What is an analogy cost estimating technique?

Analogy cost estimating is a technique that involves comparing the current project to similar past projects to determine the cost estimate. By analyzing historical data and adjusting for differences in scope, complexity, and other factors, estimators can derive a more accurate prediction of costs. This method is often used when there is limited detailed information available about the current project but sufficient data from analogous projects. It leverages lessons learned and benchmarks to improve the reliability of cost forecasts.