This paper was originally created for the 2009 Sawtooth Software Conference. This paper focuses on what happens during the estimation of CBC/HB utilities. It takes a naïve approach assuming no knowledge of statistics or math beyond basic algebra. It begins by providing a brief overview about the issues surrounding individual level estimation and why CBC/HB receives the attention it does. The paper then goes into more detail about what the algorithm is intuitively doing and what each step is trying to accomplish.
The paper is non-technical in nature and is written for the absolute beginner. It is intended to be at a level that can be given to a beginning junior analyst or a non-mathematically inclined client.