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Discussion

Consider the following statements about cost estimation.

1. A lower learning curve percentage means faster learning   2. The six-tenths rule implies cost rises more slowly than capacity   3. Contingency covers price rises over the spending period

  • A.1 and 2 only are correct
  • B.1, 2 and 3 are all correct statements about cost estimation
  • C.2 and 3 only are correct
  • D.1 and 3 only are correct

Answer: A

Correct answer: 1 and 2 only are correct

Statements 1 and 2 are correct: a lower percentage means faster learning, and an exponent of 0.6 means cost rises more slowly than capacity. Statement 3 attributes escalation’s purpose to contingency - contingency covers uncertainty within the scope, and price movement over time is escalation.

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