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:

$100,000 profit

$60,000 loss

$ 20,000 profit

$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?

Answer:

30 days, plus or minus 5 days

22 - 30 days

Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days

Mean of 28 days

3. If a risk has a 20 percent chance of happening in a given month, and the project is expected to last five months, what is the probability that the risk event will occur during the fourth month of the project?

Answer:

Less than 1 percent

20 percent

60 percent

80 percent

4. An accepted deadline for project approaches. However, the project manager realizes only 75% percent of the work has been completed. The project manager then issues a change request. What should the change request authorize?

Answer:

Additional resources using the contingency fund

Escalation approval to use contingency funding

Team overtime to meet schedule

Corrective action based on causes

5. The risk will be identified during which risk management process(es)?

Answer:

Perform Quantitative Risk Analysis and Identify Risks

Identify Risks and Monitor and Control Risks

Perform Qualitative Risk Analysis and Monitor and Control Risks

Identify Risks

6. What is meant by RACI?

Answer:

Responsible, Accountable, Confirm, Inform

Recommended, Accountable, Consulted, Inform

Responsible, Accountant, Consulted, Inform

Responsible, Accountable, Consulted, Inform

7. Which of the following statement is true about a Program?

Answer:

A Program is a group of related projects

A Program is a group of unrelated projects

A Program is a part of a big project

None of the above

8. The project manager meets with the project team to review lessons learned from previous projects. In what activity is the team involved?

Answer:

Performance management

Scope identification

Risk identification

Project team status meeting

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

Answer:

You will pass some confidential info to him

You will disclose this relationship to your management

You will resign immediately from the bidding process

You will try not to give the contract to him to prove your integrity

10. 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?

Answer:

Risk value

Present value

Expected monetary value

Contingency budget