The correct answer is analogous estimating because it is the cost estimation technique that relies on historical data from similar projects to produce a quick, top-level approximation. This method works by comparing the current project’s scope or size to a past, analogous project and adjusting the known costs accordingly, making it ideal when detailed information is scarce. On the CAPM exam, this concept tests your ability to distinguish between estimation methods: analogous is fast but less accurate, while bottom-up is precise but time-consuming, three-point uses optimistic/pessimistic ranges, and parametric applies statistical relationships like cost per unit. A common trap is confusing analogous with parametric—remember that analogous uses a single similar project as a reference, not a statistical model. Memory tip: think “A for Analogous, A for Ancestor”—you’re borrowing cost data from a project ancestor.
CAPM Predictive Plan-Based Methodologies Practice Question
This CAPM practice question tests your understanding of predictive plan-based methodologies. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
During the planning phase of a predictive project, the project manager is estimating costs. Which cost estimation technique uses historical data from similar projects?
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 data from similar projects as a basis for cost estimation. It is less accurate but quick. Bottom-up is detailed, three-point uses ranges, and parametric uses statistical relationships.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Bottom-up estimating
Why it's wrong here
Bottom-up estimating involves detailed estimation of individual work packages.
✓
Analogous estimating
Why this is correct
Analogous estimating relies on historical data from similar projects.
Related concept
Read the scenario before looking for a memorised answer.
✗
Three-point estimating
Why it's wrong here
Three-point estimating uses optimistic, pessimistic, and most likely estimates.
✗
Parametric estimating
Why it's wrong here
Parametric estimating uses a statistical relationship between historical data and other variables.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the CAPM exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which CAPM exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Predictive Plan-Based Methodologies — This question tests Predictive Plan-Based Methodologies — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Analogous estimating — Analogous estimating uses historical data from similar projects as a basis for cost estimation. It is less accurate but quick. Bottom-up is detailed, three-point uses ranges, and parametric uses statistical relationships.
What should I do if I get this CAPM question wrong?
Identify which CAPM exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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This CAPM practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAPM exam.
Question Discussion
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