Certified Associate in Project Management (CAPM) — Question 402

A project team member is estimating the cost of an activity and is checking documentation from previous similar projects. Which estimation method is the project manager using to complete this task?

Answer options

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

Correct answer: C

Explanation

The correct answer is C, Analogous estimating, as it involves using data from previous similar projects to estimate costs. The other methods, such as Bottom-up estimating, involve detailed assessments of individual activities, Three-point estimating focuses on uncertainty by considering optimistic, pessimistic, and most likely estimates, and Parametric estimating relies on statistical relationships, making them unsuitable for this scenario.