Impact of Uncertainty Factors in Cost Estimation ? Substantiation through Normal Distribution Curve

Software project development process is requiring accurate software cost and schedule estimation for achieve goal or success. Software estimation is essential in software engineering. Accurate software cost estimation is essential for software project success. Uncertainty refers to the lack of certainty and knowledge while predictability means the ability to forecast something that will happen in the future. For a cost estimator, being predictable does not mean forecasting the exact cost of the project, but rather achieving a final cost that is within the accuracy level that is defined by the class estimate for each stage of the project. Each project will have a different capacity for uncertainty. This is a measure of how much uncertainty the project can tolerate. Software organisations should identify their process strengths and weaknesses, improvement areas, potential risks and opportunities. Project managers can use different techniques and tools that are useful to manage projects efficiently. It is important to have a good cost estimate in order to budget a new project. Unfortunately, software effort estimation methods are often inaccurate. Handling uncertainty is essential for the success of software development projects. This paper discusses about the importance of uncertainty factors involved in project, and the influence of thus in cost estimation it presents the feedback of Team leaders, System Analyst and Senior Software Engineer.