Guide on Analogous Estimating

Introduction:
Analogous estimating is an important concept in project management, specifically in Agile Estimation Techniques under the PMI-ACP exam. It is primarily used to provide project forecasts during the early phases of a project.

What is Analogous Estimating:
Analogous Estimating is a technique for estimating the duration or cost of an activity using historical data from similar activities. It is generally less accurate than other estimation techniques because it does not take into account the specific factors affecting the current project.

Why it is important:
Analogous Estimating is especially useful when there is a limited amount of detailed information about the project. It provides a high-level estimate, based on expert judgment and similar past projects, which is often enough to proceed with decision making in the early stages. It’s often less costly and less time-consuming than other techniques.

How it works:
In Analogous Estimating, the estimate is derived by comparing the project to a similar project in the past. This typically involves identifying a similar, previously completed activity or project and using the actual time or cost of that project as the estimate for the current project.

Exam Tips - Answering Questions on Analogous Estimating:

• Understand that Analogous Estimating involves using past data from 'similar' projects for current project estimates.
• Keep in mind it is less accurate and less time-consuming than other estimation techniques.
• Remember that while applying analogous estimates, expert judgment is often also utilized for fine tuning understanding of past projects and their relation to the current one.
• There might be questions where it looks like that comparative or parametric estimating could also be correct answers but remember that if the historical past data of similar projects/activities is specifically referenced, analogous estimating is likely the correct answer.