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The estimate by analogy method prices a new project by

  • A.regressing cost against capacity over many projects
  • B.adjusting the known cost of a similar past project
  • C.summing the priced quantities from its drawings
  • D.applying a fixed multiplier to the equipment cost

Answer: B

One comparable project is taken as the base and adjustments are made for differences in size, location, specification and date. It is quick and often surprisingly good, but it carries whatever was peculiar about that single base project into the new figure.

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