Benefits Analysis PGMP Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   What is the main purpose of forecasting benefits realization?

   • ATo analyze variances between planned and actual benefits
   • BTo implement corrective actions for benefits shortfalls
   • CTo report on benefits already achieved
   • DTo predict future benefits realization based on current trends and data
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2. 22foundation · easy

   What is the purpose of risk mitigation strategies in benefits management?

   • ATo compare planned and actual benefits
   • BTo enhance benefits beyond planned levels
   • CTo reduce threats to benefits realization
   • DTo ensure benefits are maintained after program completion
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4. 23application · medium

   A digital transformation program is 8 months into a 3-year benefits realization period. Monthly cost savings have grown from $40K to $65K over the last 6 months, but the growth rate has slowed from 12% per month to 4% per month. The program manager needs to report a realistic forecast to the steering committee. Which approach is MOST appropriate?

   • ADevelop a forecast using the recent trend, and present a range of outcomes that reflects the uncertainty in the growth rate.
   • BExtrapolate the current 4% growth rate forward for the remaining 28 months to project total savings.
   • CUse a linear regression on all 6 data points and present the resulting trend line as the forecast.
   • DReport the original business case projection, since the program is still ahead of the cumulative target.
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5. 24foundation · easy

   Which of the following is an example of a risk mitigation strategy?

   • AImplementing a backup plan
   • BAdjusting the benefits baseline
   • CDocumenting how benefits will be sustained
   • DIncreasing the scope to achieve more benefits
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6. 25application · medium

   A program to reduce energy consumption in a manufacturing plant is 9 months into a 2-year benefits period. Monthly energy savings have been: $5K, $8K, $10K, $12K, $13K, $13.5K, $14K, $14.2K, $14.3K. The program manager needs to forecast the savings for the next quarter. Which forecasting technique is MOST appropriate?

   • AUse the average of the last 3 months ($14.2K) as the forecast for each of the next 3 months.
   • BForecast $0 for the next quarter because the savings have stopped growing.
   • CUse a linear regression on all 9 data points to project the next quarter.
   • DExtrapolate the early growth rate (from $5K to $10K) to project much higher savings.
   Reveal Solution Discussion Select an answer first