Software project cost estimation is a key point for enterprises to make reasonable project quotations. However, most software cost estimation methods have limited features, such as requiring higher data volume or only having lower estimation accuracy. Aiming to resolve these problems, a novel algorithm for software development cost estimation based on fuzzy rough set was presented. First, the influencing factors of software development cost were analyzed. The objective weight of each influencing factor was obtained from the data analysis of completed projects by using rough set theory. Second, the comprehensive weight of each influencing factor was recalculated by combining the results of the first step with the subjective weight of the factors given by the experts. Combining the comprehensive weight with fuzzy theory, fuzzy similarities were calculated. Third, according to fuzzy similarity, several items that were most similar to the current project were selected as the samples from the completed projects. Then, the software development cost was estimated based on the cost data of samples from the completed project. Finally, this new algorithm was verified to be effective. The result showed that the maximum and average deviations of the fuzzy rough set algorithm were less than 10%, and the estimated maximum and average deviations of the fuzzy rough set algorithm were less than that of the fuzzy analogy algorithm. Thus, the algorithm could estimate the software cost accurately.
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