You have prepared an initial estimate of $3,000,000 to develop a software application for your organization. However, after you think about it a while, you vaguely remember from an old course you took at UMUC that estimates aren’t the same as reality. So, you do a bit more analysis and come up with the following table. How much reserve should you add to your initial estimate in order to have a 90% chance of success? Activity
Most Likely Optimistic Pessimistic Labor $2,000,000 $1,500,000 $3,500,000 Commercial SW and Licenses $500,000 $450,000 $550,000 Subcontracts $500,000 $450,000 $600,000