Estimation Techniques

Correct Answer: Ideal Time is a representation of how much time a task will take when stripped of all interruptions, while Story Points act as a measure of effort that takes into account the complexity, risk, and uncertainty of a task.

The first answer is the best one due to its comprehensive understanding of the concepts. It rightly defines the key differences between Ideal Time and Story Points, stating that 'Ideal Time' is a representation of how much time a task will take if there were no interruptions, conversely, 'Story Points' take into account the complexity, risk, and uncertainty of a task, making it a more comprehensive and efficient estimation technique. This understanding aligns with the Scrum framework as it values individuals, interactions, customer collaboration, and response to change rather than strict timelines. The second, third, and fourth answers are incorrect. The second gives a misleading concept, noting ideal time considers complexity while story points only consider time, which is not true. The third statement is flawed as there's no universal 'better' or 'preferred' method, it generally depends on the team's agreement. Lastly, the fourth assertion is incorrect because the use of Ideal Time or Story Points doesn't automatically categorise a project as simple or complex.

Correct Answer: Expert Judgement

Expert Judgement is most suitable in this scenario, as it allows the project manager to consult experts for their opinion on the unknown factors and new technology, ensuring a more accurate estimation.

Correct Answer: Analogous estimation

The Analogous estimation technique is the best to apply in this scenario because it uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project. This method is most reliable when the previous activities are similar in fact and not just in appearance. The other techniques aren't as suitable. Parametric estimation involves using statistical modeling and historical data to calculate a cost, but it is not always accurate if the nature of the costs has changed. Bottom-up estimation involves estimating the cost of individual activities or work packages and then adding these up - this is too time-consuming and not necessary when a similar previous project can be referred to. Three-point estimation involves estimating an optimistic, most likely, and pessimistic cost to arrive at a cost estimate. This technique is generally used when there is a high degree of uncertainty about the individual activity cost elements.