How do you estimate costs using analogous estimating?
The Challenge
Take 10 minutes to research the definition of analogous estimating. Now think of one example--either real or hypothetical--where you might use this technique to estimate costs for a personal or professional project.
Why do this?
Having a good understanding of estimation techniques is crucial when you're putting together a budget. Analogous, parametric, three-point, and bottom-up estimating are all used in different circumstances, and knowing how and when to use all four will ensure you're prepared for any type of project. (By the way, if you noticed that this challenge is similar to another one you've done, you're right. It is! We developed a whole series on estimating costs, and this challenge is part of that series.)
Estimating costs accurately up front will save you a ton of hassle (and money!) down the line.
What’s next?
Spend a little more time reading about the reasons you'd use this technique over the other three. What are the benefits? What are the cons?
