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Data Analysis Techniques

Methods used to structure, examine, and judge data and information to draw conclusions and support decision-making.

Key Points

  • Turn raw project data into actionable insights for planning, monitoring, and controlling.
  • Applied to performance, quality, risk, and cost/schedule information.
  • Examples include trend and variance analysis, cost-benefit analysis, what-if analysis, root cause analysis, and earned value analysis.
  • Results inform forecasts, recommendations, and corrective or preventive actions.

Example

During cost control, the project manager performs earned value and variance analysis on monthly reports to detect overruns, forecasts the estimate at completion (EAC), and recommends corrective actions to realign the budget.

PMP Example Question

Which set of tools should a project manager use to interpret performance data and determine appropriate corrective actions?

  1. Data gathering techniques
  2. Data analysis techniques
  3. Data representation techniques
  4. Interpersonal and team skills

Correct Answer: B — Data analysis techniques

Explanation: Data analysis techniques organize, assess, and evaluate project data to derive conclusions and inform decisions, including corrective or preventive actions.

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