Component Cost Estimation

Correct Answer: Bottom-up estimating, as it allows for a detailed analysis of the vendor's proposal and breaks down the cost into smaller, manageable elements

Bottom-up estimating is the most suitable technique for estimating the cost of the critical software component developed by the external vendor. This method allows for a detailed analysis of the vendor's technical proposal, breaking down the cost into smaller, manageable elements. By examining each component of the vendor's development process and deliverables, the program manager can arrive at a more accurate cost estimate. Analogous estimating may not be appropriate as it relies on historical data from similar projects, which might not be directly comparable to the unique development process and deliverables outlined in the vendor's proposal. Parametric estimating, while using statistical modeling and historical data, may not fully account for the vendor's specific development process, potentially leading to inaccurate estimates. Three-point estimating considers different cost scenarios but may not adequately incorporate the specific details provided in the vendor's technical proposal, which are crucial for accurate cost estimation.

Correct Answer: Engage in a Delphi method estimative process, where experts contribute with anonymous estimates and rationales, followed by rounds of discussion and revision to converge on a refined cost forecast.

The correct answer involves a structured but collaborative approach to refining the cost estimate, bringing in expert opinions in a controlled way to reduce bias and increase accuracy. The Delphi method allows for anonymous input and iterative feedback, leading to a more refined and agreed-upon cost estimate. The wrong answers, while plausible and related to program management cost estimation or adjustment techniques, either lack the specificity of engaging experts in a structured review process (Delphi method) or might not directly lead to a more accurate cost estimate due to their more general approach or indirect methods of cost estimation.

Correct Answer: Conduct a detailed bottom-up estimate, breaking down the component into smaller tasks and estimating each task individually based on resource requirements and historical data.

A detailed bottom-up estimate is the most accurate technique for estimating the cost of a critical software component. By breaking down the component into smaller, manageable tasks and estimating each task individually based on resource requirements and historical data, the program manager can arrive at a precise and reliable cost estimate. This approach takes into account the specific details and complexities of the component, reducing the risk of overlooking important factors or making broad assumptions. While other techniques like top-down estimation, parametric modeling, and expert judgment can provide useful insights, they may not capture the intricacies and unique aspects of the critical component, potentially leading to less accurate estimates.