Midway through a three-year digital-transformation program, the program manager reviews earned-value cost variance (CV) data for the last six reporting periods. The CV has deteriorated steadily from + $200 000 to - $750 000. To understand where the program is headed, the manager plots the CV values on a run chart and projects the line forward to estimate the variance at completion if no corrective action is taken. Which analytical technique is the manager applying?
The manager is using trend analysis, which examines historical performance data over time, identifies patterns, and extrapolates those patterns to predict future outcomes. In this case, plotting consecutive CV values and extending the trend line forecasts the likely cost variance at program completion.
Variance analysis compares actual results to the baseline at a single point in time but does not project future performance.
Root-cause analysis seeks to identify why a variance occurred rather than predicting future values.
Monte Carlo simulation evaluates many probabilistic scenarios but is not required simply to extend an observed trend.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What is trend analysis in project management?
Open an interactive chat with Bash
How is trend analysis different from variance analysis?
Open an interactive chat with Bash
When is Monte Carlo simulation used in program management?
Open an interactive chat with Bash
PgMP
Strategic Program Alignment
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
Project Management Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
Monthly
$9.99 $5.99
$5.99/mo
Billed monthly, Cancel any time.
$9.99 after promotion ends
3 Month Pass
$19.99 $11.99
$3.99/mo
One time purchase of $11.99, Does not auto-renew.
$19.99 after promotion ends
Save $8!
BEST DEAL
Lifetime Pass
$29.99 $17.99
One time purchase, Good for life.
Save $12!
What You Get
All Project Management Package plans include the following perks and exams .