IT Project Management MCQS SET 06

Q.1

PMI states that there are two risk types : business and insurable. Which of the following are considered insurable risks?

A.

Employee replacement costs

B.

Opportunity costs 

C.

Sunken costs 

D.

Damage caused by a bonded contractor 

Option: both a and d

Q.2

 The Three attributes of project risk are _________, ___________ and ___________.

A.

What might happen, who it happens to, and how much will it cost

B.

Notification, frequency of relevant events, probability of occurrence 

C.

Risk cost, quality, control 

D.

Risk event, probability occurrence, the amount at stake

Option: (D)

Q.3

A risk is defined as what might happened to the ____________ of the project

A.

assessment 

B.

detriment

C.

schedule 

D.

 cost 

Option: (B)

Q.4

When is the project’s amount at stake the lowest 

A.

conceptual 

B.

design

C.

close-out

D.

implementation 

Option: (A)

Q.5

A new project was initiated that involves new technology and subsequently has never been done before. What type of contract would to owner want to issue to reduce or eliminate as much risk as possible.

A.

Firm fixed price

B.

Cost plus fix fee 

C.

Cost plus incentive fee

D.

Lump sum

Option: both a and d

Q.6

What is the most accurate method of obtaining project information that can reduce the amount of risk? 

A.

Observations on the current project 

B.

Determining the risk by using brainstorming techniques

C.

The use of historical data from previous projects that were similar in nature

D.

Sensitivity analysis

Option: (C)

Q.7

Which of the following fit the category of external risks? 

A.

Project delays, budget under-runs, movement of city utilities 

B.

Regulatory, currency changes, taxation

C.

Natural disasters, regulatory, design 

D.

Inflation, design, social impact 

Option: (B)

Q.8

Decision trees are best used for :

A.

Determining the interaction of the amount at stake and the expected value 

B.

Association of the probabilities with the risk events  

C.

An illustration of how to see the interactions between decisions and the associated events

D.

A flow chart which determines the standard deviation of the risk event 

Option: (C)

Q.9

The total amount of risk that is calculated for a project is found by

A.

Multiplying the sum of each the risk times the amount at stake 

B.

Calculating the cumulative sum of the probability for each risk and multiplying this value times the consequence of occurrence of the risk events

C.

Cannot be calculated since all risks are not know 

D.

The amount of project reserves available

Option: (B)

Q.10

A situation in which one of two or more risk events will follow an act, but the precise nature of these events may not be known and the probabilities of their occurring cannot be objectively assigned, is the definition of

A.

certainty

B.

uncertainty

C.

risk

D.

risk adversity 

Option: (B)

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