PK0-005 Project Life Cycle Practice Question
Which cost estimation technique uses historical data from similar projects to estimate the cost of the current project?
⚠ Common exam trap
PK0-005 often tests the confusion between analogous and parametric estimating — both use historical data, but analogous relies on similarity to a whole past project, while parametric relies on statistical unit rates and 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 estimating
Analogous estimating uses historical cost data from similar past projects as the basis for estimating the current project's cost. It is typically used early in a project when detailed information is scarce, and it relies on expert judgment and analogy rather than granular decomposition.
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 estimating
Why it's wrong here
Parametric estimating applies unit rates or cost-per-unit multipliers to project parameters, such as cost per square metre, not analogy with prior projects. It suits repetitive, quantifiable work where historical rate data exists. The stem describes analogous estimating, which scales actual costs from comparable completed projects.
- ✗
Bottom-up estimating
Why it's wrong here
Bottom-up estimating aggregates individual work-package or activity cost estimates into a project total, requiring a detailed work breakdown structure. It suits mature projects with defined scope. The stem describes analogous estimating, which derives costs from historical data of similar completed projects rather than component-level build-up.
- ✗
Three-point estimating
Why it's wrong here
Three-point estimating calculates a weighted average of optimistic, pessimistic, and most likely estimates, but it does not derive its baseline from historical data of analogous projects; instead, it relies on expert judgement to define those three values. This option is tempting because it is a formal technique for refining cost accuracy, and it would be the correct choice if the question asked for a method that accounts for uncertainty and risk in individual task estimates rather than requiring historical analogy.
- ✓
Analogous estimating
Why this is correct
Analogous estimating draws on actual costs from comparable past projects, using top-down comparison to produce a rough order-of-magnitude figure. It satisfies the stem's requirement for historical data from similar projects, and suits early planning when detailed scope is unavailable and speed matters more than precision.
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Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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