION TO EQUIPMENT COST ESTIMATING

Abstract

The study discusses the fundamental problems of estimating major equipment costs and suggests that for many purposes, particularly for government cost analysts, a statistical approach is the most suitable. The kind of data required and the adjustments needed to make the data useful are discussed in some detail. The use of regression analysis in deriving cost estimating relationships is described, but it is emphasized that unquestioning use of estimating relationships obtained in this manner can result in serious errors. The concepts underlying the cost-quantity relationship generally known as the learning curve are presented along with instructions for its use. Finally, the problem of uncertainty in cost estimating is discussed, and a few suggestions for dealing with the problem are included.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1968
Accession Number
AD0664825

Entities

People

  • J. P. Large

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Air Platforms
  • Energy and Power Technologies
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aircraft Industry
  • Aircrafts
  • Airframes
  • Ballistic Missiles
  • Data Science
  • Databases
  • Industrial Engineering
  • Information Processing
  • Information Science
  • Knowledge Management
  • Manufacturing
  • Monte Carlo Method
  • Regression Analysis
  • Spacecraft
  • Statistical Algorithms
  • Statistical Analysis
  • Surveys

Readers

  • Life Cycle Cost Analysis
  • Theoretical Analysis.