Certified Associate in Project Management (CAPM) — Question 114

Based on a previous project that has been completed, a project manager decides the best way to estimate costs is through historical data. What kind of estimating is this?

Answer options

• A. Bottom-up
• B. Three-point
• C. Parametric
• D. Analogous

Correct answer: C

Explanation

The correct answer is C, Parametric estimating, which relies on historical data to determine costs based on statistical relationships. Option A, Bottom-up estimating, involves estimating costs for individual components and aggregating them. Option B, Three-point estimating, uses optimistic, pessimistic, and most likely estimates to derive an average, while Option D, Analogous estimating, compares similar past projects for cost estimation.