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Oliver 75 - 50th Question

jyotimayank
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Oliver 75 - 50th Question

Postby jyotimayank Fri May 06, 2016 7:04 am

Question 50.
An estimation has been made that the construction of a residential home will cost a certain amount per square foot of living area. This is an example of what type of estimating?

A. Analogous estimating
B. Bottom-up estimating
C. Top-down estimating
D. Parametric estimating
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Re: Oliver 75 - 50th Question

Postby Ananyapmp Fri May 06, 2016 12:36 pm

D, parametric
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Re: Oliver 75 - 50th Question

Postby jyotimayank Wed May 11, 2016 12:24 pm

Yes the correct answer is D.

PMBOK® Guide Fifth Edition defines Parametric estimating as
An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters. Parametric estimating uses a statistical relationship between historical data and other variables (e.g., square footage in construction) to calculate an estimate for activity parameters, such as cost, budget, and duration.

Analogous estimating is a technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project. This estimating uses parameters from a previous, similar project, such as duration, budget, size, etc parameter or measure for a future project.

Bottom-Up Estimating is a method of estimating project duration or cost by aggregating the estimates of the lower-level components of the work breakdown structure (WBS).

Activity durations can be quantitatively determined by multiplying the quantity of work to be performed by labor hours per unit of work, using parametric estimating technique.
For example, activity duration on a painting a house project is estimated by the number of walls multiplied by the number of labor hours per wall.

Refer to Page 170 0f PMBOK® Guide 5th Edition
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