23 lines
645 B
Markdown
23 lines
645 B
Markdown
---
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title: Three-Point Estimation
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tags:
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- topic/estimating
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- topic/risk
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---
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# Three-Point Estimation
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* best-case or optimistic
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* worst-case or pessimistic
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* most-likely
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[Wikipedia](https://en.wikipedia.org/wiki/Three-point_estimation)
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[PMI](https://www.projectmanagement.com/wikis/368763/3-points-estimating)
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A [[risk]]-neutral party would set selling price at the most likely.
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The difference between the pessimistic estimate and selling price
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is the [[value-at-risk]].
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Three-point estimating is considered the bare minimum in most industries. |