PMP Practice Question 851 - Process
At the end of a project's initiation phase, the budget was developed and submitted to the approval board. During the approval meeting, one of the key stakeholders asked how the budget was developed for future uncertainties. How should the project manager respond?
- A.Feedback from stakeholders will be addressed at each board meeting to adapt the budget.
- ✓ Correct B.Probabilistic analysis was used to develop the budget to address future uncertainties.
- C.The budget was developed by using the lessons learned from previous project data.
- D.Recurrent team meetings are planned to control the budget against future uncertainties.
Correct answer: B
Explanation
Probabilistic analysis examines multiple possible scenarios and their associated likelihoods to develop a budget that accounts for future uncertainties. This technique is widely used in project management to address inherent budgetary risks, providing a more comprehensive and realistic financial plan—particularly when significant unknowns exist about future conditions.
Practice the full 2,250-question bank
This page is a free public sample. Sign up to save your progress, build a wrong-answer notebook, and track accuracy by domain - free for 7 days.
Start free