---
title: Three-Point Estimation
tags:
  - topic/estimating
  - topic/risk
---
# Three-Point Estimation

* best-case or optimistic
* worst-case or pessimistic
* most-likely

[Wikipedia](https://en.wikipedia.org/wiki/Three-point_estimation)

[PMI](https://www.projectmanagement.com/wikis/368763/3-points-estimating)

![](https://www.tutorialspoint.com/estimation_techniques/images/three_point_estimation.jpg)

A [[risk]]-neutral party would set selling price at the most likely.
The difference between the pessimistic estimate and selling price
is the [[value-at-risk]].

Three-point estimating is considered the bare minimum in most industries.