Which of the following is the project manager using?

A project manager is in the process of evaluating the probability and impact of a risk by assigning numbers such as a monetary value.

Which of the following is the project manager using?
A . Monte Carlo simulation
B . Root cause analysis
C . Quantitative risk analysis
D . Risk response analysis

View Answer

Answer: C

Explanation:

Quantitative risk analysis involves numerically analyzing the effect of identified risks on overall project objectives. It often includes assigning monetary values to risks to understand their impact in financial terms, helping in prioritizing risks based on their potential cost or impact on the project. This contrasts with qualitative risk analysis, which assesses risks based on their probability and impact but does not assign numerical values.