## Estimates

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KaurP
Participant
Posts: 94
Joined: Wed Apr 04, 2018 4:08 am

### Estimates

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
Expert
Posts: 2687
Joined: Sat Jan 04, 2014 3:55 pm

### Re: Estimates

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
Participant
Posts: 94
Joined: Wed Apr 04, 2018 4:08 am

### Re: Estimates

-25% to +25%: 3 to 5 million
-10% to +10%: 3.1 to 4.8 million
ihuseynli
Participant
Posts: 50
Joined: Mon Aug 20, 2018 7:16 am
Location: Baku, Azerbaijan

### Re: Estimates

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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