Probabilistic Estimate (Risk)
Probabilistic Estimate (Risk) : The probabilistic (risk weighted) approach of estimating recognizes that, in the real world, there are uncertainties associated with each project component. As such, for each component, there exists probabilities of occurrence within a range of possible values. Likewise, for the total project estimate (Being an accumulation of individual components defined by a mathematical mode), there exist probabilities of occurrence within a range of possible values. An estimate using a range of numbers with associated probabilities of occurrence for each of the components or, at least, for each of the components that have substantive certainty
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