Certified Business Analysis Professional (CBAP) Practice Test 2026 - Free CBAP Practice Questions and Study Guide

The correct answer is analogous estimating. This method involves using the duration and resource costs from previous, similar projects as a basis for estimating the duration and costs of the current project. The rationale behind this approach is that historical data provides valuable insights and benchmarks that can help establish a more grounded estimate for the new project.

Analogous estimating is particularly useful in the early stages of project planning when specific details are scarce. It allows project managers to quickly formulate estimates based on real experiences, adjusting for differences in complexity or size as needed. This technique emphasizes learning from previous successes and failures, enabling more informed decision-making.

Other methods, such as parametric estimating, involve using statistical relationships between historical data and other variables, while three-point estimates focus on optimizing estimates through best-case, worst-case, and most likely scenarios. These approaches can be valuable in their own right but do not specifically refer to leveraging insights from similar completed projects, making analogous estimating the most appropriate choice here.