A rough estimate is based on readily available data and experience, while an assumption relies on subjective understandings. A ballpark estimate is a rough estimate that serves as a guide for decision-making. It takes into account enough information to make a reasonable guess about the final result. It is not considered binding and serves only as a guide until a more precise result can be determined.
A rough estimate is a term used to identify an approximation of a result that is based on information that is readily available to the person or group making the estimate. Unlike an assumption, a rough estimate takes into account data that can be verified relatively easily and uses experience to make rational projections based on that data, arriving at a reasonable answer in light of all known factors. Conversely, an assumption tends to rely more on subjective understandings and less on verifiable data.
The fanciful name for stadium estimation comes from the allusion to many types of sports that are played in a stadium. The concept has to do with arriving at an estimate that, like the ball that is hit with a bat and lands somewhere within the contained area of the park, is within a reasonable distance of the goal. While not considered an actual appointment or pact, the estimate serves as a guide in determining whether to go ahead with a project or abandon it in favor of some other activity.
With a ballpark estimate, the data available for analysis and consideration in forming the estimate provide the essential range of values necessary to arrive at a reasonable answer. Within the scope of that estimate, it is understood that if other relevant information appears during the project, the result could be modified in some way. For example, an auto insurance agent may present a rough estimate to a potential customer, based on known details about the customer. If the agent later finds out that the client has several tickets in the past few years and an accident or two that were not reported at the time the estimate was requested, this will have an impact on the final premium the agent extends to that client. .
While a rough estimate isn’t the final word, it will take into account enough information to make a reasonable guess about the final result. In actual practice, such an estimate may be very close to the result, especially if no previously unknown factors arise that have a real relationship to the result. At other times, the appearance of a significant amount of information that was not previously taken into account can render the estimate more or less useless. Generally, a rough estimate is not considered binding and serves only as a guide until it is possible to determine the result more precisely.
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