medium · Project Management Professional predictive
Whitlock Software is managing a predictive project with a net EMV of -$15,000. A stakeholder asks why the opportunity's EMV of +$10,000 was used to reduce the reserve.
What is the most defensible explanation?
- In predictive projects, opportunities and threats are always equal in value.
- Opportunities are included to make the project look more attractive in the business case, while documenting the decision in the issue log.
- Including opportunities provides a more realistic, balanced expectation of the project's final cost by accounting for favorable variances.
- It was done to keep the project under the budget ceiling imposed by the sponsor.
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