Which cost estimation method would be described as a formal method to fit linear cost functions to past data observations?
A)the account analysis method
B)the conference method
C)the industrial-engineering method
D)the quantitative analysis method
E)the departmental analysis method

Question

Quizplus · Accepted Answer

The quantitative analysis method involves using past data observations to fit linear cost functions using regression analysis or other statistical methods. This is a formal and rigorous approach to estimating costs, making it the best choice in this scenario. The account analysis method involves using judgment and subjective assessments to estimate costs, while the conference method involves gathering input from various stakeholders to come up with cost estimates. The industrial-engineering method involves using time and motion studies to estimate costs, while the departmental analysis method involves analyzing costs by department. None of these methods involve the same level of data analysis and statistical rigor as the quantitative analysis method.

Which Cost Estimation Method Would Be Described as a Formal