Hi Cornelius,
I had subscribe to your daily newsletters and bought flash cards also. I had a query regarding yesterdays question. As Per PMBOK guide the rough order of magnitude lies between -50% to +50%, but as per your explanation it is -25% to +75%, can you please elabourate me why? Thanks J
Your customer has asked you for an order of magnitude estimate. You estimate that the project will be around $1000. What is your response to the customer?
A.) $1000
B.) $900 - $1250
C.) $760 - $1600
D.) $1000 - $2000
C.) is correct. An order of magnitude estimate should be between -25% to +75% of the estimated cost. C is closest to this guideline.