Which tool uses an algorithm based on historical data to calculate cost?

The correct answer is D. Analogous estimating. Note: There is a discrepancy in this question. The description 'uses an algorithm based on historical data to calculate cost' is the textbook definition of parametric estimating (A), not analogous estimating (D). Parametric estimating applies statistical algorithms to…

Predictive, Plan-Based Methodologies

Question

Which tool uses an algorithm based on historical data to calculate cost?

Options

AParametric estimating
BRelative estimating
CThree-point estimating
DAnalogous estimating

How the community answered

(42 responses)

B
2% (1)
C
5% (2)
D
93% (39)

Explanation

Note: There is a discrepancy in this question. The description 'uses an algorithm based on historical data to calculate cost' is the textbook definition of parametric estimating (A), not analogous estimating (D). Parametric estimating applies statistical algorithms to historical data variables (e.g., cost per unit × number of units) to produce estimates. Analogous estimating (D) uses actual costs from a previous similar project as a basis for the current estimate-it relies on historical data but does not apply a formal algorithm; it is a rougher, expert-judgment-based technique. Three-point estimating (C) uses optimistic, pessimistic, and most likely values. Relative estimating (B) compares work items to each other. If this question is from an exam, the intended answer may be D based on the source material, but by standard PMI definitions, parametric estimating (A) is the better match for the description given.

Topics

#Cost Estimation#Analogous Estimating#Project Estimating#Historical Data

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