ITPEC FE Morning April 2019 Question 54
Which of the following is an appropriate cost estimation technique that estimates the cost of an activity or project using the historical data from a similar project?
Explanation
Analogous estimating — it bases the new estimate on the actual cost of a similar past project.
Analogous (top-down) estimating takes the recorded cost of a comparable earlier project and adjusts it for known differences in size or complexity. It is quick and needs little detail, so it suits the early stages of a project, but it is only as accurate as the projects are similar.
Answer (a)
Why not others:
- •(b) Bottom-up estimating — estimates each work package or activity in detail and sums them; it does not start from a similar project
- •(c) Function point method — sizes software by counting its functions (inputs, outputs, inquiries, files, interfaces) weighted by complexity, then converts the size to effort
- •(d) Parametric estimating — applies a statistical relationship derived from past data, such as cost per unit multiplied by the number of units; it uses a model with parameters, not one comparable project
Key rule: One similar past project means analogous; a formula with unit rates means parametric; summing detailed pieces means bottom-up.
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