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CAPM Practice: Determine how to plan project iterations

Question 25 of 61 in Determine how to plan project iterations

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A product owner prioritizes a backlog item rated 'must have' by stakeholders but only worth 5 story points (simple to implement). Another item is 'nice to have' but worth 200 story points (large and complex). In value-based prioritization, which should be worked on first?
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Correct answer: The small 'must have' item — high business need + small effort = high priority in any value-based framework

Explanation

Value-based prioritization considers both value delivered and cost (effort) to deliver it. A 'must have' item with 5 story points has an extremely high value-to-effort ratio — it delivers critical value for minimal cost. A 'nice to have' item at 200 points is low value but high cost. Prioritizing by value/effort ratio would place the small 'must have' first and potentially indefinitely defer the large 'nice to have.'

Key Concept

This question covers Determine how to plan project iterations under Determine how to plan project iterations (Agile Frameworks/Methodologies).

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