Suppose you’ve developed a cost estimate that has a lognormal distribution with mean of $500M and coefficient of variation (CoV) of 20%, as shown below: a) Determine the standard deviation of this cost estimate. b) Calculate the probability that the true cost will fall within one standard deviation of the mean. c) Calculate the 70th percentile of your cost estimate.

Suppose you’ve developed a cost estimate that has a lognormal distribution with mean of $500M and coefficient of variation (CoV) of 20%, as shown below: a) Determine the standard deviation of this cost estimate. b) Calculate the probability that the true cost will fall within one standard deviation of the mean. c) Calculate the 70th percentile of your cost estimate.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Suppose you’ve developed a cost estimate that has a lognormal distribution with mean of $500M and coefficient of variation (CoV) of 20%, as shown below:

a) Determine the standard deviation of this cost estimate.

b) Calculate the probability that the true cost will fall within one standard deviation of the mean.

c) Calculate the 70th percentile of your cost estimate.

Likelihood
$200
$300
Probability Density Function
$400
$500
$500
$M
$600
$700
$800
$900

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