Estimating Practice Exam

Which estimate is likely to be used when the project is merely a vague idea?

1. Preliminary estimate

2. Estimated completion time

3. Conceptual estimate

4. Detailed estimate

The correct answer is: Conceptual estimate

When a project is still in the initial stages and exists only as a vague idea, a conceptual estimate is commonly used. This type of estimate is designed to provide a rough approximation of costs and resources based on limited information. It helps stakeholders to assess the feasibility of the project and make informed decisions about whether to proceed further. Conceptual estimates typically rely on historical data, analogies to similar projects, and broad assumptions rather than specific details. This allows for an understanding of potential costs and timelines without the necessity of in-depth analysis that comes with more detailed estimating processes. In contrast, preliminary estimates are often based on slightly more developed ideas but still may not capture all necessary details, while detailed estimates require comprehensive data and specifications. Estimated completion time focuses on scheduling rather than initial cost assessments. Thus, for a project that is a vague idea, a conceptual estimate is the most suitable approach.