Regression Models of Quarterly Overhead Costs for Six Government Aerospace Contractors.
Abstract
Since overhead costs constitute a large percentage of total cost for aerospace contractors, it is important to be able to predict them accurately. The research performed in this thesis takes six government aerospace contractors and obtains regression models of their overhead costs that can be utilized for forecasting purposes. This method is preferable to some of the more commonly used methods because it estimates overhead costs directly, eliminating reliance upon predicted overhead rates. After the data were transformed to eliminate the effects of autocorrelation, excellent structural results were obtained for five of the six aerospace contractors. A Monte Carlo simulation was performed to compare various estimators of the autocorrelation. Two of the estimators were found to be superior. These two estimators are both two-stage estimators that are calculated utilizing Wallis's test statistic for fourth-order autocorrelation. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1986
- Accession Number
- ADA169185
Entities
People
- David J. Jerabek
Organizations
- Naval Postgraduate School