Examining Cost Functionality and Optimization: A Case Study on Testing the Reasonableness of New Aircraft using Historical Aircraft Data

Author

Katherine Jozefiak, Washington University in St. LouisFollow

Date of Award

Spring 5-2016

Author's School

Graduate School of Arts and Sciences

Author's Department

Statistics

Degree Name

Master of Arts (AM/MA)

Degree Type

Thesis

Abstract

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 log linear model, Cobb Douglas model, and fitted linear model to the data. Does a proposed method provide greater statistical significance than the others?

Language

English (en)

Chair and Committee

Siddhartha Chib

Committee Members

Edward Spitznagel, Jeff Gill

Comments

Permanent URL: https://doi.org/10.7936/K75D8Q4F

Recommended Citation

Jozefiak, Katherine, "Examining Cost Functionality and Optimization: A Case Study on Testing the Reasonableness of New Aircraft using Historical Aircraft Data" (2016). Arts & Sciences Electronic Theses and Dissertations. 697.
https://openscholarship.wustl.edu/art_sci_etds/697