6 process estimation

Question 1

What can an estimate be used for?

Answer 1

1 comparing alternative technical solutions
2 identify financial commitment
3 as a basis for tendering
4 to measure performance against

Question 2

What factors affect the estimation process?

Answer 2

1 the type of project
2 the organisation doing the estimate
3 the stage of the project

Question 3

Why id the project cost underestimated in the initial stages?

Answer 3

1 optimism bias
2 insufficient adjustment - can not see problems in the future
3 over confidence in established probabilities

Question 4

Why does the cost of the project increase over time?

Answer 4

progressing through stages in the process - there is more information to make a more accurate estimation