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:
“Our decision about energy will test the character of the American people and the ability of the President and the Congress to govern this nation. This difficult effort will be the “moral equivalent of war,” except that we will be uniting our efforts to build and not to destroy.”
—Jimmy Carter (James Earl Carter, Jr.)
“In time the scouring of wind and rain will wear down the ranges and plane off the region until it has the drab monotony of the older deserts. In the meantime—a two-million-year meantime—travelers may enjoy the cruel beauties of a desert in its youth,....”
—For the State of California, U.S. public relief program (1935-1943)
“Delay always breeds danger; and to protract a great design is often to ruin it.”
—Miguel De Cervantes (1547–1616)