PMI Professional in Business Analysis (PMI-PBA) — Question 80

A business analyst from Company A has been assigned a project to document and identify requirements for a new commercial software implementation. The first step is to break down the business analysis deliverables into activities and tasks. Then, the business analyst will add an estimate of the time needed to complete the work.
Which type of estimation technique is the business analyst using?

Answer options

• A. Analogous
• B. Bottom-up
• C. Delphi
• D. Parametric

Correct answer: D

Explanation

The correct answer is D, Parametric, because this technique uses statistical relationships between historical data and other variables to estimate time and costs. The other options, such as Analogous and Bottom-up, involve different methodologies that do not focus on statistical relationships to derive estimates.