CBO or Cost-Based-Optimization is a collection of techniques within a RDBMS designed to evaluate numerically how expensive a SQL statement will be. Any SQL statement can be executed in different ways. Each of these ways is a possible execution plan. The CBO will assign to each plan a cost which represents a numeric evaluation of how expensive the operation will be. It will always select the plan with the lowest cost. Lowest cost in this regard logically represents the lowest elapsed time to execute such query.
For a CBO to work properly, statistics are necessary and should be maintained regularly. Oracle , Postgres, MySQL, etc are examples of RDBMS which use the CBO method to evaluate the best way to execute SQL statements.
Use this tag for questions related to execution plans of queries based on the CBO method.