Which Estimating Technique Uses the Cost from a Previous Project

question 12

Multiple Choice

Which estimating technique uses the cost from a previous project along with measures of scale to estimate the cost for a similar,future project?

• A) analogous estimating
• B) parametric estimating
• C) bottom-up estimating
• D) Monte Carlo estimating

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Definitions:

Capital Allocation Line

A graph that shows the risk-return trade-off of investable assets, indicating the most efficient portfolio possible given a certain level of risk.

Standard Deviation

Standard deviation quantifies the variation or spread of a set of numbers from its mean, highlighting the volatility or risk associated with a financial instrument or investment.

Risk-Free Asset

An investment guaranteed to return the original investment without any loss, typically associated with high-grade government securities.

Indifference Curve

In economics, a curve that represents different combinations of goods or services among which a consumer is indifferent, showing preferences.