Exam PMI-RMP topic 1 question 2 discussion

When managing cost risk analysis using a risk register, the Monte Carlo simulation is a model that inherently accounts for correlation without the need to estimate correlation coefficients.

When managing cost risk analysis using a risk register, the Monte Carlo simulation is a model that inherently accounts for correlation without the need to estimate correlation coefficients.

Scatter plots.. more or less gives the correlation present, so

Risk Driver method models how correlations come about due to risks affecting more than one line item. No more guessing at correlation coefficients. By Hulett & Associates

Risk scatter diagram

The Answer is C because , A scatter diagram is the same as a bubble chart that is used for finding the correlation between two intervals.The scatter diagram graphs pairs of numerical data, with one variable on each axis, to look for a relationship between them. If the variables are correlated, the points will fall along a line or curve. The better the correlation, the tighter the points will hug the line.

Ans: C

the keyword is correlation, Correlation is one method that we can find in scatter diagram. Monte Carlo is used for What-if Analysis with multiple iteration and many factor caused the simulation, hence the answer is C

The correct answer is (A)

A risk Monte Carlo analysis is a statistical technique that can be used to model the way correlation arises and avoid the njavascript:void(0)eed to estimate correlation coefficients when managing cost risk analysis using a risk register.