The estimated cost for the data disposition project is $25 million. The total investment cost for each phase:

 

• Phase 1 - 32.9%

 

• Phase 2 – 55.6%

 

• Phase 3 – 11.5%

 

No	Project		Cost in Millions $		Total
		Phase 1	Phase 2	Phase 3
1	Defining your data and data structure	1.2	2.3	0	3.5
2	Understand how data is used	1.5	.8	.2	2.5
3	Identify data interdependencies	.8	2	.2	3
4	Link data to data holds and retention schedule	.7	1.3	.5	2.5
5	Design approaches to de-identify and dispose of data	2.7	5	.3	8
6	Develop data disposition initiatives and implement them	.5	1.5	1	3
7	Establish a road map to implement initiatives	.825	1	.675	2.5
		8.225	13.9	2.875	25

 

Assuming that the total cost provided were the normal cost. The optimistic cost were under-estimated by 30%, and the pessimistic cost exceeded the normal cost by 20%. Prepare a budget using an appropriate estimation technique and justify your choice. Explain to the directors how your team will handle inaccurate estimation issues.