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}}</ref> However, the measurement of estimation error is problematic, see [[#Assessing the accuracy of estimates|Assessing the accuracy of estimates]].
The strong overconfidence in the accuracy of the effort estimates is illustrated by the finding that, on average, if a software professional is 90% confident or
| author = Jørgensen, M. Teigen, K.H. Ribu, K.
| title = Better sure than safe? Over-confidence in judgement based software development effort prediction intervals
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| pages=79–93}}</ref>
Currently the term
==History==
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==Estimation approaches==
There are many ways of categorizing estimation approaches, see for example.<ref>Briand, L. C. and Wieczorek, I. (2002). "Resource estimation in software engineering". ''Encyclopedia of software engineering''. J. J. Marcinak. New York, John Wiley & Sons:
| author = Jørgensen, M. Shepperd, M.
| title = A Systematic Review of Software Development Cost Estimation Studies
| url = http://simula.no/research/engineering/publications/Jorgensen.2007.1 }}</ref> The top level categories are the following:
* Expert estimation: The quantification step, i.e., the step where the estimate is produced based on judgmental processes.<ref>{{cite web | url=http://www.oxagile.com/services/custom-software-design-and-development/ | title=Custom Software Development Services
* Formal estimation model: The quantification step is based on mechanical processes, e.g., the use of a formula derived from historical data.
* Combination-based estimation: The quantification step is based on a judgmental and mechanical combination of estimates from different sources.
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| [[COCOMO]], [[Putnam model|SLIM]], [[SEER-SEM]], [[TruePlanning for Software]]
|-
| Size-based estimation models<ref>Hill Peter (ISBSG)
| Formal estimation model
| [[Function Point Analysis]],<ref>Morris Pam — Overview of Function Point Analysis [http://www.totalmetrics.com/function-point-resources/what-are-function-points Total Metrics - Function Point Resource Centre]</ref> [[Use Case]] Analysis, [[Use Case Points]], SSU (Software Size Unit), [[Story point]]s-based estimation in [[Agile software development]], [[Object point|Object Points]]
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| Mechanical combination
| Combination-based estimation
| Average of an analogy-based and a [[Work breakdown structure]]-based effort estimate<ref>Srinivasa Gopal and Meenakshi D'Souza. 2012. Improving estimation accuracy by using case based reasoning and a combined estimation approach. In ''Proceedings of the 5th India Software Engineering Conference'' (ISEC '12). ACM, New York
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| Judgmental combination
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==Selection of estimation approaches==
The evidence on differences in estimation accuracy of different estimation approaches and models suggest that there is no
.<ref>{{cite journal
| author = Shepperd, M. Kadoda, G.
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| url = http://simula.no/research/engineering/publications/Jorgensen.2007.2 }}</ref> that may support the selection of estimation approach based on the expected accuracy of an approach include:
* Expert estimation is on average at least as accurate as model-based effort estimation. In particular, situations with unstable relationships and information of high importance not included in the model may suggest use of expert estimation. This assumes, of course, that experts with relevant experience are available.
* Formal estimation models not tailored to a particular
* Formal estimation models may be particularly useful in situations where the model is tailored to the
The most robust finding, in many forecasting domains, is that combination of estimates from independent sources, preferable applying different approaches, will on average improve the estimation accuracy.<ref name="Jørgensen, M"/><ref>{{cite journal
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| author = Hughes, R.T. Cunliffe, A. Young-Martos, F.
| title = Evaluating software development effort model-building techniquesfor application in a real-time telecommunications environment
| journal = IEE Proceedings
| volume = 145
| page = 29
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The chronic underestimation of development effort has led to the coinage and popularity of numerous humorous adages, such as ironically referring to a task as a "[[small matter of programming]]" (when much effort is likely required), and citing laws about underestimation:
* [[Ninety–ninety rule]]:
{{
* [[Hofstadter's law]]:
{{
''Gödel, Escher, Bach: An Eternal Golden Braid''. 20th anniversary ed., 1999, p. 152. {{ISBN|0-465-02656-7}}.
</ref>
}}
* [[Brooks's law|Fred Brooks' law]]:
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