ScrumStudy SMC Exam - Topic 1 Question 72 Discussion

Actual exam question for ScrumStudy's SMC exam

Question #: 72
Topic #: 1

[All SMC Questions]

While performing a cost-benefit analysis, the Product Owner of a project determined that the project has 45% probability of incurring a loss of $800,000 due to the latest Land Reform Bill. Which of the following techniques is being used by the Product Owner to perform cost-benefit analysis?

AExpected Monetary Value.

BProbability Impact Grid.

CPareto Analysis.

DRisk Breakdown Structure.

Show Suggested Answer

Suggested Answer: A

by Pamella at Jul 30, 2023, 06:25 PM

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Vallie

5 months ago

Sounds too risky, but I guess EMV makes sense.

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Arlene

5 months ago

45% chance of losing $800k? That's a big risk!

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Lanie

5 months ago

Wait, are we sure it's not the Probability Impact Grid?

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Lindsey

5 months ago

I agree, EMV is the right approach here.

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Maile

6 months ago

It's definitely Expected Monetary Value.

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Jame

6 months ago

I keep mixing up these techniques, but I feel like Pareto Analysis is more about prioritizing issues rather than calculating expected losses.

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Kirk

6 months ago

This question feels familiar; I think we practiced something similar where we calculated expected losses.

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Lindsey

6 months ago

I'm not entirely sure, but I remember something about the Probability Impact Grid being used for assessing risks.

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Quentin

6 months ago

I think this is about Expected Monetary Value since it involves calculating the potential loss based on probability.

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Carla

6 months ago

Hmm, I'm a bit unsure about this one. There could be a few different factors that could prevent program closure, like issues with the financial management plan or benefits realization. I'll need to think this through carefully.

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Corinne

6 months ago

From what I remember, 9000000 seems way too high for 9 Mbps. I think I'd go with the closest value, which is 9 or maybe 9000.

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Alishia

6 months ago

This question seems straightforward, I think the answer is B - security solution fragmentation.

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Socorro

6 months ago

I remember a practice question where it was also about roles in success planning—could it have been the Account Manager in that scenario?

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Camellia

6 months ago

I'm a bit confused by the wording here. Does "unique monitors" mean the total number of monitors, or just the number of different configurations?

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Gladis

11 months ago

Hmm, EMV seems like the obvious choice here. Unless the Product Owner is just really into making fancy grids and diagrams, in which case Probability Impact Grid is the way to go.

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Zona

9 months ago

Yeah, but sometimes a visual representation like a Probability Impact Grid can help stakeholders understand better.

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Nickie

9 months ago

True, EMV provides a more quantitative approach to analyzing risks.

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Dahlia

10 months ago

But don't underestimate the power of a good Probability Impact Grid.

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Queen

10 months ago

I agree, EMV is the most common technique for cost-benefit analysis.

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Ena

11 months ago

Expected Monetary Value, of course! The question literally says the Product Owner is considering the probability and impact of the loss. That's the definition of EMV, not some Pareto or Risk Breakdown nonsense.

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Cherelle

11 months ago

I'm not sure why the Product Owner is wasting time on this cost-benefit analysis. They should just ask the government to repeal the Land Reform Bill and be done with it!

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Lai

10 months ago

C) Pareto Analysis.

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Christa

10 months ago

B) Probability Impact Grid.

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Clay

10 months ago

A) Expected Monetary Value.

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Gwen

11 months ago

This is clearly a Probability Impact Grid analysis. The Product Owner is considering the probability and impact of the potential loss, which is the hallmark of this technique.

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Remedios

10 months ago

C) Pareto Analysis.

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Gene

10 months ago

B) Probability Impact Grid.

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Verlene

11 months ago

A) Expected Monetary Value.

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Nobuko

1 year ago

The Product Owner is using Expected Monetary Value (EMV) to perform the cost-benefit analysis. EMV takes into account the probability and potential impact of the loss, which is exactly what's described in the question.

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