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# TOPIC: Rough Order of Magnitude - Estimate Costs

## Rough Order of Magnitude - Estimate Costs 11 years 10 months ago #2927

 Rachu Topic Author Offline Junior Boarder Posts: 26 Karma: 1 Thank you received: 4 Hi All, According to PMBOK, the Rough Order of Magnitude (ROM) range is -50% to +50% but I read in one another book that ROM range is -25% to +75%. Any comments? Thanks, Rachu. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 11 years 10 months ago #2939

 Rachu Topic Author Offline Junior Boarder Posts: 26 Karma: 1 Thank you received: 4 Thank you Cornelius, this explanation and estimate ranges will surely help. Thanks again for the detailed article. Regards, R. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 11 years 8 months ago #2991

 Edward Wada Offline Junior Boarder Posts: 25 Thank you received: 1 1. "For instance you have to be able to say that an estimate that has a range from \$75,000 - \$175,000 with a target price of \$100,000 is an Order of Magnitude estimate." Can someone explain the math on above, since wouldn't 100,000 +/- 50% = \$50,000 - \$150,000? 2. "...you are also going to have to take actual estimate figures and determine what type of estimate we have" Can you please give other examples, how to determine and calculate? Thank you. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 11 years 8 months ago #2996

 Khurram Hussain Visitor Dear Edward: Good day! Don’t worry about the math when it comes to the Rough Order of Magnitude (ROM) estimate; they are rough estimates. The PMBOK 4ed says it’s about -50% to +50%. I was just checking the PMBOK 5ed draft edition and now it says it is about -25% to +75%. This doesn’t mean that one of the PMBOK guide is inaccurate. Both are correct. ROM is a concept, and does not have hardcoded percentages. Any estimate that is not accurate and that has a wide range between the optimistic estimate and the pessimistic estimate is a ROM estimate. Please let me know if this clears your confusion. Warm regards, Khurram Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 11 years 8 months ago #3000

 Edward Wada Offline Junior Boarder Posts: 25 Thank you received: 1 I am still confused at your response. One the commercial available sample questions, I was asked to pick from a range which was Rough Order of Magnitude, therefore can you clarify your answer further? Also give examples. That is what my original question is asking. Thank you. Can someone explain the math on above, since wouldn't 100,000 +/- 50% = \$50,000 - \$150,000? 2. "...you are also going to have to take actual estimate figures and determine what type of estimate we have" Can you please give other examples, how to determine and calculate? Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 10 years 1 week ago #4498

 sana Visitor hello , well its so easy to learn the range for these estimates but what kind of questions will be imposed? I came across a question, that mentions 3 point values and from it, they have found in which range of the estimate the value falls.. can you please tell as how to solve such questions or the sites that we should opt to get exam training. Thank you ! please email me of the site , i will be utterly thank ful This email address is being protected from spambots. You need JavaScript enabled to view it. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 10 years 1 week ago #4509

 Michael DeCicco Offline Expert Boarder Posts: 130 Karma: 12 Thank you received: 44 Sana, You are correct that memorizing the types of estimate ranges is easier than some other complicated formulas. I am not sure about the question you are talking about, but I think any question about estimate types will give you a clue about the answer. Perhaps the words in the question might say Top Down or Bottom Up. Perhaps it might say they project manager has to get an estimate very quickly. Other clues might indicate where you are in the project management process. If you are in initiating phase, then a rough order of magnitude would be the correct choice. As for additional training, if you are on this discussion, then you might know that PM Prepcast has an exam simulator for purchase. Another source of PMP training that really, in my opinion, makes learning easy is the Head First series. Yours Respectfully Michael DeCicco, PMP Community Moderator Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 9 years 5 months ago #5268

 Gilles Visitor PMBOK 5th edition page 201 ROM -25% to 75% this is confusing, I think that they changed their ROM between editions Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 9 years 2 months ago #5723

 Hasib Patel Visitor Can u help me, as in when these estimates are done(process group) as I am coming across question for the same ! Rough Order of Magnitude estimate = -50% to +50% - INITIATION Preliminary estimate = -15% to + 50% Budget estimate = -10% to +25% Definitive estimate = -5% to +10% Final estimate = 0% Thanks in Advance. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 8 years 1 month ago #7773

 BINOY Visitor PMBOK page 201 For example, a project in the initiation phase may have a rough order of magnitude (ROM) estimate in the range of −25% to +75%. Later in the project, as more information is known, definitive estimates could narrow the range of accuracy to -5% to +10%. In some organizations, there are guidelines for when such refinements can be made and the degree of confidence or accuracy that is expected. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 7 years 1 month ago #11040

 Anonymous Visitor BINOY's response is correct. It is based on the latest version of the PMBOK Guide. ROM = (-25% to +75%) Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Rough Order of Magnitude - Estimate Costs 5 years 7 months ago #16228

 Deborah Bowman Visitor Based on a practice exam from practicequiz.com the ROM show the estimate to be -50% to 50%. It was noted this question was recalled on the PMI exam. There may be some confusion with aspirants who need the knowledge base to understand what is definitively correct. I would recommend a in-dept online tutorial or seek professional education guidance on this question. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
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