Internal rate of return (IRR) is a technique that calculates the annualized rate of return of an investment or a project. IRR can help the business analyst to determine the estimated growth rate of potential solution options by comparing the present value of the expected cash inflows and outflows of each option. IRR can also help to select the option that has the highest rate of return and exceeds the minimum required rate of return or the cost of capital. References: = PMI Professional in Business Analysis (PMI-PBA)Examination Content Outline (2019), page 11; Business Analysis for Practitioners: A Practice Guide (2015), page 66.

A requirements baseline is a set of approved requirements that serves as the basis for further development and validation. A requirements baseline approval form is a document that records the formal acceptance of the requirements baseline by the customer and other stakeholders. Creating a requirements baseline approval form for the customer to review and approve is the best action to take to establish an approved requirements baseline with the customer. The other actions are not sufficient or appropriate for this purpose. A requirements traceability matrix is a tool that links the requirements to their sources, objectives, and deliverables, but it does not record the approval of the requirements. Requesting that the customer create a baseline of the requirements in the contract specification is not a proactive or collaborative approach.
Performing a variance analysis on the design specification and reporting the results to the customer is not relevant to establishing an approved requirements baseline. References: PMI-PBA Examination Content Outline, page 13; PMI-PBA Reference List, page 1, BABOK Guide v3, page 39.

The requirements approval process is documented as a measure of effective decision making that allows the business analyst to finalize the process for requirement approval. The requirements approval process defines the roles, responsibilities, criteria, methods, and tools for approving the requirements and ensuring that they meet the stakeholder needs and expectations. The requirements approval process should be agreed upon by the stakeholders and the business analyst before the requirements are elicited, analyzed, and validated. The requirements verification process is not a measure of effective decision making, but a technique for ensuring that the requirements are complete, correct, consistent, and clear. The requirements elicitation process is not a measure of effective decision making, but a set of activities for discovering, gathering, and understanding the stakeholder needs and expectations. The requirements validation process is not a measure of effective decision making, but a technique for confirming that the requirements align with the business objectives and deliver value to the stakeholders. References: Business Analysis for Practitioners: A Practice Guide, page 113-
114 1; PMI Professional in Business Analysis (PMI-PBA)Examination Content Outline, page 17 2.

According to the PMI Professional in Business Analysis objectives and content, scope creep is the uncontrolled or unauthorized expansion of the project scope due to the addition or modification of requirements without proper approval or justification. Scope creep can negatively affect the project's quality, schedule, cost, and stakeholder satisfaction. To avoid scope creep, the business analyst should define a requirements baseline, which is a set of agreed-upon and approved requirements that serves as a reference for further development and testing activities. The business analyst should also implement a change control process, which is a formal and systematic procedure for managing and documenting any changes to the requirements or scope. The change control process should include steps such as identifying, analyzing, evaluating, approving, communicating, and implementing the changes, as well as updating the requirements baseline and traceability matrix accordingly. References:
* PMI Professional in Business Analysis objectives and content: PMI-PBA Certification
* PMI Professional in Business Analysis reference list: PBA Reference List
* PMI Professional in Business Analysis study guide: Study.com

Inspection is a technique or tool that is used to obtain acceptance of the delivered product. Inspection is a process that involves examining and measuring the product or its components against the predefined standards, criteria, or specifications, to determine its quality, completeness, and correctness. Inspection can help the business analyst and the project team to identify and correct any defects, errors, or deviations in the product, and to ensure that it meets the requirements and the stakeholder expectations. Inspection can also help to obtain the formal approval and acceptance of the product from the customer and other stakeholders, and to confirm that the product is ready for delivery or deployment. Inspection can be done using various methods, such as reviews, walkthroughs, audits, or tests. References: PMI Professional in Business Analysis (PMI-PBA)Examination Content Outline1, page 21; Business Analysis for Practitioners: A Practice Guide2, page 101.