PK0-005 Project Life Cycle Practice Question
A project manager is estimating the cost of a software development project. She uses the actual cost of a similar past project and adjusts it for known differences in size and complexity. Which cost estimation technique is she using?
⚠ Common exam trap
PK0-005 often tests the confusion between analogous (single comparable project, top-down) and parametric (statistical formula with unit rates) estimation, since both rely on historical data — candidates must identify whether a formula or a single reference project is being used.
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's cost, then adjusts for known differences in size, complexity, or scope. This is exactly what the project manager is doing — referencing actual costs of a comparable project and scaling them. It is a top-down, expert-judgment-driven technique that is fast but less accurate than detailed methods.
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 applies a statistical relationship between cost and a measurable driver, such as cost per function point, rather than adjusting one analogous project's actual cost. It is tempting because both use historical data, and would be correct when a reliable unit rate and quantifiable parameter are available.
- ✗
Three-point estimation
Why it's wrong here
Three-point estimation uses optimistic, pessimistic, and most likely values to calculate a weighted average, but the scenario describes adjusting a single past project’s actual cost for size and complexity differences—this is the mechanism of analogous estimation, not three-point. The option is tempting because three-point estimation also incorporates historical data and uncertainty, and would be correct if the project manager had multiple estimates from past tasks requiring a probabilistic range rather than a single adjusted baseline.
- ✗
Bottom-up estimation
Why it's wrong here
Bottom-up estimation sums individual work package or task costs to build the total, so it never starts from a past project's actual cost. It is tempting because it also produces a defensible figure, and would be correct when detailed task-level data exists and a granular, auditable estimate is required.
- ✓
Analogous estimation
Why this is correct
Analogous estimation derives cost from the actual cost of a comparable historical project, then scales it for differences in size and complexity. This top-down, experience-based approach matches the scenario, unlike parametric or bottom-up methods that build estimates from component detail.
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Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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