Derivation of Estimating Relationships

An Illustrative Example

by Gene Fisher

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Illustrative examples of how statistical regression analysis may be used to derive estimating relationships from historical data. The specific illustration used refers to an estimating relationship for the airframe initial (nonrecurring) tooling costs for manned aircraft to show how these costs may be related to aircraft performance and physical characteristics.

This report is part of the RAND Corporation research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.

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