Calculating Percent Error in Estimates

$42,000

$43,900

$41,500

$44,000

$41,500

$44,000

$43,900

$42,000

The accuracy of an estimate compared to the actual value

The time taken to complete a project

The difference between two estimates

The total cost of a project

(Actual Value - Estimated Value) / Actual Value

(Estimated Value - Actual Value) / Actual Value

(Estimated Value - Actual Value) / Estimated Value

(Estimated Value + Actual Value) / Actual Value

To ensure the result is always positive

To avoid division by zero

To simplify the calculation

To make the result a whole number

Divide the estimated value by the actual value

Subtract the actual value from the estimated value

Add the values

Multiply by 100

$1,950

$1,890

$2,000

$1,800

Divide by 100

Subtract 100

Multiply by 100

Add 100

0.075

0.065

0.055

0.045

5.5%

6.5%

4.5%

3.5%