In parametric cost estimating, CER stands for what?

In parametric cost estimating, CER stands for what?

• A. Cost Efficiency Ratio
• B. Cost Evaluation Result
• C. Cost Estimating Relationship
• D. Cost Estimation Rule

Answer: (C)

In parametric cost estimating, you rely on a driving parameter and a mathematical link to cost, which is known as the Cost Estimating Relationship. This relationship captures how cost changes with changes in the driving parameter, and it’s built from historical data so you can estimate costs quickly for new programs. The form is often a function like Cost = a × (driver)^b, where a and b are constants derived from past projects. This makes the CER the core tool for translating a measurable characteristic (like weight, size, or power) into an estimated cost. The other terms describe different ideas that aren’t the standard link used in this method. Cost Efficiency Ratio would be about efficiency rather than predicting cost from a driver. Cost Evaluation Result refers to the outcome of an evaluation, not the predictive relationship. Cost Estimation Rule is more of a broad rule-of-thumb than a calibrated, data-based relationship.

In parametric cost estimating, you rely on a driving parameter and a mathematical link to cost, which is known as the Cost Estimating Relationship. This relationship captures how cost changes with changes in the driving parameter, and it’s built from historical data so you can estimate costs quickly for new programs. The form is often a function like Cost = a × (driver)^b, where a and b are constants derived from past projects. This makes the CER the core tool for translating a measurable characteristic (like weight, size, or power) into an estimated cost.

The other terms describe different ideas that aren’t the standard link used in this method. Cost Efficiency Ratio would be about efficiency rather than predicting cost from a driver. Cost Evaluation Result refers to the outcome of an evaluation, not the predictive relationship. Cost Estimation Rule is more of a broad rule-of-thumb than a calibrated, data-based relationship.