1.
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?
2.
The contingency budget will:
3.
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:
4.
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?
5.
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:
6.
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?
7.
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?
8.
A problem occurs in the design of a grocery cart. In this case it is determined that the wheel 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:
9.
A risk has four possible outcomes. Given the following information, what is the expected value of this risk?
10.
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 manager do?
