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PGMP · Question #206

You are the program manager for the HNY Corporation and you complete programs for other companies in your role. You have just been assigned a new program that is very similar to a recently completed…

The correct answer is C. Analogous. Analogous estimating (also called top-down estimating) uses historical information from a similar past project or program as the basis for estimating the current one. In this case, using the recently completed similar program as the reference is a textbook example of analogous…

Program Financial Management

Question

You are the program manager for the HNY Corporation and you complete programs for other companies in your role. You have just been assigned a new program that is very similar to a recently completed program you did for your company. Management has asked you to create a cost estimate for the program so you base your current cost estimate on the recently finished program. What type of estimating technique have you used in this instance?

Options

  • ARough order of magnitude
  • BParametric
  • CAnalogous
  • DBottom-up

How the community answered

(37 responses)
  • B
    3% (1)
  • C
    92% (34)
  • D
    5% (2)

Explanation

Analogous estimating (also called top-down estimating) uses historical information from a similar past project or program as the basis for estimating the current one. In this case, using the recently completed similar program as the reference is a textbook example of analogous estimating. It is generally less accurate but quicker and less costly to produce. Parametric estimating uses statistical relationships between variables. Bottom-up estimating builds the estimate from individual work packages upward. Rough order of magnitude (ROM) is a very early, high-level estimate (typically -25% to +75%) not derived from a specific comparable program.

Topics

#Analogous Estimating#Cost Estimating#Program Financial Management

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