A three-point estimate is a technique used to provide a more accurate estimate of the time and cost required to complete a project. It takes into account the uncertainty associated with any project by providing three different estimates for each task: an optimistic estimate, a pessimistic estimate, and a most likely estimate. The three estimates are then combined to calculate an expected value for the task.
The three-point estimate works by taking into account the uncertainty associated with any project. For each task, an optimistic estimate, a pessimistic estimate, and a most likely estimate are calculated. The optimistic estimate is the best case scenario for completing the task, while the pessimistic estimate is the worst case scenario. The most likely estimate is based on historical data or expert opinion.
Using a three-point estimate can help project managers better plan and manage their projects. By taking into account the uncertainty associated with any project, they can create more accurate estimates of time and cost. This helps them to better allocate resources and plan for contingencies. Additionally, it can help them identify potential risks early on in the project so that they can be addressed before they become major issues.