WHITEPAPER

The Economics of Testing

"How Much Testing Do We Need?"

Most testing strategies fail the same way: too much coverage in the wrong places, too little where it actually matters.

The question "how much testing do we need?" sounds reasonable but it isn't. It assumes testing is a quantity problem.

It's not. It's an investment problem.

This white paper lays out a four-step process for making testing decisions based on economics.

Start from the risks that actually threaten your product, size their potential impact, and build a testing portfolio that targets the highest-exposure risks first, then review and rebalance it over time.

What's Inside:

  • Why "how much?" is the wrong question and what to ask instead
  • The Cost of Quality reframe that turns testing into a cost-cutting conversation
  • A step-by-step process: from stakeholder fears → explicit risk statements → prioritized exposure scores → testing decisions
  • The evidence ladder: how to select the cheapest credible control for each risk
  • How to review and rebalance your portfolio using leading and lagging indicators
  • A worked CoQ comparison showing the real cost of absorbing failures vs. catching them earlier


Written for QA leads, test managers, and engineering managers who need to justify their testing strategy with more than "we need more coverage."

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