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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?
Suggested Answer: D
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24 comments · newest first
DE
Devorah
2 days ago
Same here! It makes sense.
AR
Arlene
7 days ago
I feel confident about this answer.
TE
Tennie
12 days ago
Exactly, so A is the best choice.
FR
Frederica
17 days ago
True, but the question focuses on loss calculation.
AD
Adell
23 days ago
That’s more about visualizing risks, not calculating value.
DE
Devorah
28 days ago
But what about B) Probability Impact Grid?
AR
Arlene
1 month ago
I agree with Bob. It fits the scenario.
TH
Theodora
1 month ago
Because it calculates potential losses based on probability.
TE
Tennie
1 month ago
Why do you think that, Bob?
TH
Theodora
2 months ago
I think it's A) Expected Monetary Value.
FR
Frederica
2 months ago
This question is tricky.
CA
Cassandra
2 months ago
Probability Impact Grid could fit too, but EMV is more likely.
AR
Art
2 months ago
I thought Pareto Analysis was more common for this.
BE
Bea
2 months ago
Wait, how does that even work?
JU
Julianna
2 months ago
Totally agree, that’s the right technique.
JE
Jerilyn
3 months ago
Sounds like Expected Monetary Value to me!
JA
Janella
3 months ago
I keep mixing up these techniques, but I don't think it's Pareto Analysis or Risk Breakdown Structure for this scenario.
JE
Jennie
3 months ago
This sounds similar to a practice question we did on risk management, and I feel like Expected Monetary Value was the right answer there as well.
LE
Leonor
3 months ago
I'm not entirely sure, but I remember something about the Probability Impact Grid being used for assessing risks, so it could be that too.
HE
Herman
3 months ago
I think the Product Owner is using Expected Monetary Value since it involves calculating potential losses based on probabilities.
CU
Curtis
4 months ago
I thought Pareto Analysis was more about prioritizing issues rather than calculating expected losses, so I’m leaning towards the first option.
SE
Selma
5 months ago
This seems similar to a practice question we did on risk analysis, and I feel like Expected Monetary Value was the right answer there too.
CA
Carmen
5 months ago
I'm not entirely sure, but I remember something about the Probability Impact Grid being used to assess risks. Could that be it?
BR
Brandee
5 months ago
I think the Product Owner is using Expected Monetary Value since it involves calculating the probability of loss and its impact.