Choose any two estimating techniques and compare them.
Estimation is used in different fields to get the desired result within the available resources. Cost estimation is such a process in which we try to estimate the cost of the products or services that we require. Cost estimation may be used by both suppliers and the buyer. The buyers may use it to find out how much money should they offer for a certain product or a service, while the buyers may use cost estimation to find out whether they will get enough profit if they provide the services or products to the buyer in within their proposed budget. There are many cost estimation techniques utilize. Four of them are in common use. They are analogy, parametric, engineering and actual costs. I would like to compare two of the cost estimating techniques i.e. analogous estimating and parametric estimating.
In this type of cost estimation technique is used when there is not enough information about the accurate nature of the present project. A past project is used as a reference and its budget is considered to be close to what the present project may cost. This is not a good estimation technique as the past and present circumstances and prices of raw material and other resources may have considerably changed. The estimation in this technique are primarily based on judgement and not facts.
Parametric estimation on the other hand is a more accurate technique. This technique uses different variables to make a comparison and estimate time and cost required to complete a task. In this type of estimation the unit cost is found and then the cost of the whole task involving different units is estimated. All the estimations in this kind of measurement are scalable therefore they are accurate compared to analogous estimation the measurements of which are not scalable.