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An econometric study to evaluate proposal estimates

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  • Beck, Fred F

Abstract

It is hypothesized that contract historical cost data can be used to provide a guide for evaluating proposal estimates generated by the organization. This hypothesis was tested for various input factors by examining multiple regressions of specific characteristics of fifty-five contracts. Of the various input factors examined, the multiple regression model explained from a high of over 94 per cent of the variation for engineering labor, to a low of 37 per cent of the variation for electronic development technical labor. The explanatory variables were highly significant with t values ranging from a low of 1·2 to a high of 26·6, with the vast majority greater than 2·0.

Suggested Citation

  • Beck, Fred F, 1973. "An econometric study to evaluate proposal estimates," Omega, Elsevier, vol. 1(6), pages 777-779, December.
    • Handle: RePEc:eee:jomega:v:1:y:1973:i:6:p:777-779
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