Which one of the following statements best describes requirements prioritization?

Prioritization is based on criteria such as business value, risk, cost, and dependencies - not solely on the importance or seniority of stakeholders.

Requirements prioritization is not limited to change-driven approaches; it is equally essential in plan-driven approaches to determine implementation order and manage scope.

Requirements prioritization is not exclusive to plan-driven approaches; change-driven approaches such as Agile rely heavily on continuous prioritization through techniques like backlog refinement.

Requirements prioritization determines the relative importance of requirements using criteria such as business value, risk, and dependency, and then defines how those rankings influence implementation sequencing, scope decisions, and resource allocation. It applies to both plan-driven and change-driven approaches.