{"id":2067,"date":"2021-07-09T08:52:27","date_gmt":"2021-07-09T13:52:27","guid":{"rendered":"https:\/\/projectmanagementacademy.net\/resources\/?p=2067"},"modified":"2022-12-12T11:58:05","modified_gmt":"2022-12-12T16:58:05","slug":"a-three-point-estimating-technique-pert","status":"publish","type":"post","link":"https:\/\/projectmanagementacademy.net\/resources\/blog\/a-three-point-estimating-technique-pert\/","title":{"rendered":"A Three-Point Estimating Technique: PERT"},"content":{"rendered":"\n<p>The Program Evaluation and Review Technique (PERT) is used to find the estimated time for activities to be completed when there are many unknown factors. With origins in the US Navy, PERT has been in use for over 60 years, speaking to the value it brings to project managers. The Project Management Institute (PMI)\u2019s Project Management Professional (PMP\u00ae) certification exam may include questions referencing PERT, which is a three-point estimating technique used by project managers across industries to estimate activity duration or cost.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p><strong>On this page:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"#pert\">The Three Points of Three-Point Estimation (PERT)<\/a><\/li><li><a href=\"#understanding\">Understanding PERT for Projects<\/a><\/li><li><a href=\"#optimistic-estimate\">Optimistic Estimate<\/a><\/li><li><a href=\"#pessimistic-estimate\">Pessimistic Estimate<\/a><\/li><li><a href=\"#most-likely-estimate\">Most Likely Estimate<\/a><\/li><li><a href=\"#formula\">Program Analysis Review Technique (PERT) Formula<\/a><\/li><li><a href=\"#example\">PERT Example<\/a><\/li><li><a href=\"#pros-and-cons\">Pros and Cons of Three-Point Estimation using PERT<\/a><\/li><li><a href=\"#pmp-exam\">PERT and the PMP\u00ae Certification Exam<\/a><\/li><li><a href=\"#example-exam-questions\">Example PERT PMP\u00ae Exam Questions<\/a><\/li><\/ul>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div class=\"wp-block-columns has-background is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\" style=\"background-color:#e9f7ff\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\">\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-809x1024.png\" alt=\"PMP Formula Cheat Sheet\" class=\"wp-image-4712\" width=\"296\" height=\"374\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-809x1024.png 809w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-237x300.png 237w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-768x972.png 768w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet.png 1010w\" sizes=\"auto, (max-width: 296px) 100vw, 296px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<div style=\"height:48px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>PMP\u00ae Exam Formula Cheat Shee<\/strong>t<\/h2>\n\n\n\n<p id=\"block-14690051-2796-4b03-bcb7-95d54bd01fcd\"><em><em>Learn how to successfully use project management formulas after reading this cheat shee<\/em>t.<\/em><\/p>\n\n\n\n\t\t\t\t\t<script>\n\t\t\t\t\t\thbspt.enqueueForm({\n\t\t\t\t\t\t\tportalId: 3294842,\n\t\t\t\t\t\t\tformId: \"730482d7-eef5-49c7-aa16-898785e241ee\",\n\t\t\t\t\t\t\ttarget: \"#hbspt-form-1780147868000-2756856903\",\n\t\t\t\t\t\t\tregion: \"na1\",\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t});\n\t\t\t\t\t<\/script>\n\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1780147868000-2756856903\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:10%\">\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"pert\">The Three Points of Three-Point Estimating (PERT)<\/h2>\n\n\n\n<p>The PMI\u2019s <em>A<\/em> <em>Guide to Project Management Body of Knowledge<\/em> (<em>PMBOK\u00ae Guide<\/em>) \u2013 Sixth Edition, provides this definition for the three-point estimating technique:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#e7f5fe\"><tbody><tr><td><strong>Three-Point Estimating<\/strong><strong><\/strong><\/td><td><em>A technique used to estimate cost or duration by applying an average or weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. See also <a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/budget-at-completion-bac\/\" target=\"_blank\" rel=\"noreferrer noopener\">analogous estimating<\/a>, bottom-up estimating, parametric estimating, and program evaluation and review technique (PERT). \u2013 Source pmi.org\/pmbok-guide-standards\/lexicon <\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Note within the <em>PMBOK\u00ae Guide<\/em>\u2019s definition, there are multiple types of <a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/three-point-estimating-pmp-exam-resource\/\" target=\"_blank\" rel=\"noreferrer noopener\">three-point estimating tools<\/a>. The Program Evaluation and Review Technique (PERT), informally known as \u201cPERT PMP,\u201d is one type.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p>Consider this example from a common situation outside of a business environment. Three estimates are received for painting a house exterior. Calculating the average of the three cost estimates of the same effort provides insight into approximately what the final cost should be. Also, finding the average of the three expected durations of the work effort will provide insight into how long the project should take. Analysis using a three-point estimate provides insight into the expected cost and duration for the planned work.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe loading=\"lazy\" title=\"PERT Formula in Project Management (Estimate the Cost or Time for Your Projects)\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/FtLeSN5JYJ4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"understanding\">Understanding PERT for Projects: Three-Point Estimating PMP<\/h2>\n\n\n\n<p>PERT has been used across the globe, in many industries, and for decades. PERT has become the most used and popular method of choice among project managers due to its reliability and accuracy.<\/p>\n\n\n\n<p>The <em>PMBOK\u00ae Guide<\/em> online lexicon provides this definition for PERT:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#e7f5fe\"><tbody><tr><td><strong>Program Evaluation and Review Technique (PERT)<\/strong><strong><\/strong><\/td><td><em>A technique used to estimate project duration through a weighted average of optimistic, pessimistic, and most likely activity durations when there is uncertainty with the individual activity estimates. See also analogous estimating, bottom-up estimating, parametric estimating, and three-point estimating. \u2013 Source: pmi.org\/pmbok-guide-standards\/lexicon <\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Note the <em>PMBOK<\/em>\u00ae <em>Guide<\/em> definition is not \u201cPERT PMP,\u201d nor \u201cPERT Analysis PMP,\u201d as those are not the formal names for the technique. As for when in a project to use PERT analysis to determine a schedule or cost estimate, it is best during planning and implementation.&nbsp;Key points about PERT include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>PERT is used to estimate project duration or cost.<\/li><li>PERT is a &#8220;weighted&#8221; average estimate technique.<\/li><li>PERT is best used for planning to ensure accurate scope.<\/li><li>PERT formula is an <a href=\"https:\/\/pmstudycircle.com\/2013\/08\/pert-program-evaluation-and-review-technique\/\" target=\"_blank\" rel=\"noreferrer noopener\">approximation of the Beta Distribution equation.<\/a><\/li><li>PERT is determined using three points: Optimistic (O), Most Likely (M), and Pessimistic (P).<\/li><li>PERT combines probability theory and statistics to derive a formula for the average activity from the three-point estimates.<\/li><li>PERT estimate formula is: (O + 4M +P) \/ 6<\/li><\/ul>\n\n\n\n<p>When studying PERT as part of preparing to take the PMP\u00ae exam, it is important to know it is one type of three-point estimating, what it can be used to estimate (duration or cost), and when in the project to use it.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity is-style-wide\"\/>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><a href=\"https:\/\/educate360.zoom.us\/rec\/share\/pkN--MTtkMPkmcp-2w5qHt3KtjqNFC-WqlAGIJHCb3rGixURMFg7r_Bgr2OisGdO.NFReSTF4sU3Tjjhx\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"728\" height=\"90\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/03\/29141739\/PMI-Certification-Overview-Webinar-1.png\" alt=\"PMI Certification Overview Webinar\" class=\"wp-image-6993\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/03\/29141739\/PMI-Certification-Overview-Webinar-1.png 728w, https:\/\/e360-media.s3.amazonaws.com\/2021\/03\/29141739\/PMI-Certification-Overview-Webinar-1-300x37.png 300w\" sizes=\"auto, (max-width: 728px) 100vw, 728px\" \/><\/a><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"optimistic-estimate\">Optimistic Estimate<\/h2>\n\n\n\n<p>The \u201cOptimistic estimate\u201d is one value within the PERT formula and is represented as \u201cO.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#e7f5fe\"><tbody><tr><td><strong>Optimistic Estimate (O)<\/strong><strong><\/strong><\/td><td><em>Estimate for all favorable conditions with no risks or changes <\/em><em><\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The Optimistic Estimate is the \u201cbest-case\u201d and thus shortest duration, or lowest cost, to complete the work.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"pessimistic-estimate\">Pessimistic Estimate<\/h2>\n\n\n\n<p>The \u201cPessimistic estimate\u201d is used in the PERT formula and is represented as \u201cP.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#e7f5fe\"><tbody><tr><td><strong>Pessimistic Estimate (P)<\/strong><strong><\/strong><\/td><td><em>Estimate for all unfavorable conditions with all negative risks occurring and no mitigation of negative risks <\/em><em><\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>It is the opposite of the Optimistic estimate in concept. The Pessimistic Estimate is the \u201cworst-case\u201d and thus longest duration, or highest cost, to complete the work.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"most-likely-estimate\">Most Likely Estimate<\/h2>\n\n\n\n<p>The third value in the PERT formula is the Most Likely estimate and is represented as \u201cM.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#e7f5fe\"><tbody><tr><td><strong>Most Likely Estimate (M)<\/strong><strong><\/strong><\/td><td><em>Estimate for both favorable and unfavorable conditions, with some risks occurring. &nbsp;<\/em><em><\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The name is accurate in the estimate is based on changes, but ones that have been planned for and can be mitigated. The Most Likely estimate captures the highest likelihood of completing the work in the given duration or cost.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"formula\">Program Analysis Review Technique (PERT) Formula<\/h2>\n\n\n\n<p>The three points O, P, and M are used in the Program Analysis Review Technique (PERT) formula. It uses a weighted average (not a simple average) to determine the mean of the three estimated values.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103749\/PERT-formula-3.png\" alt=\"Three-Point Estimating, PERT Formula PMP\" class=\"wp-image-2078\" width=\"442\" height=\"165\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103749\/PERT-formula-3.png 983w, https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103749\/PERT-formula-3-300x112.png 300w, https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103749\/PERT-formula-3-768x288.png 768w\" sizes=\"auto, (max-width: 442px) 100vw, 442px\" \/><\/figure><\/div>\n\n\n\n<p>The M value, Most Likely, is given 4 weights as the PERT formula is based on <a href=\"https:\/\/www.statlect.com\/probability-distributions\/beta-distribution\" target=\"_blank\" rel=\"noreferrer noopener\">probability theory and statistics, specifically Beta Distribution.<\/a> More weight is given to the most likely (after all, it is the <em>most <\/em>likely). If plotted against a chart, this beta distribution will result in a more uniform, bell-shaped curve, called a normal distribution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"example\">PERT Example<\/h2>\n\n\n\n<p>Within a large city, some factors influence how long it takes to drive from home to the office. The weather, the time of day, and any vehicle accidents on the road can impact the duration to get from home to the office on those roads.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td>Most Likely (M)<\/td><td>60 minutes<\/td><td>clear weather, clear roads, normal volume of drivers on some of the roads<\/td><\/tr><tr><td>Optimistic (O)<\/td><td>30 minutes<\/td><td>clear weather, clear roads, no other drivers on any road<\/td><\/tr><tr><td>Pessimistic (P)<\/td><td>120 minutes<\/td><td>thunderstorm with rain, road blocked from multiple vehicle accidents, the highest volume of drivers<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The weighted average of the three estimates is used in the PERT formula:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103911\/PERT-formula-4.png\" alt=\"Beta Distribution PMP\" class=\"wp-image-2080\" width=\"384\" height=\"143\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103911\/PERT-formula-4.png 983w, https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103911\/PERT-formula-4-300x112.png 300w, https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07103911\/PERT-formula-4-768x288.png 768w\" sizes=\"auto, (max-width: 384px) 100vw, 384px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>PERT = (30 + [4 x 60] + 120) \/ 6<\/li><li>PERT = 390 \/ 6<\/li><li>PERT = 65 minutes<\/li><\/ul>\n\n\n\n<p>Staying with this example, consider if asked \u201chow long does it take you to drive to work?\u201d. Have you ever replied with \u201cwell, if it is a weekday at 8 am, it usually takes me 30 minutes longer than if it is a sunny weekend afternoon.\u201d You are giving different estimates reflecting different situations for the same activity. Using PERT analysis, the estimates go from \u201cguesses\u201d to mathematically verified estimates. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"pros-and-cons\">Pros and Cons of Three-Point Estimating using PERT<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.wrike.com\/project-management-guide\/faq\/what-is-pert-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">Program Evaluation Review Technique (PERT)<\/a> is a project management planning tool used to calculate the amount of time it will take to realistically finish a project. PERT charts are used to plan tasks within a project \u2014 making it easier to schedule and coordinate team members. The Small Business Chronicle article <a href=\"https:\/\/smallbusiness.chron.com\/pros-cons-pert-charts-42359.html\" target=\"_blank\" rel=\"noreferrer noopener\"><em>What Are the Pros &amp; Cons of PERT Charts?<\/em><\/a> provides a breakdown of the advantages and disadvantages of the tool, summarized below:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"731\" height=\"215\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07123053\/image-2-1.png\" alt=\"pros and cons of three-point estimating pmp\" class=\"wp-image-2110\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07123053\/image-2-1.png 731w, https:\/\/e360-media.s3.amazonaws.com\/2021\/07\/07123053\/image-2-1-300x88.png 300w\" sizes=\"auto, (max-width: 731px) 100vw, 731px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"pmp-exam\">PERT and the PMP\u00ae Certification Exam<\/h2>\n\n\n\n<p>PERT analysis PMP exam questions may include the need to calculate estimates using the formula or interpretation of graphed or charted data. Elements within a question can indicate if Beta Distribution using PERT is the best tool, e.g., experts are available, and the project is similar to other projects. Overall, in studying PERT PMP exam questions, be prepared to use the formula, do a basic analysis of a PERT estimate, and know when PERT is most effectively used.<\/p>\n\n\n\n<h2 class=\"has-text-align-left wp-block-heading\" id=\"example-exam-questions\">Example PERT PMP\u00ae Exam Questions<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#e7f5fe\"><tbody><tr><td><strong>Question<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>A<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>B<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>C<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>D<\/strong><\/td><\/tr><tr><td>You are a project manager working on a life sciences project. You are reviewing previous projects that are similar to get some estimating ideas. Additionally, you have met with vendors to get a sense of how long some activities may take if you decide to outsource. You are working on preparing your activity duration estimates and are meeting with the relevant experts to determine how long each activity should take. You know you will use PERT analysis to derive your figures. What indicators should you be gathering so that you can utilize PERT?<\/td><td class=\"has-text-align-center\" data-align=\"center\">Triangular estimates<\/td><td class=\"has-text-align-center\" data-align=\"center\">Pessimistic, Optimistic, and Most likely estimates<\/td><td class=\"has-text-align-center\" data-align=\"center\">Best and Worst case estimations<\/td><td class=\"has-text-align-center\" data-align=\"center\">Standard deviation<\/td><\/tr><tr><td>You are developing your project schedule and have decided to use the PERT method to determine project duration. The estimates you&#8217;ve gathered so far include the following: Most likely is 200 hours, optimistic is 180 hours, and pessimistic is 220 hours. Which of the following is the correct PERT estimate (beta distribution)?<\/td><td class=\"has-text-align-center\" data-align=\"center\">190<\/td><td class=\"has-text-align-center\" data-align=\"center\">226<\/td><td class=\"has-text-align-center\" data-align=\"center\">200<\/td><td class=\"has-text-align-center\" data-align=\"center\">210<\/td><\/tr><\/tbody><\/table><figcaption><strong>Answers at bottom of page<\/strong><\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-group is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center has-medium-font-size\"><strong>Studying for the PMP Exam?<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 is-style-fill\"><a class=\"wp-block-button__link has-white-color has-text-color has-background\" href=\"https:\/\/projectmanagementacademy.net\/free-pmp-questions?cat=pmp-formulas\" style=\"border-radius:20px;background-color:#366194\" target=\"_blank\" rel=\"noreferrer noopener\">Practice Questions for PMP Formulas<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion &#8211; Three Point Estimating<\/h2>\n\n\n\n<p>The Program Analysis Review Technique, or as some refer to it, the \u201cPERT Analysis PMP,\u201d has remained a project manager mainstay because of the power to provide duration and cost estimates in situations with limited data. The time and resources needed to conduct a PERT analysis in the planning stages can be prohibitive but balanced out by the benefit of accurate estimates for <a href=\"https:\/\/www.lucidchart.com\/blog\/advantages-of-pert-charts-vs-gantt-charts\" target=\"_blank\" rel=\"noreferrer noopener\">the minimum needed to complete a project<\/a>. Leveraging the three-point estimate technique, the PERT tool is a proven and practical estimating tool for communicating the activity needs and work of a project.<\/p>\n\n\n\n<p><strong>Answers to Sample Questions<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>B.<\/strong> PERT uses Pessimistic, Optimistic and Most Likely estimates as its inputs. The traditional (beta) PERT formula is (Pessimistic + 4x Most Likely + Optimistic) \/ 6.<\/li><li><strong>C.<\/strong> PERT&#8217;s expected value calculation, using the traditional Beta distribution, is as follows: [optimistic + pessimistic + (4 x most likely)] \/ 6. The calculation for this question looks like this: [180 + 220 + (4 X 200)] \/ 6 = 200.<\/li><\/ol>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p style=\"font-size:25px\"><strong>Upcoming PMP Certification Training &#8211; Live &amp; Online Classes<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><table class=\"table table-striped table-bordered table-responsive-sm font-md mt-5 mb-0 d-none d-md-table\"><tr><td>Name<\/td><td>Date<\/td><td>Place<\/td><td><\/td><\/tr><\/table>\n<\/div><\/div>\n\n\n\n<p><\/p>\n<\/div><\/div>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Program Evaluation and Review Technique (PERT) is used to find the estimated time for activities to be completed when there are many unknown factors. With origins in the US Navy, PERT has been in use for over 60 years, speaking to the value it brings to project managers. The Project Management Institute (PMI)\u2019s Project [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2318,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[35],"tags":[39],"class_list":["post-2067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pmp-formulas","tag-estimating-techniques"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - 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