Software development effort estimation: Difference between revisions

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Currently the term "effort estimate" is used to denote as different concepts such as most likely use of effort (modal value), the effort that corresponds to a probability of 50% of not exceeding (median), the planned effort, the budgeted effort or the effort used to propose a bid or price to the client. This is believed to be unfortunate, because communication problems may occur and because the concepts serve different goals.<ref>{{cite journal | last1 = Edwards | first1 = J.S. Moores | year = 1994 | title = A conflict between the use of estimating and planning tools in the management of information systems | journal = [[European Journal of Information Systems]] | volume = 3 | issue = 2| pages = 139–147 | doi=10.1057/ejis.1994.14| s2cid = 62582672 }}</ref><ref>Goodwin, P. (1998). Enhancing judgmental sales forecasting: The role of laboratory research. Forecasting with judgment. G. Wright and P. Goodwin. New York, John Wiley & Sons: 91-112. Hi</ref> A recent analysis of 107 enterprise software projects reported that vague or unclear scope was the single most consistent driver of estimation inaccuracies, leading to 4.4 times more cost deviation compared to well-defined projects.<ref>{{Cite web |last=Gadhavi |first=Maitray |date=July 31, 2025 |title=Software Project Cost & Timelines: 100+ Projects Analyzed |url=https://radixweb.com/blog/software-project-cost-timeline-analyzed/ |url-status=live |website=Radixweb}}</ref>
 
==History==