Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

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Prepare for the SSGI Project Management Professional Certification Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready for your certification journey!

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What formula is used to determine a three-point estimate?

(Optimistic + Realistic + Pessimistic)/3
(Pessimistic + 4*Realistic + Optimistic)/6
(Realistic + 2*Optimistic + Pessimistic)/4
(Optimistic + Pessimistic)/2

The correct answer is: (Pessimistic + 4*Realistic + Optimistic)/6

The three-point estimate method is a crucial component of project management that helps in assessing uncertainty and variability in estimates. The correct formula used for a three-point estimate is the one that incorporates the optimistic, realistic, and pessimistic estimates in a weighted manner. The formula employs the concept that the realistic estimate is the most likely scenario, while the optimistic and pessimistic estimates provide the bounds of variability. By using the formula (Pessimistic + 4*Realistic + Optimistic)/6, the realistic estimate is given greater weight compared to the optimistic and pessimistic estimates, reflecting its status as the most probable outcome and providing a more balanced and practical approach to estimation. This not only helps project managers in making more informed decisions but also minimizes bias in estimation by taking into account different perspectives of uncertainty.