Practice Test

True/False: In business analysis, the evaluation of product options and capabilities is unnecessary.

  • True
  • False

Answer: False

Explanation: The evaluation of product options and capabilities by using decision-making and valuation techniques allows you to decide which requirements are accepted, deferred, or rejected.

During the process of evaluating product options, the accepted requirements are those that:

  • A. Have the least cost.
  • B. Are the most feasible.
  • C. Meet the specified criteria.
  • D. Have the most features.

Answer: C. Meet the specified criteria.

Explanation: Accepted requirements are those that meet the specified criteria after a thorough evaluation of different product options.

What is a critical factor in business requirement acceptance?

  • A. The personal interest of the project manager.
  • B. The opinions of the project team.
  • C. The cost of the product.
  • D. The alignment with business goals.

Answer: D. The alignment with business goals.

Explanation: Business requirement acceptance is strongly tied to how well the requirement aligns with the overall business goals.

True/False: Deferred requirements are those that will never be implemented.

  • True
  • False

Answer: False

Explanation: Deferred requirements are simply those that cannot be implemented currently due to factors such as time, cost, or complexity but may be revisited in the future.

True/False: Rejected requirements are generally those that are too costly to implement.

  • True
  • False

Answer: False

Explanation: While cost can be a factor, requirements are generally rejected because they do not meet specified criteria or align with business objectives.

Which of the following valuation techniques can be used to evaluate product options?

  • A. Net Present Value
  • B. Return on Investment
  • C. Cost-Benefit Analysis
  • D. All of the above

Answer: D. All of the above

Explanation: All of these valuation techniques can be used to evaluate product options and their associated requirements.

Who should be involved in the decision-making process when evaluating product options?

  • A. Only the project manager.
  • B. Only the business analyst.
  • C. Key stakeholders.
  • D. Only the project team.

Answer: C. Key stakeholders.

Explanation: While others certainly play a role, key stakeholders should be central to the decision-making process as they have a vested interest in the project outcome.

True/False: The decision to accept, defer or reject a requirement is final and cannot be changed in future.

  • True
  • False

Answer: False

Explanation: As the project develops and changes, so may the decisions regarding particular requirements.

In the event a decision is made to defer a requirement, which of the following steps should not be taken?

  • A. Immediate implementation of the requirement
  • B. Documentation of the decision
  • C. Communication to relevant parties
  • D. None of the above

Answer: A. Immediate implementation of the requirement

Explanation: A deferred requirement implies that implementation has been postponed for the time being.

True/False: Cost is the only major factor in determining whether a requirement is accepted, deferred, or rejected.

  • True
  • False

Answer: False

Explanation: Cost is one of the factors but not the only one. Other considerations may include risk, time, business need, stakeholder preferences, among others.

Interview Questions

What is the first step in evaluating product options and capabilities for decision-making and valuation techniques?

The first step in evaluating product options and capabilities is understanding the project requirements. This process can involve gathering data from numerous sources such as customer feedback, stakeholder input, and market analysis.

What are some of the decision-making techniques used to evaluate product options and capabilities?

Some of the decision-making techniques used to evaluate product options and capabilities include cost-benefit analysis, decision tree analysis, and multi criteria decision analysis.

How does a cost-benefit analysis aid in the evaluation of product options?

Cost-benefit analysis is a quantitative technique that compares the anticipated costs of a potential action against its expected benefits. This helps determine whether a product option will provide a positive return on investment.

How does a decision tree analysis aid in the evaluation process?

A decision tree analysis graphically represents a series of decisions and their possible outcomes. This allows decision-makers to assess potential risks and rewards and make informed decisions.

What role does multi-criteria decision analysis play in evaluating product options?

Multi-criteria decision analysis is a method that helps assess multiple conflicting criteria when examining potential options. It helps organizations choose the most suitable option amongst several possibilities.

How is the prioritization of requirements carried out in the decision-making process?

Prioritization of requirements is generally done based on their impact on the project’s objectives, risk, cost, schedule, and benefits. Tools like the MoSCoW prioritization technique and the QFD matrix are often used.

What does the acronym MoSCoW stand for in prioritizing project requirements?

MoSCoW stands for Must have, Should have, Could have, and Would like but won’t have. It’s a technique for prioritizing the project requirements in a descending order of importance.

How do you determine which product requirement to defer?

The decision to defer a product requirement often depends on its priority, costs, benefits, and the resources available. A low-priority requirement that has a high cost and offers little benefit might be deferred.

When might a project requirement be rejected?

A project requirement might be rejected if it is determined that it does not contribute to the project’s objectives, if it conflicts with other requirements, or if its cost outweighs its benefits.

How can requirements traceability help with the decision-making process?

Requirements traceability helps track the origin and evolution of each requirement. This can assist in identifying and understanding the implications of changing or omitting a requirement, aiding in decision-making.

What are some techniques for valuing products or features in the context of project management?

Some techniques for valuing products or features include Return on Investment (ROI), Net Present Value (NPV), and Internal Rate of Return (IRR).

How does Return on Investment (ROI) contribute to the decision-making process?

ROI provides a ratio of the profit or loss from an investment relative to its cost. This information can be instrumental in decision-making by helping to identify the most economically viable options.

Can Stakeholder analysis assist in the decision-making process?

Yes, stakeholder analysis can be crucial in understanding the influence, interests, and importance of individuals who have a stake in the project. Their input could significantly impact the evaluation and valuation of product options and capabilities.

What is Risk analysis and how is it important in deciding product options?

Risk analysis identifies potential problems that could derail a project or its objectives. Understanding these risks can guide decision-making by indicating which product options are likely to contribute to or mitigate these risks.

What role does prototyping play in evaluating requirements?

Prototyping allows for the visualization of a product or feature before it is fully developed. This can provide valuable feedback and insights that can influence the acceptance, deferral, or rejection of requirements.

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