PMI-RMP Certification Training - Simulation and Monte-Carlo Analysis

The video tutorial explains how simulation, particularly Monte Carlo analysis, is used in project management to translate uncertainties into potential impacts on project schedule and cost. It covers the basics of Monte Carlo analysis, including the use of optimistic, most likely, and pessimistic estimates to predict a range of possible outcomes. The tutorial also discusses the use of sophisticated software for handling the large number of calculations required. Practical applications of Monte Carlo analysis in predicting project duration, assessing risk, and determining contingency reserves are highlighted. The video concludes with guidance on interpreting probability outputs to make informed project management decisions.

What factors are considered when calculating the likely duration of a project using Monte Carlo analysis?

In what ways can Monte Carlo analysis be used to assess project risks?

How does Monte Carlo analysis help in determining contingency reserves for a project?