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PK0-005 Project Life Cycle Practice Question

A project manager is estimating activity durations for a construction project. She uses a parametric estimate based on 100 square meters per day. If the total area is 500 square meters, the estimated duration is 5 days. Which THREE statements are true about parametric estimation?

⚠ Common exam trap

PK0-005 often tests the misconception that parametric is less accurate than analogous — actually, parametric is typically more accurate when data is reliable.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

It can be used for both cost and duration estimation.

Option A is correct because parametric estimation is a quantitative technique applicable to both cost and duration estimating, as when the manager derives 5 days from 100 square meters per day and 500 square meters total. Option B is correct because the accuracy of a parametric estimate depends on the reliability and validity of the underlying historical data and the scaling factors used. Option C is correct because parametric estimation explicitly relies on a statistical relationship (such as a unit rate or regression formula) between historical data and project variables like area, quantity, or complexity. Option D is incorrect because parametric estimation is generally considered more accurate than analogous estimation, which relies on a single similar past project and expert judgment. Option E is incorrect because parametric estimation is a top-down, aggregate technique, not a bottom-up technique that estimates individual work packages and rolls them up.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✓
It can be used for both cost and duration estimation.
Why this is correct
Parametric estimation applies the same unit-rate model to any quantifiable project variable, so the 100 square metres per day rate can drive either duration or cost totals. This satisfies the stem's requirement that the technique is not limited to scheduling alone.
✓
It requires a reliable source of data to be accurate.
Why this is correct
The 100 square metres per day rate is only valid if drawn from verified historical productivity records; unreliable or outdated data corrupts the 500-square-metre calculation. Accuracy therefore depends entirely on the quality of the underlying data source.
✓
It uses a statistical relationship between historical data and variables.
Why this is correct
Parametric estimation derives its unit rate by analysing the statistical relationship between historical project data and measurable variables such as area. The 100 square metres per day figure is itself such a relationship, applied to the 500-square-metre total.
✗
It is less accurate than analogous estimation.
Why it's wrong here
Parametric estimation derives duration from a unit rate applied to a measurable quantity, giving a repeatable, data-driven figure that is generally more accurate than analogous estimation's expert judgement. It is tempting because analogous estimation is quicker when little historical data exists, but that speed, not accuracy, is its advantage.
✗
It is a bottom-up technique.
Why it's wrong here
Parametric estimation is a top-down technique: it applies a rate to an aggregate quantity rather than aggregating individual work-package estimates. It is tempting because both use historical data, but bottom-up estimation builds duration from the lowest-level components, which is the opposite direction of calculation.

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PK0-005 Project Life Cycle Practice Question

Why each option matters

Option-by-option breakdown

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