Project Management Professional (PMP) Exam Practice – Question1600

Which one of the following statements best characterizes an activity cost or duration estimate developed with a limited amount of information?


A.
It should be part of the planning for the needed management reserve.

B. It is an input to identify risks.
C. It is an output from identify risks.
D. It must be factored into the list of prioritized project risks.

Correct Answer: B

Explanation:

Explanation:
Much of the output from planning in other knowledge areas, such as activity cost and duration estimates, may entail risk and is reviewed during the identify risks process. This process requires an understanding of the schedule, cost, and quality management
plans found in the project management plan. Estimates that are aggressive or developed with a limited amount of information are even more likely to entail risk and, therefore, must also be an input to the identify risks process.