Please Explain the calculation

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Joined: Tue Nov 18, 2014 2:53 pm

Please Explain the calculation

Postby poonam512 Thu Jul 23, 2015 8:21 pm

am is half way through the planning process when his sponsor calls for a meeting to discuss progress of planning phase. Sponsor was worried about the cost estimate at the start of the project when he was provided ROM range of USD 30 Mn to USD 70 Mn. Sam is done with first phase of determined budget of 50 Mn and he is in middle of risk response plan finalization. Sponsor asks Sam if he can provide a more refined range of cost estimate. Sam is aware that budget finalization will happen once all other knowledge area planning is complete however since sponsor has asked, Sam decides to give definitive estimate range for budget. Sam would provide with what range of estimate to sponsor ?

55 - 57.5

47.5 – 55

40 – 60

45 – 55
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Joined: Sat Jan 04, 2014 3:55 pm

Re: Please Explain the calculation

Postby manishpn Thu Jul 23, 2015 8:25 pm

ROM - -25% to +75%, range given is USD 30 MN to USD 70 MN hence estimate at start of project would be USD 50 Mn

Definitive estimate range is -5% to +10% of 50 Mn is 47.5 to 55
Manish P
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