Cost Modelling

Abstract

A basic definition of a model is a procedure developed to reflect, by means of derived processes, adequately acceptable output for an established series of input data. This generalisation goes some way towards setting the parameters within which this chapter must be set. Ideally a model should be simple enough for manipulation and understanding by those who use it, representative enough in the total range of the implications it may have, and complex enough to accurately represent the system. Any model must be attempting to satisfy these seemingly incompatible criteria. The model is the black box which must be operable under a series of input data although the better models will be able to function with input data outside the original data used to formulate the model.