Which tool and technique uses a statistical relationship between historical data and other variables to calculate estimates?

Question

Options

• AAnalogous estimating
• BThree-point estimates
• CParametric estimating
• DBottom-up estimating

• A
  14% (3)
• B
  9% (2)
• C
  73% (16)
• D
  5% (1)

Explanation

Parametric estimating uses a statistical relationship between historical data and other variables (like cost per unit, hours per task) to calculate estimates - for example, multiplying known cost-per-square-foot by total square footage. This is the defining characteristic: it relies on a quantifiable, repeatable mathematical model derived from past data.

Analogous estimating (A) is wrong because it uses expert judgment and the overall cost or duration of a previous similar project as a basis - it's a rough, high-level comparison, not a statistical formula. Three-point estimating (B) is wrong because it averages optimistic, pessimistic, and most-likely estimates to account for uncertainty - no historical statistical relationship is involved. Bottom-up estimating (D) is wrong because it estimates individual work packages and rolls them up to a total - it's about decomposition and aggregation, not statistical modeling.

Memory tip: Think "para-metric" → metrics → math/statistics. If you see "statistical relationship" or "formula-based" in the question, that's always parametric.

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