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{{Short description|Process in software development}}
In [[software development]], '''effort estimation''' is the process of predicting the most realistic amount of effort (expressed in terms of person-hours or money) required to develop or maintain [[software]] based on incomplete, uncertain and noisy input. Effort [[estimation|estimates]] may be used as input to project plans, iteration plans, budgets, investment analyses, pricing processes and bidding rounds.<ref>{{cite web | url=http://www.infoq.com/articles/software-development-effort-estimation | title=What We do and Don't Know about Software Development Effort Estimation}}</ref><ref>{{cite web|title=Cost Estimating And Assessment Guide GAO-09-3SP Best Practices for developing and managing Capital Program Costs|date=2009|publisher=US Government Accountability Office|url=https://www.gao.gov/new.items/d093sp.pdf }}</ref>
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| doi = 10.1109/32.965341
| year = 2001
| bibcode = 2001ITSEn..27.1014S
| url = http://bura.brunel.ac.uk/handle/2438/1102 }}
</ref> This implies that different organizations benefit from different estimation approaches. Findings<ref name="Jørgensen, M">{{cite web
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| url = http://portal.acm.org/citation.cfm?id=951936 | doi = 10.1109/TSE.2003.1245300
| year = 2003
|
| citeseerx = 10.1.1.101.5792
}}
</ref> and there are several alternative measures, such as more symmetric measures,<ref>{{cite journal
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| url = https://ieeexplore.ieee.org/document/689296 | archive-url = https://web.archive.org/web/20170920055746/http://ieeexplore.ieee.org/document/689296/ | url-status = dead | archive-date = September 20, 2017 | doi = 10.1049/ip-sen:19983370
| year = 1998
| doi-broken-date = 12 July 2025
MRE is not reliable if the individual items are skewed. PRED(25) is preferred as a measure of estimation accuracy. PRED(25) measures the percentage of predicted values that are within 25 percent of the actual value.
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