Project Management Chapter 11 Final

What is the first step in a Monte Carlo analysis?

Assess the range for the variables being considered.

A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other. a. risk breakdown structure b. influence diagram c. process flow chart d. work breakdown structure

B

Risk utility rises at a decreasing rate for a _____ person. a. risk-seeking b. risk-averse c. risk-neutral d. risk-indifferent

B

_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk. a. Risk enhancement b. Risk acceptance c. Risk sharing d. Risk exploitation

B

_____ involves allocating ownership of the risk to another party. a. Risk exploitation b. Risk sharing c. Risk enhancement d. Risk acceptance

B

_____ involves deciding how to approach and plan the risk management activities for the project. a. Identifying risks b. Planning risk management c. Performing qualitative risk analysis d. Performing quantitative risk analysis

B

_____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives. a. Performing quantitative risk analysis b. Planning risk responses c. Controlling risk d. Performing qualitative risk analysis

B

The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring. a. Top Ten Risk Item Tracking chart b. requirements traceability matrix c. probability/impact matrix d. expectations management matrix

C

Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area. a. integration b. quality c. procurement d. human resources

C

What is the first step in a Monte Carlo analysis? a. Determine the probability distribution of each variable. b. For each variable, such as the time estimate for a task, select a random value based on the probability distribution for the occurrence of the variable. c. Assess the range for the variables being considered. d. Run a deterministic analysis or one pass through the model using the combination of values selected for each one of the variables.

C

_____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results. a. Sensitivity b. Systems c. Monte Carlo d. NPV

C

_____ are predefined actions that the project team will take if an identified risk event occurs. a. Secondary risks b. Workarounds c. Contingency plans d. Management reserves

C

_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk. a. Risk exploitation b. Risk sharing c. Risk enhancement d. Risk acceptance

C

_____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project. a. Performing quantitative risk analysis b. Planning risk responses c. Controlling risk d. Performing qualitative risk analysis

C

_____ involves shifting the consequence of a risk and responsibility for its management to a third party. a. Risk avoidance b. Risk acceptance c. Risk transference d. Risk mitigation

C

_____ are predefined actions that the project team will take if an identified risk event occurs.

Contingency plans

_____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.

Controlling risk

A _____ person achieves a balance between risk and payoff. a. risk-seeking b. risk-averse c. risk-fearing d. risk-neutral

D

_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks. a. SharePoint portal b. Probability/impact matrices or charts c. Expectations management matrix d. Top Ten Risk Item Tracking

D

_____ involves numerically estimating the effects of risks on project objectives. a. Performing qualitative risk analysis b. Planning risk responses c. Identifying risks d. Performing quantitative risk analysis

D

_____ involves reducing the impact of a risk event by reducing the probability of its occurrence. a. Risk avoidance b. Risk acceptance c. Risk transference d. Risk mitigation

D

_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions. a. Brainstorming b. Monte Carlo analysis c. The Delphi technique d. Interviewing

D

_____ risks refer to those that are direct results of implementing risk responses. a. Architectural b. Primary c. Residual d. Secondary

D

True or False: The last step in project risk management is deciding how to address this knowledge area for a particular project by performing risk management planning

False

True or False: The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals produce through brainstorming in small, face-to-face groups

False

_____ involves determining which risks are likely to affect a project and documenting the characteristics of each.

Identifying risks

_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions

Interviewing

_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions.

Interviewing

_____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.

Monte Carlo

_____ involves prioritizing risks based on their probability and impact of occurrence.

Performing qualitative risk analysis

_____ involves numerically estimating the effects of risks on project objectives.

Performing quantitative risk analysis

_____ involves deciding how to approach and plan the risk management activities for the project.

Planning risk management

A _____ is a technique used to show the effects of changing one or more variables on an outcome. a. sensitivity analysis b. decision tree c. Monte Carlo analysis d. systems analysis

A

A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain. a. decision tree b. activity-on-arrow c. workaround d. backward pass

A

Identifying risks is a subprocess of the _____ process of project risk management. a. planning b. executing c. monitoring and controlling d. closing

A

Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management. a. planning b. executing c. monitoring and controlling d. closing

A

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake. a. risk-seeking b. risk-averse c. risk-neutral d. risk-indifferent

A

_____ are unplanned responses to risk events used when project teams do not have contingency plans in place. a. Workarounds b. Fallback plans c. Contingency plans d. Triggers

A

_____ involves determining which risks are likely to affect a project and documenting the characteristics of each. a. Identifying risks b. Planning risk management c. Performing qualitative risk analysis d. Performing quantitative risk analysis

A

_____ involves doing whatever you can to make sure the positive risk happens. a. Risk exploitation b. Risk sharing c. Risk enhancement d. Risk acceptance

A

_____ involves eliminating a specific threat, usually by eliminating its causes. a. Risk avoidance b. Risk acceptance c. Risk transference d. Risk mitigation

A

_____ involves prioritizing risks based on their probability and impact of occurrence. a. Performing qualitative risk analysis b. Identifying risks c. Planning risk responses d. Performing quantitative risk analysis

A

_____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.

Planning risk responses

_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.

Risk acceptance

_____ involves eliminating a specific threat, usually by eliminating its causes.

Risk avoidance

_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.

Risk enhancement

_____ involves doing whatever you can to make sure the positive risk happens.

Risk exploitation

_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.

Risk mitigation

_____ involves allocating ownership of the risk to another party.

Risk sharing

_____ involves shifting the consequence of a risk and responsibility for its management to a third party.

Risk transference

_____ is the amount of satisfaction or pleasure received from a potential payoff

Risk utility

_____ risks refer to those that are direct results of implementing risk responses.

Secondary

_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.

Top Ten Risk Item Tracking

True or False: The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value.

True

_____ are unplanned responses to risk events used when project teams do not have contingency plans in place.

Workarounds

A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.

decision tree

A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other

influence diagram

A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.

influence diagram

Identifying risks is a subprocess of the _____ process of project risk management.

planning

Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management.

planning

The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.

probability/impact matrix

Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.

procurement

A project _____ is an uncertainty that can have a negative or positive effect on meeting project objectives

risk

Risk utility rises at a decreasing rate for a _____ person.

risk-averse

A _____ person achieves a balance between risk and payoff.

risk-neutral

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.

risk-seeking

A _____ is a technique used to show the effects of changing one or more variables on an outcome.

sensitivity analysis