Project Management Professional (PMP) — Question 155

A new project needs to be submitted for urgent funding approval. The project, which will use a new technology, is vital to the organization. The entire Scrum team has worked together for over 3 years on multiple projects and delivered the previous project under the approved budget.

Which estimation technique should the project manager implement in this context?

Answer options

• A. Definitive estimate
• B. Order of magnitude
• C. Budget estimate
• D. Story points

Correct answer: B

Explanation

In this situation, the Order of magnitude estimate is appropriate because it provides a rough approximation suitable for projects at an early stage, especially when uncertainty about new technology exists. The other options, such as Definitive estimate and Budget estimate, require more detailed information that may not be available yet, while Story points are typically used for measuring effort in Agile methodologies rather than for funding approvals.