Certified Associate In Project Management CAPM · Free Practice Question Easy
Question 17
Steve is estimating the costs for an upcoming project, which involves staging a penthouse for sale in New York City. The furniture gallery has estimated $12,000 for the furniture and accessories if staging is done in the summer. If staging is completed in the fall, the cost will increase to $15,000 because fall is the most popular time for real estate in the city. If the penthouse buyer offers to purchase the furniture and accessories in the sale, the gallery will lower the cost to $13,000. What can Steve approximate the the cost of the furniture and accessories be?
- A $17,200
- B $15,000
- C $13,166
- D $12,500
Reveal correct answer
Correct answer: C
Explanation
Using three-point estimating, we look at the optimistic ($12,000), the most-likely ($13,000) and the pessimistic ($15,000). ($12,000 + 4 ($13,000) + $15,000) / 6 = $13,166. The other values listed do not take all three of the numbers into consideration or use the correct formula for three-point cost estimating. PCM7.4.81Discussion
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