Velocity is a team-specific metric and cannot be reliably estimated until the team has worked together for several sprints. According to the PMI Agile Practice Guide (Section 5.4 Sprint Planning and Velocity Tracking), velocity should be measured empirically, not predicted based on assumptions or external input.
Mike Griffiths (PMI-ACP Exam Prep Book, Chapter 6: Adaptive Planning) emphasizes that new teams need to run a few sprints to establish a reliable velocity through real performance data, not estimation.
* Option D is correct: actual performance determines true velocity.
* Option A and B rely on speculation.
* Option C incorrectly uses sponsor input for team planning, which goes against agile principles.

According to the PMI Agile Practice Guide (Section 7.2: Stakeholder Engagement), managing stakeholder expectations starts with establishing a shared vision and involving stakeholders in key activities like iteration reviews. This ensures transparency, feedback, and alignment on progress and priorities.
Mike Griffiths in the PMI-ACP Exam Prep Book (Chapter 4: Stakeholder Engagement) supports the idea that a common vision and shared goals foster trust and improve stakeholder relationships.
* Option A is correct: a shared vision and active involvement lead to better stakeholder alignment.
* Option B and C are partially right but limit collaboration or dismiss stakeholder input.
* Option D is inconsistent with agile's emphasis on open, continuous communication.

The correct answer is C - Introduce agile principles and processes, then make the change an experiment to obtain buy-in.
Agile transformation succeeds when it is driven through team engagement and experimentation, not top-down enforcement. Experimentation aligns with the principle of "failing fast" and encourages teams to experience the value of agile themselves before full adoption.
PMI Agile Practice Guide explains:
"To support organizational change, leaders should create safe-to-fail experiments to allow teams to explore and adopt agile in a non-threatening way. Buy-in emerges through shared learning, not forced compliance." (PMI Agile Practice Guide, Section 6.5 - Organizational Change and Culture) Mike Griffiths reinforces:
"Effective agile leaders lead through influence and create an environment of experimentation and learning.
Mandates create resistance, but pilots and feedback loops drive acceptance." (PMI-ACP Exam Prep, Chapter 1 - Agile Principles and Mindset) Answer A speaks only to executive buy-in. Answer B is directive and not collaborative. Answer D imposes agile through training but skips experiential learning and feedback.

In this scenario, the development team is working closely with different business units to deliver value early and often. This aligns with the agile value of delivering working software frequently, with a preference for shorter timescales. By collaborating with business units, the team is enabling early feedback and adapting to changing requirements, which is a core principle of agile methodologies like Scrum.

The correct answer is C - Facilitate a retrospective to identify areas of improvement.
In Agile, mistakes are viewed as learning opportunities. The Scrum Master should create a safe environment where the team can reflect, discuss issues openly, and identify ways to prevent similar mistakes in the future.
From the PMI Agile Practice Guide:
"Retrospectives provide a regular forum for teams to inspect and adapt. Teams discuss what went well, what didn't, and how to improve. This supports continuous learning and performance enhancement." (PMI Agile Practice Guide, Section 3.5 - Iteration Retrospectives) Mike Griffiths states:
"Mistakes are inevitable; agile teams embrace them to improve. Retrospectives are essential for structured reflection and action planning." (Mike Griffiths, PMI-ACP Exam Prep Book, Chapter 7 - Continuous Improvement) Why other options are less appropriate:
* A may reinforce outdated or flawed processes.
* B may help in quality control but does not address the mistake constructively.
* D promotes fear and competition, which undermines team trust and collaboration.