Cost Estimating

Correct Answer: Bottom-Up Estimating

The technique that is described in the question is the 'Bottom-Up Estimating'. This is a method of estimation where the project is broken down into smaller tasks and the costs of these tasks are individually estimated and summed to get the total project cost. This approach is very detailed and time-consuming but tends to be more accurate since it considers each small task individually. 'Analogous Estimating' is an estimation technique that uses the values of parameters from previous similar projects to estimate the same parameter or measure for a future project. 'Expert Judgment' refers to inputs provided by knowledgeable individuals or subject matter experts in a particular domain. 'Parametric Estimating' is a technique for estimating the cost and time by using a statistical relationship between historical data and other variables.

Correct Answer: Three-Point Estimating

Three-Point Estimating is the best method to use in this scenario. It is a technique that uses three different estimates - optimistic, most likely, and pessimistic - to determine an appropriate estimation for a project task. This fits the situation given where we have three different cost estimates. This technique provides a realistic cost with a consideration of risk and uncertainty. Analogous Estimating is incorrect because this technique uses the actual cost of previous, similar projects as the basis for estimating the cost of the current project, there's no past similar case provided here. Parametric Estimating is incorrect as well, because it utilizes statistical relationships between historical data and other variables to calculate an estimate for the activity parameters, such as scope, cost, budget, and duration. The Expert Judgment method depends on the expertise of experienced individuals or teams who have done such similar tasks before. This is not suitable as our case is about receiving three different cost estimates.

Correct Answer: Earned Value Management (EVM)

In the given scenario, Earned Value Management (EVM) is the best technique to use. EVM is a project cost management technique that measures project performance and progress in an objective manner. It has the ability to combine measurements of project management triangle: scope, time, and costs. By using this technique, the project manager can detect any variances between the planned and the actual progress. This way, potential cost variances across the project's duration can be identified and addressed in a timely manner On the other hand, Analogous Estimating, Three-Point Estimating, and Parametric Estimating are all techniques used during the project planning stage to estimate costs. They do not provide ongoing tracking or control over project cost and therefore are not the appropriate techniques for the scenario given. Analogous Estimating uses the cost of similar past projects to estimate the cost of a current project. Three-Point Estimating is used when the estimation has uncertainty. It uses three types of estimates: optimistic, most likely, and pessimistic, to calculate an expected cost Parametric Estimating uses statistical modeling to develop a cost estimation. It involves using project characteristics (parameters) in a mathematical model to predict project costs.