Based on a previous project that has been completed, a project manager decides the best way to estimate costs is through historical data. What kind of estimating is this?

The correct answer is D. Analogous. Analogous estimating (also called top-down estimating) uses actual costs, durations, or other parameters from a previous, similar project as the basis for estimating the current project. It is faster and less expensive than detailed estimating methods but is generally less…

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Question

Based on a previous project that has been completed, a project manager decides the best way to estimate costs is through historical data. What kind of estimating is this?

Options

ABottom-up
BThree-point
CParametric
DAnalogous

How the community answered

(24 responses)

A
4% (1)
C
4% (1)
D
92% (22)

Explanation

Analogous estimating (also called top-down estimating) uses actual costs, durations, or other parameters from a previous, similar project as the basis for estimating the current project. It is faster and less expensive than detailed estimating methods but is generally less accurate. Bottom-up estimating builds estimates from individual work package details. Parametric estimating uses statistical relationships between historical data and project variables (e.g., cost per unit). Three-point estimating calculates a weighted average using optimistic, most likely, and pessimistic values. Using a completed project's historical data as the foundation is the hallmark of analogous estimating.

Topics

#Cost Estimating#Analogous Estimating#Estimating Techniques#Project Cost Management

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