Question

consider whether one process would result in more accuracy than another and discuss why.in the example below.

In order to have accurate top-down estimation, historical information must be used, which points to analogous estimating. Using a previous projects actual costs, an estimation using top-down may be done quickly and accurately if the projects are similar. However, estimates will not be accurate if two projects are not similar or only appeared to be similar, but this is an easy way to estimate if there is not much known about the project but has same same attributes as another (MindEdge, 2014).

Contrary to top-down, is the bottom-up estimation. Like the name suggests, the estimation starts from the bottom where those closest to the work are doing the estimation which would make this technique more accurate and higher quality than top-down. Even though this estimation may be more accurate, it also can be more time consuming as it may take longer for those close to the work to complete an estimation in addition to daily responsibilities (MindEdge, 2014).

It is imperative to have an accurate estimation of costs as this can effect resources, timeline of completion and profitability.

Answer 1

From the two methods of estimation, the bottom-up method can give more accuracy as it is based on real and actual information and estimates are made based on them by the actual staff who will be working on it. Each task is evaluated individually and the estimates on the deliverables are made accordingly. This gives deeper and clearer results thus making the estimation more accurate. The top-down method depends on past data whereas the bottom-up method involves team members creating data for the estimation. They organize the tasks to be performed and analyse them individually to get accurate results. This could be a long process but brings more accuracy in the outcomes thus helping the organization rely on the estimation done.