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

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)1247-1252
Number of pages6
JournalJournal of the American Statistical Association
Volume63
Issue number324
DOIs
StatePublished - Jan 1 1968

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Aircraft
Industry
Costs
Nonlinear Estimation
Learning Theory
Probability Model
Maximum Likelihood Estimator
Least Squares
Relationships
Aircraft industry
Probability model
Learning theory
Nonlinear estimation
Maximum likelihood estimator
Least squares
Serials

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.

In: Journal of the American Statistical Association, Vol. 63, No. 324, 01.01.1968, p. 1247-1252.

Research output: Contribution to journalArticle

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