cost of procuring and operating a smaller fleet of multiple
purpose vessels.
Figure 25. A Single or Multi Purpose Navy (19)
Cost Estimating Relationships:
CER's are formulas that relate the cost of an item to the
item's physical or functional characteristics. They can
also compare the cost of an item to the cost of another
item or group of items. They are historically derived
through regression and parametric analysis. Since CER's are
derived from physical data, it is necessary to understand
how the data correlates to the problem that is being solved
in each particular cost estimate. CER's vary in complexity
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