Best Fit Lines & Curves: And Some Mathe-Magical Transformations by Alan R. Jones
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Overview: Best Fit Lines and Curves, and Some Mathe-Magical Transformations (Volume III of the Working Guides to Estimating & Forecasting series) concentrates on techniques for finding the Best Fit Line or Curve to some historical data allowing us to interpolate or extrapolate the implied relationship that will underpin our prediction. A range of simple ‘Moving Measures’ are suggested to smooth the underlying trend and quantify the degree of noise or scatter around that trend. The advantages and disadvantages are discussed and a simple way to offset the latent disadvantage of most Moving Measure Techniques is provided.
Simple Linear Regression Analysis, a more formal numerical technique that calculates the line of best fit subject to defined ‘goodness of fit’ criteria. Microsoft Excel is used to demonstrate how to decide whether the line of best fit is a good fit, or just a solution in search of some data. These principles are then extended to cover multiple cost drivers, and how we can use them to quantify 3-Point Estimates.
Genre: Non-Fiction > Educational