Which estimating technique uses the cost from a previous project along with measures of scale to estimate the cost for a similar,future project?
A) analogous estimating
B) parametric estimating
C) bottom-up estimating
D) Monte Carlo estimating

Question

Quizplus · Accepted Answer

Analogous estimating, also known as top-down estimating, is a technique where the cost from a previous project is used to estimate the cost for a similar future project. This method is best used when there is limited information about the project and is often based on expert judgment. Parametric estimating (B) uses statistical modeling techniques to estimate costs based on historical data and project parameters, but may not be suitable for projects with unique characteristics. Bottom-up estimating (C) involves estimating each component of a project and summing them up, which is more accurate but also more time-consuming. Monte Carlo estimating (D) is a simulation technique used to determine the probability distribution of the possible outcomes of a project, but requires significant computational power and data.

Which Estimating Technique Uses the Cost from a Previous Project