Statistical Methods for Learning Curves and Cost Analysis

Statistical Methods for Learning Curves and Cost Analysis
Matthew S. Goldberg and Anduin E. Touw

This monograph explores the statistical methods that are used in calibrating the two most important models in military and industrial cost analysis: the learning curve and the cost-estimating relationship. The former model pertains to the marginal cost of successive units in a production sequence. The latter compares several production sequences, to explain cost differences in terms of differences in system characteristics and program management. Both analytical and Monte Carlo techniques are employed to identify optimal estimation methods for these two cost models.