Which of the following quantitative risk analysis techniques relies on experience and past data to compute the probability and impact of risks on project objectives?
Which of the following quantitative risk analysis techniques relies on experience and past data to compute the probability and impact of risks on project objectives?
Probability distribution is a quantitative risk analysis technique that relies on historical data and statistical methods to model the probability of different outcomes and their associated impacts on project objectives. It uses past data and experience to forecast future risks, making it the most appropriate choice for the given question.
Some of the techniques of quantitatively determining probability and impact of a risk include: Interviewing. Cost and time estimating. Delphi technique. Historical Records. Expert judgment. Expected monetary value analysis. Monte Carlo Analysis. Decision tree.
D cant be the answer, interviewing is not a quantitative technique
Probability distribution is also a technique according to page 283 and in my opinion based on experience and estimation. D could be correct but it ismaybe less reliable I would say. Anyone?
v3 10.38 - Risk analysis and management Sensitivity analysis is a widely recognized quantitative risk analysis technique used in project management and business analysis. It involves assessing the sensitivity of project outcomes to changes in various factors or assumptions. Sensitivity analysis helps in understanding how changes in input variables affect the output or results of a model or analysis. While sensitivity analysis may not be explicitly mentioned in the BABOK v3, it aligns with the broader principles of risk analysis and management discussed in the BABOK, particularly in the context of analyzing the potential impact of risks on project objectives.
The other options provided—probability distribution, modeling and simulation, and interviewing—are also quantitative risk analysis techniques. However, they focus on different aspects of risk analysis: Probability distribution involves analyzing the likelihood of various outcomes based on different probability distributions. Modeling and simulation involve creating models of systems or processes to simulate various scenarios and assess their outcomes. Interviewing is a qualitative technique that involves gathering information from stakeholders or subject matter experts through structured interviews. Each of these techniques has its own strengths and applications within the realm of risk analysis, but sensitivity analysis specifically addresses the sensitivity of outcomes to changes in input variables, making it a valuable tool in risk assessment and decision-making
The answer is B
Correct answer is A. Interviewing is not a quantitative risk analysis technique. Probability distribution is a quantitative risk analysis technique that relies on historical data and statistical methods to model the probability of different outcomes and their associated impacts on project objectives.