In Applying the Principle of Common Cause Variation to the Theory

question 66

Multiple Choice

In applying the principle of common cause variation to the theory of CCPM,it is important to:

• A)not make adjustments to projects when the variation in project performance lies within the range of common-cause variance.
• B)immediately call meetings for all key stakeholders if common cause variation is detected.
• C)include special cause variation in project risk simulation since there is a chance it may occur.
• D)perform risk management on aggregated project risks.

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Definitions:

Shopping Outlet

A retail store or set of stores where products are sold directly to the public, often at reduced prices.

Covariance

A measure of the degree to which two variables change together, indicating the direction of their linear relationship.

Coefficient of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatter diagram.

Expected Value

The long-term average or mean of a random variable, representing the anticipated outcome of an experiment conducted many times.