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PMP Mock Test

Posted: Wed Oct 25, 2017 3:17 am
by komal
You are managing a water supply network deployment project. During project planning you are considering two approaches to lay the pipe network. Approach A will most likely cost $50,000 (+/-5%). Approach B will most likely cost $25,000 (+/-40%). Which approach will you select if your project stakeholders' risk tolerances are low and if you want to select the less risky approach?

Neither approach since they are not definitive estimates
Approach B since it ranges from $15,000 to $35,000
Approach A since it ranges from $47,500 to $52,500
A combination of approach A and B

Please explain why and how to choose correct answer. Correct answer is C

Re: PMP Mock Test

Posted: Wed Oct 25, 2017 4:34 am
by rahul.kanugo
Approch C would be correct answer, as the tolerance level is low . It states Unknow risk factors or you can say approch B path is clearly visible with Constrains where as approach A is inconsistent with high Tolerance (that means detailed data is not available hence Risk were not precisely identified yet).