The smallest product Increment that is valuable enough to release is one that:
(choose the best answer)
The other options are not correct because:
Your executive leadership team believes that your product can achieve higher market share.
. The Sales Leader is pressuring you to reduce the price of the product to
attract more customers.
. The Director of Finance is concerned that reducing the price will merely
reduce the product's profitability.
What sources of information should you consider when deciding whether to drop the price as
the Sales Leader is suggesting?
(choose the best four answers)
When deciding whether to drop the price of the product, the Product Owner should consider the following sources of information:
Which of the following measures might help you determine whether your product is delivering
value to your customer?
(choose the best answer)
The value of a product is not determined by how many features it has, how much it costs, or how fast it is delivered, but by how well it meets the needs and expectations of the customers and stakeholders. Therefore, the best measure of value is how often and how effectively the customers use the product to achieve their goals and solve their problems. This can be assessed by using metrics such as customer satisfaction, retention, engagement, loyalty, referrals, revenue, or any other indicators that reflect the desired outcomes and benefits of the product.
Product A is a big revenue producer; it has:
. High Current Value and Low Unrealized Value.
Product B is a new product with a lot of potential; it has:
. Low Current Value and High Unrealized Value.
Using those two data points and taking a long-term view, which of the options below should you
pursue?
(choose the best answer)
In this question, Product A has a high current value, which means that it is generating a lot of revenue and satisfying the existing customers. However, it also has a low unrealized value, which means that it has little room for improvement or innovation, and may face competition or obsolescence in the future. Product B has a low current value, which means that it is not generating much revenue or satisfying many customers. However, it also has a high unrealized value, which means that it has a lot of potential for improvement or innovation, and may capture new markets or opportunities in the future.
Taking a long-term view, the Product Owner should weight the investment toward Product B, since it has more potential to deliver value in the future. This does not mean that the Product Owner should neglect Product A, but rather balance the investment between the two products based on the expected return on investment and the risk involved. Investing equally in both products may not be optimal, as it may result in underinvesting in Product B and overinvesting in Product A. Weighting the investment toward Product A may not be wise, as it may result in missing out on the opportunities offered by Product B and losing the competitive edge in the market.
A "cone of uncertainty" can be used to do what?
(choose the best answer)
A ''cone of uncertainty'' is a graphical representation of the evolution of the amount of uncertainty during a project. It shows that at the beginning of a project, there is a high degree of variability and unpredictability in the estimates of the scope, cost, time, and value of the product. As the project progresses, more information and feedback are gathered, and the uncertainty decreases, reaching zero when the product is delivered and validated. A ''cone of uncertainty'' can be used to visualize the uncertainty of the potential value that a Scrum Team delivers over time, and to guide the empirical process of inspection and adaptation. By using a ''cone of uncertainty'', a Scrum Team can:
Align the expectations of the stakeholders and customers with the reality of the complex and dynamic environment.
Avoid making premature or unrealistic commitments based on inaccurate or incomplete estimates.
Embrace change and experimentation as opportunities to learn and deliver more value.
Inspect the actual value delivered and the feedback received, and adapt the product vision, strategy, and backlog accordingly.
Forecast the range of possible outcomes and the level of confidence for each Sprint and release.
The other options are not valid uses of a ''cone of uncertainty''. A ''cone of uncertainty'' does not represent the relative level of difficulty for predicting the velocity of individual team members, as velocity is a measure of the amount of work done by the whole Scrum Team, not by individuals. A ''cone of uncertainty'' does not rapidly identify and prioritize all uncertainties, as uncertainties are not always known or quantifiable, and may change over time. A ''cone of uncertainty'' does not determine whether to cut quality, similar to the ''Iron Triangle'' of project management, as quality is not a variable that can be traded off in Scrum, but a non-negotiable aspect of the Definition of Done and the value proposition of the product.
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