More Effective Strategies
More effective strategies for dealing with uncertainties in estimates include the following:
Considering ranges of estimates
Sensitivity analysis
Delaying final decisions
These strategies are explained using the following case study.
Zymurgenics is a mythical company that makes process control hardware and software for breweries and wineries. Zymurgenics has identified a potential business opportunity; they discovered that a certain government regulation is set to expire in exactly 36 months. Between now and then, if they can develop a special software application they should be able to bring in $50,000 per month in net profit. Zymurgenics expects that the components listed in Table 23.2 are the main drivers of the project's ...
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