Question

When asked to provide an estimate of an irrigation system, Pete looked from one end of the field to the other, licked a finger and held it in the air, squinted into the sun and said $25,000, give or take 30%. The technique employed for cost estimation is:

Answer 1

Answer: ballpark estimate

Explanation:

Ballpark estimate is rough estimate which is approximate and not actual value. This estimate is done based on the degree of knowledge and confidence levels that the estimated value falls under the range of reasonable price. This method can also be termed as rough order of magnitude.

Here Pete is an expert who has the skill to estimate the value of the irrigation system by seeing its length. He has given an approximate cost estimation for the irrigation system as $25000 which can be called as ballpark estimate.