PMI PMP-Project Management Professional Practice Exam Q. 1231 to 1240
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Set of 10 Questions
Correct Answer has been Highlighted in RED
Q. 1231: What is the primary difference between a risk audit and a risk reassessment?
A. A risk reassessment is conducted at the completion of a major phase; audits are conducted after the project is complete.
B. Project stakeholders conduct risk audits; management conducts reassessments.
C. Risk reassessments are regularly scheduled; risk audits are performed as defined in the project’s risk management plan.
D. There is no difference; they are virtually the same.
Section: Mix Questions
Justification in favor of the correct answer:
Risk reassessment is an ongoing activity by the project team. Risks should be discussed at every status meeting. Risk audits are performed during the project life cycle to examine and document the effectiveness of risk responses. They are conducted at appropriate frequencies as defined in the risk management plan.
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Q. 1232: Accurate and unbiased data are essential for perform qualitative risk analysis. Which one of the following should you use to examine the extent of understanding of project risk?
A. Data quality assessment
B. Project assumptions testing
C. Sensitivity analysis
D. Influence diagrams
Section: Mix Questions
Justification in favor of the correct answer:
Perform qualitative risk analysis requires accurate and unbiased data. The use of low-quality data may result in a qualitative risk analysis that is of little use to the project manager regarding understanding of the risk, data available about the risk, data quality, and data reliability and integrity.
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Q. 1233: Assigning more talented resources to the project to reduce time to completion or to provide better quality than originally planned are examples of which one of the following strategies?
A. Enhance
B. Exploit
C. Share
D. Contingent response
Section: Mix Questions
Justification in favor of the correct answer:
Although it might have a negative connotation, exploitation is a strategy used for risks with positive impacts where the organization wants to ensure that the opportunity is realized.
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Q. 1234: Which of the following is NOT an objective of a risk audit?
A. Confirming that risk management has been practiced throughout the project life cycle
B. Confirming that the project is well managed and that the risks are being controlled
C. Evaluating the effectiveness of risk responses in dealing with identified risks
D. Ensuring that each risk identified and deemed critical has a computed expected value
Section: Mix Questions
Justification in favor of the correct answer:
It is not feasible or necessary to quantify every risk. Therefore, a risk audit should never have as an objective to ensure that each project risk has a computed expected value.
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Q. 1235: Contingency planning involves:
A. Defining the steps to be taken if an identified risk event should occur
B. Establishing a management reserve to cover unplanned expenditures
C. Preparing a stand-alone document that is separate from the overall project plan
D. Determining needed adjustments to make during the implementation phase of a project
Section: Mix Questions
Justification in favor of the correct answer:
For some risks it is appropriate for the project team to make a response plan that will be executed only under certain predefined conditions if it is believed that there will be sufficient warning to implement the plan.
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Q. 1236: Assume that you are working on a new product for your firm. Your CEO learned that a competitor was about to launch a new product that has similar features to those of your project. The competitor plans to launch the product on September 1. It is now March 1. Your schedule called for you to launch your product on December 1. Your CEO now has now mandated that you fast track your project so you can launch your product on August 1. This fast-track schedule is an example of an:
A. Unknown risk
B. A risk taken to achieve a reward
C. A response that requires sharing the risk
D. A passive avoidance strategy
Section: Mix Questions
Justification in favor of the correct answer:
Project risk has its origin in the uncertainty that is present in all projects. Organizations and stakeholders are willing to accept varying degrees of risk, and risks that are threats to the project may be accepted if the risks are within tolerances and are in balance with the rewards to be gained. This example of adopting a fast-track schedule is a risk taken to achieve the reward created by the earlier completion date.
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Q. 1237: As head of the project management office, you need to focus on those items where risk responses can lead to better project outcomes. One way to help you make these decisions is to:
A. Use a probability and impact matrix
B. Assess trends in perform quantitative risk analysis results
C. Prioritize risks and conditions
D. Assess trends in perform qualitative risk analysis results
Section: Mix Questions
Justification in favor of the correct answer:
The probability and impact matrix can be used to classify risks according to their level of impact and to prioritize them for future quantitative analyses and responses based on their rating. Typically these risk rating rules are specified by the organization in advance of the project. The matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate, or high priority.
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Q. 1238: You are the project manager for the construction of an incinerator to burn refuse. Local residents and environmental groups are opposed to this project. Management agrees to move this project to a different location. This is an example of which one of the following risk responses?
A. Passive acceptance
B. Active acceptance
C. Mitigation
D. Avoidance
Section: Mix Questions
Justification in favor of the correct answer:
Risk avoidance involves changing the project management plan to eliminate the threat entirely.
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Q. 1239: What doctrine causes a party to relinquish rights under a contract because it knowingly fails to execute those rights?
A. Assignment of claims
B. Material breach
C. Waiver
D. Warranties
Section: Mix Questions
Justification in favor of the correct answer:
Under the doctrine of waiver, a party can relinquish rights that it otherwise has under the contract. If the seller offers incomplete, defective, or late performance, and the buyer’s project manager knowingly accepts that performance, the buyer has waived its right to strict performance. In some circumstances, the party at fault may remain liable for provable damages, but the waiver will prevent the buyer from claiming a material breach and, thus, from terminating the contract.
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Q. 1240: Which term describes those costs in a contract that are associated with two or more projects but are not traceable to either of them individually?
A. Variable
B. Direct
C. Indirect
D. Semi-variable
Section: Mix Questions
Justification in favor of the correct answer:
The nature of an indirect cost is such that it is neither possible nor practical to measure how much of the cost is attributable to a single project. These costs are allocated to the project by the performing organization as a cost of doing business.
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