PMI-RMP · Question #278
The primary advantage of using decision-tree analysis in project risk management is that it______________
The correct answer is B. Forces consideration of the probability of each outcome. As a graphical way to bring together information, decision-tree analysis quantifies the likelihood of failure and places a value on each decision. Usually applied to cost and time considerations, this form of risk analysis may be linked to a sensitivity analysis. [Planning]…
Question
The primary advantage of using decision-tree analysis in project risk management is that it______________
Options
- AConsiders the attitude of the decision maker toward risk
- BForces consideration of the probability of each outcome
- CHelps to identify and postulate risk scenarios for the project
- DShows how risks can occur in combination
How the community answered
(57 responses)- A2% (1)
- B93% (53)
- C4% (2)
- D2% (1)
Explanation
As a graphical way to bring together information, decision-tree analysis quantifies the likelihood of failure and places a value on each decision. Usually applied to cost and time considerations, this form of risk analysis may be linked to a sensitivity analysis. [Planning] PMI®, PMBOK® Guide, 2013, 339 Wide man 1992, C-2 and C-3
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