PGMP · Question #61
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 data from a previous, similar project or program as the basis for estimating the current one. Because the new program is 'very similar' to one just completed, using that prior program's costs as a reference…
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
- ABottom-up
- BParametric
- CAnalogous
- DRough order of magnitude
How the community answered
(15 responses)- A7% (1)
- C87% (13)
- D7% (1)
Explanation
Analogous estimating (also called top-down estimating) uses historical data from a previous, similar project or program as the basis for estimating the current one. Because the new program is 'very similar' to one just completed, using that prior program's costs as a reference is the definition of analogous estimating. Bottom-up builds estimates from individual work packages upward. Parametric uses statistical relationships between variables and data. Rough Order of Magnitude (ROM) is a ballpark estimate (typically -25% to +75%) used very early when little detail is known, not derived from a comparable completed project.
Topics
Community Discussion
No community discussion yet for this question.