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PK0-005 Project Life Cycle Practice Question

A project manager is estimating the cost of a new software development project. The project is similar to a previous project that cost $500,000. The PM adjusts for size and complexity and estimates the new project will cost $600,000. Which estimation technique is being used?

⚠ Common exam trap

Candidates often confuse analogous estimation with parametric estimation because both use historical data; the key differentiator is that analogous uses a single comparable project adjusted by judgment, while parametric applies a mathematical unit-rate relationship across variables.

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 uses historical data from a similar past project as the basis for estimating the current project. Here, the PM takes the $500,000 cost of a comparable prior project and adjusts it for size and complexity to arrive at $600,000. This top-down, experience-based approach is fast and useful when detailed information is scarce, which is the hallmark of analogous (also called top-down) estimating.

Answer analysis

Option-by-option breakdown

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

  • ✗

    Parametric estimation

    Why it's wrong here

    Parametric estimation multiplies unit rates by quantities, such as cost per line of code, rather than scaling one analogous historical project. It is tempting because both use historical data, but parametric requires measurable parameters and rate metrics, which the stem never provides.

  • ✓

    Analogous estimation

    Why this is correct

    Analogous estimation derives cost from a comparable historical project, adjusting for size and complexity differences. Using the previous $500,000 project as the basis and scaling to $600,000 matches this top-down technique, which relies on expert judgement rather than detailed bottom-up breakdowns.

  • ✗

    Bottom-up estimation

    Why it's wrong here

    Bottom-up estimation sums individual work-package or component costs into a total, requiring a detailed WBS the stem does not describe. It is tempting because it is accurate for well-defined scope, but here the PM scaled a single analogous project, which is analogous estimation.

  • ✗

    Three-point estimation

    Why it's wrong here

    Three-point estimation averages optimistic, pessimistic and most-likely values using PERT weighting, requiring three figures per activity. It is tempting because it also produces a single cost figure, but the stem gives one adjusted historical value, which is analogous estimation.

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Last reviewed September 2026 · checked against the official CompTIA exam blueprint

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