PK0-005 Project Life Cycle Practice Question
A project manager is estimating costs for a new software development project. The company has completed three similar projects in the past. Which cost estimation technique is most appropriate in this scenario?
⚠ Common exam trap
PK0-005 often tests the confusion between analogous and parametric estimation, since both use historical data; candidates must remember that analogous uses whole-project comparisons, while parametric uses statistical relationships with parameters.
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
✓
Analogous estimation
Analogous estimation is the most appropriate technique because it uses historical data from similar past projects to estimate costs for the new project. Since the company has completed three similar projects, the project manager can leverage that experience to produce a quick, high-level estimate. This method is particularly useful in the early stages when detailed information is scarce.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Analogous estimation
Why this is correct
Analogous estimation uses historical cost data from comparable completed projects to derive the new estimate. With three similar past software projects available, this top-down technique is quick and appropriate, especially when detailed information is limited during early estimating.
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Bottom-up estimation
Why it's wrong here
Bottom-up estimation aggregates work-package-level cost estimates, requiring a decomposed WBS that does not yet exist for this new project. Three similar completed projects supply directly comparable historical actuals, making analogous estimation appropriate. Bottom-up suits projects with a detailed, stable scope already broken into granular components.
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Parametric estimation
Why it's wrong here
Parametric estimation relies on statistical relationships between historical data and variables like lines of code or function points, but the stem specifies three similar past projects, not a scalable database of metrics. This technique is tempting because it offers rapid, formula-based cost projections for repetitive tasks, and it would be correct if the company had extensive historical data from dozens of projects to derive reliable cost-per-unit parameters.
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Three-point estimation
Why it's wrong here
Three-point estimation weights optimistic, pessimistic and most-likely values for a single task; it does not exploit historical actuals. With three comparable completed projects, analogous estimation using those actual costs is the fitting technique. Three-point suits novel work lacking reliable historical data, where uncertainty ranges must be derived from expert judgement.
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Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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