Question

Question 5)

1. Parametric cost estimates utilize a “bottom-up” approach	True False
2. Engineering cost estimates require detailed designs	True False
3. “Rough order of magnitude” estimates are most often associated with Parametric cost estimating	True False
4. Engineering cost estimates are quick and easy to develop	True False
5. Class 1 estimates are the initial/basic estimate, usually involving the largest range of error	True False
6. According to Standish, more than 50% of all IT projects experience cost overruns of 51% or more	True False
7. Tetlock believes Hedgehogs make better forecasters due to their cognitive style that is biased towards a single idea or approach.	True False
8. When developing a cost estimate, determining the estimates “purpose” is one of the most important steps	True False
9. Updating an estimate is recommended only when it is easily achieved	True False
10. Analogy estimates are based upon years of highly accurate data, therefore is the gold standard whenever possible	True False

Answer 1

1. Parametric cost estimation uses previous similar projects costs but not always follow bottom up approach. Hence, the option is False.

2. True, Engineering cost estimates requies detailed designs and detailed information about different aspects of the project.

3. True, Rough Order of magnitude estimates are associated with top down approach, which is key characteristic of Parametric cost estimation.

4. False, Engineering cost estimates requires a lot of information about different aspects and is not easy to develop.

5. False, Class 1 estimates are not the initial/basic estimate and involve less scope for error.

6. Ture, According to Standish, nearly 53% (more than 50%) of all IT projects experience cost overruns of 51% or more.

7. False, Tetlock believes Foxes make better forecasters due to their cognitive style that is biased towards a single idea or approach but not hedgehogs.

8. Ture, When developing a cost estimate, determining the estimates “purpose” and scope are the most important steps.

9. False, An estimate is updated when they are not achievable and require changes.

10. Ture, Analogy estimates are based upon years of highly accurate data and, therefore is the gold standard whenever possible