David is organizing a risk analysis session for his construction project. He is unsure whether to use a Delphi technique or a Monte Carlo simulation. Which tool focuses on quantitatively analyzing the impact of risks?
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✓ Correct answer: C. Monte Carlo simulationAnswer: Monte Carlo simulation Monte Carlo simulations use statistical techniques to quantitatively analyze the impact of risk and uncertainty in project management. This tool leverages random sampling and computational algorithms to forecast potential outcomes and their probabilities. The Delphi technique involves reaching a consensus through the input of experts using rounds of questionnaires; it does not provide quantitative results. A fishbone diagram, also known as a cause-and-effect diagram, is used for identifying potential reasons for a specific problem, not for quantitative impact analysis. SWOT analysis is a strategic planning tool used to identify strengths, weaknesses, opportunities, and threats but does not provide a quantitative risk impact analysis.
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