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Guide on Historical Information Review for PMP Cost Estimating

Historical Information Review is one of the key concepts in the Project Management Book of Knowledge (PMBOK) Guide Seventh Edition's Cost Estimating process.

What is Historical Information Review?
Historical Information Review involves assessing past project data and information. It is a technique used for estimating costs in project management by leveraging learnings and insights from prior projects. This can include understanding prior cost performance, resources used, tasks performed, project methodologies implemented etc.

Why is it Important?
Knowing the cost of similar projects helps project managers to plan the current project's budget with more accuracy. It provides a reliable base for cost estimation and allows project managers to avoid the pitfalls from the past or repeat successful strategies. Moreover, it can save time and reduce the level of uncertainty in the estimation process.

How Does it Work?
To perform a Historical Information Review, project managers generally refer to documents like previous project files, project management plan components, or organisational process assets to extract relevant data for estimating the current project's costs.

Exam Tips: Answering Questions on Historical Information Review
1. Understand the significance of historical data in cost estimating. Always think from the perspective of learning and insight extraction from past projects.
2. Don't get confused between Historical Information Review and Analogous Estimating. Both use historical data, but the first involves a detailed review while the latter is a cost estimating technique that draws a parallel with past projects.
3. Be aware that historical data could be subject to inflation, changes in technology, or changes in stakeholder requirements. Always consider these factors while interpreting historical data.
4. The accuracy of Historical Information Reviews largely depends on the accuracy, reliability and relevance of the historical data. Remember this while answering related questions.

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Historical Information Review practice test

Historical Information Review is the process of examining and analyzing data from previous projects that are similar in nature, scope, or complexity to the current project. This data can provide valuable insights into the cost estimation process, helping project managers establish more accurate and reliable cost estimates for their projects. By reviewing historical data and understanding how past projects were executed, project managers can identify trends, patterns, and lessons learned that can be applied to the current project. This can help reduce the likelihood of cost overruns and improve project success. Historical information should be carefully reviewed and compared to the unique requirements of the current project to ensure that the cost estimates derived from past experiences are applicable and reliable for the present situation.

Time: 5 minutes   Questions: 5

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Project Management Professional Preparation Package (2024)

  • Earn 35 PDUs needed for your PMP certification
  • 12955 Superior-grade Project Management Professional practice questions.
  • Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
  • Unlock Effortless PMP preparation: 5 full exams.
  • 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
  • Bonus: If you upgrade now you get upgraded access to all courses
  • Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!