Defense Acquisition Research Journal #108

Distribution Comparisons of EAC Cost Growth

Rayleigh, Weibull, beta, and triangular distributions by WBS element. Lower values of AIC suggest a better distributional fit to the WBS cost growths, while higher AIC values suggest a poorer fit. As evident in some cases (e.g., between the lognormal and Weibull curves for the Cost WBS cost growths), the AICs are similar suggesting a possible tie for which distribution is the better fit. Despite this possible equivalency, we do rank each distributional fit by ascending AIC score by WBS element; a value of 1 indicates the lowest AIC fitting, while 5 is the highest. Table 5 reflects those rankings in addition to the mean ranking of each distribution, amalgamated across all WBS elements.

TABLE 4. AIC DISTRIBUTION FITTING BY WBS ELEMENT

WBS Element

Lognormal AIC

Rayleigh AIC

Weibull AIC

Beta AIC

Triangular AIC

Cost Data

99.87

123.93

99.16

147.78

125.88

81.37

88.81

73.96

65.25

72.63

Fee

80.61

137.51

83.66

116.83

119.36

PME

126.38

166.10

127.01

185.63

166.39

SE

66.29

83.68

32.19

85.57

76.16

SEPM

159.02

234.11

158.82

227.57

242.01

ST&E

139.08

147.95

145.37

162.15

154.83

Training 51.98 Note. AIC = Akaike Information Criterion; PME = Prime Mission Equipment; SE = Support Equipment; SEPM = Systems Engineering and Program Management; ST&E = System Test and Evaluation; WBS = Work Breakdown Structure. 38.40 49.29 40.53 57.41

TABLE 5. AIC RANKINGS BY WBS ELEMENT

WBS Element

“Best” Fit

Lognormal AIC

Rayleigh AIC

Weibull AIC

Beta AIC

Triangular AIC

Cost Data

Weibull

2

3

1

5

4

Beta

4

5

3

1

2

Fee

Lognormal

1

5

2

3

4

PME

Lognormal

1

3

2

5

4

SE

Weibull

2

4

1

5

3

SEPM

Weibull

2

4

1

3

5

ST&E

Lognormal

1

3

2

5

4

Training

Lognormal

1

3

2

5

4

Mean/Mode Rank

Lognormal

1.75

3.75

1.75

4

3.75

Note. AIC = Akaike Information Criterion; PME = Prime Mission Equipment; SE = Support Equipment; SEPM = Systems Engineering and Program Management; ST&E = System Test and Evaluation; WBS = Work Breakdown Structure.

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Defense ARJ , Spring 2025, Vol. 32 No. 1

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