{"id":3042,"date":"2021-09-09T10:02:44","date_gmt":"2021-09-09T15:02:44","guid":{"rendered":"https:\/\/projectmanagementacademy.net\/resources\/?p=3042"},"modified":"2022-01-21T10:52:38","modified_gmt":"2022-01-21T15:52:38","slug":"the-difference-between-parametric-vs-analogous-estimating-pmp","status":"publish","type":"post","link":"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/","title":{"rendered":"The Difference Between Parametric vs Analogous Estimating PMP"},"content":{"rendered":"\n<p>Estimating is a key skillset for any project manager in any industry. There are multiple estimating tools project managers can combine to better refine the final estimated value for resources, effort, budget, timelines, and even risks. No project plan can happen without estimating. The analogous estimating (or \u201ctop-down estimating\u201d), parametric estimating, and three-point estimating tools each have their own characteristics which shape the decision of when to use what combination of them. The Project Management Institute (PMI) may include questions in their Project Management Professional (PMP)\u00ae certification exam requiring candidates to know project estimating tools and how to use them for a given project. In this article, we will compare and contrast the differences between Parametric vs Analogous Estimating PMP.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p><strong>On this page:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/#project-managers\">Project Estimation for Project Managers<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/#analogous-estimating\">Analogous Estimating<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/#top-down\">Top-Down Estimating<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/#parametric\">Parametric Estimating<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/#Three-Point-Estimating\">Three-Point Estimating<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/#Comparing-Estimating-Tools\">Comparing Estimating Tools<\/a><\/li><\/ul>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\">\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-809x1024.png\" alt=\"PMP Formula Cheat Sheet\" class=\"wp-image-4712\" width=\"296\" height=\"374\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-809x1024.png 809w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-237x300.png 237w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-768x972.png 768w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet.png 1010w\" sizes=\"auto, (max-width: 296px) 100vw, 296px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<div style=\"height:48px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>PMP\u00ae Exam Formula Cheat Shee<\/strong>t<\/h2>\n\n\n\n<p id=\"block-14690051-2796-4b03-bcb7-95d54bd01fcd\"><em><em>Learn how to successfully use project management formulas after reading this cheat shee<\/em>t.<\/em><\/p>\n\n\n\n\t\t\t\t\t<script>\n\t\t\t\t\t\thbspt.enqueueForm({\n\t\t\t\t\t\t\tportalId: 3294842,\n\t\t\t\t\t\t\tformId: \"730482d7-eef5-49c7-aa16-898785e241ee\",\n\t\t\t\t\t\t\ttarget: \"#hbspt-form-1776454929000-0235631697\",\n\t\t\t\t\t\t\tregion: \"na1\",\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t});\n\t\t\t\t\t<\/script>\n\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1776454929000-0235631697\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:10%\">\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"project-managers\">Project Estimation for Project Managers<\/h2>\n\n\n\n<p>Project estimation encompasses more than just a best guess. It is the process by which estimation techniques are used for a given situation to reach the strongest, \u201cmost likely to occur\u201d estimate. Just as a single estimating tool will not generate the best result, so too \u201c<a href=\"https:\/\/www.pmi.org\/learning\/library\/project-estimating-accurate-labor-costs-8207\">it is important to use the ones that suit the project characteristics the best<\/a>.\u201d In consideration of the PMP\u00ae certification exam, know &nbsp;PMI\u00ae provides this definition of estimate:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Estimate<\/strong> <strong>&nbsp;<\/strong><\/td><td><em><br>A quantitative assessment of the likely amount or outcome of a variable, such as project costs, resources, effort, or durations<\/em> <em><br>\u2013 Source PMBOK\u00ae&nbsp;Guide (2021)<\/em><\/td><\/tr><\/tbody><\/table><figcaption>Estimating Definition<\/figcaption><\/figure>\n\n\n\n<p>Some may say completing multiple estimates takes up too much time and it is faster to use one estimating tool to get a single estimate. However, as noted in the <a href=\"https:\/\/www.pmi.org\/learning\/library\/project-estimating-accurate-labor-costs-8207\">PMI.org conference paper \u201cProject Estimating Accurate Labor,\u201d<\/a> estimating is more than just getting a number to plug into a plan, in fact:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"837\" height=\"251\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/09\/09094321\/Estimating-Process.jpg\" alt=\"The Estimating Process\" class=\"wp-image-3060\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/09\/09094321\/Estimating-Process.jpg 837w, https:\/\/e360-media.s3.amazonaws.com\/2021\/09\/09094321\/Estimating-Process-300x90.jpg 300w, https:\/\/e360-media.s3.amazonaws.com\/2021\/09\/09094321\/Estimating-Process-768x230.jpg 768w\" sizes=\"auto, (max-width: 837px) 100vw, 837px\" \/><figcaption>The Estimating Process Explained<\/figcaption><\/figure>\n\n\n\n<p>To combine estimating tools for a validated estimate, project managers should be familiar with the estimating tools and how they compare:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>top-down estimating<\/li><li>analogous estimating<\/li><li>parametric estimating<\/li><li>parametric vs analogous estimating<\/li><li>analogous estimating vs 3 point estimate<\/li><li>analogous vs parametric estimating vs three-point estimating<\/li><\/ul>\n\n\n\n<p>Note there can be different spellings, such as 3-point vs three-point. And in some informal materials, the \u201cPMP\u201d designation will be added for \u201cparametric vs analogous estimating PMP\u201d or \u201ctop-down estimating PMP.\u201d Within the PMP\u00ae certification exam and PMI\u2019s literature, however, the formal names do not include the \u201cPMP\u201d label.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"analogous-estimating\">Analogous Estimating<\/h2>\n\n\n\n<p>An analogy is where you use one idea to explain or clarify something similar. The comparison of like things to find meaning, or in the project management context, budget, is an analogous estimation.<\/p>\n\n\n\n<p>The analogous estimate tool can help with <a href=\"https:\/\/www.tutorialspoint.com\/estimation_techniques\/estimation_techniques_analogous.htm\">projects in which there is limited information for the current work<\/a> if the project manager has a deep understanding of the current work and the compared work. Rather than spending time researching and trying to figure out everything from the beginning, analogous estimation is a way to \u201cfast track\u201d budgeting and leverage actual and known costs.<\/p>\n\n\n\n<p>And yet, project managers must have a strong understanding of their project to successfully use analogous estimation because if the project compared is not similar or does have enough similarities, the estimate may lead to problems later. Or there may not be a project of a similar nature in which budgets can be compared. In those instances, project managers should find similarities where they can, in terms of segments of past work, work activities from past work, or similar materials from past work. Project managers with historical experience with similar projects can provide the \u201cexpert judgment\u201d used in analogous estimates, which can speed up the estimating timeline.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Analogous-Estimating-Defined\">Analogous Estimating Defined<\/h2>\n\n\n\n<p>Analogous estimating is used when expert judgment is available for a comparable project.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Analogous Estimating<\/strong> <strong>&nbsp;<\/strong><\/td><td><em><br>&nbsp;A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project.<\/em> <em><br><\/em><em>\u2013 Source PMI Online Lexicon <\/em><a href=\"https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon\"><em>https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon<\/em><\/a><em><\/em> &nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Analogous-Estimating-Example\">Analogous Estimating Example<\/h2>\n\n\n\n<p>You have painted 2 bedrooms in your house by yourself and are planning to paint the office. Start at the \u201ctop\u201d of the project which in this example is the painting of all walls in a residential bedroom. Break the project down into smaller tasks, such as getting the paint from the store, protecting the flooring in the room from the paint, etc. The office is the same size as the bedrooms which both took you 2.5 days to complete and 1 gallon of paint. You, as the expert, painting interior rooms of this size at this location have started at the top of the project task list and gone down to the final step to estimate painting the office will take 1 gallon of paint and 2.5 hours if you are working alone.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Analogous Estimating Application, Accuracy, and Effort<\/h2>\n\n\n\n<p>Analogous estimating involves using the numbers (cost, resources, and duration) from a similar past project to create a \u201cgeneral\u201d estimate for a new project. As such, the speed of getting the estimate is gained while accuracy is lost.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Application<\/strong><\/td><td><em>Projects with limited information available; projects that are in planning or early in work processes<\/em><\/td><\/tr><tr><td><strong>Accuracy<\/strong><strong><\/strong><\/td><td><em>Directly tied to the level of similarity of the historical project; as no two projects are exactly the same, accuracy is limited at best<\/em><\/td><\/tr><tr><td><strong>Effort<\/strong><\/td><td><em>Limited duration due to limited calculations or research; rough guess grounded by expert\u2019s opinion<\/em><\/td><\/tr><\/tbody><\/table><figcaption>Analogous Estimating Application, Accuracy, and Effort.<\/figcaption><\/figure>\n\n\n\n<p>As part of PMP\u00ae certification exam questions, project managers may be asked when to use analogous estimation.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center has-medium-font-size\"><strong>Studying for the PMP Exam?<\/strong><\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 is-style-fill\"><a class=\"wp-block-button__link has-white-color has-text-color has-background\" href=\"https:\/\/projectmanagementacademy.net\/free-pmp-questions?cat=pmp-formulas\" style=\"border-radius:20px;background-color:#366194\" target=\"_blank\" rel=\"noreferrer noopener\">Practice Questions for PMP Formulas<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"top-down\">Top-Down Estimating<\/h2>\n\n\n\n<p>Project managers who look at the overall scope to make an initial \u201cexpert estimate\u201d and continue to break down the work into smaller tasks, for which similar project tasks are compared to generate an estimate, are completing a \u201ctop-down\u201d estimation. They start at the \u201ctop\u201d of the project and break it into component pieces moving down the task lists. \u201cTop-down estimating PMP\u201d is another description for analogous estimating.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"parametric\">Parametric Estimating<\/h2>\n\n\n\n<p>Parametric estimating compared to analogous estimating reveals the use of historical data for both, but higher accuracy of the estimate using the parametric tool due to the scaling of data points. Parametric estimating identifies \u201c<a href=\"https:\/\/edward-designer.com\/web\/analogous-estimating-vs-parametric-estimating-for-pmp-exam\/\">the unit cost\/duration from&nbsp;the past projects\/activities and scales the estimation to the required number of units for the current project\/activity<\/a>.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Parametric Estimating Defined<\/h2>\n\n\n\n<p>If there is limited data for the historical project, or no comparable project is available in the knowledgebase, parametric estimating cannot be used. <a href=\"https:\/\/www.pmlearningsolutions.com\/blog\/analogous-estimating-vs-parametric-estimating-pmp-concept-4\">A statistical relationship between historical and current must be established<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Parametric Estimating<\/strong> <strong>&nbsp;<\/strong><\/td><td><em><br>An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters.<\/em> <em><br><\/em><em>\u2013 Source PMI Online Lexicon <\/em><a href=\"https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon\"><em>https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon<\/em><\/a><em><\/em> &nbsp;<\/td><\/tr><\/tbody><\/table><figcaption>Parametric Estimating Definition.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Parametric Estimating Example<\/h2>\n\n\n\n<p>Consider this <a href=\"https:\/\/www.planisware.com\/glossary\/parametric-estimation\">example from plainsware.com<\/a> of the parametric estimation:<\/p>\n\n\n\n<p><em>Let\u2019s say your project includes carrying out a survey of 300 people. Each interview contains 20 multiple-choice questions, and past experience has shown they take 10 minutes to administer. According to parametric estimation, the total effort for this task will be:<br><\/em><em><br><\/em><em>E = number of interviews \u00d7 10 minutes = 3000 minutes = 5 hours<\/em><em><\/em><\/p>\n\n\n\n<p>A PMP\u00ae certification holder should know there are several ways to source the parametric value: <a href=\"https:\/\/www.projectengineer.net\/parametric-estimating-for-the-pmp-exam\/\">previous internal project, previous external project, and industry data.<\/a> The access to and quality of data from each source is dependent upon the industry and size of the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Parametric Estimating Use, Accuracy, and Effort<\/h2>\n\n\n\n<p>For estimates of budget, cost, and project duration, the project manager will \u201c<a href=\"https:\/\/www.planisware.com\/glossary\/parametric-estimation\">break down the project into sub-components and match them with the appropriate equation to obtain the estimates<\/a>.\u201d It can be a time-consuming process, but when done correctly can result in accurate estimates.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Application<\/strong><\/td><td><em>must be able to establish a statistical connection between historical and current work; requires scalable measurements<\/em><em><\/em><\/td><\/tr><tr><td><strong>Accuracy<\/strong><strong><\/strong><\/td><td><em>more reliable than analogous; accuracy directly dependent upon how closely aligned the historical and current projects are <\/em><em><\/em><\/td><\/tr><tr><td><strong>Effort<\/strong><strong><\/strong><\/td><td><em>researching historical data and conducting the statistical analysis can be time-consuming<\/em><em><\/em><\/td><\/tr><\/tbody><\/table><figcaption>Parametric Estimating Application, Accuracy, and Effort.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Three-Point-Estimating\">Three-Point Estimating<\/h2>\n\n\n\n<p>In comparing analogous vs parametric estimating vs three-point, the <a href=\"https:\/\/edward-designer.com\/web\/analogous-estimating-vs-parametric-estimating-for-pmp-exam\/\">most accurate estimating technique is three-point<\/a>. Rather than depending on the level of similarity of historical work, three-point uses estimates for most likely, pessimistic, and optimistic to determine the final estimate. The <a href=\"https:\/\/edward-designer.com\/web\/analogous-estimating-vs-parametric-estimating-for-pmp-exam\/\">Project Evaluation and Review Technique (PERT) formula<\/a>, something all PMP\u00ae certification holders and PMP\u00ae candidates should know, is:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>(Eo + 4Em + Ep)\/6<\/li><li>Most Likely Estimate (Em): The estimate when everything goes as normal<\/li><li>Pessimistic Estimate (Ep): The estimate when everything goes (almost) wrong<\/li><li>Optimistic Estimate (Eo): The estimate when everything goes (almost) smoother than expected<\/li><\/ul>\n\n\n\n<p>The use of most likely and least likely ensures the three-point estimate accounts for potential risks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Three-Point Estimating Defined<\/h2>\n\n\n\n<p>The PMI\u2019s <em>A Guide to Project Management Body of Knowledge<\/em> (<em>PMBOK\u00ae Guide<\/em>) online lexicon provides this definition for the three-point estimating technique:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Three-Point Estimating<\/strong> <strong>&nbsp;<\/strong><\/td><td><em><br>A technique used to estimate cost or duration by applying an average or weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates.<\/em> <em><br><\/em><em>\u2013 Source PMI Online Lexicon <\/em><a href=\"https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon\"><em>https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon<\/em><\/a><em><\/em> &nbsp;<\/td><\/tr><\/tbody><\/table><figcaption>Three-Point Estimating Definition<\/figcaption><\/figure>\n\n\n\n<p>Note within the <em>PMBOK\u00ae Guide\u2019s<\/em> definition, there are multiple types of three-point estimating tools. The Program Evaluation and Review Technique (PERT), informally known as \u201cPERT PMP,\u201d is one type.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Three-Point Estimating Example<\/h2>\n\n\n\n<p>Consider this example: determining how long it will take for a new roof to be installed on a home. Three estimates are received for getting a new roof installed on a home. Calculating the average of the three cost estimates provides insight into approximately what the final cost should be. Also, finding the average of the three expected durations of the work effort will provide insight into how long the project should take. Analysis using a 3-point estimate provides insight into the expected cost and duration for the planned work.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Three-Point Estimating Use, Accuracy, and Effort<\/h2>\n\n\n\n<p>The 3-point estimating tool can be used for cost or duration estimates for almost any type of project.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Application<\/strong><\/td><td><em>if all three estimates (Most Likely, Pessimistic, and Optimistic) are available, the tool can be used<\/em><em><\/em><\/td><\/tr><tr><td><strong>Accuracy<\/strong><strong><\/strong><\/td><td><em>more accurate than other estimating tools due to consideration of risk<\/em><em><\/em><\/td><\/tr><tr><td><strong>Effort<\/strong><strong><\/strong><\/td><td><em>collecting three data points for each task can be time-consuming<\/em><em><\/em><\/td><\/tr><\/tbody><\/table><figcaption>Three-Point Estimating Application, Accuracy, and Effort.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"comparing\">Parametric vs Analogous Estimating for the PMP<\/h2>\n\n\n\n<p>Preparing for the certification exam and looking for \u201cParametric vs Analogous Estimating PMP\u201d? These two estimating tools are often compared. In short, analogous estimating is usually fast by using top-down and past work to get to a quick estimate. Parametric is more accurate than analogous even though it also uses historical data for comparisons; the use of scale to factor in risks increases the accuracy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Analogous Estimating vs 3-Point Estimate<\/h2>\n\n\n\n<p>The three-point estimating tool can be used in conjunction with the analogous estimating tool to enhance the accuracy of the overall estimate. The three-point tool uses statistical models to increase the accuracy not possible with just the expert judgment of the analogous estimating tool.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Parametric-vs-3-Point-Estimate\">Parametric vs 3-Point Estimate<\/h2>\n\n\n\n<p>Rather than a parametric vs three-point estimate comparison, these tools can be effectively used together. <a href=\"https:\/\/www.pmi.org\/learning\/library\/project-estimating-accurate-labor-costs-8207\">Use the parametric estimate output as an input for 3-point estimating. <\/a>\u201c<a href=\"https:\/\/www.pmi.org\/learning\/library\/project-estimating-accurate-labor-costs-8207\">If the size estimate used for a parametric estimate is with a possible variance of 25%, scenarios can be created which illustrate the relative costs at the highest and lowest size values, assuming other parameters such as duration remain constant<\/a>.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Comparing-Estimating-Tools\">Comparing Estimating Tools: Analogous vs Parametric vs Three-Point<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-pale-blue-background-color has-background\"><tbody><tr><td><strong>Tool<\/strong><\/td><td><strong>Source Data<\/strong><\/td><td><strong>Uses<\/strong><\/td><td><strong>Strength<\/strong><\/td><td><strong>Weakness<\/strong><\/td><td><strong>Accuracy<\/strong><\/td><\/tr><tr><td><strong>Parametric<\/strong><strong><\/strong><\/td><td>historical data, expert judgment<\/td><td>cost, duration, resource, effort<\/td><td>low cost to complete; use of statistical model increases accuracy<\/td><td>time-consuming, need a similar project with data to make a comparison, must have \u201cscalable\u201d data points<\/td><td>more than analogous<\/td><\/tr><tr><td><strong>Analogous Estimating<\/strong><strong><\/strong><\/td><td>historical data, expert judgment<\/td><td>cost, duration, resource, effort<\/td><td>quick, low cost to complete<\/td><td>no documentation, requires an expert who has a similar past project to compare to current<\/td><td>expert guess<\/td><\/tr><tr><td><strong>Three-Point Estimate<\/strong><strong><\/strong><\/td><td>most likely, pessimistic, optimistic<\/td><td>cost, duration, effort, resources<\/td><td>statistical model and consideration of risks increases accuracy<\/td><td>time to collect three data points for each estimate<\/td><td>more than analogous; use with other estimating tools to increase accuracy<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Parametric-vs-Analogous-Estimating-for-the-PMP\">Parametric vs Analogous Estimating for the PMP<\/h2>\n\n\n\n<p>Those seeking to earn the PMP\u00ae certification should be able to list key differences between analogous vs parametric vs three-point estimating tools. Additionally, the wide use of the tools, for projects of all sizes should be recognized along with the importance of combining the estimating tools to increase accuracy.<\/p>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p style=\"font-size:25px\"><strong>Upcoming PMP Certification Training &#8211; Live &amp; Online Classes<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><table class=\"table table-striped table-bordered table-responsive-sm font-md mt-5 mb-0 d-none d-md-table\"><tr><td>Name<\/td><td>Date<\/td><td>Place<\/td><td><\/td><\/tr><\/table>\n<\/div><\/div>\n\n\n\n<p><\/p>\n<\/div><\/div>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Estimating is a key skillset for any project manager in any industry. There are multiple estimating tools project managers can combine to better refine the final estimated value for resources, effort, budget, timelines, and even risks. No project plan can happen without estimating. The analogous estimating (or \u201ctop-down estimating\u201d), parametric estimating, and three-point estimating tools [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3054,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[35],"tags":[39],"class_list":["post-3042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pmp-formulas","tag-estimating-techniques"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - 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