The tables show the requirements for an agile project with the anticipated return on investment (ROI) and identified project risks, along with the analysis details.
What should be the priority order in the product backlog?
Risks are not implemented, obviously. Only requirements. You must match each requirement with its risk in the decision tree, so:
Requirement 1: 10000 - (5000*0,75)=6250
Requirement 2: 8000 - (4000 * 0,5)=6000
Requirement 3: 25000 - (20000*0,45)=9000
The answer ordered by value is C, Req3 Req 1 Req 2
D is wrong, you don't put risks in the backlog. Who thinks this is a thing? Risks go in the risk register. You calculate the cost of the risk and subtract it from the ROI and adjust the backlog accordingly based on the highest return.
C. Requirement 3, Requirement 1, Requirement 2
product backlog should contain only user stories associated with each requirements.
For risk, there should be a risk-adjusted backlog which will have all identified risk and their priorities and task to respond that risks.
I think this is a trick question. I don't believe risks would ever be added or prioritized in the product backlog and the PMBOK says nothing about adding/tracking/assigning value to risks in the *key word* product backlog.
Expected monetary value( EMV)= Risk * probability %
So EMV for the risks
5000 * 0.75 = 3750
4000 * 0.5 = 2000
20000 * 0.9 = 9000
And Business value for each requirement
10000
8000
25000
So after sorting these numbers, Req3, Req1, Risk 3, Req 2, Risk 1, Risk 2
Weighted scoring is a Six sigma method. I have not seen weighted scoring of ROI based on risk. So I would go Req 3, Req 1, Req 2 based on value of delivery early in agile.
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