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Answer Posted / mukesh singh
Severity is from Business perspective and Priority is from Testing perspective.
SEVERITY of a Business Scenario is decided at the beginning of the project. If one business Scenario is very important for the client, any defect in that scenario would be assigned the severity 1 even if this defect's priority is very low(i.e. not blocking any thing).
PRIORITY is decided based upon how the defect is impacting our testing. If a defect is blocking our entire testing its priority would be 1 even if its severity might be 3(i.e. not an important scenario).
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