Competency 2.2 Flashcards
What is a Histogram?
it is a bar graph in which the frequencies are represented by the lengths of the bars
What is a Frequency Polygon?
is a line graph formed by connecting the frequencies of the values
Skewed distributions
occasionally data may be grouped into a distribution that has multiple data points on one or the end of spectrum.
What are Inferential statistics?
They include methods used to examine a sample of a population and make inferences about and entire population based on analysis of the sample data.
What is Proportion?
It is a statement of equity between two categories. For example object class 12 has an historic relationship with object class 11 of 25%.
What is percentage changes?
It is from the starting to the ending value and expressed as positive changes for increases and negative changes for decreases.
What is a Correlation Coefficient?
It is a number between -1 and 1 that measures the degree to which two variables are linearly related. If there is a perfect linear relationship, all data points on a straight line, we have a correlation coefficient of 1 for a positive correlation and -1 for a negative correlation and we have strong predictability.
Value greater than .8 or -.8 is considered strong and anything less than .5 or -.5 is considered weak.
What is Linear Regression?
If we think that linear relationship may exist between the variables, we can plot the data and determine a “best fit” straight line through the data.
What is Coefficient of Determination?
It is simply the square of r. By squaring, this provides a positive number between 0 and +1. The larger the number the stronger the relationship.
What is Coefficient of Variation?
It measures the amount of dispersion expressed as a decimal or a percentage. The smaller the value, the better the predictability.
What are constant dollars?
They are the result of having the effects of inflation removed. They are always associated with “base year”. To be in constant dollars, the analyst must adjust the costs so they reflect base-year prices for all time periods. They help determine the true cost changes of a system, activity or item. Only need to be adjusted after the calendar year in which the estimate has been prepared.
What are Current Dollars?
They are expressed in the value of the year in which a cost is expected to occur and therefore reflect the effect of inflation. Prior year cost are stated as the actual dollars spent. When future-year dollars are stated in current year dollars, the figures given are the amounts that should be programmed under the full-funding concept.
What are sunk cost?
They are past expenditures from prior fiscal years. They are excluded from economic analysis computations.
Present Value Factor is
PFV=1/(1+d)t
PVF1 = 1/(1+.045)^1 =.9569 PVF2 = 1/(1+.045)^2 =.9157 PVF3 = 1/(1+.045)^3 =.8763
Calculate Discount Rate
# Cost Benefit disc 4.5% 2X4 3X4 1 $10.00 $0.00 0.9782 $9.78 $0.00 2 $20.00 $0.00 0.9361 $18.72 $0.00 3 $30.00 $35.00 0.8958 $26.87 $31.35 4 $30.00 $50.00 0.8572 $25.72 $42.86 5 $10.00 $75.00 0.8203 $8.20 $61.52 Total $89.30 $135.74
NPV = Benefits - costs $46.44
What is the breakeven point?
It is the point at which the cumulative costs (investment plus sustainment) of two alternatives are equal. Do not use time value of money. It is most commonly used in decision making when projects are high risk.
invest old new ann costs Investment 1000000/(300000-50000) Savings 1000000/250000= 4 years
What is the Learning Curve Theory?
As the quantity of a product doubles, the man hours per unit expended to produce the product decreases at a fixed or constant rate. (usually 10 or 20%)
Previous hours * learning Curve Rate=hours to next double quantity
2nd unit= 3 hrs
90% learning curve
3hrs * 90% = 2.7 hrs for 4th unit
What is the Federal Acquisition Regulation? (FAR)
the FAR gives guidance in contracting and requires that contracts adhere to the concepts of allowable within the law, reasonable within the law, and assignment of responsibility.
What are Fixed-Price contracts?
- provide for firm price or, in appropriate cases, an adjustable price
- contractors profit built into price
What are Cost Reimbursable Contracts?
-provide for payment of allowable incurred costs
contractor’s profit equals fee
-use when uncertainties in contract performance prevent sufficiently accurate estimate of costs for fixed-price contract
Contractor can stop work if the money runs out. The govt. may not allow the contractor to continue working at his own risk if additional funds are not obligated on the contract.
In the case of DoD, performance measurement is at the ____________.
contract level
What is Earned Value Management?
It is an integrated tool that relates technical performance to its associated costs and schedule, measures the work in progress in objective terms, and states the value of the work completed in dollars. (used for contractor performance - construction called Cost Load Schedule)
What is Budgeted Cost of Work Schedule? (BCWS)
Contracts consist of multiple work packages. each work package consists of a scope of work and its related budget. Also called the Performance Measurement Baseline (PMB)
What is a Contract Performance Report?
it is a monthly self-report on his performance according to his planned cost and schedule. (month to month and cumlulative)
What is Cost Variance?
It is the result of comparing the Budgeted Cost of Work Performed to the Actual Cost of Work Performed. If actual cost are less, it is favorable. If actual cost are more, it is unfavorable. BCWP-ACWP=Cost Variance
What is Schedule Variance?
It is the result of comparing the Budgeted Cost of Work Performed to the Budgeted Cost of Work Scheduled. BCWP-BCWS=Schedule Variance
What is a PERT Chart?
It is a Program Evaluation and Review Technique, or network diagram, that represents activities and milestones that are graphically represented by connecting arcs and nodes.
What 4 steps are involved in PERT planning?
- identify activities and milestones
- Determine the proper sequences of the activities
- Construct a network diagram
- Estimate the time required for each activity.
What is a GANTT chart?
they are charts useful for planning and scheduling projects similar to a PERT chart. They are better at displaying the schedule and resources used in a project. While the project is underway, they help monitor progress and allow managers to see how remedial action may bring projects back on course.
