Which statement is true regarding estimates?

The statement regarding estimates that is true is the one about the correlation between the accuracy of an estimate and the likelihood of a project achieving projected profit. Accurate estimates play a critical role in project management and budgeting. When estimates reflect true costs, resources can be allocated more efficiently, allowing project managers to align financial expectations with actual expenditures. This alignment enhances the potential for a project to achieve or exceed its projected profit margins because it minimizes surprises and allows for informed decision-making throughout the project's lifecycle.

Accurate estimates also foster trust among stakeholders, including clients and investors, as they can provide a realistic overview of project financials. This is essential in construction and home building, where costs can escalate quickly if not properly forecasted.

The other statements do not accurately reflect the general practices or principles involved in estimating. For instance, using the square-foot method for estimating HVAC equipment sizes is not its primary purpose; it’s more suited for budgeting general construction costs. Additionally, estimators are found in companies of all sizes, not just large firms, as even small companies recognize the importance of accurate estimating. Lastly, while rounding up estimates may seem practical in certain contexts, it is not a universal rule and can lead to inaccuracies if over-simplification occurs.