Test Program Design
The assumptions need to be tested. Sometimes good market research is enough, other times a working prototype needs to be developed. The order in which the assumptions are tested is critical in terms of the money spent on testing. One of the major focuses of the CAP method is to maximize the learning per unit expenditure on testing.
In order to determine the best testing option the test Effectiveness ratio (e) is calculated for one or more assumptions based on the estimated Costs (C), Time spend on testing (T) and the estimated reduction (R) between the NPV values of the assumptions (P as a percentage of the NPV range). Using these parameters, the effectiveness ratio (e) is calculated:
Once the best testing option is chosen from the different test effectiveness values, the organisation can finish the planning of the test.
Read more about this topic: Critical Assumption Planning
Famous quotes containing the words test, program and/or design:
“The first reading of a Will, where a person dies worth anything considerable, generally affords a true test of the relations’ love to the deceased.”
—Samuel Richardson (1689–1761)
“[T]he asphaltum contains an exactly requisite amount of sulphides for production of rubber tires. This brown material also contains “ichthyol,” a medicinal preparation used externally, in Webster’s clarifying phrase, “as an alterant and discutient.””
—State of Utah, U.S. public relief program (1935-1943)
“Humility is often only the putting on of a submissiveness by which men hope to bring other people to submit to them; it is a more calculated sort of pride, which debases itself with a design of being exalted; and though this vice transform itself into a thousand several shapes, yet the disguise is never more effectual nor more capable of deceiving the world than when concealed under a form of humility.”
—François, Duc De La Rochefoucauld (1613–1680)