PK0-005 Parametric estimation Practice Question
A project manager is estimating the cost of a new software development project. They use historical data from a similar project to derive the cost per function point and multiply it by the expected number of function points. Which estimation technique is being used?
⚠ Common exam trap
Candidates often confuse analogous and parametric because both use historical data. The key difference is that parametric uses a mathematical model with scalability (cost per unit), whereas analogous relies on overall similarity.
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
✓
Parametric estimation
Parametric estimation uses a statistical relationship between historical data and other variables (e.g., cost per function point) to calculate an estimate. In this scenario, the project manager derives a cost per function point from a similar project and multiplies it by the expected number of function points. This is a classic example of parametric estimation because it applies a unit rate to a quantity.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Bottom-up estimation
Why it's wrong here
Bottom-up estimation involves estimating individual components and summing them; it does not use a unit rate from historical data.
- ✗
Three-point estimation
Why it's wrong here
Three-point estimation uses optimistic, pessimistic, and most likely estimates, not a single historical rate.
- ✓
Parametric estimation
Why this is correct
Parametric estimation uses a mathematical model with a unit rate (cost per function point) scaled by quantity, exactly matching the description.
- ✗
Analogous estimation
Why it's wrong here
Analogous estimation uses historical data from similar projects but typically applies the total cost of a similar project as a basis, without a per-unit scaling factor.
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