A project manager working on a complex infrastructure project wants to use quantitative risk analysis. Which input is essential before performing Monte Carlo simulation?

Question

Project Management (PMP) — Hard

A project manager working on a complex infrastructure project wants to use quantitative risk analysis. Which input is essential before performing Monte Carlo simulation?

Accepted Answer

To perform a Monte Carlo simulation, the project manager needs probability distributions for activity durations and costs, as this allows for the modeling of uncertainty. This input is crucial for generating realistic scenarios. Other options, such as approved change requests or stakeholder engagement plans, are not directly relevant to the simulation.