7.2 Estimate Costs (Cost MGMT)

Question 1

what is 7.2 estimate costs?

Answer 1

developing an approximation of the cost of resources needed to complete project work

Question 2

what is a key benefit of 7.2 estimate costs?

Answer 2

determines the monetary resources required for the project

Question 3

when is 7.2 estimate costs performed during a project?

Answer 3

periodically

Question 4

7.2 estimate costs - inputs

Answer 4

1. project management plan (3)
2. project documents (4)
3. EEF
4. OPAs

Question 5

what project management plan inputs are relevant for 7.2 estimate costs?

Answer 5

a. cost management plan
b. quality management plan
c. scope baseline

Question 6

what project document inputs are relevant for 7.2 estimate costs?

Answer 6

a. lessons learned register
b. project schedule
c. resources requirements
d. risk register

Question 7

what is a cost estimate?

Answer 7

a quantitative assessment of the likely costs for resources required to complete the activity

Question 8

7.2 estimate costs - tools and techniques

Answer 8

1. expert judgment
2. analogous estimating
3. parametric estimating
4. bottom up estimating
5. three point estimating
6. data analysis (3)
7. PMIS
8. decision making (1)

Question 9

what is analogous estimating?

Answer 9

uses values or attributes of a previous project that are similar to the current project

Question 10

what is parametric estimating?

Answer 10

uses a statistical relationship between relevant historical data and other variables to calculate a cost estimate for project work

Question 11

what is bottom up estimating?

Answer 11

the cost of individual work packages or activities is estimated to the greatest level of specified detail - cost is then summarized and rolled up

Question 12

what is three point estimating?

Answer 12

uses three estimates to define an approximate range for an activity cost - cE (expected cost)
most likely = cM
optimistic = cO
pessemistic = cP

triangular distribution: cE = (cO + cM + cP)/3
beta distribution: cE = (cO + 4cM + cP)/6

Question 13

what data analysis tools and techniques are relevant for 7.2 estimate costs?

Answer 13

a. alternative analysis
b. reserve analysis
c. cost of quality

Question 14

what decision making tools and techniques are relevant for 7.2 estimate costs?

Answer 14

a. voting

Question 15

7.2 estimate costs - outputs

Answer 15

1. cost estimates
2. basis of estimates
3. project document updates (3)

Question 16

what project document updates outputs are relevant for 7.2 estimate costs?

Answer 16

a. assumptions log
b. lessons learned register
c. risk register

Question 17

what are the basis of estimates?

Answer 17

details supporting the cost estimate that may include:

1. estimate development
2. assumptions
3. constraints
4. risks
5. range of estimates
6. confidence level