PMI Risk Management Professional Practice Exam

What should a project manager produce when asked for a continuous uniform distribution of potential project costs during the approval of a project charter?

1. Produce a beta distribution

2. Decline to produce a distribution

3. Produce a triangular distribution

4. Quote pessimistic, optimistic, and most likely costs

The correct answer is: Produce a triangular distribution

In project management, particularly during the risk assessment phase, a project manager may be tasked with providing insights into potential project costs. When specifically asked for a continuous uniform distribution of potential project costs, producing a triangular distribution is the appropriate choice. A triangular distribution is a common method used in project management to represent uncertain outcomes. It is characterized by three parameters: the minimum value, the maximum value, and the most likely value. This distribution provides a clear visual representation of the likelihood of various outcomes based on specified extremes and a central tendency, allowing stakeholders to understand the range and probable costs associated with the project. This choice aligns with the need for modeling potential costs in a manner that captures both uncertainty and variability. The triangular distribution can effectively illustrate scenarios where costs are expected to be confined within a specific range, similar to the intent behind a uniform distribution. Thus, it serves as a valuable tool for risk managers aiming to communicate the financial aspects of uncertainties in project costs. In contrast, the other suggested choices either do not serve the need for continuous uniform distribution or are unrelated to the specific request. For instance, a beta distribution could represent a variety of risks but would not specifically relate to the uniform aspect requested. Similarly, declining to provide a distribution does not fulfill the