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In this paper, we study the impact of software testing effort & efficiency on the modeling of software reliability, including the cost for optimal release time. This paper presents two important issues in software reliability modeling & software reliability economics: testing effort, and efficiency. First, we propose a generalized logistic testing-effort function that enjoys the advantage of relating work profile more directly to the natural flow of software development, and can be used to describe the possible testing-effort patterns. Furthermore, we incorporate the generalized logistic testing-effort function into software reliability modeling, and evaluate its fault-prediction capability through several numerical experiments based on real data. Secondly, we address the effects of new testing techniques or tools for increasing the efficiency of software testing. Based on the proposed software reliability model, we present a software cost model to reflect the effectiveness of introducing new technologies. Numerical examples & related data analyzes are presented in detail. From the experimental results, we obtain a software economic policy which provides a comprehensive analysis of software based on cost & test efficiency. Moreover, the policy can also help project managers determine when to stop testing for market release at the right time.