PMP Questions 161 - 180
 

161. A project manager discovers that there is a part of the project that contains some risk. His strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following must the project manger do?
a. The project manager should make certain that the project team does not reveal the risk to the supplier until the contract is signed
b. The project manager should make every effort to make sure that the supplier is made aware of the risk after the contract is signed
c. The project manager should make sure that the supplier understands the risk before the contract is signed
d. The project manager should assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly if it occurs

162. A project manager is faced with making a decision about a risk that the team has identified. The risk involves the design of a bicycle. It has been found that the neck of the bicycle, where the steering bearing is located and the two supporting bars of the frame come together, will corrode in a high salt environment. If this takes place the neck may fail and injure the rider. The project team decides that the design of the bicycle should be modified by using corrosion resistant materials in the design of the neck. This will eliminate the risk from consideration. This technique is called:
a. Risk avoidance
b. Risk acceptance
c. Risk rejection
d. Risk deflection

163. A problem occurs in the design of a grocery cart. In this case it is determined that the wheels will wear out much quicker in areas of heavy snow and ice because the salt will corrode the wheel bearings. Using sealed bearing wheels will significantly increase cost, and it is determined that the carts themselves will be rusty and damaged at about the same time the wheel bearings begin to fail. By injecting the wheel bearings with a high temperature grease the life of the wheel bearings is increased considerably. The project recommends using the high temperature grease. This is called:
a. Risk acceptance
b. Risk avoidance
c. Risk mitigation
d. Risk deflection

164. The contingency budget will:
a. Reduce the probability of scope changes
b. Reduce the probability of cost overruns
c. Increase the probability of a cost overruns
d. Increase the probability of scope changes

165. A risk has four possible outcomes. Given the following information, what is the expected value of this risk?
Probability    Result of Risk
0.4                  -10,000
0.3                   -7,500
0.2                   -5,000
0.1                   +2,500
a. -$20,000
b. -$14,500
c. $7,000
d. -$7,000

166. The project has done its risk analysis. In the process of risk identification the project team has determined that there are risks that will probably happen that have not been identified or evaluated except by noting that other projects of this type have historically had a certain amount of risk discussed in the lessons learned of the project. This project team should set aside money to handle these risks in which financial category?
a. Risk management fund
b. Contingency budget
c. Management reserve
d. Emergency fund

167. A project manager observes that in one part of the project several activities are being completed late. All of these activities have several days of free float associated with them. These are early warnings of the risk that the project will be late in completion.
They are called:

a. Risk triggers
b. Warning messages
c. Risk forecasts
d. Schedule risks


168. The effect of risk on schedule dates for the project creates an array of dates that are possible for project completion. In a typical project the most likely date for the project will have which of the following relationships with the expected value for the project completion date?
a. The most likely date will be earlier than the expected value date
b. The most likely date will be later than the expected value date
c. Both dates will have the same likelihood
d. The most likely date and the expected value date will occur at the same time

169. A project manager is reviewing the risks of her project. One of the risks she is reviewing has an impact of $25,000 and an associated probability of 10%. The risk is associated with an activity that is the predecessor to seven other activities in the schedule. All eight activities are on the critical path. The seven other activities have a budget of $75,000. What is the expected value of this risk?
a. $10,000
b. $100,000
c. $25,000
d. $2,500

170. In probability theory, what is the probability that if you roll two dice (cubes with consecutive numbers 1 to 6 on each of the six faces) you will have at least one 6?
a. 1/3
b. 11/36
c. 1/36
d. 1/6

171. A project manager is looking at the risk associated with the project schedule. Realizing that if the risks occur the project will be delivered to the stakeholders late, the project manager decides to consider the risk and promise delivery later than the most likely project completion date. He then takes the time between the promise date and the most likely completion date and distributes it among the activities of the project schedule. This creates float in the schedule. This process is called:
a. Schedule delay
b. Critical chain scheduling
c. Buffering
d. Contingency scheduling

172. A project manager wants to give some guidelines to the project team as to how risk events should be described. Which of the following items would not be appropriate in describing a risk event?

a. Probability that the risk will occur
b. The cost of the risk should it occur
c. Expected timing of the risk when it is expected to occur
d. The client’s outsourcing method

173. A project manager and her project team are analyzing risk in their project. One of the things that they might do to help identify potential risks or opportunities would be to review:
a. The project budget
b. The goals and objectives of the project
c. Lessons learned from other similar projects
d. The monetary value of changes for similar projects

174. A project manager holds the first risk meeting of the project team. The client is present at the meeting. At the meeting several risks are identified and assigned to members of the project team for evaluation and quantification. The result of the meeting is:
a. Expected value of the risk events
b. Strategies for the risk events
c. A list of potential risk events
d. General statements about risk for the project

175. In the Monte Carlo technique, what is the critically index?
a. The number of days the project will be late divided by the project duration

b. The percent of time a given activity will be on the critical path
c. The percent of time an activity will be late
d. The sum of the duration of the critical path activities divided by the project expected value for duration

176. The management reserve for the project contains:
a. Money to offset missing cost objectives
b. Money to offset missing schedule objectives
c. Money to offset missing cost or schedule objectives
d. Money to handle the effects of known risks in the project

177. A project manager uses the breakeven point to justify his project. He presents this as a justification for buying a new machine. What risk does the project manager run by using this technique to justify buying a new machine for his company?
a. Breakeven point will favor buying a cheap, low-quality machine
b. Breakeven point will favor buying a machine that is too expensive for the work required
c. The company may not have the funds to buy the machine in spite of the justification
d. The machine may not be available because the justification method takes a long time to calculate


178. Goldratt’s critical chain theory says that in order to reduce risk in schedules we should:
a. Start activities in the feeder chains as early as possible
b. Start activities in the feeder chains as late as possible
c. Start activities in the critical chains as early as possible
d. Add buffer to the critical chains

179. In managing the risk of the project schedule we are managing the risk that the project will not be delivered or completed on time. If we assume that the project’s possible completion dates are normally distributed and we promise the client the most likely of the project’s possible completion dates, what is the probability that the project will be
delivered late?

a. 5%
b. 10%
c. 50%
d. 77%

180. A risk event in a project is something that can have an effect on the project:
a. For the better only, a positive effect
b. For the worse, a negative effect
c. Both better or worse, a positive or negative effect
d. Neither better nor worse, neither a positive nor a negative effect

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Answers: 

161.C
The project manager should make sure that the supplier understands the risk before the contract is signed

162. A
Risk avoidance

163. C
Risk mitigation

164. B
Reduce the probability of cost overruns

165. D
-$7,000

166. C
Management reserve

167. A
Risk triggers

168. A
The most likely date will be earlier than the expected value date

169. D
$2,500

170. B
11/36

171. C
Buffering

172. D
The client’s outsourcing method

173. C
Lessons learned from other similar projects

174. C
A list of potential risk events

175. B
The percent of time a given activity will be on the critical path

176. C
Money to offset missing cost or schedule objectives

177. A
Breakeven point will favor buying a cheap, low-quality machine

178. D
Add buffer to the critical chains

179. C
50%

180. C
Both better or worse, a positive or negative effect