Probabilistic Forecasting of Cost Baseline Using the Beta Distribution

In this paper, on the basis of the past project cost and time performance, an exhaustive model for forecasting project cost performance is developed. In this model Earn Value Method (EVM) and Monte-Carlo simulation, which are two important techniques for calculating the actual progress and forecasting cost performance of projects are used. Likewise in this model for developing the project stochastic S-Curve (SS-Curve), project cost uncertainties are considered through the Beta distribution functions of the project activities costs, which are extracted from the previous projects information, real conditions, and expert judgment

Keywords:

stochastic S-Curve , Monte Carlo method , Simulation , Cost control , Forecasting , Performance evaluation , Beta Distribution