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Question:

Using a triangular distribution formula, calculate the cost estimate based on the following three-point estimates, respectively: Optimistic = $2,500, Most Likely = $3,500, Pessimistic = $7,200.

A $4,400
Explaination

The triangular distribution formula using the three-point estimating technique is (Optimistic + Most Likely + Pessimistic) ÷ 3. Plugging in the values provided yields the following: ($2,500 + $3,500 + $7,200) ÷ 3 = $4,400.