Appendix C: Cost Estimating Methodologies

NASA Cost Estimating Handbook Version Appendix C Cost Estimating Methodologies C-1 February 2015 Appendix C: Cost Estimating Methodologies The cost estimator must select the most appropriate cost Estimating methodology (or combination of Methodologies ) for the data available to develop a high quality cost estimate. The three basic cost Estimating methods that can be used during a NASA project s life cycle are analogy, parametric, and engineering build-up (also called grassroots ) as well as extrapolation from actuals using earned value management (EVM). This Appendix provides details on the following three basic cost Estimating methods used during a NASA project s life cycle: Analogy Cost Estimating Parametric Cost Estimating Simple Linear Regression (SLR) Models Simple Nonlinear Regression Models Multiple Regression Models (Linear and Nonlinear) Model Selection Process Summary: Par

from actuals using Earned Value Management (EVM). Figure C-1. Use of Cost Estimating Methodologies by Phase1 When choosing a methodology, the analyst must remember that cost estimating is a forecast of future costs based on the extrapolation of available historical cost and schedule data. The type of cost

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  Management, Value, Earned, Earned value management

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