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?
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 similar projects as a basis for the current project's cost estimate. It is a top-down technique often used when detailed project information is limited.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Parametric estimation
Why it's wrong here
Parametric estimation uses statistical relationships between historical data and other variables (e.g., cost per line of code), not just a single past project.
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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.
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Bottom-up estimation
Why it's wrong here
Bottom-up estimation estimates individual work packages and rolls them up, requiring detailed scope definition.
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Analogous estimation
Why this is correct
Correct. Analogous estimation uses a similar past project as a basis and adjusts for differences.
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