How Predictive Analytics is Improving Parametric Cost Estimation – ICEAA C 2016
Author: Anthony A DeMarco
Predictive Cost Analytics — What is it? Why is it important? What are the benefits? this presentation will help answer the tough questions. Learn more by reading the presentation
- A cost estimating methodology using statistical relationships between historical costs and other program variables such as system physical or performance characteristics, contractor output measures, or manpower loading. The parametric cost estimation method is one of the four cost estimation methods recommended by the Office ofCost Assessment and Program Evaluation (CAPE).
- The use of data, statistical algorithms and machine-learning techniques to identify the likelihood of future outcomes based on historical data. Predictive models use known results to develop (or train) a model that can be used to predict values for different or new data (SAS).