What is Three-point estimation?

Three-point estimation is a technique used in project management to estimate the time or cost of a task. It's very similar to the PERT method. The three points in three-point estimation are the same:

• Optimistic Estimate (O): The best-case scenario where everything goes perfectly.
• Pessimistic Estimate (P): The worst-case scenario where everything that could go wrong does.
• Most Likely Estimate (M): The most realistic plan, considering any likely problems.

The difference is that in basic three-point estimation, you take the average of these three estimates to get your final calculation. The formula is:

Average Estimate = (O + M + P) / 3

However, in PERT (which is a type of three-point estimation), the most likely estimate is given more weight. This is because, well, it's the most likely!

So, in a nutshell, three-point estimation is a way to make more accurate estimates by considering the best, worst, and most likely scenarios.