Probability Methods for Cost Uncertainty Analysis, 2nd Edition

393 Mathematics of Cost Improvement Curves

efciency of using GERM (Chapter 10). Without the development and use of

GERM to solve these types of regression problems, it is unlikely that inno-

vative regression forms such as QAIV or UAIV would have been discovered

or the neglected uncertainty modeling issues with the traditional two-step

methods of cost model development would have been mitigated.

Exercises

11.1 Create the unit learning curve theory equivalent of Table 11.3 using unit

learning curve slopes.

11.2 Assume a particular learning rate LR = 0.90 is used to calculate the

total cost of a production lot.