PMI PBA: Comparing estimated and actual costs and benefits

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seema.sonkiya
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PMI PBA: Comparing estimated and actual costs and benefits

Postby seema.sonkiya Mon Feb 16, 2015 4:45 am

Comparing estimated and actual costs and benefits may be a part of which domain of Business Analysis?

A. Planning Business Analysis
B. Traceability of requirements
C. Solution Verification
D. Solution Evaluation

Which one is correct answer?
Vabz
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Re: PMI PBA: Comparing estimated and actual costs and benefi

Postby Vabz Wed Feb 18, 2015 2:44 pm

Answer is (C)
seema.sonkiya
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Re: PMI PBA: Comparing estimated and actual costs and benefi

Postby seema.sonkiya Wed Feb 18, 2015 4:00 pm

Thanks :-)

I also received following response from linkedin:

https://www.linkedin.com/groups/PMI-PBA ... mr_6661117

‘In PMP it is termed as Earned Value Analysis (EVA), I guess in PBA it is termed as Solution Evaluation (option D)’

It is Earn Value Analysis in PBA as well :-)

Here key word is “Comparing”. Comparing means monitoring the difference between what are expected and what are actual values.

Comparing estimated and actual costs and benefits may be part of an evaluation of a solution as Solution Evaluation is the domain of business analysis concerned with the activities to validate a solution that is about to be or that has already been implemented.

For financial evaluation, actual project costs can be used for recalculation of ROI, NPV. Where projected costs are replaced by actual costs

Basically the objective is to determine how well the solution meets the business case and value proposition – and financial evaluation is an important element in this regard. And Earn Value Analysis can be used for the same.

Financial Evaluation is the one of many usage of Earn Value Analysis :-)

Solution Verification is no such domain listed in PMIPBA

As per my opinion the right answer is D i.e. Solution Evaluation

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