What Is the Underlying Theory to the Three Time Estimates

question 100

Essay

What is the underlying theory to the three time estimates approach? What data distribution should be applied in this case and what confidence should a project manager place in the calculations associated with this technique?

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Definitions:

Years

Units of time measuring the duration or length of events or intervals typically consisting of 365.25 days in the Gregorian calendar.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Interest Rate

The levy imposed on a borrower by a lender, shown as a percentage of the borrowed foundational amount, for access to assets.

Cash Flows

The movement of cash into and out of a business, a critical aspect of its financial health, emphasizing liquidity.