CAPM (Certified Associate in Project Management) Practice Exam

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Study for the Certified Associate in Project Management Exam with practice questions and answers. Enhance your understanding of project management principles and strategies to excel in the exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the Monte Carlo technique?

A game theory strategy
A deterministic forecasting model
A project model computed many times with random input values
A static financial analysis tool

The correct answer is: A project model computed many times with random input values

The Monte Carlo technique is a project management tool that involves running simulations with random input values to assess the possible outcomes of a project. By using this technique, project managers can gain insights into the likelihood of different project scenarios and make more informed decisions. Option A is incorrect because the Monte Carlo technique is not related to game theory. Option B is not correct as the Monte Carlo technique is not a deterministic forecasting model since it involves randomness in the input values. Option D is also incorrect as the Monte Carlo technique is not a static financial analysis tool but a dynamic simulation method for project modeling.