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Cost estimation

Estimate techniques

There is no simple way to make an accurate estimate of the effort required to develop software system.

The estimate defines the budget, And the product is adjusted to meet the budget.

  • Algorithmic code modelling
    • Based on historical cost information, Generally based on the size of the software
  • expert judgement
  • One or more experts in both software development and the application domain use their experience to predict software cost process iterate and until some Consensus is reached.
  • Very inaccurate is there is no expert
  • estimation by analogy
    • by looking at a similar project in the same application domain
  • Parkinson's law
    • Parkinson's law states that work expands to fulfil the time available. The cost is determined by available resources rather than by objective statement. In general, "the project cost whatever resources are available"
    • disadvantage: System is usually unfinished
  • Pricing to win
    • the project cost whatever the customer has to spend on it