CAPM Practice Question: Project Management Fundamentals and Core Concepts
The sponsor is concerned about the accuracy of cost estimates prepared using analogous estimating. Which estimating technique should the project manager recommend to improve accuracy?
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 detailed analysis of each work package, providing the highest accuracy. This technique improves upon analogous estimating by using detailed estimates from lower-level components.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Reserve analysis
Why it's wrong here
Reserve analysis adds contingency, but does not improve the base estimate accuracy.
- ✓
Bottom-up estimating
Why this is correct
Bottom-up estimating uses detailed cost data from individual work packages, offering the highest accuracy.
- ✗
Parametric estimating
Why it's wrong here
Parametric is a statistical method but may not be as detailed as bottom-up for accuracy.
- ✗
Three-point estimating
Why it's wrong here
Three-point estimating improves accuracy with ranges but still relies on estimates of individual activities.
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Same concept, more angles
1 more way this is tested on CAPM
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which THREE are techniques used for estimating activity durations?
hard- ✓ A.Three-point estimating
- ✓ B.Parametric estimating
- C.Reserve analysis
- D.Monte Carlo simulation
- ✓ E.Analogous estimating
Why A: The correct techniques for estimating activity durations are three-point estimating (A), parametric estimating (B), and analogous estimating (E). Three-point estimating uses optimistic, pessimistic, and most likely estimates. Parametric estimating uses a statistical relationship between historical data and other variables. Analogous estimating uses values from previous similar projects. Reserve analysis (C) is used for contingency reserves, not for estimating durations. Monte Carlo simulation (D) is a risk analysis technique.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.