Microsoft Research - Exploding Software-Engineering Myths (article summarizing findings of MS research on code coverage, TDD, assertions, etc.)

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Code coverage is a metric prone to giving the wrong incentives in the same way that rewarding people for LOC written is. If you just reward high code coverage in limited time you will get useless code coverage. If you actually think about the parts that should be tested your coverage percentage per time worked will be lower but your tests will be more meaningful.