Exploratory Testing is a type of software testing where Test cases are not created in advance but testers check the system on the fly. They may note down ideas about what to test before test execution. The focus of exploratory testing is more on testing as a "thinking" activity.
Exploratory Testing is widely used in Agile models and is all about discovery, investigation, and learning. It emphasizes the personal freedom and responsibility of the individual tester.
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Is not random testing but it is ad-hoc testing with a purpose of find bugs
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Is structured and rigorous
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Is cognitively (thinking) structured as compared to the procedural structure of scripted testing. This structure comes from Charter, timeboxing etc.
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Is highly teachable and manageable
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It is not a technique but it is an approach. What actions you perform next is governed by what you are doing currently
Exploratory testing can be used extensively when:
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The testing team has experienced testers
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Early iteration is required
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There is a critical application
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New testers entered into the team
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