PMI Risk Management Professional (PMI-RMP) — Question 169

Which analysis method has a lower standard deviation?

Answer options

• A. European Hypercube
• B. Monte Carlo simulation
• C. Hecht analysis
• D. Latin Hypercube

Correct answer: D

Explanation

The Latin Hypercube method is designed to ensure that all segments of the probability distribution are sampled, leading to a lower standard deviation compared to other methods. The European Hypercube and Monte Carlo simulation may not cover the distribution as effectively, while Hecht analysis is not primarily focused on standard deviation in the same context.