Velocity is a tool for internal team improvement and forecasting, not external benchmarking. According to the PMI Agile Practice Guide (Section 5.4: Velocity and Estimation) and Mike Griffiths’ PMI-ACP Exam Prep Book (Chapter 3: Team Performance), tracking velocity over time helps teams assess the impact of process changes, refine estimates, and validate their continuous improvement efforts.
Option C is correct: it focuses on team-level improvement.
Option A uses velocity inappropriately for performance review, which goes against agile principles.
Option B promotes unhealthy comparisons across teams.
Option D is partially true, but stakeholder communication is secondary to internal use.
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