PMI-RMP Question #278: Real Exam Question with Answer & Explanation

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] PMI®,

Perform Targeted Risk Analysis

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

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

Topics

#Decision Tree Analysis#Quantitative Risk Analysis#Probability Assessment#Risk Tools

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