Probabilistic analysis is a technique that involves considering various possible scenarios and their associated probabilities to develop a budget that accounts for future uncertainties. This method is a common practice in project management to address the inherent risks and uncertainties in project budgets. It allows for a more comprehensive and realistic approach to budgeting, particularly in the face of uncertainties1.
References:
PMI's "A Guide to the Project Management Body of Knowledge (PMBOK Guide)"1