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NEW QUESTION: 1
You work as a project manager for HRM Inc. You have to calculate the detailed cost, which is rolled up (or summarized) to higher levels for total project estimates. Which of the following techniques will you use to accomplish the task?
A. Bottom-up
B. Parametric
C. Three-point
D. Analogous
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Answer option D is correct.
Bottom-up is a cost estimating technique that involves estimating the cost of individual work packages or schedule activities with the lowest level of detail. The detailed cost is rolled up (or summarized) to higher levels for total project estimates. This summarized data is very useful for reporting and tracking purposes.
Bottom-up estimating provides a higher degree of accuracy, provided the estimates at the work package level are accurate.
Answer option C is incorrect. Analogous is an estimating technique that uses the values of parameter, such as scope, cost, budget, and duration or measures of scale such as size, weight, and complexity from a previous, similar activity as the basis for estimation of the same parameter for a future activity. It is a top- down estimating technique and is a form of expert judgment. It provides a lower degree of accuracy than other estimating techniques. This technique is primarily used when there is a limited amount of detailed information about the project or program.
Answer option B is incorrect. A parametric estimate is an estimate that uses a parameter to predict the costs of the project, such as cost per network drop or cost per software license. Parametric estimating technique utilizes the statistical relationship that exists between a series of historical data and a particular delineated list of other variables.
Answer option A is incorrect. A three-point estimate is a way to enhance the accuracy of activity duration estimates. This concept is originated with the Program Evaluation and Review Technique (PERT). PERT charts the following three estimates:
Most likely (TM): The duration of activity based on realistic factors, such as resources assigned,
interruptions, etc.
Optimistic (TO): The activity duration based on the best-case scenario
Pessimistic (TP): The activity duration based on the worst-case scenario
The expected (TE) activity duration is a weighted average of these three estimates:
TE = (TO + 4TM + TP) / 6
Duration estimates based on the above equations (sometimes simple average of the three estimates is also used) provide more accuracy.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition" Chapter: Time and Cost Management Objective: Cost Estimating Tools
NEW QUESTION: 2
The project manager is working in an agile/adaptive environment. The project manager is considering different approaches for applying Project Integration Management in this environment.
How can the project manager ensure that this will work for the project?
A. Promote a team with a narrow specialization within a hierarchical environment
B. Take control of all decisions and product planning
C. Build a team that can respond to changes within a collaborative, decision-making environment
D. Delegate project decisions to the product owner and sponsor
Answer: C
Explanation:
Explanation/Reference:
Reference: https://www.project-management-prepcast.com/project-integration-management-overview-part-
2
NEW QUESTION: 3
Consider the following diagram, which shows a relationship between two business objects:
Which of the following best describes the relationship shown in the diagram between Insurance Policy and Insured Individuals?
A. All required information about insured individuals is stored within the insurance policy record
B. Insurance policy is used by insured individuals
C. Insurance policy is composed of insured individuals
D. Insurance policy groups insured individuals
Answer: D