13/12_chap11

If a project has a 60 percent chance of a $100,000 profit and a 40 percent chance of a $100,000 loss, the expected monetary value (EMV) for the project is:

• $100,000 profit

• $60,000 loss

• $20,000 profit

• $40,000 loss

Assuming the ends of a range of estimates are +/- 3 sigma from the mean, which of the following range estimates involves the least risk?

• 30 days, plus or minus 5 days

• 22 to 30 days

• Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days

• Mean of 28 days

Your new project is tasked with designing a robotic device. A successful outcome for this high-profile project would create a technological breakthrough and a significant market opportunity, but there is a lot of uncertainty about the technology and requirements. The CFO has asked you to determine as quickly as possible whether the project is viable. What would be the best approach for doing this?

• Ask the team to perform thorough proof-of-concept tests before starting development.

• Do a risk-based spike to determine if the Kansas testing facility is tornado-proof.

• Have the team begin planning and development, and see if they reach an impasse.

• Do an exploratory spike to research potential quality control issues and ways to mitigate them.

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 this risk event will occur during the fourth month of the project?

• Less than 1 percent

• 20 percent

• 60 percent

• 80 percent

If a risk event has a 90 percent chance of occurring, and the consequences will be $10,000, what does $9,000 represent?

• Risk value

• Present value

• Expected monetary value

• Contingency budget

Most of the project risks will be identified during which risk management processes?

• Perform Quantitative Risk Analysis and Identify Risks

• Identify Risks and Monitor Risks

• Perform Qualitative Risk Analysis and Monitor Risks

• Identify Risks and Perform Qualitative Risk Analysis

What kind of change-driven project would gain the most benefit from conducting a project pre-mortem exercise?

• A high-value project with clear specifications for technology and requirements

• An urgent, risky project with a hard deadline

• A project that will require process tailoring

• A long-term, high-visibility project

You are iterating the project management plan and will be meeting with the sponsors to get approval. There have been some problems on recent projects because the projects were started quickly and it was assumed that there would be few challenges. You know the sponsors will want assurances that this project will not have similar issues. You have evaluated the approach and have planned the project, including how you will manage risk, in order to deliver a better outcome. You have a few minor risks on the watch list. What, if anything, should be done with those risks?

• Document them for historical use on other projects.

• Document them and revisit them during project monitoring and controlling.

• Document them and set them aside because they are already covered in your contingency plans.

• Document them and give them to the customer.

You are embarking on a new technology upgrade project that is considered key to future growth of the business. Because of the critical nature of the project, you recognize the importance of performing thorough risk management, and you want to make sure you have considered all relevant project information before beginning. All the following are always inputs to the risk management process except:

• Historical information

• Lessons learned

• Work breakdown structure

• Project status reports

Risk thresholds are determined to help:

• The team rank the project risks

• The project manager estimate the project

• The team schedule the project

• Management know how other managers will act on the project