Question

In project estimation we need to calculate for example  PRED(0.20) . how to find this value PRED(0.20) = 0.80 ?

Answer 1

Solution:

In project estimation we estimate Predictive Performance of Models.

The criterion used to evaluate the predictive quality of an estimation model was PRED (l) = k/n, where k is the number of projects in a specific sample of size n for which MRE <= l.

PRED (0.20) = 0.80 means 80% of the samples should have MRE values less than or equal to 0.20. While an MRE error level in 80% of the population less than 0.20 is the expectation of this criterion, multi-organiza- tional data such as in ISBSG data exhibit large MRE for 80% of the population.