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Which Estimating Technique Uses Historical Data from Past Projects?
Master analogous estimating in project cost management: it uses historical data from similar past projects for quick early-stage estimates, key for PMP exam prep and accurate budgeting in predictive methodologies.
Question
Which estimating technique uses historical data from similar previous projects?
A. Analogous estimating
B. Bottom-up estimating
C. Parametric estimating
Answer
A. Analogous estimating
Explanation
Analogous estimating, a top-down technique used in the Estimate Costs and Estimate Activity Durations processes of predictive project management, leverages historical data from similar previous projects—such as actual costs, durations, or resource usage—to derive quick, rough-order-of-magnitude estimates when detailed information is unavailable during early planning. This method relies on expert judgment to select comparable past efforts and adjust for differences in complexity, size, or conditions, making it faster and less costly than bottom-up or parametric approaches but typically less accurate, often yielding ranges like -25% to +75%. Commonly applied in project initiation or when time constraints exist, it provides a baseline for progressive elaboration, contrasting with parametric estimating (which uses statistical models and unit rates) and bottom-up estimating (which sums detailed work package estimates).