Guide to Three-Point Estimating
Importance:
Three-Point Estimating is crucial as it provides a realistic estimate by considering the optimistic, pessimistic, and realistic views rather than a single figure. It gives rich insights into project planning and risk assessment and helps manage stakeholder expectations.
Definition:
Essentially, Three-Point Estimating is a technique that uses three variables to analyze the time or resources required to complete a project task. The three variables are the Most Likely (M), Optimistic (O), and Pessimistic (P).
How it works:
Calculation of estimates in this technique involves two main formulae, Triangular Distribution and Beta Distribution. Triangular Distribution uses the formula: (O + M + P) / 3 and Beta Distribution, typically used in PERT method, uses the formula: (O + 4M + P) / 6.
Answering Exam Questions:
When answering questions on Three Point Estimating, read the question carefully and identify the values given for O, M, and P. Make sure you understand which formula to use for calculations. Always cross-verify your answers.
Exam Tips:
Remember to review Three-Point Estimating equations and principles. Understand the assumptions, contexts, and application of the technique. Understand when to apply Triangular or Beta Distribution. Remember that Three-Point Estimating takes into account uncertainty and risk, providing a more rounded estimate than traditional methods.
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Three Point Estimating practice test
The Three Point Estimating technique is a statistical method which involves the use of multiple estimates to build a cost or schedule model for the project work. The team estimates with three points: Optimistic estimate (O), Most Likely (M), and Pessimistic (P). The project estimate can be calculated with a simple average or weighted average. This approach helps in getting more realistic estimates by reflecting the risk and uncertainty in the estimation process.
Time: 5 minutes Questions: 5
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