Project Management - UNIT THREE Latest
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Realistic (Model) Accurately reflects the way the
organization does
business
Appropriate for the level of resources,
capabilities,
and external environment of the
organization
Example: Using profitability model when
the
organization is focused on market share
growth
would not be appropriate.
Capable (Model) Uses factors that are relevant to the
organization
You would not expect one model to cover
all
dimensions of a project; you would want to
use
models that cover their dimension
comprehensively.
Example: For organizations with a
long-term value
perspective, the net present value model
provides
a rigorous evaluation of a project’s future
cash
flows.
,Flexible (Model) The model should provide accurate
measures
across a reasonable range of conditions.
Example: The model would allow for
changing
conditions where the cost of a new
government
regulation must be factored into the
analysis.
Easy to use (Model) Provide results in a reasonable amount of
time
Results should be easily understood by the
decision makers.
Example: Use models that provide
measures that
the decision maker can easily apply, such
as
dollars, months, or percentage change.
Low cost (Model) The costs of gathering data and running
the model
should be low relative to the scale of the
project.
Example: A model that requires hiring a
consultant
to run and interpret may not be cost
effective for
smaller projects.
, Comparable (Model) The model should be usable across a
range of
projects such that the outcomes of the
model can
be used to compare projects.
Example: Using a profitability model for
one
project and a qualitative scoring model for
another
would not allow the decision maker to
analyze the
projects relative to each other.
What is a possible shortcoming of Models are singular in their vision of
using a project selection model? reality.
Correct! Because of their singularity of
vision,
models can ignore other aspects of a
future
project.
Why is having an appropriate To budget limited resources
project Correct! Organizations have a limit to the
selection method important? funding,
personnel, and equipment available to
develop
new products and services.
True or False: False
Project checklists are always a Correct! Project checklists can include
quick hundreds of
and simple approach to project items with many participants.
selection.
Premium Exam Questions and Answers with
Verified Solutions | Latest Updated 2026
Realistic (Model) Accurately reflects the way the
organization does
business
Appropriate for the level of resources,
capabilities,
and external environment of the
organization
Example: Using profitability model when
the
organization is focused on market share
growth
would not be appropriate.
Capable (Model) Uses factors that are relevant to the
organization
You would not expect one model to cover
all
dimensions of a project; you would want to
use
models that cover their dimension
comprehensively.
Example: For organizations with a
long-term value
perspective, the net present value model
provides
a rigorous evaluation of a project’s future
cash
flows.
,Flexible (Model) The model should provide accurate
measures
across a reasonable range of conditions.
Example: The model would allow for
changing
conditions where the cost of a new
government
regulation must be factored into the
analysis.
Easy to use (Model) Provide results in a reasonable amount of
time
Results should be easily understood by the
decision makers.
Example: Use models that provide
measures that
the decision maker can easily apply, such
as
dollars, months, or percentage change.
Low cost (Model) The costs of gathering data and running
the model
should be low relative to the scale of the
project.
Example: A model that requires hiring a
consultant
to run and interpret may not be cost
effective for
smaller projects.
, Comparable (Model) The model should be usable across a
range of
projects such that the outcomes of the
model can
be used to compare projects.
Example: Using a profitability model for
one
project and a qualitative scoring model for
another
would not allow the decision maker to
analyze the
projects relative to each other.
What is a possible shortcoming of Models are singular in their vision of
using a project selection model? reality.
Correct! Because of their singularity of
vision,
models can ignore other aspects of a
future
project.
Why is having an appropriate To budget limited resources
project Correct! Organizations have a limit to the
selection method important? funding,
personnel, and equipment available to
develop
new products and services.
True or False: False
Project checklists are always a Correct! Project checklists can include
quick hundreds of
and simple approach to project items with many participants.
selection.
