Question

Estimates can be refined for several reasons including interaction costs are hidden in estimates, normal condition do not apply, things going wrong on the project, change in project scope and plans, overly optimistic, or strategic misrepresentation. Projects that are refined due to strategic misrepresentation were most likely misrepresented in order to win approval. The project can be underestimated in cost and overestimated in project benefits. When the estimate is overly optimistic, it is overestimated how quickly the project can be completed or underestimated how long it will take to complete the project. Which of the following is a reason for refining estimates?

1) Interaction costs are hidden in estimates
2) Normal conditions do not apply
3) Things going wrong on the project
4) Change in project scope and plans
5) Overly optimistic
6) Strategic misrepresentation

Answer 1

One reason for refining estimates is a change in project scope and plans. Another reason is when things go wrong on the project. Estimates can also be refined due to strategic misrepresentation.

Step-by-step explanation:

One reason for refining estimates is a change in project scope and plans. When the scope or plans of a project change, it can impact the estimated cost and timeline of the project. For example, if a project initially planned to build a small building but then decides to expand the scope and build a larger building, the estimated cost and timeline will need to be adjusted. This is because the new scope and plans will likely require more resources and time than initially estimated.

Another reason for refining estimates is when things go wrong on the project. Unexpected issues can arise during the course of a project that can impact the cost and timeline. For example, if a construction project encounters unforeseen challenges such as inclement weather, labor strikes, or supply chain disruptions, the estimated cost and timeline will need to be revised to account for these issues.

Finally, estimates can also be refined when there is strategic misrepresentation. Strategic misrepresentation occurs when a project is purposely misrepresented in order to win approval. In this case, the estimate may be underestimated in cost and overestimated in project benefits. This could be done to make the project appear more favorable and increase the chances of approval.