Exam PMP topic 1 question 946 discussion

D. Monte Carlo analysis

D. Monte Carlo analysis Explanation: Monte Carlo analysis is a quantitative risk analysis technique that involves running a simulation (often using a computer) to model the possible outcomes of a project based on the variability of risk factors. The result is a cumulative probability distribution (S-curve) that shows the probability of achieving different outcomes, helping the project manager assess and manage project risks effectively.

Monte Carlo analysis is a quantitative risk analysis technique that uses computer simulations to model the likelihood of different outcomes in a project. It is particularly effective for assessing and managing project risks by considering the impact of uncertainty and variability. This technique helps in generating a cumulative probability distribution (S-curve) and provides a more realistic understanding of project outcomes.

D is the answer. In the context of a risk management meeting where the project team members are extensively utilizing computers to iterate the quantitative risk analysis model, the most suitable method for assessing and managing project risks is Monte Carlo analysis (Option D). Monte Carlo analysis is a sophisticated quantitative risk analysis tool that involves running numerous simulations to evaluate the impact of various risks and uncertainties on project objectives. Its iterative nature aligns well with the described scenario of multiple iterations of the risk analysis model. Furthermore, Monte Carlo analysis produces cumulative probability distributions, such as S-curves, which offer a comprehensive representation of the likelihood of different project outcomes based on input variables and associated uncertainties.