Accession Number : AD0765446

Title :   The Magnitude of Variability in Cost Estimates,

Corporate Author : OPERATIONS RESEARCH GROUP EDGEWOOD ARSENAL MD

Personal Author(s) : DeArmon,Ira A. , Jr

Report Date : AUG 1973

Pagination or Media Count : 19

Abstract : The note proposes guidelines which might be useful in determining variability within cost comparison studies when the statistical variability is unknown. The definition and use of statistical uncertainty is discussed and illustrated with examples pertaining to site location evaluations. A logical means is suggested for deriving a statistical parameter from the engineering and managerial concept of percent error. Once a measure of the standard deviation of a cost has been postulated, use of such a measure is suggested for: Determining the variability of a total cost, Estimating a standard deviation of a total cost difference, and Determining a least significant difference for the comparison of several total cost estimates. (Author)

Descriptors :   (*COSTS, UNCERTAINTY), CORRELATION TECHNIQUES, STOCHASTIC PROCESSES, ANALYSIS OF VARIANCE

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE