CAPM (Certified Associate in Project Management) Practice Exam

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What indicates a reliable historical relationship for predicting total project costs?

High project complexity
Accurate historical information and quantifiable parameters
Lack of previous projects
Unstable market conditions

The correct answer is: Accurate historical information and quantifiable parameters

Historical information and quantifiable parameters are an essential aspect of accurately predicting project costs. Without accurate historical information or quantifiable parameters, it is difficult to create a reliable prediction for total project costs. Option A is incorrect because high project complexity does not necessarily indicate a reliable historical relationship, as project complexity can vary and not always be indicative of costs. Option C is incorrect because the lack of previous projects means there is no historical data to rely on for cost predictions. Option D is incorrect because unstable market conditions can greatly impact project costs, making it difficult to predict accurately. Therefore, option B is the most reliable choice for predicting total project costs.