MGT6153.E1 Summer 2016 Multiple-Choice Exercise 3 Total Questions: 40 This assignment is due by Saturday of Week 9 August 13th at 11:59 PM Central Time. Identify the choice that best completes the statement or answers the questions then click the Submit My Answers button at the bottom of the quiz to submit your answers for grading. If your answers were submitted successfully you will receive a thank you message and your score. Most students find it helpful to print the quiz and work on the answers offline, then log-in and submit their answers at a later time. You can print the quiz by entering your log-in information and clicking start: the quiz questions will be displayed. Use your browser's print function to print the quiz. Then close your browser. When you are ready to submit your answers, log-in to the quiz then enter answers for all of the questions and click the submit button at the end of the quiz. After a second or two a webpage with your score and a thank you message should display. You can submit your answers twice and the best score of the two attempts will be recorded as your score for the exercise. The answer key will be sent by the instructor after the quiz due date. Please Note: To access the Exercise please enter: Your Amberton Email ID (Example: RDarnell123@my.amberton.edu) Password = Amberton The fields below are case sensitive. 1) After brainstorming potential project risks, what is the recommended method for prioritizing these risks and their mitigation plans? A. RACI chart B. Fishbone Diagram C. Probability and impact matrix D. Control Chart 2) A technique that iterates the project schedule many times, to calculate a distribution of possible project completion dates is called? A. Monte Carlo simulation B. Monteford analysis C. Pareto Cost chart D. Deming Analysis 3) A serious incident occurred at a chemical plant, so efforts are being made to eliminate a possible reoccurrence. The manager selects 10 people from various skills to review the incident in the main conference room at 1300 hrs in order for the originating cause of the incident to be identified. This group of people is participating in an event known as? A. Brainstorming B. Delphi Technique C. Decision Tree Analysis D. Root Cause Analysis 4) At the very beginning of a new project, you search for any and all past records of similar projects, both from within your organization and from outside sources within your industry. You want to learn as much as possible about past successes and failures so you can incorporate the best practices from those who went before you, as well as avoid the mistakes they made. You are successful in accumulating an enormous amount of material. Upon reviewing an archived project plan, you study a section that features the project's timephased budget at completion (BAC) that was used for Earned Value calculations when monitoring and measuring project cost performance. Plotted, it forms an S-curve appearance. What is this? A. Performance Measurement Baseline (PMB) B. Funding Reconciliation Curve (FRC) C. Cost Variance Baseline (CVB) D. Cost Baseline 5) Cause and Effect diagrams are used to illustrate how various factors might be linked to potential problems or effects. They are also called: A. Pareto diagrams B. Ishikawa diagrams C. Process diagrams D. Taguchi diagrams 6) If a project has a 65 percent chance of a $200,000 profit and a 35 percent chance of a $100,000 loss, what is the expected monetary value for the project? A. 165000 B. 100000 C. 95000 D. -100000 Answer: C Explanation: Expected monitory value (EMV) is computed by EMV = Probability X Impact. We need to compute both positive and negative values and then add them. 0.6 X $100,000 = $60,000 0.4 X $100,000= $ 40,000 EMV = $60,000 - $ 40,000 =$ 20,000 Profit 7) After performing risk analysis, you find that close to 50% of the risks are technology risks. What will you do next? A. Develop a risk response strategy for all the risks that require a response according to plan B. Develop a risk response strategy for all the technology risks that require a response according to plan C. Acquire subject matter experts and highly qualified resources D. Develop a risk response strategy for all the technology risks 8) Despite your best efforts at anticipating and documenting all risk and uncertainly on your project yiu have encountered a completely unforeseeable risk that will incur significant extra cost to your project. You decide to approach your project sponsor and ask for permission to get extra funds from a pool of money that they control. What is this pool of money generally referred to as? A. Management reserve B. Contingency reserve C. Slush fund D. Control account 9) As part of Quantitative Risk Analysis, a project manager has derived four packages with the following probability and impact. Using EMV (Expected Monetary Value) which one should he use in the project? A. Work package I : Probability 15 % & Impact $ 20,000 B. Work package II: Probability 7 % & Impact $ 10,000 C. Work package III: Probability 7 % & Impact $ 15,000 D. Work package IV: Probability 15 % & Impact $ 10,000 10) Mary is a project manager for a large well known manufacturing company. She is working on a new project to release a new international product line. This is her company's first project to produce products for international markets and everyone is expecting great success with this ne product line. Many of the project stakeholders are apprehensive about the project and they usually proceed cautiously and take a considerable amount of time to examine information before making a final project decisions. The project entails producing localized version of a current product that the company produces for its domestic markets. This is the first time that the company has attempted to create a product that is not only localized in the local language but is also designed for cultural co-existence. History with other companies indicates that subtle miscalculations in this area can offend consumers and result in a loss of market share for all of the company's products. A new vendor is engaged to perform the language translations and test the cultural co-existence of the product. After speaking with one of your stakeholders, Mary discovers that this will be the first project for your organization to work with this new vendor. Which of the following statements is true given the information in this question? A. This scenario describes the interviewing tool and technique used During the Risk Identification process. B. This scenario describes risk triggers that are derived using interviewing techniques and recorded in the risk register during The Qualitative Risk Analysis process. C. The scenario describes risk tolerance levels of the stakeholders, which should be considered as an input to the Plan Risk Management process. D. This scenario describes a risk that requires a response strategy from the positive risk category. 11) A project manager in an IT company wants to go over how to use lessons learned and document from a previous project to reinforce positive events that occurred and avoid the negative events. What is this activity called? A. Scope identification B. Risk identification C. Project management D. Performance management 12) Donald must measure the likelihood of his suppliers delivering the necessary material in accordance with his project schedule. Which of the following tools would he not use in his risk analysis? A. Decision analysis B. Simulation C. Forward pass D. Probability analysis References: \\Kerzner (7th Edition) pp. 921-922 \\PMBOK(r) Guide pp. 137-139 13) If a project has a 40 percent chance of achieving a $17,000 profit and a 60 percent chance of achieving a $20,000 loss, what is the expected monetary value of the project? A. -5200 B. 37000 C. 5200 D. -3000 14) Organizations that desire very much to avoid high-impact risks usualy use which of the following techniques during qualitative risk analysis? Choose the best answer. A. Avoidance B. Data precision ranking with low precision C. A probability-impact risk rating matrix using nonlinear scales D. The organization would not use any techniques 15) An organization wishes to ensure that the opportunity arising from a risk with positive impact is realized. This organization should _______________ A. Mitigate the risk B. Share the risk C. Avoid the risk D. Exploit the impact 16) Risks may be identified during the entire lifecycle of a project. Identify Risks is what type of process? A. Effort driven B. Iterative C. Never ending D. Qualitative 17) A Project Manager who has just been assigned to a new project has been asked by his sponsor to come up with an initial cost estimate called a Rough Order of Magnitude (ROM) .This would be typically in which range? A. -50 % to + 100% B. -25% to + 75% C. -10 % to +15% D. -100% to +50% 18) You are currently performing risk analysis on a large and extremely complex project. Your project team decides that the most comprehensive way to approach the process of risk analysis is to examine all the possible outcomes using an iterative computer simulation process to model a range of variables taken from a probability distribution. What is this technique known as? A. Sensitivity analysis B. Expected monetary value analysis C. Monte Carlo analysis D. Ishikawa analysis 19) You have been assigned to manage a construction project that is currently being initiated. Your company guidelines require that you make a rough order of magnitude estimate of both time and cost before you can finish initiating the project so that the sponsor(S) can allocate the final budget. What is the range of a rough order of magnitude (ROM) estimate? A. -10% to +10% B. -25% to +75% C. -50% to +100% D. -100% to +200% 20) Monitor and control project risks can involve choosing alternative strategies, executing a contingency or fall back plan, taking corrective action, and modifying the project management plan. The risk response owner reports periodically to the project manager on the effectiveness of the plan, any unanticipated effects, and any correction needed to handle the risk appropriately. Which of the following best describes the steps for implementing a contingency plan or a work around when performing the Risk Monitoring and Control process? A. The risk owner should implement the contingency or work around by performing the risk response defined in the risk response plan. B. Notify the project sponsor that a risk event has occurred and obtain authorization to implement the contingency or workaround. C. Prepare a change request based on the risk response plan and submit it to the Perform Integrated Change Control process. D. Implement the contingency using according to the risk response plan and then prepare a change request and submit it to the Perform Integrated Change Control process. 21) During project execution, an unidentified risk event occurs, catching the team by surprise. Now that is has occurred, you must act. What is your first response action? A. Create a workaround. B. Request guidance from your project sponsor. C. Make an appropriate change to the new risk register. D. Transfer the risk as soon as possible. 22) You are the project manager for a complex mission critical project. All of the project stakeholders say that this is a high-risk undertaking and you will be held accountable for managing project risk. Your project team has considered several risk management tools and approaches but there is no agreement from the stakeholders as to which approach is best. Your sponsor has suggested a risk management methodology that was utilized on a project at another company. In applying the risk management planning process what should you consider when deciding on a project risk management approach? A. Create a roles and responsibility matrix. B. Ensure that the level, type, and visibility of risk management are appropriate for the risk level and importance of the project to your organization. C. Complete thorough evaluation of available risk management tools and methodologies to select the best ones for the project. D. Make certain all risks have been identified and mitigation strategies have been developed for the most important ones. 23) A project of $1.5 million has an adverse event that has a probability of 0.07 of occurring and a potential loss of $15,000. This represents an expected negative monetary value of how much? A. $105.00 B. $1,050.00 C. $15,000.00 D. $100,500.00 24) What is the primary risk including contingency reserve allowances in your cost estimate? A. Canceling your project B. Understanding the cost estimate C. Overstating the cost estimate D. Tracking of funds 25) Your team is completing an exercise to determine which risks have the greatest potential impact on your project. They are assessing the extent to which the uncertainly of each element of the project effects the risk being examined when all other uncertain elements are held at static baseline values. What is this technique commonly known as? A. Sensitivity analysis B. Expected monetary value analysis C. Torando diagram D. Modeling and simulation 26) The output of the Perform Quantitative Risk Analysis process is risk register updates. Which process uses this as an input? A. Project Integration Management B. Identify risks C. Project Time Management D. Plan Risk Responses 27) When should you begin risk management on a project? A. Once project planning has commenced B. As soon as a project is initiated or conceived C. Once project execution has commenced D. When you are completing the monitoring and controlling 28) Grace is managing a software development project when two team members come to her with a conflict. The lead developer has identified an important project risk by determining that the contractor developing the software code will not deliver on time. However, the other developer doesn't believe that the risk is likely to happen. As the project manager, Grace decides to consult the lessons learned from previous projects and discovers that the same contractors failed to deliver their work on two previous projects. After deciding that the risk is too big, Grace terminates the contract with the contractor and instead hires additional developers to build the code. Which of the following best describes this scenario? A. Risk Transference B. Risk Mitigation C. Risk Avoidance D. Risk Acceptance 29) Risk Breakdown Structure is an example of: A. Text oriented format B. Functional Chart C. Hierarchical based organization chart D. Matrix based organization chart 30) Bar charts are most approporiate for _____________ A. Comparing actual to planned performance for each activity B. Showing slack time C. Showing critical path dependencies D. Showing which activities can be rearranged in parallel 31) If a risk event has a 80 percent chance of occurring and if it does occur the consequences will be a $10,000 cost to the project. What does -$8,000 represent to the project? A. Expected monetary value B. Probabilistic risk assessment C. What if analysis result D. Quantified risk 32) The CIO of a major airline contracted with your company to develop a new employee travel management system. At the initial design meeting with the airline's IT department you find that many of the system architects and developers consider it a very high risk project due to the technical limitations of the current IT infrastructure. None of the meeting participants wanted to go on the record with specific reasons. They would only say that the last person to do so was transferred to the custodial department. What would be the best technique to employ when gathering information to identify project risks in this situation? A. Root cause analysis B. SWOT C. Brainstorming D. Delphi 33) Mike is the project manager of a large project. Early on he identifies a number of risks in the project and wants to adequately prepare for them. Which of the following can be used to transfer project risk? A. Insurance contracts B. Financial contracts C. Change the project management plan to eliminate risk D. Prototype development 34) Which of the following is not an example of a probability distribution? A. Obtuse distribution B. Normal distribution C. Triangular distribution D. Beta distribution 35) You are conducting the process of implementing your risk response plans, tracking identified risks, monitoring residual risks, and identifying new risks? What is this process called? A. Control risks B. Risk management C. Risk Assessment D. Assess and Control Risks 36) The project manager in charge of a new credit card software project has asked the product manager to create a checklist to assist with the identification of risks. A risk checklist can be created from which of the following sources? A. All of these responses below are correct B. A SWOT analysis C. The lowest level of the Risk Breakdown Structure D. Ishikawa diagrams 37) Your team is completing the process of numerically analyzing the effect of identified risks on your project objectives. What process are they carrying out? A. Plan Risk Response B. Perform Qualitative Risk Analysis C. Perform Quantitative Risk Analysis D. Identify Risks 38) You and your project team have completed your risk register, including planned responses to identified risks. What is your next step? A. Update the work breakdown structure B. Begin the Control Risks process C. Perform another iteration of the risk register D. Update your project sponsor on the plan risk responses 39) When are risk identification activities performed? A. During the Perform Qualitative Risk Analysis process B. During the Plan Risk Management process C. During the Perform Quantitative Risk Analysis process D. Ongoing throughout the project 40) Your team is using the project risk register and has started a quantitative assessment of the risks. You tell your team that it is better to start with qualitative analysis first. What reasons do you give your team for this decision? A. Quantitative analysis takes the numerical values assigned during the qualitative process and adds a more intuitive interpretation of the risks B. Qualitative analysis provides accurate numerical values based on probability ans impact that can then be quantified C. There is no particular reason why one should be done before the other. It is just the way your organizational processes require the process to be completed D. Qualitative analysis provides a subjective and rapid means of prioritizing risks, and indicating which risk can have quantitative analysis applied to them