PMI-RMP practice questions 71–80

1. Question 71 · 204 in bank

   A project has a 60% chance of a US$100,000 profit and a 40% chance of a US$100,000 loss. What is the expected monetary value for this project?

   • AUS$20,000 loss
   • BUS$100,000 profit
   • CUS$40,000 loss
   • DUS$20,000 profit

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   Answer: D

   Explanation

   D. US$20,000 profit The expected monetary value (EMV) of a project is a measure of the expected value of a potential outcome, calculated by multiplying the probability of that outcome occurring by the monetary value associated with it. In this case, the project has a 60% chance of a US$100,000 profit and a 40% chance of a US$100,000 loss. To calculate the EMV, we can use the following formula: EMV = (Probability of Profit x Monetary Value of Profit) + (Probability of Loss x Monetary Value of Loss) Plugging in the values from the problem statement, we get: EMV = (0.6 x US$100,000) + (0.4 x -US$100,000) EMV = US$60,000 + -US$40,000 EMV = US$20,000 Therefore, the EMV for this project is US$20,000. This means that, on average, the project is expected to generate a profit of US$20,000.

   Source: Adapted from community discussion — IBANGA007

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2. Question 72 · 204 in bank

   A project manager is trying to realize benefits from new material on an adaptive project. This is the first time the project team is using the material so the team does not have information to identify and analyze risks. A team member informs the project manager that a local university has recently published a research journal on the same material. Where should the project manager find this information?

   • ACommercial risk databases
   • BIndustrial studies
   • CEnterprise environmental factors (EEFs)
   • DOrganizational process assets (OPAs)

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   Answer: B

   Explanation

   EEFs include internal and external environmental factors that influence the project, such as regulatory standards, market conditions, and organizational culture. While useful for context, they do not typically contain specific research studies or technical information about new materials.

   Source: Adapted from community discussion — MikeMarlo

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3. Question 73 · 204 in bank

   A risk manager wants to determine which risks are going to have the highest impact on a project. Which of the following techniques should the risk manager use?

   • AAssumptions analysis
   • BSensitivity analysis
   • CRoot cause analysis
   • DPrioritization matrices

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   Answer: B

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4. Question 74 · 204 in bank

   A project manager has determined that an activity is too complex to complete internally so they hire a licensed contractor to complete the work. What is the project manager performing in this situation?

   • ARisk acceptance
   • BRisk transfer
   • CRisk avoidance
   • DRisk mitigation

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   Answer: B

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5. Question 75 · 204 in bank

   A new project manager has been assigned to work on an ongoing project. When checking the project documentation, the project manager realizes the risk register items do not comply with the contracted scope. The project manager wants to use an objective method to determine the key project risks and develop response plans. What action should the risk manager propose?

   • AHire a risk expert to perform a PESTLE evaluation.
   • BReview the lessons learned from other projects.
   • CAsk the team to perform a Monte Carlo analysis.
   • DAsk the team to perform an earned value analysis.

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   Answer: C

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6. Question 76 · 204 in bank

   Which of the following should multicultural groups be aware of on a project relative to risk?

   • AProblematic risk management practices
   • BMulticultural beta risk management software
   • CDifferences regarding risk attitudes and emotional literacy
   • D"Parent-child" risk relationships

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   Answer: C

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7. Question 77 · 204 in bank

   The project manager for project X was expecting the mobilization of critical equipment from another project, project Y. However, a day before the mobilization was scheduled, another project manager notifies project X’s project manager that the equipment would not be available for at least another month due to delayed activities for project Y. This has jeopardized meeting a critical milestone for project X. How should project X’s project manager avoid this situation in the future?

   • AAsk the other project manager to officially confirm the new date in writing
   • BRequest that the other project manager inform if any additional delays are expected
   • CRequest that the other project manager be added to relevant reports
   • DPrepare a contingency response plan to implement when delays occur

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   Answer: D

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8. Question 78 · 204 in bank

   Multiple new risks have come up on a project that were not included on the risk register. The project manager met with the team to explain that risk management is critical for the success of the project, and risk identification is key. What should the project manager do next?

   • AReview assumptions and constraints around risks.
   • BApply an iterative approach to risk identification.
   • CDetermine the likelihood and impact of the risks.
   • DDevelop the risk response plans for identified risks.

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   Answer: D

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9. Question 79 · 204 in bank

   The project director and project manager have met with the board and determined that the project has depleted the entire contingency reserve and has started eroding the profit margin. The project manager would like the risk manager to take full advantage of opportunities. Which response should the risk manager take?

   • AAccept
   • BMitigate
   • CTransfer
   • DExploit

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   Answer: D

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10. Question 80 · 204 in bank

    When using the risk register to manage the cost risk analysis, which of the following models the way correlation arises, and avoids the need to estimate the correlation coefficients?

    • ARisk Monte Carlo analysis
    • BRisk driver method
    • CRisk scatter diagram
    • DRisk RACI matrix

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    Answer: A

    Explanation

    A risk Monte Carlo analysis is a statistical technique that can be used to model the way correlation arises and avoid the njavascript:void(0)eed to estimate correlation coefficients when managing cost risk analysis using a risk register.

    Source: Adapted from community discussion — IBANGA007

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PMI-RMP practice, question 71. 204 questions available.