Estimating Methodologies - Parametric

Definition

Establishes a statistically valid relationship between dependent variable (cost) and independent variable such as physicals (e.g., weight) and/or performance (e.g., horsepower). This relationship is called Cost Estimating Relationship (CER).

When used

Sufficient description of the system is available where the performance target and physical system is well defined.

Method

• Collect cost, physical, and performance characteristics of various a analogous system.
• Using regression analysis, establish relationship between cost (dependent) and physical and or performance variables (independent).