BS SWE IV Morning & Evening

Software Engineering Economics

Assignment

Name – Amaanullah Khan

Roll No. 2k19/SWE/16
Subject – Software Engineering Economics
Submitted to – Dr. Imran Ujjan
Q1. Calculate the overall MRE of the following project and Give your 75%, 80% and 84% confident
estimate after calculating the standard deviation from the standard deviation table.

Features Best Case Worst Case Expected Case Actual MRE

Outcome

Feature 1 1.25 3 1.54 2 23%

Feature 2 1.5 2.3 1.83 2.5 27%

Feature 3 2 2.5 2.33 1.25 87%

Feature 4 1.75 2 1.13 1.5 25%

Feature 5 0.5 1.25 0.79 1 21%

Feature 6 1.25 0.5 0.46 0.5 8%

Feature 7 2.5 2.5 2.0 3 33%

Feature 8 1 1.5 1.25 1.5 17%

Feature 9 2.5 2 0.75 1 25%

Feature 10 1.25 2 1.54 2 23%

Overall 15.5 19.5 13.6 16.2 289%

Average 29%

Overall MRE = 289%

Standard deviation = (Sum of worst case – Sum of best case) / 6

Standard deviation = (19.5 – 15.5) / 6

Standard deviation = 35 / 6

Standard deviation = 5.8

 75% confident = Expected case + (0.67 x Standard deviation)

75% confident = 13.6 + (0.67 x 5.8)

75% confident = 17.5 or 17 weeks Ans

80% confident = Expected case + (0.84 x Standard deviation)

80% confident = 13.6 + (0.84 x 5.8)

80% confident = 18.5 or 18 weeks Ans

84% confident = Expected case + (1 x Standard deviation)

84% confident = 13.6 + (1 x 5.8)

84% confident = 19.4 or 19 weeks Ans

Q2. Explain the concept of diseconomies of scale, in software development why is it opposite of
economies of scale?

Ans. Diseconomies of scale happen when a company or business grows so large that the costs
per unit increase. It takes place when economies of scale no longer function for a firm. it is
opposite of economies of scale that occurs when production costs decline as a company produces
more units.

Q3. Discuss subjectivity and bias in estimation giving at-least one example.

Ans- subjectivity is concerned, when considering different estimation techniques our natural
tendency is to believe that the more "control knobs" we have on an estimate that is, the more
places there are to tweak the estimate to match our specific project the more accurate the
estimate will be. bias is concerned, the response of customers and managers when they discover
that the estimate does not align with the business target is sometimes to apply more pressure to
the estimate, to the project, and to the project team.

Example of variations in estimates when numerous adjustment factors are present. The more
adjustment factors an estimation method provides, the more opportunity there is for subjectivity
to creep into the estimate

Q4. “Product quality can directly be affected by cost, time & schedule”, state your views in reference to
above statement.

Ans. Better production quality increases the maximum potential price and decreases unit
production costs. Companies with high defect rates have to reduce the price of their
 products to compensate the customers and definitely it requires more time to achieve the desired
quality.

Q5. How expert judgment and historical data can improve accuracy in estimating the project, justify
your answer giving examples.

Ans. Expert judgment can help when forming strategies around threat and risk response. It can
also identify project opportunities. Expert Judgment is one of the best accepted approaches and
most useful too during the planning phases of many activities. At early stages, any number of
biases can influence the judgment.