A project leader is forecasting how much money his department needs to support a new project. He estimates that two people and $25,000 in expenses will cover his needs. Because management typically insists on reducing forecasts by 20 percent, he increases his estimates to allow for that reduction. Which of the following factors is illustrated in this situation?
A) Padding estimates
B) Planning horizon
C) Project structure
D) People
E) Organization culture

Question

Quizplus · Accepted Answer

The project leader is intentionally inflating his estimates to counteract the expected reduction by management, which is an example of "padding estimates."

A Project Leader Is Forecasting How Much Money His Department