Hello everyone! Here is this week's free PMP® exam sample question from the PM Exam Simulator.

Which of the following techniques uses a statistical relationship between historical data and other variables to calculate a cost estimate for a schedule acitivity resource?

A. Bottom Up Estimating
B. Analogous Estimating
C. Parametric Estimating
D. Activity Cost Estimating

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HINT: Examples of other variables are square footage, cost per unit etc.

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Answer and Explanation:
The correct answer is C.

Parametric estimating uses the statistical relationship between historical data and other variables to calculate a cost estimate for a schedule activity resource.