Cost estimates are inherently risky, irrespective of the estimation technique used. Suggest four ways in which the risk in a cost estimate can be reduced.
What will be an ideal response?
Possible techniques of risk reduction include:
1. Obtain a number of independent estimates using different estimation
techniques. If these are widely divergent, generate more costing information
iterate until the estimates converge.
2. For those parts of the system which are hard to estimate, develop a
prototype to find out what problems are likely to arise.
3. Reuse software to reduce the amount of estimation required and to reduce
overall costs.
4. Adopt a design to cost approach to development where the system
functionality is adapted to a fixed cost.
5. Partition software requirements into critical, desirable and ‘gold plating’.
Eliminate ‘gold-plating’ if necessary.
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