An Agile team is developing a new e-commerce site. The backlog is prioritized by business value. The Product Owner wants to release a Minimum Viable Product (MVP) to the market as soon as possible.<br/><br/>What is the PRIMARY strategic purpose of this MVP approach in the context of value delivery?

Answer options:

To generate revenue to fund the rest of the project.

To deliver all features requested by the stakeholders in the first release.

To validate hypotheses about value and gather feedback for future development.

To ensure the team is 100% utilized.

How to approach this question

Understand Agile Value proposition. MVP = Learning/Risk Reduction/Validation.

Full Answer

C.To validate hypotheses about value and gather feedback for future development.✓ Correct

In a business environment context, an MVP is a risk reduction and value validation tool. It allows the organization to test the market (validate hypotheses) before investing in the full product. While revenue (A) is good, the strategic purpose is validation (C).

Common mistakes

Thinking MVP is just 'Phase 1' for revenue (A).

Question 18 All questions Question 20

Practice the full PMP Business Environment Domain Practice Exam

60 questions · hints · full answers · grading

More questions from this exam

Q01A project manager is leading a medical device development project. During the execution phase, a ...Hard Q02A global fintech organization is launching a new payment platform. The project manager is identif...Hard Q03A project manager discovers that a subcontractor has been disposing of chemical waste improperly,...Hard Q04An Agile team is developing a healthcare application. A new patient privacy regulation is passed ...Hard Q05A project team is building a new headquarters. The project manager must ensure that the building ...Hard

View all 60 questions →