645 B
645 B
title, tags
| title | tags | ||
|---|---|---|---|
| Three-Point Estimation |
|
Three-Point Estimation
- best-case or optimistic
- worst-case or pessimistic
- most-likely
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.