. 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:

a) $100,000 profit

b) $60,000 loss

c) $ 20,000 profit

d) $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?

a) 30 days, plus or minus 5 days

b) 22 - 30 days

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

d) Mean of 28 days

e) 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?

a) Less than 1 percent

b) 20 percent

c) 60 percent

d) 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?

a) Additional resources using the contingency fund

b) Escalation approval to use contingency funding

c) Team overtime to meet schedule

d) Corrective action based on causes

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

a) Perform Quantitative Risk Analysis and Identify Risks

b) Identify Risks and Monitor and Control Risks

c) Perform Qualitative Risk Analysis and Monitor and Control Risks

d) Identify Risks

6. What is meant by RACI?

a) Responsible, Accountable, Confirm, Inform

b) Recommended, Accountable, Consulted, Inform

c) Responsible, Accountant, Consulted, Inform

d) Responsible, Accountable, Consulted, Inform

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

a) A Program is a group of related projects

b) A Program is a group of unrelated projects

c) A Program is a part of a big project

d) 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?

a) Performance management

b) Scope identification

c) Risk identification

d) Project team status meeting

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

a) You will pass some confidential info to him

b) You will disclose this relationship to your management

c) You will resign immediately from the bidding process

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

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

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?

a) Risk value

b) Present value

c) Expected monetary value

d) Contingency budget

11. Your construction project was damaged by an earthquake. Your contractor says that he cannot fulfill the terms of the contract due to a specific clause you both had signed the contract. He is referring to the:

a) Force majeure clause

b) Fixed price clause

c) Contract obligation terms