Engineering Economic Analysis
Engineering Economic Analysis
13th Edition
ISBN: 9780190296902
Author: Donald G. Newnan, Ted G. Eschenbach, Jerome P. Lavelle
Publisher: Oxford University Press
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Chapter 10, Problem 1QTC
To determine

The methods by which one can quantify the uncertainty in a specific software development effort.

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Explanation of Solution

There are some methods to quantify the uncertainty in a specific software development effort and are as follows:

  1. Taylor series: Taylor series is used to quantify the uncertainty associated with the development of specific software as Taylor series will calculate the mean and variance allocating probabilities to them.
  2. Central limit theorem: Central limit theorem can be used to calculate the risk associated with uncertainty.
  3. Constructive cost model: Constructive cost model measures the effort probabilities by the use of Monte Carlo experiment.
  4. Non linear effort model: Cases involving single software configuration item, non linear model accurately measures the probability distribution.

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