PMI PMP-Project Management Professional Practice Exam Q. 1211 to 1220
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Set of 10 Questions
Correct Answer has been Highlighted in RED
Q. 1211: Each one of the following statements about risk avoidance is true EXCEPT that it:
A. Focuses on changing the project management plan to eliminate entirely the threat
B. Isolates the project’s objectives from the risk’s impact
C. Accepts the consequences of the risk event should it occur
D. Changes the project objective that is in jeopardy
Section: Mix Questions
Justification in favor of the correct answer:
Accepting the consequences of the risk event is categorized as risk acceptance. With this risk response approach, the project team takes no action to reduce the probability of the risk’s occurring.
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Q. 1212: If the probability of event 1 is 80 percent and of event 2 is 70 percent and they are independent events, how likely is it that both events will occur?
A. 6 percent
B. 15 percent
C. 24 percent
D. 56 percent
Section: Mix Questions
Justification in favor of the correct answer:
The likelihood is determined by multiplying the probability of event 1 by the probability of event 2.
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Q. 1213: 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
Section: Mix Questions
Justification in favor of the correct answer:
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.
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Q. 1214: 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
Section: Mix Questions
Justification in favor of the correct answer:
Even low-priority risks must be monitored. A watch list is used to ensure such risks are tracked for continued monitoring.
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Q. 1215: 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
Section: Mix Questions
Justification in favor of the correct answer:
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.
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Q. 1216: The simplest form of quantitative risk analysis and modeling techniques is:
A. Probability analysis
B. Sensitivity analysis
C. Delphi technique
D. Utility theory
Section: Mix Questions
Justification in favor of the correct answer:
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.
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Q. 1217: 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
Section: Mix Questions
Justification in favor of the correct answer:
EMV = ($2M x 60%) + (-$1.5M x 20%) = ($1.2M) + (-$300,000) = $900,000
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Q. 1218: 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
Section: Mix Questions
Justification in favor of the correct answer:
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.
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Q. 1219: 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. Re-baseline 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
Section: Mix Questions
Justification in favor of the correct answer:
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.
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Q. 1220: 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
Section: Mix Questions
Justification in favor of the correct answer:
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.
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