Assignment 4 – Week 10 Cost Control and Trade-offs and Week 11 Risk: PROJECT MANAGEMENT

Enter your name: Pramod Roy

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1. You’ve identified a risk event on your current project that could save $100,000 in project costs if it occurs.
Which of the following is true based on this statement? (Choose the best answer.)
A. This is a risk event that should be accepted, because the rewards outweigh the threat to the project.
B. This risk event is an opportunity to the project and should be exploited.
C. This risk event should be mitigated to take advantage of the savings.
D. This a risk event that should be shared to take full advantage of the potential savings.

SELECTED CHOICE: C

2. Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest might prevent your
equipment from arriving on time. She wanted to give you a heads-up and asked that you return the call.
Which of the following statements is true? (Choose the best answer.)
A. This is a trigger.
B. This is a contingency plan.
C. This is a residual risk.
D. This is a secondary risk.

SELECTED CHOICE: A

3. You are constructing a probability and impact matrix for your project. Which of the following statements
is true?
A. The probability and impact matrix multiplies the risk’s probability by the cost of the impact to
determine an expected value of the risk event.
B. The probability and impact matrix multiplies the risk’s probability—which fall from 0.0 to 1.0—and
the risk’s impact and then adds them together to determine a risk score.
C. The probability and impact matrix multiplies the risk’s probability by the expected value of the risk
event impact to determine a risk score (high, medium or low) based on a predetermined threshold.
D. The probability and impact matrix multiplies the risk’s probability by the risk impact—which both fall
from 0.0 to 1.0—to determine a risk score.

SELECTED CHOICE: C

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Assignment 4 – Week 10 Cost Control and Trade-offs and Week 11 Risk: PROJECT MANAGEMENT

4. Your hardware vendor left you voicemail saying that a snowstorm in the Midwest will prevent your
equipment from arriving on time. You identified a risk response strategy for this risk and have arranged
for a local company to lease you the needed equipment until yours arrives. This is an example of which
risk response strategy?
A. Transfer
B. Acceptance
C. Mitigate
D. Avoid

SELECTED CHOICE: C

5. The Earned Value Method is a technique that allows project managers to monitor progress on your
project and see at a glance whether there are deviations in the budget and/or schedule that may require
further inspection and perhaps corrective action. If Planned Value = $40,000 and Earned Value = $35,000,
which of the following statements is true?
A. Cost Performance Index = 0.875.
B. The project is behind schedule.
C. The project has a positive Cost Variance.
D. The project is ahead of schedule.

SELECTED CHOICE: B

6. Work that does not lend itself to subdivision into discrete scheduled increments of work, such as project
support, is called:
A. Measurable effort
B. Level of effort
C. Discrete estimates
D. Work package effort

SELECTED CHOICE: B

7. If SPI = 1.05 and CPI = 0.96, the project’s trend is:

A. Over budget and behind schedule
B. Over budget and ahead of schedule
C. Under budget and behind schedule
D. Under budget and ahead of schedule

SELECTED CHOICE: B

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Assignment 4 – Week 10 Cost Control and Trade-offs and Week 11 Risk: PROJECT MANAGEMENT

8. If PV = $100, EV = $200 and AC = $300, the status is:

A. Over budget and behind schedule
B. Over budget and ahead of schedule
C. Under budget and behind schedule
D. Under budget and ahead of schedule

SELECTED CHOICE: B

9. Which of the following human error or failure can lead to tradeoffs?

A. Impossible schedule commitments
B. Poor control of design changes
C. Failure to receive approvals in a timely manner
D. All of the above

SELECTED CHOICE: D

10. Which of the following is normally not one of the three parameters considered during tradeoffs?
A. Time
B. Cost
C. Performance
D. Financial risks

SELECTED CHOICE: D

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