ABSTRACT
This chapter presents two forecasting methods, the linear regression method and the grey method. It introduces Earned Value management method. Simple linear regression can be used to estimate the value of a dependent variable, i.e. time, from the value of an independent variable, i.e. cost. The chapter uses simple linear regression technique for the verification of the Bromilow's time-cost relationship. The grey system theory, originally presented by Deng focuses on model uncertainty and information insufficiency in analysing and understanding systems seeking mathematical relations and movement rules. The grey system puts each stochastic variable as a grey quantity that changes within a given range. One of the best methods to provide reliable early warning signals for schedule and cost performance forecasting in Project Management is the Earned Value (EV) method. The EV method integrates project's scope, cost and schedule by using a resource-loaded project schedule and provides a systemic way of measuring, analysing, communicating, and controlling actual performance of a project.
