To avoid the problem of inaccurate cost estimation, as indicated by a CPI of 0.65, bottom-up estimating should have been used. This method involves estimating the cost of individual tasks in detail and then aggregating them to arrive at a total project cost. It is more accurate than analogous estimating because it considers the specific details of the current project rather than relying on the cost data of past projects, which may not be directly applicable. Bottom-up estimating allows for a more granular and accurate assessment of the project's financial requirements.
References:
* Project Cost Management According to the PMBOK1
* Estimating errors - Project Management Institute2
* 7 Tips for estimating your projects - Project Management Institute3