Exam 5: Estimating Project Times and Costs

Estimates that are typically based on estimates of elements found in the work breakdown structure are called bottom-up estimates.

Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquiries, files, and interfaces.Which of the following methods is he using?

Top-down estimates usually are derived from someone who uses experience and/or information to determine the project duration and total cost.

Estimating can be challenged by

Which of the following methods is NOT considered a top-down approach to estimating project time and cost?

Refining Estimates may be necessary for a number of reasons.For example, a manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project and meet the needs of the customer is an example of

While it may be true that Mega Projects are by nature extremely difficult to estimate, another factor identified in the consistent pattern of estimating difficulties is:

The preferred method for situations where the cost and time estimates are important, in a fixed contract situation, and when the customer wants a lot of detail is the ___________ approach to estimating project time and costs.

The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as

Estimates should be based on normal conditions, efficient methods, and a normal level of resources.Explain.

Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large?

Ed is looking over the actual results of projects and comparing them to what was estimated.He notices that the projects that took six months or longer to complete were noticeably more off the estimates.Which of the following factors is he recognizing?

Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount.He is using the ___________ method of top-down estimating.

Organization culture can significantly influence project time and cost estimates.

Janet is forecasting how much money her department needs to support a new project.She estimates that two people and $25,000 in expenses will cover her needs.Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction.Which of the following factors is illustrated in this situation?

The estimating factor that considers the decreasing accuracy of estimates as one forecasts activities that are further into the future is known as ____________.

As long as everyone in a project adds a little padding to reduce risk, the project duration and cost estimates will be more accurate.

The bottom-up method of estimating where work package time and costs for past projects are used as a starting point for a new project and adjustments are made based on differences in the new project is known as the ___________ method.

Laura is forecasting the time and cost of developing an intranet for a new customer.Her department has completed six such intranets for customers during the last two years.Although the proposed system is about the same size as the others, she estimates that it will take about 10 percent less time and money.Which of the following methods is she using?

A(n)__________ is something that is a valuable but burdensome possession.