Statistical Models Commons^™

Examining Cost Functionality And Optimization: A Case Study On Testing The Reasonableness Of New Aircraft Using Historical Aircraft Data, Katherine Jozefiak

Arts & Sciences Electronic Theses and Dissertations

When pursuing business by competing for government contracts, proving the submitted price is reasonable is often required. This proof is called a test of reasonableness. This study analyzes data from historical aircraft programs in relation of a new aircraft program in order to demonstrate the estimated cost of the new program is reasonable. The purpose of this study is to investigate three questions. Is the new program cost reasonable using current industry and government parameters? Is it better to look at programs from a total cost perspective or break the total cost into subcategory levels? Finally, this study applies a …