CAPM (Certified Associate in Project Management) Practice Exam

Why is expert judgment used in quantitative risk analysis?

1. To ensure compliance with industry standards

2. To numerically analyze the effect of risks

3. To facilitate workshops and training sessions

4. To approve project funding and budget allocation

The correct answer is: To numerically analyze the effect of risks

Expert judgment is used in quantitative risk analysis to numerically analyze the effect of risks. In this process, subject matter experts provide their input and expertise to assess and quantify the impacts of identified risks on the project objectives. Expert judgment helps in performing probabilistic analyses, estimating potential cost and schedule impacts, and ultimately quantifying the overall risk exposure for the project. This input enhances the accuracy and reliability of the risk analysis results, leading to more informed decision-making regarding risk response strategies. The other options are incorrect: A. To ensure compliance with industry standards - Expert judgment in quantitative risk analysis focuses more on analyzing and assessing risks rather than ensuring compliance with industry standards. C. To facilitate workshops and training sessions - While expert judgment can be valuable in conducting workshops and training sessions related to risk management, its primary purpose in quantitative risk analysis is to provide expert input for analyzing risks. D. To approve project funding and budget allocation - Expert judgment is not used in quantitative risk analysis to approve project funding and budget allocation; its primary role is to contribute expertise to the quantitative analysis of project risks.