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Last edited 26 Oct 2021
Three point estimation
Should cost modelling, Development Guidance, Version 1.0, published by Government Commercial Function in May 2021 states: ‘This technique uses three different estimates of potential costs, the most likely, optimistic and pessimistic profiles. These estimates are then aggregated and averaged to provide estimates that are adjusted for extremes. It is often applied in the context of Monte Carlo simulation to produce probabilistic outputs.’
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