question on ROM estimate
Submitted by vijayavadrevu on Tue, 04/23/2013 - 11:17
You are working for FALCON highway construction agency as a project cost estimator. The agency started a highway construction project which is in it's planning phase. The rough order of magnitude (ROM) cost estimate for the project is expected to be between 3 and 5 million dollars in the planning phase with a ROM of −25% to +25%. What will be the ROM estimate in the execution phase if it changes to −10% to +10%?
A. Between 3.1 and 4.1 million dollars
B. Between 3.6 and 4.4 million dollars
C. Between 3.9 and 4.1 million dollars
D. Between 3.4 and 4.4 million dollars
Answer is given as B. Can someone explain please?
Forums:
bkthakkar
Tue, 04/23/2013 - 11:39
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mean of estimate is (3+5)/2 =
mean of estimate is (3+5)/2 = 4 Mn
In Planning phase, estimates are prepared to the realistic mode upto the accuracy level of + or - 10%
Therefore, range of estimates will be 4-10% of 4 and 4 + 10% = 3.6 to 4.4 Mn
The answer is B
Trust this is clarified
Bhavesh
vijayavadrevu
Tue, 04/23/2013 - 11:44
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Thank You Bhavesh
Thank You Bhavesh
sspawar
Tue, 04/23/2013 - 11:43
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it is simple mathematics3 =
it is simple mathematics
3 = X - 0.25X
=> X = 4
LIKE
5 = X + 0.25X
=.> X = 4
Now for +/- 10% of 4 , values will be
4 - 0.10*4 = 3.6
and
4 + 0.10*4 = 4.4
vijayavadrevu
Tue, 04/23/2013 - 11:45
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Thank You Pawar sir
Thank You Pawar sir