Analytical Approaches That Result in Cost Estimating Error,
Abstract
Cost estimating within the Army has become a specialty with the associated regulatory documents, 'How-to-do' guidebooks, and training programs. Within these guidelines, much flexibility is allowed regarding specific analytic techniques used in developing the various cost estimates. Some analytical techniques currently used are not mathematically sound and hence lead to errors in the resulting estimate. This article describes two such techniques with recommended alternative techniques that should produce more accurate estimates. The first technique shows that the simple addition of point estimates may not result in the most likely cost prediction.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1982
- Accession Number
- ADP001224
Entities
People
- Charles H. Sims