CAPM Predictive Plan-Based Methodologies Practice Question
In a predictive project, the project manager needs to estimate the cost of each work package with a high level of accuracy. Which technique is most appropriate?
⚠ Common exam trap
CAPM often tests the trade-off between accuracy and effort in estimating techniques, so the trap is confusing parametric estimating (fast, less accurate) with bottom-up estimating (slow, most accurate).
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 involves estimating the cost of individual work packages or activities at the lowest level of the WBS and then aggregating them upward to obtain the total project cost. Because it builds from detailed, granular estimates, it provides the highest level of accuracy and is the preferred technique when the project manager needs precise cost figures for each work package. It is most reliable when the WBS is well-defined and the scope is stable, which is typical in predictive projects.
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 this is correct
Bottom-up estimating aggregates detailed estimates prepared for each work package or activity, producing the greatest accuracy and supporting the work breakdown structure. It suits this scenario because the project manager requires high accuracy at work-package level rather than the rough order-of-magnitude figures of analogous or parametric methods.
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Parametric estimating
Why it's wrong here
Parametric estimating applies a statistical relationship between historical data and variables, giving an approximate figure rather than precise per-package cost. It is tempting because it scales well on repetitive work, but high accuracy at work-package level comes from bottom-up estimating, which sums individual component costs.
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Expert judgment
Why it's wrong here
Expert judgment supplies qualitative opinion drawn from experience; it does not itself produce a documented, high-accuracy cost figure per work package. It is tempting because experts inform estimates, but bottom-up estimating is the technique that aggregates individual work-package costs for that precision.
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Three-point estimating
Why it's wrong here
Three-point estimating produces a weighted range (optimistic, pessimistic, most likely) rather than a single high-accuracy work-package cost. It is tempting because it improves accuracy statistically, but the stem asks for precise per-package figures, which bottom-up estimating delivers by aggregating lower-level components.
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Last reviewed September 2026 · checked against the official PMI exam blueprint
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