Certified Associate in Project Management (CAPM) — Question 72

Which tool uses an algorithm based on historical data to calculate cost?

Answer options

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

Correct answer: A

Explanation

Parametric estimating is the correct answer because it leverages historical data and statistical relationships to estimate costs. Relative estimating does not specifically rely on historical data, while three-point estimating focuses on optimistic, pessimistic, and most likely estimates. Analogous estimating uses past project data but is less precise than parametric methods.