Tag: Project Management Professional (PMP) Exam Practice

Project Management Professional (PMP) Exam Practice – Question1592

Which of the following is an example of recommended corrective action in risk management?


A. Conducting a risk audit
B. Engaging in additional risk response planning
C. Performing the contingency plan
D. Conducting a risk review

Correct Answer: C

Explanation:

Explanation:
Corrective action in risk management is the process of making changes to bring expected performance in line with the risk management plan. Such action consists of performing either the planned risk response, such as implementing contingency plans, or a
workaround.

Project Management Professional (PMP) Exam Practice – Question1591

Risk score measures the______________


A. Variability of the estimate
B. Product of the probability and impact of the risk
C. Range of schedule and cost outcomes
D. Reduced monetary value of the risk event

Correct Answer: B

Explanation:

Explanation:
The risk score provides a convenient way to compare risks because comparing impacts or probabilities alone is meaningless. It helps guide risk responses.

Project Management Professional (PMP) Exam Practice – Question1590

The purpose of a numeric scale in risk management is to______________


A. Avoid high-impact risks
B. Assign a relative value to the impact on project objectives if the risk in question occurs
C. Rank order risks in terms of very low, low, moderate, high, and very high
D. Test project assumptions

Correct Answer: B

Explanation:

Explanation:
You can develop relative or numeric, well-defined scales using agreed-upon definitions by the stakeholders. When using a numeric scale, each level of impact has a specific number assigned to it.

Project Management Professional (PMP) Exam Practice – Question1589

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______________


A. Perform additional resource planning, add resources, and use overtime as needed to accomplish the same amount of budgeted work
B. Rebaseline the schedule, then use Monte Carlo analysis
C. Conduct a risk response audit to help control risk
D. Forecast potential deviation of the project at completion from cost and schedule targets

Correct Answer: D

Explanation:

Explanation:
Earned value is used for monitoring overall project performance against a baseline plan. It is a part of variance analysis, a tool and technique in control risks.

Project Management Professional (PMP) Exam Practice – Question1588

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?


A. Passive avoidance
B. Mitigation
C. Active acceptance
D. Deflection

Correct Answer: C

Explanation:

Explanation:
Active acceptance means not only accepting the consequences of a risk, but also establishing a plan for dealing with the risk, should it occur. Organizations typically establish a contingency plan funded by a contingency reserve (of time, money, or resources) to
handle known, or even sometimes potential unknown, threats or opportunities.
PMI, PMBOK Guide, 2013, 345

Project Management Professional (PMP) Exam Practice – Question1587

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?


A. -$50,000
B. $300,000
C. $500,000
D. $900,000

Correct Answer: D

Explanation:

Explanation:
EMV = ($2M 60%) + (-$1.5M 20%) =
($1.2M) + (-$300,000) = $900,000

Project Management Professional (PMP) Exam Practice – Question1586

The simplest form of quantitative risk analysis and modeling techniques is______________


A. Probability analysis
B. Sensitivity analysis
C. Delphi technique
D. Utility theory

Correct Answer: B

Explanation:

Explanation:
Sensitivity analysis, as a quantitative risk analysis and modeling technique, helps to determine the risks that have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined
when all other uncertain elements are held at their baseline values.

Project Management Professional (PMP) Exam Practice – Question1585

A general contingency is used for______________


A. Risks that are identified at the outset of the project
B. Risks that are not identified at the outset of the project but are known before they occur
C. Risks that cannot be known before they occur because they are external risks
D. Any risks that cannot be known before they occur

Correct Answer: D

Explanation:

Explanation:
There is a category of risks that is sometimes called unknown-unknowns, meaning that the risk is not knowable and, therefore, the probability of the risk is also not knowable. Your lead technical advisor becoming seriously ill, your offices being ransacked by
persons engaged in industrial espionage, or one of your subcontractors winning the lottery and running off to the Cayman Islands are all examples of risks that are not known before they occur. However, such risks must be expected and a general contingency
can be set aside to address the impact they leave in their wake.

Project Management Professional (PMP) Exam Practice – Question1584

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?


A. Threat list
B. Low risk list
C. Watch list
D. Low impact list

Correct Answer: C

Explanation:

Explanation:
Even low-priority risks must be monitored. A watch list is used to ensure such risks are tracked for continued monitoring.

Project Management Professional (PMP) Exam Practice – Question1583

The project scope statement should be used in the identify risk process because it______________


A. Identifies project assumptions
B. Identifies all the work that must be done and, therefore, includes all the risks on the project
C. Helps to organize all the work that must be done on the project
D. Contains information on risks from prior projects

Correct Answer: A

Explanation:

Explanation:
Project assumptions, which should be enumerated in the project scope statement, are areas of uncertainty, and as such are potential causes of project risk. The scope statement and the WBS are part of the scope baseline, an input to identify risks.