Final answer:
Analogue estimating uses top-down estimation techniques by leveraging historical data from former projects to forecast time and costs for current projects. Prior experience and sound reasoning based on dimensions, units, and variables aid in making these educated estimates. These estimates are valuable for conducting cost/benefit analyses and making informed decisions in project management.
Step-by-step explanation:
Analogue estimating is a technique used in project management, particularly for estimating time and costs. The correct answer to the mentioned question is d) By using former projects to estimate how long or how much for a current project. This is a top-down estimating technique that involves looking at historical data from similar past projects to make educated guesses about the current project. Unlike bottom-up estimating, which requires a detailed breakdown of tasks, analogue estimating provides a quicker, albeit less precise, approach to forecasting project parameters.
Analogues estimating does not equate to mere guessing; it utilizes prior experience and sound reasoning to arrive at a general approximation of a project's time or cost requirements. It's particularly useful when precision is not critical, or when there is a lack of detailed information available. Experience, familiar with dimensions, units, and variables, and a strong understanding of related physical principles, all aid in making more accurate analogue estimates.
Considering different scales through analogues estimating helps in understanding constraints and required resources, leading to a more informed decision-making process. An example of practical application might include comparing the costs and benefits of various project scenarios, using cost/benefit analysis to make informed decisions.