PMI Scheduling Professional Certification (PMI-SP) Practice Exam 2025 - Free PMI-SP Practice Questions and Study Guide

Analogous estimating is a technique used in the Estimate Cost process where cost estimates for a project or a project activity are derived from the costs of similar past projects. This technique is particularly useful during the early phases of project planning when detailed information is scarce. By leveraging historical data and information from previous projects, project managers can make informed estimations about likely costs.

This approach relies on the assumption that if two projects are similar in key aspects, the costs associated with them will also be similar. Factors such as scope, complexity, and market conditions are considered to adjust the estimates accordingly. This method is typically quicker and less labor-intensive compared to others, although it may not always provide the accuracy that more detailed estimating techniques could.

The other options provided do not focus specifically on the estimation of costs for project planning in the same manner. Stakeholder analysis identifies the needs and influences of project stakeholders but does not produce cost estimates. Cost-benefit analysis evaluates the projected benefits of a project against its costs, but it is not directly responsible for deriving specific cost estimates. Forecasting involves predicting future trends and performance, which can inform overall project planning but is not an estimation technique focused specifically on costs.