You work as a project manager for BlueWell Inc. Your project requires the project team to paint
1,500 hotel rooms. Your project team reports that it will take them approximately 4 hours to paint
each hotel room. You reason, then, that it will take 6,000 hours to paint all of the hotel rooms.
What type of an estimate are you creating in this scenario?

A.
Parametric estimate

B.
Definitive estimate

C.
Analogous estimate

D.
Bottom-up estimate

Explanation:
This is an example of a parametric estimate. This estimate type uses a parameter, such as four
hours of painting per hotel room, and multiplies this value across the total number of units, such as
1,500 rooms. A parametric estimate is an estimate that uses a parameter to predict the costs of
the project, such as cost per network drop or cost per software license. Parametric estimating
technique utilizes the statistical relationship that exists between a series of historical data and a
particular delineated list of other variables.
Answer option C is incorrect. An analogous estimate type uses a similar project’s duration as a
basis for the current project’s estimate duration.
Answer option B is incorrect. A definitive estimate type accounts for the duration or costs of each
work package in the WBS.
Answer option D is incorrect. A bottom-up estimate, also known as a definitive estimate, accounts
for the duration or costs of each work package in the WBS.