Estimates

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KaurP
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Estimates

Postby KaurP Wed Aug 29, 2018 8:10 pm

Hi Manish,

Can you tell me how this has been calculated-

You are working for GOODROAD highway construction agency as a project cost estimator. The agency started a highway construction project which is in it’s planning phase. The rough order of magnitude (ROM) cost estimate for the project is expected to be between 3 and 5 million dollars in the planning phase with a ROM of -25% to +25%. What will be the ROM estimate in the execution phase if it changes to -10% to +10%?

A. Between 3.1 and 4.1 million dollars

B. Between 3.6 and 4.4 million dollars

C. Between 3.9 and 4.1 million dollars

D. Between 3.4 and 4.4 million dollars

Correct answer 'B'

Thanks!
manishpn
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Re: Estimates

Postby manishpn Thu Aug 30, 2018 7:38 pm

try to do your math and then lets discuss
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
KaurP
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Posts: 94
Joined: Wed Apr 04, 2018 4:08 am

Re: Estimates

Postby KaurP Thu Aug 30, 2018 9:47 pm

-25% to +25%: 3 to 5 million
-10% to +10%: 3.1 to 4.8 million
ihuseynli
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Location: Baku, Azerbaijan

Re: Estimates

Postby ihuseynli Fri Aug 31, 2018 12:37 pm

1) 3000000 - > 75% (-25%)
? -> 100%
? = 3000000*100 / 75 = 4000000 (this is expected amount)

2) 10% of 4000000 is 400 000.
- 10% -> 3600000
+ 10% -> 4400000
Br,
Ismayil Huseynli, ITIL®, OCE®, OCA®
Baku, Azerbaijan
www.linkedin.com/in/ismayilhuseynli

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