Assumption and Constraint Analysis

Correct Answer: Assumptions are factors believed to be true but unverified, while constraints are limiting factors that are known to be true

The correct answer states the fundamental distinction between assumptions and constraints in business analysis: Assumptions are factors that the project team considers to be true but have not been verified. These are beliefs accepted as true for planning purposes, but they require verification as the project progresses. Constraints are definitive limitations or restrictions that are known to be true and must be adhered to. These are verified facts that limit options or actions. Why other answers are incorrect: The internal/external factor distinction is inaccurate as both assumptions and constraints can be internal or external to the project. Stakeholder approval and management validation are not defining characteristics of assumptions and constraints - both may require various levels of validation depending on the situation. Equating constraints to risks that need mitigation is incorrect. Constraints are fixed limitations, while risks are uncertain events that may or may not occur.

Correct Answer: The assumption's validity becomes questionable based on emerging project data

The best indicator of an assumption becoming a project risk is when project data emerges that calls into question the validity of that assumption. When actual project information and evidence begins to contradict or cast doubt on an initial assumption, this represents a clear signal that the assumption may be flawed and needs to be reassessed as a potential risk. The other options are not reliable indicators of risk: Extensive documentation requirements are about process complexity, not risk likelihood. Stakeholder approval during planning actually reduces risk rather than indicating it. While technical aspects can affect schedules, this alone doesn't indicate whether an assumption has become risky - the assumption needs to be tested against actual project data and evidence.

Correct Answer: Identify constraints first, then document assumptions aligned with those boundaries

The most effective sequence for documenting constraints and assumptions begins with identifying constraints first, then documenting assumptions that align with those boundaries. Here's why: Constraints are fixed limitations or restrictions that must be respected in a project or business context. By identifying these first, you establish the firm boundaries within which the project must operate. Once constraints are clear, assumptions can be made more realistically and practically since they will be grounded within known limitations. This prevents making assumptions that might conflict with established constraints. The other approaches are less effective because: Starting with assumptions before constraints risks creating unrealistic or unachievable expectations that may need substantial revision once constraints are known. Documenting both simultaneously could lead to gaps or misalignments since each element influences the other. Beginning with environmental factors, while important, may delay the identification of immediate project constraints and assumptions that are critical for initial planning.