Analogous Estimating

Correct Answer: You would estimate that the new project would take 8 months and $90000.

The new project is twice as complex as the previous project that took 4 months and $45000. So, you would expect both the time and the cost to double. Hence, the new project would take about 8 months and $90000. Answer 155259 is incorrect because experience can improve efficiency, but it won't drastically reduce the project duration to half and budget to half when the complexity is doubled. Answer 155260 is incorrect because it does not account for the increase in the complexity of the project, so it should take more time and more budget. Answer 155261 is not correct because, although it accurately estimated the cost to be twice that of the previous project, it incorrectly asserted that complexity does not affect the duration.

Correct Answer: Increase the cost of the previous project by 30% to account for the higher complexity.

Analogous estimating in project management is based on drawing parallels between similar projects. If a new project is estimated to have 30% more complexity than a similar past project, logically, the cost should also proportionally increase, making the first answer the correct one. The second answer is incorrect because it fails to account for the increased complexity of the new project. The third answer is not feasible as despite a team's gained experience, increased complexity does not generally lead to decreased cost. The fourth answer is wrong because it proposes a method that doesn't factor in the complexity and applies a flat rate based on duration which is not the right way to estimate costs in project management.

Correct Answer: Cost and time could decrease due to the efficiencies brought in by the agency.

The best answer is 'Cost and time could decrease due to the efficiencies brought in by the agency'. This is because the introduction of a marketing agency that offers a seamless solution might bring efficiencies to the project, which could likely result in both a reduction in cost and time spent. Similar projects' past performance is utilized in analogous estimating. The other answers are incorrect. 'Cost would increase due to the hiring of the agency': The agency is brought in to increase efficiency, so while there is a cost to hiring them, the overall cost may decrease due to their expertise. 'Estimate will remain the same regardless of the improved technology': This is invalid because analogous estimating is flexible and considers any new efficiencies or changes that can affect the estimate. 'It's impossible to estimate based on previous project data': This is incorrect as the essence of analogous estimating is using past projects to estimate future ones.