Determine How to Apply Risk Tools Appropriately PMI-CP Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   A project manager runs a Monte Carlo simulation on the project schedule. What type of output does the simulation typically produce?

   • AA qualitative rating of each risk as high, medium, or low.
   • BA single most-likely completion date with no indication of uncertainty.
   • CA list of all identified risks with their assigned owners.
   • DA probability distribution showing the likelihood of completing the project by various dates.
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   In probabilistic risk management, what is the primary purpose of a decision tree?

   • ATo evaluate different decision paths and their associated probabilities and outcomes.
   • BTo assign risk owners to each identified risk.
   • CTo list all project risks in order of their impact.
   • DTo calculate the exact probability of a single risk occurring.
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   In a construction project, the IPRA team has identified a risk of material price escalation. During the IPRA session, what is the team's primary focus when assessing this risk?

   • ARemoving the risk from the register because it is outside the project team's control.
   • BAssigning blame to the party responsible for the price increase.
   • CImmediately implementing a mitigation plan without further analysis.
   • DDetermining the likelihood of occurrence and the potential impact on project cost and schedule.
   Reveal Solution Discussion Select an answer first
5. 4expert · hard

   A project manager is evaluating the impact of a risk on the project's NPV. The risk has a 40% probability of increasing costs by $200,000 and a 60% probability of having no impact. The project manager also has the option to implement a mitigation strategy that costs $30,000 and would reduce the probability of the risk to 10%. What is the expected monetary value (EMV) of the risk without mitigation?

   • A$80,000
   • B$20,000
   • C$120,000
   • D$50,000
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   What is the primary purpose of using Monte Carlo simulation in project risk management?

   • ATo model the range of possible project outcomes by simulating many scenarios with variable inputs.
   • BTo identify a single, deterministic project completion date and cost.
   • CTo eliminate all uncertainty from project estimates.
   • DTo replace the need for expert judgment in risk assessment.
   Reveal Solution Discussion Select an answer first