Summary
Business decisions depend on estimates, and bad estimates can lead to bad decisions. To help you create good estimates, this chapter introduced the basic concepts of estimation. This chapter covered the following major points:
An estimate is “an assessment of the likely quantitative result.” Estimates are needed because people need to make decisions based on factors whose values can't be known until after the decision is made.
An estimate doesn't have to be perfect. A good estimate can be defined as one that allows the decision maker to see the situation clearly enough to make the right decision.
Estimates are inherently uncertain, and the less that is known about the situation the more uncertainty there is.
Estimate uncertainty can be expressed ...
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