PMI Scheduling Professional Certification (PMI-SP) Practice Exam

Expert judgement in project management is crucial for which aspect of process planning?

1. Cost forecasting

2. Stakeholder engagement

3. Trend analysis

4. Risk assessment

The correct answer is: Cost forecasting

In project management, expert judgment plays a vital role in cost forecasting because it relies on the insights and experience of individuals who have a deep understanding of the project's context, industry standards, and past project performance. When estimating costs, expert judgment helps project managers make informed predictions about labor, materials, and other expenses, considering factors that may not be easily quantifiable or directly available from historical data. Expert judgment allows teams to assess various cost components, analyze potential variances, and incorporate lessons learned from similar projects. This strategic oversight is essential in developing a reliable budget, ensuring that financial projections are as accurate and feasible as possible. By leveraging the insights of experienced professionals, project management teams can enhance their cost forecasts and improve the overall financial management of the project. In other aspects like stakeholder engagement, trend analysis, or risk assessment, while expert judgment may also play a role, the specific and critical focus of this question is on the foundational requirement of accurate and reliable cost estimates for effective project planning.