A Quantitative Approach for Selecting a Software Cost Estimation Method

Abstract

Cost estimation is crucial to a project’s success. Realizing its importance, many companies are aware
that, selecting the appropriate cost estimation method is vital to guarantee an accurate estimation. This
paper was intended to investigate the existing approach used in cost estimation in a communication
company and to select the most suitable cost estimation methods to improve their current practices.
The cost estimation methods practiced were limited to analogy based and expert judgment only. On
top of that, no guideline for performing cost estimation is available. A quantitative approach was
conducted using questionnaire to gather information on the current cost estimation practices. The
approach also investigated the respondents’ knowledge and awareness about existing cost estimation
methods. Analysis from this study will be used to determine the nature of the work and how the
projects are managed in the company. Results obtained is hoped to be able to help to improve the
current cost estimation practices.