Estimation Techniques: Story Points and Ideal Time

Correct Answer: Analogous Estimation

In this scenario, the project manager is required to provide a quick, preliminary estimate of the project cost and duration. The best estimation technique to use in this case is the Analogous Estimation. Analogous Estimation, also known as top-down analysis, is based on the comparison of the current project with similar projects done previously. It is a relatively quick and straightforward estimation approach that can provide management with a rough idea of the effort and time required. However, it might not be very accurate because it's heavily dependent on the similarity between the current and past projects. The other techniques have their advantages and are applicable in different scenarios, but are not the best fit here. Three Point Estimation is a technique which uses three estimations - worst case, most likely, and best case - to arrive at a final estimate. This would require more investigation and time to make these three estimations, and the management wants a quick estimate. Bottom-up Estimation is a more detailed and time-consuming technique, which involves estimating individual tasks and then summing them up to estimate the total project time and cost. It can yield highly accurate results but is not suitable when a rapid rough estimate is needed. Parametric Estimation, which involves statistical modeling, requires specific project details and a lot of calculation, which can't be done quickly. Though it can be quite accurate, it's not the best approach for this scenario where speed is a priority.

Correct Answer: Higher complexity and risk involved

In Agile project management, Story Points are a measure of the effort required to complete a user story. They correlate with the complexity of the work, the amount of uncertainty or risk involved, and the effort required. Hence, a user story with a higher story point value implies that the work is more complex and has more risk involved. The other answers are incorrect because the number of story points do not directly correlate with the urgency of the task (answer 'The task needs to be done urgently'). Additionally, higher story points do not mean that less time is required for completion (as indicated by the answer 'Less time required to complete'), but rather the opposite. Finally, higher story points signify higher, not lower complexity and risk (as indicated by the answer 'Lower complexity and less risk involved').

Correct Answer: Bottom-Up Estimating

The Bottom-Up Estimating technique is best for a complex project with numerous activities that requires an in-depth analysis for cost estimation. This method works by estimating the cost of individual activities or work packages on the lowest level and then adding up these costs to come up with the total project estimate. Not only does this method give a detailed cost estimation, but it also helps to identify the most costly areas in the project, therefore allowing project risks to be managed better. Analogous Estimating, although a quick and easy way to estimate costs based on the costs of past, similar projects, won't provide the necessary depth or detail for complex projects. Parametric Estimating, which uses statistical modeling, needs historical data to create accurate estimates, making it less useful for unique or unprecedented projects. The Delphi Technique, which relies on expert judgment and consensus, is great for gaining insights and forecasting, but wouldn't provide the rigorous, detailed estimation needed for complex projects.