ITPEC FE Morning April 2019 Question 54

Cost Estimation Techniques — Analogous estimating uses historical data from a similar past project to estimate costs.

Correct answer: a) Analogous estimating

Analogous estimating (also called top-down estimating) relies on actual cost data from a previous, similar project as the basis for estimating the current one. The key phrase is "historical data from a similar project" — this is the defining characteristic of this technique.

Why not the others:
- b) Bottom-up estimating — estimates individual work packages or activities at a detailed level, then aggregates them upward. It does not rely on similarity to past projects.
- c) Function point method — measures software size based on functional requirements (inputs, outputs, inquiries, files, interfaces). It is a sizing technique, not a historical comparison.
- d) Parametric estimating — uses statistical relationships between historical data and variables (e.g., cost per line of code, cost per square meter). It applies a mathematical model, not a direct analogy to a similar project.

Key rule: "Similar past project → analogous." "Mathematical model with parameters → parametric." "Detailed task-by-task → bottom-up."

AI-generated — may contain errors