Zephyr Professional Practice Test 2025 - Free Practice Questions and Study Guide

Analogous estimating is a technique widely used for estimating project costs because it leverages historical data from previous, similar projects to inform cost predictions. This method is particularly useful when there is limited detailed information available about the project in question. By examining the costs of comparable projects, project managers can apply a range of adjustments for factors such as project complexity, size, and current market conditions, allowing for a more informed and realistic estimate.

In contrast, SWOT analysis is primarily used for strategic planning and involves evaluating the strengths, weaknesses, opportunities, and threats related to a project or organization, rather than focusing on cost estimation. Resource allocation pertains to how resources (e.g., people, time, materials) are distributed throughout a project, which is more about management than cost estimation. The critical path method is a project management tool used to determine the longest stretch of dependent activities and measure the project's completion time, rather than specifically for estimating costs. Therefore, among these options, analogous estimating stands out as the method directly tied to assessing project costs based on prior experiences.