Describe analogous, parametric and bottom-up estimating, and briefly discuss the advantages and disadvantages of each method

Answer 1

Key concepts to be covered in the response could include, but are not limited to:

Analogous estimating is a technique for estimating the duration or cost of an activity or a project using historical data from a similar project.

In order for analogous estimates to be effective, the organization needs to have experience in performing similar project, and know how much each of those projects actually cost. Also, the estimator needs to understand how the current project differs from the previous project. finally, the estimator needs to have experience with the methods that will be used to perform the project.

Parametric estimating is a technique that uses an algorithm to calculate cost or duration based on historical data and project parameters. More detailed information regarding the project is required in order to complete a parametric cost estimate.

Bottom - up estimating is a method of estimating project duration or cost by aggregating the estimates of the lower-level components of the WBS. For this estimating method the WBS must be broken down to the most detailed level, and the specifications need to be very clear.

Bottom - up estimating is the most accurate way to estimate, but it is also the most detailed and time-consuming. Every cost item must be included.