Project Management Professional (PMP) Exam Practice – Question1430 | Project Management Professional PMP Mock Exam Practice

It is expensive to lease office space in cities around the world. Office space can cost approximately USD $80 per square foot in Tampa, Florida. And it can cost approximately $50,000 per square meter in Tokyo. These "averages" can help a person to determine
how much it will cost to lease office space in these cities based on the amount of space leased. These estimates are examples of______________

A. Variance analysis
B. Parametric estimating
C. Bottom-up estimating
D. Reserve analysis

Correct Answer: B

Explanation:

Explanation:
Parametric estimating involves using statistical relationships between historical data and other variables to calculate or estimate for activity parameters, such as cost, budget, or duration. The example is representative of a simple parametric model.