COST RISK AND UNCERTAINTY ANALYSIS HANDBOOK (CRUH) (APR 2007)

COST RISK AND UNCERTAINTY ANALYSIS HANDBOOK (CRUH) (APR 2007)., The Air Force Cost Risk and Uncertainty Analysis Handbook (CRUH) serves as a reference for approved methods, practices, and reporting requirements needed to produce a realistic, defendable cost uncertainty analysis. It provides detailed guidance and definitions useful for cost analysts. The purpose of this Cost Risk and Uncertainty Handbook (CRUH) is to describe acceptable analytical techniques to characterize the uncertainty in a cost estimate and to calculate the cost risk. The handbook provides a comprehensive list of cost uncertainty sources, and specific guidance on how to model them for each of the methods described. The goal of the handbook is to define and clearly present simple, well-defined cost risk analysis processes that are repeatable, defendable and easily understood. Throughout this handbook, certain technical terms are used and distinctions concerning their use and interpretation are made. Many publications contain conflicting definitions for each of these terms. Appendix A contains the most commonly accepted definitions for the terms used in this document.