Read the following MCQs and select the right answer:

1. All of the following are characteristics of a decision tree EXCEPT:
2. A decision tree is a diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives.
3. Decision tree analysis is a risk analysis tool that can be used to choose the most appropriate responses.
4. A decision tree is primarily a graphical, qualitative risk analysis technique and is not generally used in quantitative risk analysis.
5. Decision tree analysis uses expected monetary value (EMV) analysis to help the organization identify the relative values of alternative actions.

2. According to the PMBOK, all of the following are risk management processes EXCEPT:

A. Plan Risk Management
B. Identify Risks
C. Reduce Risks
D. Plan Risk Response
E. Monitor and control risks

3. The Perform Qualitative Risk Analysis process assesses the priority of identified risks using all of the following EXCEPT:

A. Relative probability or likelihood of occurrence of identified risks.
B. Impact on project objectives if the identified risks occur.
C. A mathematical technique, such as expected monetary value (EMV), to create the impression of precision and accuracy.
D. The organization's risk tolerance associated with the project constraints of cost, schedule, scope, and quality.

4. Risk impact assessment to investigate the potential effect on a project objective such as schedule, cost, quality, or performance has the following characteristics EXCEPT:

A. Evaluation of each risk can be conducted using a probability and impact matrix that leads to rating the risks as low, moderate, or high priority.
B. Approaches used in evaluating risk impacts related to project objectives could be relative, numeric, linear, or nonlinear.
C. Usually, risk-rating rules are specified by the organization in advance of the project and can be tailored to the specific project.
D. The impact on project objectives should be assessed primarily at the end of the project, as part of the lessons learned.

5. A project manager states, "I know the risk exists and is aware of the possible consequences. I am willing to wait and see what happens. I accept the consequences should they occur." He/she is exercising the __________ method of risk reduction.

A. transfer (deflection)
B. avoidance
C. reduction (control)
D. mitigation
E. acceptance (retention)

6. You have a table containing 15 risk events with their probabilities and consequences (in dollars). When the risk event probabilities are multiplied by their respective estimated consequences and those numbers are then added together, the sum represents

A. Project manager's risk aversion quotient
B. Expected monetary value of all the risk events
C. Expected value of the project
D. B or C
E. A and B

7. Risks that arise as a direct result of implementing a risk response are called:

A. Tolerant risks
B. Secondary risks
C. Persistent risks
D. Residual risks
E. Proof of Murphy's Law

8. To be successful, the organization should be committed to address risk management:

A. Just in time before a meeting with major stakeholders of the project.
B. proactively and consistently throughout the project.
C. As soon as time and cost estimates are ready.
D. As early as possible in the execution phase.

9. By using Project Risk Management techniques, project managers can develop strategies that do all of the following EXCEPT:

A. significantly reduce project risks
B. eliminate project risks
C. provide a rational basis for better decision making
D. identify risks and, their impacts
E. identify appropriate responses for risks

10. To calculate the expected monetary value of an event:

A. divide the value of each outcome by its probability, then add the results.
B. divide the value of the desired outcome by the value of all possible outcomes
C. multiply the impact's value by its probability.
D. use linear regression to assess the expected value of the outcome
E. B and D only

Answer rating: 100% (QA)

1 H Decision tree analysis uses expected monetary valu... View the full answer