Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing?
A. Padding estimates
B. Planning horizon
C. Project structure
D. People
E. Organization culture

B. Planning Horizon

Explanation:

Planning horizon is the time period estimated for a project when preparing a strategic plan. It is the time frame that is required for a specific amount of work that is scheduled based on requirements and resource availability. In this case, Ed notices that the project took 6 or more months to complete. Therefore they were very off in their planning horizon as the estimated time frame giving the project requirements and resource availability was 6 or more months off.

answer; normative economics;