### Abstract

Many practical applications of learning theory in the aircraft industry require the estimation of the parameters of y_{i} = αiβ where y_{t} is the cost of the i^{th} aircraft. Typically data are available by production lot rather than by individual aircraft. The estimation procedure usually employed is the application of least squares to log y_{v} = log α = β log x_{v} where y_{v} is the mean cost of a production lot and x_{v} is a quantity “near” the mean of serial numbers of the craft. This note presents a probability model which leads directly to maximum likelihood estimators and avoids difficulties inherent in the usual approach. An example of estimation employing methods of non-linear estimation is presented.

Original language | English (US) |
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Pages (from-to) | 1247-1252 |

Number of pages | 6 |

Journal | Journal of the American Statistical Association |

Volume | 63 |

Issue number | 324 |

DOIs | |

State | Published - Jan 1 1968 |

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### All Science Journal Classification (ASJC) codes

- Statistics and Probability
- Statistics, Probability and Uncertainty

### Cite this

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**A Note on the Measurement of Cost/Quantity Relationships in the Aircraft Industry.** / Gallant, Andrew Ronald.

Research output: Contribution to journal › Article

TY - JOUR

T1 - A Note on the Measurement of Cost/Quantity Relationships in the Aircraft Industry

AU - Gallant, Andrew Ronald

PY - 1968/1/1

Y1 - 1968/1/1

N2 - Many practical applications of learning theory in the aircraft industry require the estimation of the parameters of yi = αiβ where yt is the cost of the ith aircraft. Typically data are available by production lot rather than by individual aircraft. The estimation procedure usually employed is the application of least squares to log yv = log α = β log xv where yv is the mean cost of a production lot and xv is a quantity “near” the mean of serial numbers of the craft. This note presents a probability model which leads directly to maximum likelihood estimators and avoids difficulties inherent in the usual approach. An example of estimation employing methods of non-linear estimation is presented.

AB - Many practical applications of learning theory in the aircraft industry require the estimation of the parameters of yi = αiβ where yt is the cost of the ith aircraft. Typically data are available by production lot rather than by individual aircraft. The estimation procedure usually employed is the application of least squares to log yv = log α = β log xv where yv is the mean cost of a production lot and xv is a quantity “near” the mean of serial numbers of the craft. This note presents a probability model which leads directly to maximum likelihood estimators and avoids difficulties inherent in the usual approach. An example of estimation employing methods of non-linear estimation is presented.

UR - http://www.scopus.com/inward/record.url?scp=1542649063&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=1542649063&partnerID=8YFLogxK

U2 - 10.1080/01621459.1968.10480924

DO - 10.1080/01621459.1968.10480924

M3 - Article

AN - SCOPUS:1542649063

VL - 63

SP - 1247

EP - 1252

JO - Journal of the American Statistical Association

JF - Journal of the American Statistical Association

SN - 0162-1459

IS - 324

ER -