hardMultiple Choice
PK0-005 Practice Question: During project planning, the project manager…
During project planning, the project manager needs to estimate the cost of each work package. Which tool or technique is best suited for this?
⚠ Common exam trap
Many exam-takers confuse bottom-up estimating with parametric estimating, assuming that parametric methods are always more precise, but the question specifically asks for the technique best suited for estimating each individual work package, where bottom-up's granular decomposition is key.
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
✓
Bottom-up estimating
Bottom-up estimating is best suited for estimating the cost of each work package because it involves decomposing the work package into its lowest-level components (activities or tasks) and estimating each one individually. This provides a high level of accuracy by aggregating detailed estimates from the team members who will perform the work, making it ideal for project planning when detailed scope definition is available.
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 estimating
Why it's wrong here
Parametric estimating applies a unit rate to a scalable variable across the whole estimate, so it cannot cost individual work packages whose scope is not yet quantified. It is tempting because it suits early, top-down estimates where historical rate data exists for repetitive units.
- ✓
Bottom-up estimating
Why this is correct
Bottom-up estimating aggregates the cost of individual activities within each work package, producing the most accurate package-level figures. This directly satisfies the stem's requirement to estimate cost per work package, unlike analogous or parametric techniques that estimate at coarser levels.
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Three-point estimating
Why it's wrong here
Three-point estimating produces a weighted expected duration or cost range from optimistic, pessimistic and most likely values; it does not decompose a work package into its constituent cost components. It is tempting because it quantifies uncertainty well, and would be correct when estimating contingency for a single risky activity.
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Analogous estimating
Why it's wrong here
Analogous estimating derives cost from historical similar projects at summary level, not individual work packages. It is tempting because it is a recognised estimating technique, but its top-down nature lacks the granularity bottom-up estimating provides for per-work-package cost estimates.
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