PK0-003 · Question #404
Which of the following cost estimating techniques uses previous, similar projects as a basis of estimating costs for the current project?
The correct answer is D. Analogous estimating. Analogous estimating, also known as top-down estimating, is a cost estimation technique that uses historical data from a previous, similar project as the basis for estimating the cost of the current project. This method is often used when there is limited detailed information ava
Question
Which of the following cost estimating techniques uses previous, similar projects as a basis of estimating costs for the current project?
Options
- ATop-down estimating
- BParametric estimating
- CBottom-up estimating
- DAnalogous estimating
How the community answered
(31 responses)- B3% (1)
- C3% (1)
- D94% (29)
Why each option
Analogous estimating, also known as top-down estimating, is a cost estimation technique that uses historical data from a previous, similar project as the basis for estimating the cost of the current project. This method is often used when there is limited detailed information available.
Top-down estimating is a broad category, and while analogous estimating falls under it, 'Top-down estimating' itself describes the direction of estimation (from overall project down to components) rather than the specific technique of using similar projects.
Parametric estimating uses a statistical relationship between historical data and other variables (e.g., cost per line of code, cost per square foot) to calculate an estimate.
Bottom-up estimating involves estimating the cost of individual work packages or activities and then rolling them up to get a total project cost.
Analogous estimating is a top-down cost estimating technique that uses the actual cost or duration from a previous, similar project as the basis for estimating the cost or duration of the current project. It relies on historical data and expert judgment, especially when detailed information is scarce.
Concept tested: Cost estimating techniques - Analogous
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