## Q - Cost Estimation

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vikram_unde
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Posts: 182
Joined: Tue Aug 23, 2016 5:48 am

### Q - Cost Estimation

In below question, in explanation it is mentioned " estimate at start of project would be USD 50 Mn".
Does this mean that, we should find out estimate at start and not use "50 Mn" given is Question?
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manishpn
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Joined: Sat Jan 04, 2014 3:55 pm

### Re: Q - Cost Estimation

Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
vikram_unde
Contributor
Posts: 182
Joined: Tue Aug 23, 2016 5:48 am

### Re: Q - Cost Estimation

manishpn wrote:http://forum.izenbridge.com/viewtopic.php?f=3&t=2609&p=9454&hilit=Sam+is+half+way#p9454

Thanks Manish!

I went through the link but it does not answer my query.
My doubt is "Does this mean that, we should find out estimate at start and not use "50 Mn" given is Question?"

Appreciate additional inputs from you. Thanks!

Regards,
Vikram Unde
manishpn
Expert
Posts: 2652
Joined: Sat Jan 04, 2014 3:55 pm

### Re: Q - Cost Estimation

Hi Vikram question has provided you both the information.
ROM range of USD 30 Mn to USD 70 Mn - one can use the range to calculate initial estimate
or use 50 MN which is already provided in the question

you can get question with either of the information.
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
vikram_unde
Contributor
Posts: 182
Joined: Tue Aug 23, 2016 5:48 am

### Re: Q - Cost Estimation

manishpn wrote:Hi Vikram question has provided you both the information.
ROM range of USD 30 Mn to USD 70 Mn - one can use the range to calculate initial estimate
or use 50 MN which is already provided in the question

you can get question with either of the information.

Thanks Manish,

I tried to calculate initial estimate (ROM) using -25% and +75%. But, I get initial estimate as 40 Mn instead of 50 Mn. My calculation as below:

Let us assume initial estimate as x Mn.

x - 0.25x = 30 --> 0.75x = 30 --> x = 40
x + 0.75 x = 70 --> 1.75x = 70 --> x = 40

Request you to verify and provide your inputs

Thanks!
Vikram Unde
Posts: 1
Joined: Fri Feb 23, 2018 12:48 pm

### Re: Q - Cost Estimation

vikram_unde wrote:
manishpn wrote:Hi Vikram question has provided you both the information.
ROM range of USD 30 Mn to USD 70 Mn - one can use the range to calculate initial estimate
or use 50 MN which is already provided in the question

you can get question with either of the information.

Thanks Manish,

I tried to calculate initial estimate (ROM) using -25% and +75%. But, I get initial estimate as 40 Mn instead of 50 Mn. My calculation as below:

Let us assume initial estimate as x Mn.

x - 0.25x = 30 --> 0.75x = 30 --> x = 40
x + 0.75 x = 70 --> 1.75x = 70 --> x = 40

Request you to verify and provide your inputs

Thanks!
Vikram Unde

Same with me. I too didn't get the calculation on how that 50M comes by looking at 30M and 70M as ROM, could anyone please elaborate?
Thanks
manishpn
Expert
Posts: 2652
Joined: Sat Jan 04, 2014 3:55 pm

### Re: Q - Cost Estimation

thanks

this needs to be rectified
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/