PMI-RMP Certification Training - EMV and Decision Tree Analysis

The video tutorial explains the concept of expected monetary value (EMV) and its application in risk management and decision tree analysis. EMV is calculated by multiplying the monetary value of an outcome by its probability. Decision trees help in selecting the best course of action by evaluating different paths based on their EMV. The tutorial provides an example of decision tree analysis, illustrating how to calculate EMV for different decisions and select the optimal path.

What is the expected monetary value (EMV) used for in risk management?

• To calculate the total project cost

• To allocate funds for contingency

• To determine the project timeline

• To assess team performance

In decision tree analysis, what does a branch represent?

• A potential outcome

• A team member's task

• A project milestone

• A decision or event

What is the purpose of calculating the expected monetary value for each branch in a decision tree?

• To determine the project budget

• To evaluate team efficiency

• To find the shortest project path

• To select the optimal path

In a decision tree, what does a circle node represent?

• A project end

• A project start

• A chance node

• A decision node

When comparing decisions in a decision tree, which expected monetary value should be selected?

• The lowest negative EMV

• The highest positive EMV

• The average EMV

• The first calculated EMV