PMI Risk Management Professional (PMI-RMP) — Question 174

A risk manager reviews a Monte Carlo schedule risk analysis model before sharing the results with the project manager. The risk manager notices that activity correlations were not included in the model.

What is an effect of adding the correlation to the model?

Answer options

• A. Increases the standard deviation of the model.
• B. Increases the probability of correlated activities finishing on time.
• C. Reduces the project completion duration.
• D. Allows more risks to be included in the model.

Correct answer: D

Explanation

By adding correlations to the model, it allows for a more accurate representation of how risks interact, enabling more risks to be incorporated. The other options suggest changes in project duration or completion probabilities that do not directly result from merely including correlations.