Project Management Professional PMP · Free Practice Question Medium
Question 42
Tate has been assigned as a cost engineer to build a parking garage near a mall. His supervisor has tasked Tate with producing the most accurate estimate for the parking garage and has provided him a two-month deadline to do so. What estimation technique would be best applied in this scenario?
- A Analogous estimating
- B Bottom-up estimating
- C Three-point estimating
- D Parametric estimating
Reveal correct answer
Correct answer: B
Explanation
Tate should use bottom-up estimating in this case. Bottom-up estimating involves estimating the costs of individual work packages or activities to the most significant level of specified detail. The detailed cost is then summarized or "rolled up" to higher levels for subsequent reporting and tracking purposes. The cost and accuracy of bottom-up cost estimating are typically influenced by the size or other attributes of the individual activity or work package. Analogous estimating involves using values, or attributes, of a previous project similar to the current project. Parametric estimating uses a statistical relationship between historical knowledge and another variable. Three-point estimating takes the average of the most likely, optimistic, and pessimistic costs.Discussion
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