Chapter 2

Question 1

What is conceptual cost estimation?

Answer 1

A quick method for determining the approximate cost of a project without a detailed definition of work scope

Question 2

What is a parametric estimate?

Answer 2

Relates all costs of a project to just a few physical measures that affect the size or scope of the project. It’s done using historical records.

Question 3

What can you learn from historical data?

Answer 3

1) Unit cost

2) Cost adjustments

Question 4

What is the formula of weighted unit cost? (PERT)

Answer 4

Uc = (min+4 X mean + max)/6

Question 5

Name 4 criterias historical data is adjusted for:

Answer 5

1) Time - inflation/deflation
2) Location - /cost difference between location
3) Size - relationship between size and total cost
4) Unit cost

Question 6

What are the 3 ways to solve for unit cost adjustment?

Answer 6

1) Average unit cost
2) Y = mx+b
While m is the slope of the 2 endpoints
3) Excel