Glossary - 'T'

• Three point estimate An estimate that uses optimistic, most likely, and pessimistic values to determine the cost or duration of a project component.
• Time value of money An economic model to predict what the future fiscal value may be, given the current fiscal value. The time value of money can also reverse-engineer what predicted monies are worth in today’s value.
• Time-and-materials (T&M) contract A contract type where the seller charges the buyer for both the time and the materials for the work completed. T&M contracts should have a not-to-exceed clause (NTE) in order to contain costs.
• Total slack The total time an activity can be delayed without delaying the project’s completion.
• Top-down estimating A technique that bases the current project’s estimate on the total of a similar project. A percentage of the similar project’s total cost may be added to–or subtracted from–the total, depending on the size of the current project.
• Transference A response to risks in which the responsibility and ownership of the risk is transferred to another party (for example, through insurance).
• Trend analysis Trend analysis is taking past results to predict future performance.
• Triggers Warning signs or symptoms that a risk has occurred or is about to occur (for example, a vendor failed to complete its portion of the project as scheduled).

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References:

• PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam by Rita Mulcahy.
  
• PMP Project Management Professional Study Guide, Second Edition by Joseph Phillips.
  
• PMP: Project Management Professional Study Guide, 3rd Edition by Kim Heldman.