Three Point Estimates
By: Ray Myers, Jr., PMP
The accuracy of an estimate can be improved by considering uncertainty and risk. PERT uses 3 estimates to define a range for an activity’s cost. This formula can be used for cost estimating and for scheduling.
Most Likely – based on a realistic assessment
Optimistic – estimated cost based on the best case scenario
Pessimistic – estimated cost based on the worst case scenario
The PERT estimate, also called the 3 Point Estimate, is determined using the following formula:
About the Author: Ray Myers, Jr. is a PMP certified project manager with over 2o years experience planning and managing technology projects. Contact Ray at wwwpmservicesnw.com
Article source: www.pmservicesnw.com
