Improving CER Building: Basing a CER on the Median

Abstract

The word “median” is used in this article as a generic term. It is generally used for a distribution (a set of values, such as the income of the population) that usually means a “onedimensional set.” In this article, the concept is expanded to also apply to multidimensional sets. Working with multidimensional sets of variables is what we do when we want to build a cost-estimating tool, such as a cost-estimating relationship (CER).