Introduction to Cost Estimation

using @RISK ?

Presented by:
Michelle Jackson
mjackson@palisade.com
607-277-8000 ext. 317
Palisade Corporation Palisade Latinoamérica Technical Support
sales@palisade.com ventas@palisade.com support@palisade.com
800 432 7475 US/Canada 800 432 7475 x318 E.E.U.U. +1 607 277 8000
+1 607 277 8000 +1 607 277 8000 x318
www.palisade.com +54 (11) 5252-8795 Argentina
+56 2581-3492 Chile
Palisade Asia-Pacific +507 836-5675 Panamá
salesAP@palisade.com +52 55 5350 2852 México
1 800 177 101 Australia +51 1 708-6781 Perú
+61 2 9252 5922 +57 1 508-5187 Colombia
www.palisade.com www.palisade-lta.com

Palisade EMEA and India Palisade Brasil

salesEMEA@palisade.com vendas@palisade.com
0800 783 5398 UK +55 (21) 3958 1443
0800 90 80 32 France +1 607 277 8000 x318 tel
0800 181 7449 Germany 800 432 7475 x318 E.U.A.
900 93 89 16 Spain www.palisade-br.com
+44 1895 425050
www.palisade.com
Leading Risk and Decision
Analysis Add-In for Excel
 @RISK helps you discover not only
what could happen but also quantifies
how likely something is to happen.
 What
is the probability we will finish within
budget?
 Howmuch contingency should we have to
be 80% confident that we will have enough
money?
 Where should we focus our mitigation
techniques to help minimize cost?

DO THESE SOUND FAMILIAR?

 Basic Example
 Total Cost
 Contingency

 Various Input Distributions

 Integrating Correlation
 Stress Analysis
 Risk Registers
 Cost Estimations in Project Management

OBJECTIVES
“There are known knowns. These are things
we know that we know. There are known
unknowns. That is to say, there are things that
we know we don't know. But there are also
unknown unknowns. There are things we
don't know we don't know.”

DONALD RUMSFELD QUOTE

 Explore Model Logic
 Designate Inputs
 Designate Outputs
 Simulate
 Analyze Results
 Communicate

6 STEPS
Correlation occurs when two or more input
distributions are related.
The correlation coefficient is a statistic that
measures the degree to which two variables
move in a linear relation to each other. The
correlation coefficient is represented by a value
between -1 and 1.

CORRELATION
PERFECT POSITIVE CORRELATION (+1)
PERFECT POSITIVE CORRELATION (+1)
PERFECT NEGATIVE CORRELATION (-1)
ZERO CORRELATION (0)
Palisade Corporation Palisade Latinoamérica Technical Support
sales@palisade.com ventas@palisade.com support@palisade.com
800 432 7475 US/Canada 800 432 7475 x318 E.E.U.U. +1 607 277 8000
+1 607 277 8000 +1 607 277 8000 x318
www.palisade.com +54 (11) 5252-8795 Argentina
+56 2581-3492 Chile
Palisade Asia-Pacific +507 836-5675 Panamá
salesAP@palisade.com +52 55 5350 2852 México
1 800 177 101 Australia +51 1 708-6781 Perú
+61 2 9252 5922 +57 1 508-5187 Colombia
www.palisade.com www.palisade-lta.com

Palisade EMEA and India Palisade Brasil

salesEMEA@palisade.com vendas@palisade.com
0800 783 5398 UK +55 (21) 3958 1443
0800 90 80 32 France +1 607 277 8000 x318 tel
0800 181 7449 Germany 800 432 7475 x318 E.U.A.
900 93 89 16 Spain www.palisade-br.com
+44 1895 425050
www.palisade.com
Introduction to Cost Estimation
using @RISK ?

Presented by:
Michelle Jackson
mjackson@palisade.com
607-277-8000 ext. 317