Question

How can cost estimates be used for type of project where the product certainty, process certainty and resource certainty are all low?

a.

As a fixed anchor point for finishing the project and determining the cost

b.

As a rough guide for the magnitude of the project

c.

As a sensitivity analysis for cost drivers

d.

To allocate effort and time for the project

Posted under Software Engineering

Answer: (b).As a rough guide for the magnitude of the project Explanation:In a project where the product certainty, process certainty and resource certainty are all low, cost estimation using formalized models is not feasible. Use of such models presupposes that we know enough about project at hand to be able to compare it with previous projects, but in this type of project, this is not the case. Instead, we may rely on expert judgments to achieve a rough cost estimate. However, this estimate should not be used as a fixed anchor point as to when project should be finished and how much it may cost, as there are too many uncertainties involved. Rather, it provides us with some guidance as to the magnitude of project. Based on this estimate, effort and time can be allocated for the project, for instance to produce a certain no. of prototypes, a feasibility study, a pilot implementation of part of product, or to start a certain number of time boxes. The hope is that in time the uncertainties will diminish sufficiently so that project shifts to one of the other situations.

Engage with the Community - Add Your Comment

Confused About the Answer? Ask for Details Here.

Know the Explanation? Add it Here.

Q. How can cost estimates be used for type of project where the product certainty, process certainty and resource certainty are all low?

Add Comment

Similar Questions

Discover Related MCQs

Q. What is the recommended approach for coordinating work at the macro level in big projects?

View solution

Q. Is it recommended to use the same control mechanisms at the macro and micro level in big projects?

View solution

Q. What are the consequences of neglecting project-specific characteristics during the planning stage of a software development project?

View solution

Q. What is the goal of tailoring the project's management to the situation at hand?

View solution

Q. What is the control situation that involves the most uncertainty?

View solution

Q. What is the main focus of the risk management in software development?

View solution

Q. What is a common attitude towards risks in software development?

View solution

Q. What is the recommended approach for dealing with risks in a software project?

View solution

Q. What is the difference between a risk and a problem?

View solution

Q. What is the importance of identifying risks early on in a software development project?

View solution

Q. How can unstable, immature, unrealistic, or excessive requirements be dealt with as a risk in a software development project?

View solution

Q. What is a common way to deal with communication problems when a project involves more than one development site?

View solution

Q. What are the three general strategies to mitigate risks?

View solution

Q. What is the process of determining the risk exposure?

View solution

Q. What is the final step in risk management?

View solution

Q. What is the main goal of risk management?

View solution

Q. What is the risk exposure of a risk?

View solution

Q. How often should the risk management process be carried out?

View solution

Q. What are the four types of risks identified by Wallace and Keil (2004)?

View solution

Q. What is the first step in risk management strategy?

View solution

View All MCQs on Software Engineering

Suggested Topics

Are you eager to expand your knowledge beyond Software Engineering? We've curated a selection of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of Computer Science. Happy exploring!

MySQL Database

Enhance your knowledge of relational databases with our MySQL MCQs. Understand...

CompTIA PenTest+ Certification Exam PT0 002

Prepare for the CompTIA PenTest+ PT0-002 exam with our targeted MCQs. Covering...

Wireless and Mobile Communications

Get to grips with modern communication technologies with our Wireless and Mobile...

Object Oriented Programming Using C++

Enhance your programming skills with our MCQs on Object Oriented Programming using...

Reverse Engineering

Strengthen your understanding of Reverse Engineering with our curated set of MCQs....

Digital Communication

Master the basics of electronic communication with our Digital Communication MCQs....

Cloud Computing

Stay on top of the biggest trend in IT with our Cloud Computing MCQs. These questions...

Java Spring Framework

Enhance your Java development skills with our Spring Framework MCQs. Learn about...

Digital Image Processing (DIP)

Delve into the techniques of enhancing digital images with our Digital Image...