Probability Methods for Cost Uncertainty Analysis, 2nd Edition

366 Probability Methods for Cost Uncertainty Analysis

10.4 Summary

This chapter presented a light introduction to ordinary least squares as a

method for developing CERs. In keeping with the aim of Section II of this

book, the emphasis has been on practical applications of ordinary least

squares (OLS), and its variants, rather than an in-depth theoretical treatment

of statistical regression.

This chapter also introduced an advance in methodology called general

error regression. As illustrated, the general error regression method (GERM)

is a robust alternative to OLS approaches—especially logarithmic ...