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:

 

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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

Tags: 3 point estimate, pert formula

This entry was posted on September 2, 2010 at 3:52 pm and is filed under Cost, Planning, Schedule. You can follow any responses to this entry through the RSS 2.0 feed.