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1. The document discusses expected monetary value (EMV) calculations for a project with a 60% chance of a $100,000 profit and 40% chance of a $100,000 loss. The EMV is $20,000 profit. 2. It asks which of several project duration estimates involves the least risk. The smallest range is least risky. 3. It asks about the meaning of RACI, which stands for Responsible, Accountable, Consulted, Inform and is used in responsibility assignment matrices.

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Kaushalya Jayakodi
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27 views

Questions 1

1. The document discusses expected monetary value (EMV) calculations for a project with a 60% chance of a $100,000 profit and 40% chance of a $100,000 loss. The EMV is $20,000 profit. 2. It asks which of several project duration estimates involves the least risk. The smallest range is least risky. 3. It asks about the meaning of RACI, which stands for Responsible, Accountable, Consulted, Inform and is used in responsibility assignment matrices.

Uploaded by

Kaushalya Jayakodi
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. A project has a 60% chance of a $100,000 profit and a 40 percent of a US $100,000 loss.

The
Expected Monetary Value for the project is:

1. $100,000 profit
2. $60,000 loss
3. $ 20,000 profit
4. $40,000 loss

2. Assuming that the ends of a range of estimates are +/- 3 sigma from the mean, which of the
following range estimates involves the LEAST risk?

1. 30 days, plus or minus 5 days


2. 22 – 30 days
3. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days
4. Mean of 28 days

3. What is meant by RACI?

1. Responsible, Accountable, Confirm, Inform


2. Recommended, Accountable, Consulted, Inform
3. Responsible, Accountant, Consulted, Inform
4. Responsible, Accountable, Consulted, Inform

4. During a bidder conference, you see that one bidder is your close friend. What should your next
step be?

1. You will pass some confidential info to him


2. You will disclose this relationship to your management
3. You will resign immediately from the bidding process
4. You will try not to give the contract to him to prove your integrity

.5. If a risk event has a 90 percent chance of occurring, and the consequences will be the US $ 10,000,
what does the US $9,000 represent?

1. Risk value
2. Present value
3. Expected monetary value
4. Contingency budget

6. All of the following are ALWAYS inputs to the risk management process EXCEPT:

1. Historical information
2. Lessons learned
3. Work breakdown structure
4. Project status reports

7. . Risk tolerance is determined in order to help:

1. The team ranks the project risks.


2. The project manager estimates the project.
3. The team schedules the project.
4. Management knows how other managers will act on the project.
8. You are finding it difficult to evaluate the exact cost impact of risk. You should evaluate on a(n) :

1. Quantitative basis
2. Numerical basis
3. Qualitative basis
4. Economic basis

9. A project manager is quantifying risk for her project. Several of her experts are offsite but wish to
be included. How can this be done?

1. Do a Monte Carlo analysis using the Internet as a tool


2. Apply the critical path method
3. Determine options for recommended corrective action
4. Apply the Delphi Technique

10. During which risk management process is a determination to transfer a risk made?

1. Identify Risks
2. Perform Quantitative Risk Analysis
3. Plan Risk Response
4. Monitor and Control Risks

11. Which of the following is not a process group?

1. Initiation
2. Planning
3. Execution
4. Closing

12. What is the output of the monitoring and controlling process?

1. The project schedule


2. The project charter
3. The project management plan
4. The project work

13. Which of the following is not an input to the developing project management plan process?

1. The project charter


2. The stakeholder register
3. The enterprise environmental factors
4. The organization's processes and procedures

14. Which of the following is not an input to the controlling process?

1. The project management plan


2. The project schedule
3. The project work
4. The approved changes

15. Which of the following is not an output of the closing process?

1. The final product, service, or result of the project


2. A lessons learned knowledge base
3. Organizational closure documents
4. The project management plan

16. Alpha and Beta are two projects considered by a company. $50 million net profit is expected of
Alpha and $45 million from Beta. Both are lucrative and rewarding projects, but the company can
only invest in one of the projects. If Alpha is chosen, calculate the opportunity cost?

1. $45 million
2. $95 million
3. $5 million
4. $50 million

17. You are the manager of a project which involves constructing five bridges. The project comprises
five sequential phases with each phase completing one bridge. After the first phase of the project is
complete, which process group of the second phase should follow?

1. Executing
2. Closing
3. Initiating
4. Planning

18. The aim of a project is to investigate the technical, economic and social feasibility of constructing a
hydroelectric dam. The project charter is approved by the project sponsor. What is the next step to be
performed?

1. Identify Risks
2. Develop Project Management Plan
3. Develop Project Charter
4. Identify Stakeholders’

19. While managing a software upgrade project for your company you realize that your sponsor has
high authority in decisions but low interest. What stakeholder management strategy should you
employ to ensure the sponsor’s continued support?

1. Manage the sponsor closely


2. Keep the sponsor satisfied
3. Keep the sponsor informed
4. Monitor the sponsor's actions

20. The project sponsor asks for a copy of the document that contains the description, owner, source,
priority, and status of product requirements. Which project document is the question?

1. The scope management plan


2. The requirements management plan
3. The requirements traceability matrix
4. The work breakdown structure (WBS)
1. Expected Monitory Value (EMV) is computed by EMV = Probability × Impact.Compute both
positive and negative values and then add them:0.6 × $100,000 = $60,000 0.4 × $100,000 = $40,000
EMV = $60,000 - $40,000 = $20,000 profit

2. The estimate with the smallest range is less risky.

3. The RACI chart is an example of the Responsibility Assignment Matrix (RAM), which shows the
relationship between activities and the team members.

4. There is a conflict of interest in this situation. You must inform your boss about this relationship

5. EMV = .9 X $ 10,000 = $ 9,000

6. Project Status report can be an input to risk management. However, when completing risk
management for the first time, you wouldn’t have the project status report yet. Therefore, the project
status report is not always an input to risk management.

7. If you know the tolerance of the stakeholders, you can predict how they might react to different
situations and risk events. This information can help assign levels of risk on each work package
activity.

8. If you cannot determine an exact cost impact to the event, use qualitative estimates such as Low,
Medium, and High.

9. The Delphi technique is commonly used to obtain expert opinions on technical issues, the
necessary project, or product scope.

10. Transference is a Risk Response Strategy.

11. Closing is not a process group.

12. The output of the monitoring and controlling process is the project management plan.

13. The input to the developing project management plan process is the stakeholder register.

14. The input to the controlling process is the project management plan.

15.The output of the closing process is the project management plan.

16. $45 million. The value of the alternative not chosen is called opportunity cost.

17. Initiating. A new project or new phase of an existing project is defined by the Initiating Process
Group.

18. Identify Stakeholders

After developing and approving the project charter, Identifying the stakeholders process is done next.

19. Keep the sponsor satisfied

20.The requirements traceability matrix

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