The decision about when to release a software product commercially is not a
question of when the software has attained some objectively justifiable de
gree of correctness. It is, rather, a question of whether the software achi
eves a reasonable balance among engineering objectives, market demand, cust
omer requirements, and marketing directives of the software organization. I
n this paper, we present a rigorous framework for addressing this important
decision. Conjugate distributions from statistical decision theory provide
an attractive means of modeling the cost and rate of bugs given informatio
n acquired during software testing, as well as prior information provided b
y software engineers about the fidelity of the software before testing begi
ns. In contrast to methods such as [1] and [15], the stopping analysis pres
ented here yields a computationally simple rule for deciding when to releas
e a commercial software product based on information revealed to engineers
during software testing-complicated numerical procedures are not needed. Ou
r method has the added benefits that it is sequential: It measures explicit
ly the costs of customer dissatisfaction associated with bugs as well as th
e costs of declining market position while the testing process continues; a
nd it incorporates a practical framework for cost-criticality assessment th
at makes sense to professional software developers. A probabilistic model o
f catastrophic bugs provides another useful way of characterizing and measu
ring the software's expected performance after commercial release. Taken to
gether, these tools provide a software organization with a clearer basis fo
r making decisions about when to release a commercial software product.