Estimation Techniques

Correct Answer: Three-point estimation

The Three-point estimation technique is the most suitable for this situation as it takes into account all possible scenarios i.e. worst-case, most likely, and best case, which aligns with having high risk, low risk, and average risk activities. Analogous estimation, as the other suggested method, is based on the comparison between the current project and similar past projects. It doesn't differentiate between levels of risk in individual activities, thus is not the best choice in this scenarioParametric estimation uses statistical data and specific parameters from previous similar projects for reasoning. While it could be useful, it does not consider risk variations like the three-point estimation and thus is not best suited in this caseFinally, the Bottom-up estimation, where every single task is broken down and estimated individually, this could be an effective way for smaller projects but not in this scenario. The time and efforts required for Bottom-up estimation on a project with varying levels of risk might outweigh the benefits. Hence, three-point estimation is the best choice.

Correct Answer: Three-point Estimating

Three-point estimating is the best technique for such unpredictable projects because it considers the most optimistic, most pessimistic, and most likely scenarios to arrive at a better schedule estimation. The alternative, parametric estimating, relies heavily on statistical relationships between previous data and other variables, making it unsuitable for unique custom-made furniture projects. Analogous estimating, on the other hand, relies on historical data from similar projects, but each piece of furniture here has unique designs and specifications making this method inaccurate. Finally, Bottom-up estimating starts by estimating the smallest individual elements and summing them together, this could be impractical for projects with unique specifications for each piece as it may require more time to analyze each element and may still result in incorrect estimates.

Correct Answer: Bottom-Up Estimating

Bottom-Up Estimating is the most appropriate technique for this situation, as it allows the project manager to create detailed estimates for each activity, which can then be aggregated to estimate the overall cost.