Accession Number : ADA267253


Title :   A Handbook of Cost Risk Analysis Methods


Descriptive Note : Final rept. Oct 1991-Apr 1993


Corporate Author : INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA


Personal Author(s) : Lurie, Philip M ; Goldberg, Matthew S ; Robinson, Mitchell S


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a267253.pdf


Report Date : Apr 1993


Pagination or Media Count : 53


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.


Descriptors :   *COST ANALYSIS , *COST ESTIMATES , COMPUTERIZED SIMULATION , SOFTWARE ENGINEERING , DEPARTMENT OF DEFENSE , STOCHASTIC PROCESSES , RISK , WEAPON SYSTEMS , SYSTEMS ANALYSIS , MILITARY PROCUREMENT


Subject Categories : Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE