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Engineering

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Theses and Dissertations

Theses/Dissertations

2016

Cost effectiveness

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Rate Setting Analysis: A Statistical Approach To Outlier Analysis In The Rate Setting Process Within The United States Transportation Command, Warren B. Mcgriff Mar 2016

Rate Setting Analysis: A Statistical Approach To Outlier Analysis In The Rate Setting Process Within The United States Transportation Command, Warren B. Mcgriff

Theses and Dissertations

The rate setting process implemented by the USTRANSCOM J8 Program Analysis & Financial Management Directorate (USTC J8 or TCJ8) is of importance, as accurate rates yield proper and equitable recoupment of costs from customers and ensure USTC can achieve an accurate Net Operating Result (NOR) in each given year. This research sought to identify areas in which the current rate setting methodology can be improved. We initially examined the use of six months of historical cost data versus a full year of data to set rates, concluding that there is not a statistically significant difference with respect to their relative …