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Application Problems<br />

• Distributions of periodic values of CPI & SPI(t)<br />

are right-skewed<br />

• Logarithms transform to Normal Distribution<br />

• Research indicates CPI tends to worsen as<br />

EV ⇒ BAC<br />

• Statistics application assumes lack of any<br />

tendency<br />

• Effective EV used to remove tendency<br />

EVA-11<br />

Jun 12-17, 17, 2006<br />

Copyright 2006<br />

Lipke & Henderson 120

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