Project risk is a measure of the ________________ and the __________________ of not achieving a defined project goal.

Select one:

uncertainty and cost

damage and time

cost and time

Impact and cost

probability and consequence

Question 2 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Future events or outcomes that are favorable are called:

Select one:

Risks

Opportunities

Surprises

Contingencies

None of the above

Question 3 Not yet answered Points out of 5.00 Not flaggedFlag question Question text In Project Management, future outcomes or consequences that have a probability of occurrence and are unfavorable are called:

Select one:

Risks

Opportunities

Surprises

Contingencies

None of the above

Question 4 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The cause, or source of danger, of a risk event is known as a/an:

Select one:

Opportunity

Probability

Insurance policy

Hazard

All of the above

Question 5 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Risk management is:

Select one:

the act or practice of dealing with risk

proactive rather than reactive

not a separate project office activity assigned to a risk management department

1 and 3

All of the above

Question 6 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Based on the table constructed below, which strategy has the highest expected value?

PAYOFF TABLE (PROFIT IN MILLIONS)

Strategy

Scenario 1 (25 percent)

Scenario 2 (50 percent)

Scenario 3 (25 percent)

S1

80

50

120

S2

80

80

80

S3

160

120

-20

S4

20

40

20

S5

-20

0

-60

Select one:

S1

S2

S3

S4

S5

Question 7 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Based on the data in the table in Question 6 above, which strategy has the highest expected value with no chance for a loss?

Select one:

S1

S2

S3

S4

S5

Question 8 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Using the "maximax" or Hurwicz criterion (e.g., go for broke or risk-lover), which strategy in Question 6 should be selected?

Select one:

S1

S2

S3

S4

S5

Question 9 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The process of examining the program areas and each critical technical process to identify and document the associated risk is known as:

Select one:

Risk identification

Risk response

Lessons learned or risk control

Risk quantification

None of the above

Question 10 Not yet answered Points out of 5.00 Not flaggedFlag question Question text If the minimum payoffs of four different strategies A1, A2, A3, and A4 are -10, -5, 0, and -20 respectively, which strategy would a project manager choose using the "maximum" or Wald criterion (risk avoider)?

Select one:

Not enough information to answer this question

Strategy A1

Strategy A2

Strategy A3

Strategy A4

Question 11 Not yet answered Points out of 5.00 Not flaggedFlag question Question text A medium level of risk associated with a risk event always translates into a ________________ percent probability that this risk event will occur.

Select one:

60

30

40

50

You cannot determine the exact probability from the information provided

Question 12 Not yet answered Points out of 5.00 Not flaggedFlag question Question text When changing the scope of a project to lower the associated risk, a project manager should consider the impact on:

Select one:

The schedule

The cost

The quality

All of the above

1 and 2 only

Question 13 Not yet answered Points out of 5.00 Not flaggedFlag question Question text A project manager states, "I will actively take the necessary measures required to actively mitigate this risk. I will do what is expected." He is exercising the ____________ method of risk reduction

Select one:

Tranfer (deflection)

Avoidance

Control (e.g., mitigation)

Assumption (retention)

Wald

Question 14 Not yet answered Points out of 5.00 Not flaggedFlag question Question text A Risk Mapping Matrix (such as a Probability/Impact Matrix) is an example of:

Select one:

Quantitative Risk Analysis

Risk Transference

Risk MItigation

Qualitative Risk Analysis

None of the above.

Question 15 Not yet answered Points out of 5.00 Not flaggedFlag question Question text When the project's risk event probabilities are multiplied by their respective consequences (in dollars) and then are added together, the sum represents the:

Select one:

Project manager's risk aversion quotient

Earned Value

The expected value of the project

2 and 3

1 and 2

Question 16 Not yet answered Points out of 5.00 Not flaggedFlag question Question text What is the expected value of a project based on the following data:

Outlook

Value

Probability

Marginal

$60,000

0.25

Good

$100,000

0.50

Poor

$40,000

0.25

Select one:

$190,000

$75,000

$100,000

$120,000

None of the above

Question 17 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Per Kerzner, "No risk management plan" is a typical risk event for which life cycle phase?

Select one:

Project approval

Preliminary and detailed planning

Execution

Closure

None of the above.

Question 18 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Given the following possible loss outcomes of a project event, find the expected loss:

Loss Probability $0 0.2 $1,000 0.3 $2,000 0.5

Select one:

$0

$1,300

$2,000

$3,000

None of the above

Question 19 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Given the following possible profit and loss outcomes of a project, find the expected profit or (loss):

Profit or (Loss) Probability ($1,000) 0.1 $0 0.1 $1,000 0.3 $2,000 0.5

Select one:

($1,000)

$1,000

$2,000

$1,200

None of the above

Question 20 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The Expected Value of a project's risk can be defined as:

Select one:

The sum of the probabilities of project risk events times the sum of consequences of those risks

The sum of the products of the probabilities of each project risk event times its consequence

The sum of the consequences of all project risk events

The sum of the probabilities of all project risk events

None of the above