Thank you

Hello everyone! Here is this week's free PMP exam sample question from the PM Exam Simulator.

You are managing a water supply network deployment project. During project planning you are considering two approaches to lay the pipe network. Approach A will most likely cost $50,000 (+/-5%). Approach B will most likely cost $25,000 (+/-40%). Which approach will you select if your project stakeholders' risk tolerances are low and if you want to select the less risky approach?

A. Neither approach since they are not definitive estimates
B. Approach B since it ranges from $15,000 to $35,000
C. Approach A since it ranges from $47,500 to $52,500
D. A combination of approach A and B

---

HINT: Estimates are never definitive.

---

All our questions are updated to the latest PMBOK® Guide standard. Stop by at www.pm-prepcast.com/freesimulator and try the PMP Exam Simulator free for 3 days. We also offer 110 free questions at www.free-pm-exam-questions.com . We are a PMI Registered Education Provider.

Answer and Explanation:
The correct answer is C.

Please note that the question doesn't ask for the approach that is more financially feasible. Instead, the question asks you to identify the approach that has the lower risk. The larger the range of an estimate, the larger the risk. Since approach B is a wide range estimate, it is more risky. Approach C has a narrow estimate, which makes this approach less risky.