PMP Exam Question 72

Aligned with PMBOK 6th EditionĀ®.

The construction of a new airport will take 6 years. You, the project manager, are preparing cost estimations. Nonetheless, you realized that prices of the construction materials have been steeply rising for the last 2 years and you are afraid that current market prices may not be valid in the future affecting overall project costs. Which technique could you use to forecast market price changes?

A. Trend analysis.
B. Reserve analysis.
C. Variance analysis.
D. Cost benefit analysis.

October 18, 2019

6 responses on "PMP Exam Question 72"

  1. PMP Solution 72

    Reserve analysis is used to determine the amount of contingency and management reserve needed for the project. On the other hand, variance analysis reviews the differences between planned and actual performance. This can include duration estimates, cost estimates, resources utilization, resources rates, technical performance, and other metrics. Finally, trend analysis is used to forecast future performance based on past results. The results of trend analysis can be used to recommend preventive actions if necessary. Therefore, A is the correct choice. [PMBOK 6th edition, Page 111, 263] [Project Cost Management]

    Cheers

  2. Hi thanks for the answer

  3. An excellent attempt to give guidance to PM Aspirants
    Thanks a lot…

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