Estimation types

Question 1

Rough order of magnitude

Answer 1

Simple, early estimate. Range of variance is -25% to +75% for the project completion.

Question 2

Budget estimate

Answer 2

Early planning estimate and/or top down approach. Range of variance is -10% to +25% for the project completion.

Question 3

Definitive estimate

Answer 3

Most accurate estimate, but takes longest to complete; use bottom-up approach. Range of variance is -5% to +10% for the project completion.

Question 4

Bottom up approach

Answer 4

Requires a WBS and account for each work package

Question 5

Analogues approach

Answer 5

Creates an analogy between project; also known as a top-down estimate.

Question 6

Parametric

Answer 6

Uses a parameter, cost per ton, cost per unit for the estimate.