CAPM (Certified Associate in Project Management) Practice Exam

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What does standard deviation measure in project management?

  1. The variability from average

  2. The total cost overruns

  3. The effectiveness of communication

  4. The accuracy of the work performed

The correct answer is: The variability from average

Standard deviation in project management measures the variability from the average. It helps project managers understand the range of possible outcomes and how much individual data points differ from the average. This is valuable in assessing and managing risks within a project, as it provides insights into the potential level of uncertainty or variation in project performance metrics. Cost overruns, communication effectiveness, and accuracy of work performed are important aspects of project management but are not directly measured by standard deviation.

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