A Handbook of Cost Risk Analysis Methods
Abstract
When estimating costs, interval estimates are more informative than simple point estimates. Interval estimates are sometime available using analytical methods. These methods may be either exact (for example, a sum of random variables) or approximate (for example, based on Taylor series). When analytical methods are not available, simulation may be used instead. This paper illustrates the application of both analytical and simulation methods to the three main types of cost analysis: cost-estimating relationships, work breakdown structures, and stochastic network models. In addition, the paper contains descriptions of some commercially-available software products that can be used to perform simulations for the types of cost-risk analysis described.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1993
- Accession Number
- ADA267253
Entities
People
- Matthew S Goldberg
- Mitchell S. Robinson
- Philip M. Lurie
Organizations
- Institute for Defense Analyses