Top-Down Estimating

Correct Answer: Increase the time-frame to adjust for the fewer number of staff.

The Top-Down Estimating approach involves using the experience of past projects to estimate the time and resources needed for current projects. This means that if fewer resources (in this case, staff) are available, the time frame should be increased to accommodate for this difference. The other options are not ideal: sticking to the same time frame can lead to overwork and burnout, decreasing the time frame is unrealistic and could lead to mismanagement, and hiring additional staff is not mentioned as an option in the question's scenario.

Correct Answer: Estimate the new project based on the actual results of the similar previous project.

The best possible answer for this question according to the Top-Down Estimating approach is 'Estimate the new project based on the actual results of the similar previous project.' This is because the Top-Down Estimating approach uses the outcomes of the similar previous project to reasonably estimate the new project. On the other hand, the other answers are incorrect. 'Estimate the new project based on the proposed budget of the previous project.' is not accurate because the proposed budget may not reflect actual costs or outcomes and may not be an effective estimate. 'Estimate the new project by using a different unrelated project as a reference.' is likewise not suitable because an unrelated project will not provide a reliable estimate for the new project. Lastly, 'Estimate the new project by increasing the previous project's cost by 10%.' is also wrong because this approach does not consider the actual results of the previous project; it merely increases the cost, which might not be justifiable without concrete data or results from the previous project.

Correct Answer: Distribute the given sum to individual tasks using top-down estimation method.

The best way to handle the project budget given by management is to distribute the given sum to individual tasks using top-down estimation method. This approach allows for effective cost control and makes it easier to account for each task within the project. Answer 'Use the given sum directly without breaking it down' is incorrect because it leads to poor cost control and can result in overspending on certain tasks. Answer 'Negotiate a new budget estimation since the management has incorrectly given the budget' is also not the best move, unless you can demonstrate there is an error in their calculation. The idea that you should 'create a new bottom-up estimation and present it to management' is not ideal in this scenario, the overall cost has been already calculated by management, it's your job as a project manager to distribute the budget properly to each task.