Which is the best description of probabilistic forecast? (choose the best answer)

Which is the best description of probabilistic forecast? (choose the best answer)
A . A forecast based on empirical data as an input on the likelihood of achieving a goal given certain time period.
B. A formula that calculates a team’s future performance.
C. A commitment of when a specific scope will be finished.

View Answer

Answer: A

Explanation:

Probabilistic forecasting is an alternative to an estimates based approach. Rather than asking your teams to break down a lot of work up front, and then estimate it, we can use past data generated by the team from the work they’ve already done to extrapolate a forecast of what may happen in the future. A probabilistic forecast is one that acknowledges a wide array of possible outcomes and assigns a probability, or likelihood of happening, to each. Every probabilistic forecast should have 2 components: a range and a probability.