A procedure is established for determination of the most representativ
e residential subdivision in a group of randomly selected subdivisions
described by N physical characteristic measures. The procedure allows
an electric utility company to use a single subdivision for their ann
ual estimated cost differential between underground and overhead power
distribution to new subdivisions. In the context of this procedure, t
he term most representative refers to the tendency of the selected sub
division to exhibit central values for the characteristic measures use
d to describe the subdivisions, as well as to the degree to which the
underground versus overhead cost differential for the selected subdivi
sion corresponds to the mean cost differential for the group of subdiv
isions considered. The methodology developed involves regression and c
orrelation analyses of the relationships between the physical characte
ristics and the cost differentials for all the subdivisions under stud
y as well as definition of quadratic measures of atypicality for each
subdivision. The reliability of the process is established using the c
hi-square distribution of the atypicality measure. Data provided by a
particular electric power company are analyzed, and experiences with t
he procedure are reported.