To address the costs of a new project that is unable to go project that was implemented last year, the project manager meets with a group of experts from the previous project. The group uses a three-piece estimating technique. The project manager intends the estimated budgets to be applied forward for approval. The project sponsor, who is one in the company, is concerned because the budget exceeded their expectations. What should the project manager do?

While persuasive tools can be useful, simply convincing the project sponsor without providing substantial justification from historical data may lead to distrust. The sponsor's concerns need to be addressed with concrete evidence rather than mere persuasion, making this option less effective in resolving the issue at hand.

This approach focuses on assessing the budgeting process rather than justifying the current budget estimate with past experiences. While understanding contingency reserves is beneficial, it does not directly address the project sponsor's immediate concern about the budget exceeding expectations.

Altering the budgeting technique might improve estimates in the long term, but it does not provide immediate justification for the current budget that has already raised concerns. This option could lead to additional delays and uncertainty rather than addressing the current situation effectively.