22 lines
614 B
Markdown
22 lines
614 B
Markdown
---
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title: Actuarial Science for Construction Estimating
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tags:
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- topic/estimating
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- topic/risk
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- type/cross-topic
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---
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# Actuarial Science for Construction Estimating
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Cross-topic of [[actuarial-science]] and [[construction-estimating]].
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For a contractor, construction projects are like _investments_
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in that they have a cost and return.
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However, for construction projects,
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**return** is known but **cost** must be estimated.
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In this way, projects are better compared to _insurance accounts_.
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* cost of individual service is uncertain
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* cost to customer must be minimized
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![[decrease-in-sigma#Normal PDF]]
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