How does “cost-effectiveness analysis” relate to Test and Evaluation?

How does “cost-effectiveness analysis” relate to Test and Evaluation?

• A. It compares the costs of testing with its intensity
• B. It evaluates the financial efficiency of a system concerning operational performance
• C. It analyzes equipment durability versus testing expenses
• D. It determines the budget for future tests

Answer: (B)

Cost-effectiveness analysis is a critical aspect of Test and Evaluation as it focuses on evaluating the financial efficiency of a system in relation to its operational performance. This approach allows evaluators to assess not only the costs associated with the development, testing, and implementation of a system but also how effectively the system meets its intended operational goals. By analyzing the costs against the benefits gained in operational performance, decision-makers can determine whether a particular option offers the best return on investment. This is particularly important in defense and complex systems, where resources may be limited, and maximizing the effectiveness of each dollar spent is crucial.

The other options address various aspects related to cost and testing but do not capture the full scope of what cost-effectiveness analysis entails in relation to operational performance. For instance, while comparing costs with testing intensity or analyzing durability versus testing expenses may provide useful insights, they do not encompass the broader goal of assessing financial efficiency in context with performance outcomes. Similarly, determining future budgets is an administrative task that does not directly relate to the concept of cost-effectiveness analysis within test and evaluation frameworks.