medium · Project Management Professional Predictive (Plan-Driven)
Stonehaven Transit is calculating EMV. Threat 1 (EMV: -$36,000), Threat 2 (EMV: -$20,000), and Opportunity 1 (EMV: +$32,000).
If the project manager reports a contingency reserve of $56,000, what is the fundamental error?
- The error is 'Wrong-Regime' because EMV is only for procurement.
- The error is 'Escalator' because the PM didn't ask for $100,000 to be safe.
- Failing to account for the opportunity offset, leading to an over-reserved budget.
- The error is 'Premature Actor' as the PM should have wait until closing to set the reserve.
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