## Data Analysis Techniques

John would like to clear which individual project risks have the highest potential impact in his project of building a nuclear plant. He is looking into past projects data analysis techniques and found the graph shown. What type of graph is the one John found?

A. That is a display of a sensitivity analysis.

B. That is a risk data quality assessment.

C. That is a risk probability and impact assessment.

D. That is a display of a simulation analysis.

PMP Solution 89

B. Risk data quality assessment evaluates the degree to which the data about individual project risks is accurate and reliable as a basis for qualitative risk analysis, but this is not the case. Risk probability assessment considers the likelihood that a specific risk will occur.

C. Risk impact assessment considers the potential effect on one or more project objectives such as schedule, cost, quality, or performance.

D. The most common simulation technique is Monte Carlo analysis in which risks and other sources of uncertainty are used to calculate possible schedule outcomes for the total project.

On the other hand, sensitivity analysis helps to determine which individual project risks or other sources of uncertainty have the most potential impact on project outcomes. It correlates variations in project outcomes with variations in elements of the quantitative risk analysis model.One typical display of sensitivity analysis is the tornado Diagram, which presents the calculated correlation coefficient for each element of the quantitative risk nalysis model that can influence the project outcome. This can include individual project risks, project activities with high degrees of variability, or specific sources of ambiguity. Therefore, right answer is A. [PMBOK 6th edition, Page 434] [Project Risk Management]

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