Final answer:
Analogous estimating is a method used to estimate the value, price, or quantity of something based on previous similar projects. It provides a quick and relatively accurate estimate when detailed data is not available, but there is a risk of significant differences between the estimate and the actual value.
Step-by-step explanation:
Analogous estimating is a method used to estimate the value, price, or quantity of something based on previous similar projects. It involves using the initial values, prices, or quantities from those previous projects as a reference.
One advantage of analogous estimating is that it provides a quick and relatively accurate estimate when detailed data is not available. It allows for cost or time estimation based on similarities with previous projects.
There is a risk, however, that the actual value, price, or quantity may differ significantly from the estimate due to factors such as changes in the project scope, technology advancements, or market conditions.