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40 Cards in this Set
- Front
- Back
As the project manager, you have the option of proposing one of three systems to a client: a full-feature system that not only satisfies the minimum requirements but also offers numerous special functions (the “Mercedes”); a system that meets the client’s minimum requirements (the “Yugo”); and a system that satisfies the minimum requirements plus has a few extra features (the “Toyota”). The on-time records and associated profits and losses are depicted on the below decision tree. What is the expected monetary value of the “Toyota” system?
a. $9,900
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A risk response strategy that can be used for both threats and opportunities is—
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c. Accept
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The risk urgency assessment is a tool and technique used for—
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c. Perform qualitative risk analysis
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Projects are particularly susceptible to risk because—
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b. There is uncertainty in all projects
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As project manager, you have assembled the team to prepare a comprehensive list of project risks. Which one of the following documents would be the most helpful in this process?
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c. RBS
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You are working on identifying possible risks to your project to develop a nutritional supplement. You want to develop a comprehensive list of risks that can be addressed later through qualitative and quantitative risk analysis. An information gathering technique used to identify risks is—
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d. Brainstorming
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The Delphi technique is a particularly useful method for identifying risks to—
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c. Reduce bias in the analysis and keep any one person from having undue influence on the outcome
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A workaround is—
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a. An unplanned response to a negative risk event
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Most statistical simulations of budgets, schedules, and resource allocations use which one of the following approaches?
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d. Monte Carlo analysis
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In the below path convergence example, if the odds of completing activities 1, 2, and 3 on time are 50 percent, 50 percent, and 50 percent, what are the chances of starting activity 4 on day 6?
a. 10 percent
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A project health check identified a risk that your project would not be completed on time. As a result, you are quantifying the project’s risk exposure and determining what cost and schedule contingency reserves might be needed. You performed a schedule risk analysis using Monte Carlo analysis. The basis for your schedule risk analysis is the—
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c. Schedule network diagram and duration estimates
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You are developing radio frequency (RF) technology that will improve overnight package delivery. You ask each stakeholder to estimate the most optimistic package delivery time using the RF technology, the most pessimistic time, and the most likely time. This shows that for your next step you plan to—
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a. Use a beta or triangular probability distribution
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Each one of the following statements about risk avoidance is true EXCEPT that it—
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c. Accepts the consequences of the risk event should it occur
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If the probability of event 1 is 80 percent and of event 2 is 70 percent and they are independent events, how likely is it that both events will occur?
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d. 56 percent
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The project scope statement should be used in the identify risk process because it—
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a. Identifies project assumptions
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Your project team has identified all the risks on the project and has categorized them as high, medium, and low. The “low” risks are placed on which one of the following for monitoring?
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c. Watch list
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A general contingency is used for—
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d. Any risks that cannot be known before they occur
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The simplest form of quantitative risk analysis and modelingtechniques is—
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b. Sensitivity analysis
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If a business venture has a 60-percent chance to earn $2 million and a 20-percent chance to lose $1.5 million, what is the expected monetary value of the venture?
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d. $900,000
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You are managing the construction of a highly sophisticated data center in Port Moresby, Papua, New Guinea. Although this location offers significant economic advantages, the threat of typhoons has caused you to create a backup plan to operate in Manila in case the center is flooded. This plan is an example of what type of risk response?
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c. Active acceptance
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A recent earned value analysis shows that your project is 20 percent complete, the CPI is 0.67, and the SPI is 0.87. In this situation, you should—
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d. Forecast potential deviation of the project at completion from cost and schedule targets
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The purpose of a numeric scale in risk management is to—
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b. Assign a relative value to the impact on project objectives if the risk in question occurs
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Risk score measures the—
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b. Product of the probability and impact of the risk
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Which of the following is an example of recommended corrective action in risk management?
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c. Performing the contingency plan
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The primary advantage of using decision-tree analysis in project risk management is that it—
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b. Forces consideration of the probability of each outcome
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Your project is using complex, unproven technology. Your team conducted a brainstorming session to identify risks. Poor allocation of project resources was the number one risk. This risk was placed on the risk register, which included at this point a—
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b. Potential risk response
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When managing current projects, it is important to use lessons learned from previous projects to improve the organization’s project management process. Therefore, in project closing procedures, it is important to review the—
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b. Checklists for identify risks
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Risk mitigation involves—
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d. Reducing the probability and/or impact of an adverse risk event to an acceptable threshold
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On a typical project, when are risks highest and impacts (amount at stake) lowest?
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a. During the concept phase
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Two key inputs to the perform quantitative risk analysis process are the—
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c. Schedule management plan and cost management plan
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The highest risk impact generally occurs during which one of the following project life-cycle phases?
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c. Implementation and closeout
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Which one of the following statements best characterizes an activity cost or duration estimate developed with a limitedamount of information?
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b. It is an input to identify risks.
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What is the primary difference between a risk audit and a risk reassessment?
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c. Risk reassessments are regularly scheduled; risk audits are performed as defined in the project’s risk management plan.
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Accurate and unbiased data are essential for perform qualitative risk analysis. Which one of the following should you use to examine the extent of understanding of project risk?
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a. Data quality assessment
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Assigning more talented resources to the project to reduce time to completion or to provide better quality than originally planned are examples of which one of the following strategies?
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b. Exploit
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Which of the following is NOT an objective of a risk audit?
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d. Ensuring that each risk identified and deemed critical has a computed expected value
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Contingency planning involves—
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a. Defining the steps to be taken if an identified risk event should occur
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Assume that you are working on a new product for your firm. Your CEO learned that a competitor was about to launch a new product that has similar features to those of your project. The competitor plans to launch the product on September 1. It is now March 1. Your schedule called for you to launch your product on December 1. Your CEO now has now mandated that you fast track your project so you can launch your product on August 1. This fast track schedule is an example of an—
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b. A risk taken to achieve a reward
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As head of the project management office, you need to focus on those items where risk responses can lead to better project outcomes. One way to help you make these decisions is to—
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a. Use a probability and impact matrix
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You are the project manager for the construction of an incinerator to burn refuse. Local residents and environmental groups are opposed to this project. Management agrees to move this project to a different location. This is an example of which one of the following risk responses?
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d. Avoidance
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