PMI-SP practice question 14 of 35

Which of the following techniques is used in businesses to determine the effect different costs or investments have on profit and other financial indicators?

Full set: 327 questions
Answer options
A: Schedule analysis
B: Resource leveling
C: What-if scenario analysis Correct answer
D: Root cause analysis
Correct Answer:
C. What-if scenario analysis
Explanation

What-if scenario analysis explains the analysis of the question "What if the situation represented by scenario 'X' happens?". This What-If Scenario Analysis shortly named as WISA. A schedule network analysis is performed using the schedule to compute the different scenarios, such as extending specific engineering durations, or delaying a major component delivery. Businesses use what-if scenarios to determine the effect different costs or investments have on profit and other financial indicators. Answer option A is incorrect. The schedule analysis is the review of the schedule, but does not examine other possibilities for completing the project work. Answer option D is incorrect. The root cause analysis helps to determine the reasons why the project is running late. Answer option B is incorrect. The resource leveling causes the project's duration to increase. It is a technique that resolves resource conflicts by delaying tasks within their slack allowances. The resource leveling is the process in which project teams come across problems when developing their project schedules.

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