Project Management Professional (PMP) — Question 376

To estimate the costs of a new project that is similar to a project that was implemented last year, the project manager meets with a group of experts from the previous project. The group uses a three-point estimating technique. The project manager submits the estimated budget to the project sponsor for approval. The project sponsor, who is new to the company, is concerned because the budget exceeded their expectations.
What should the project manager do?

Answer options

• A. Review the organizational process assessment to determine if a contingency reserve was considered in the budget estimate
• B. Review the historical information and lessons learned from last year's project to justify the new budget estimate
• C. Change the budgeting technique to a more accurate, bottom-up cost estimation
• D. Use soft skills to convince the project sponsor to approve the new budget estimate

Correct answer: B

Explanation

The correct answer is B because reviewing historical information and lessons learned helps provide context and justification for the budget, addressing the sponsor's concerns. Option A is incorrect as it focuses on contingency reserves rather than justifying the budget. Option C suggests changing estimation methods, which may not be necessary if the current method is sound. Option D relies on persuasion rather than providing factual justification, which is less effective in addressing the sponsor's concerns.