Project Management Professional (PMP) Exam Practice – Question1577

Most statistical simulations of budgets, schedules, and resource allocations use which one of the following approaches?


A.
PERT
B. Decision-tree analysis
C. Present value analysis
D. Monte Carlo analysis

Correct Answer: D

Explanation:

Explanation:
Simulations are typically performed using Monte Carlo in which a project model is computed many times with the input values chosen at random for each iteration from the probability distribution of these variables. Monte Carlo analysis supports various statistical
distributions (normal, triangular, beta, uniform, etc.) used in estimating budgets, schedules, and resource allocations.