I agree that if the numbers given in the example were trustworthy, then it would be a good example. The part that confused me was that there would be no incentive to start the project unless the original estimate of the cost was significantly less than $7000. It seems reasonable to expect that the next $4000 you spend will have a similar effect on your expected cost to finish. If you perpetually think “Just another $5000 and I will be done”, then you are no better off than if you think “I already spent so much, I can’t just quit now.”
The more money that is sunk into it, the stronger the evidence that you are bad at estimating the cost. I assume that this evidence is implied to be included in the new cost estimate, but I think a general audience would not immediately notice this.
I think you broke the example. The point as I see it that the surrounding conditions can change. Availability of coders, legal situation. Needed items from external sources etc.
It should be made more clear.
I agree that if the numbers given in the example were trustworthy, then it would be a good example. The part that confused me was that there would be no incentive to start the project unless the original estimate of the cost was significantly less than $7000. It seems reasonable to expect that the next $4000 you spend will have a similar effect on your expected cost to finish. If you perpetually think “Just another $5000 and I will be done”, then you are no better off than if you think “I already spent so much, I can’t just quit now.”
The more money that is sunk into it, the stronger the evidence that you are bad at estimating the cost. I assume that this evidence is implied to be included in the new cost estimate, but I think a general audience would not immediately notice this.
I think you broke the example. The point as I see it that the surrounding conditions can change. Availability of coders, legal situation. Needed items from external sources etc. It should be made more clear.