PK0-003 · Question #373
Which of the following estimating techniques is the MOST accurate?
The correct answer is C. Bottom-up estimating. Bottom-up estimating is generally considered the most accurate project cost and duration estimation technique because it involves detailed decomposition of work.
Question
Which of the following estimating techniques is the MOST accurate?
Options
- AParametric estimating
- BTop-down estimating
- CBottom-up estimating
- DOrder-of-magnitude estimating
How the community answered
(28 responses)- B7% (2)
- C89% (25)
- D4% (1)
Why each option
Bottom-up estimating is generally considered the most accurate project cost and duration estimation technique because it involves detailed decomposition of work.
Parametric estimating uses a statistical relationship between historical data and other variables to calculate an estimate, which can be less accurate if the historical data or parameters are not perfectly aligned with the current project's specifics.
Top-down estimating, also known as analogous estimating, uses historical data from a similar project to estimate the current project, providing a rougher estimate due to potential differences and lack of detailed current project insight.
Bottom-up estimating involves estimating individual work packages or activities in detail and then aggregating these estimates to determine the total project cost or duration. This detailed approach, combined with the involvement of those performing the work, leads to a higher degree of accuracy and reliability for the overall project estimate.
Order-of-magnitude estimating is the least accurate form of estimating, typically done very early in the project life cycle with a very wide range of potential error, often -25% to +75%.
Concept tested: Project cost/duration estimation techniques accuracy
Topics
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