IT Project Management Chapters 11 -> 13

Suppose there is a 30 percent chance that you will lose $10,000 and a 70 percent chance that you will earn $100,000 on a particular project. What is the project's estimated monetary value?

$67,000

An item your need for a project has a daily lease cost of $200. If you decide to purchase the item, the investment cost is $6,000 and the daily cost is $100. After how many days will the lease cost be the same as the purchase cost?

60

According to a global survey of 316 financial services executives, over __ percent of respondents believed that the losses stemming from the credit crisis were largely due to failures to address risk management issues

70

In which project procurement management process is an RFP often written? A. planning procurement management B. conducting procurements C. controlling procurements D. selecting sellers

A

Your project team has decided not to use an upcoming release of software because it might cause your schedule to slip. Which negative risk response strategy are you using?

Avoidance

What is the top reason for global outsourcing of IT services? A. cost reduction B. A shortage of qualified personnel C. decreasing time to market D. Increasing revenues

B

Which of the following statements is false about software that can assist in project stakeholder management? A. Social media tools that can assist in stakeholder management. B. Some project management software includes features like giving "high fives." C. Texting is an example of a microblog that can keep stakeholders informed about project work. D. A vodcast is a video podcast that can inform and engage stakeholders.

C

Which risk management process involves prioritizing risks based on their probability and impact of occurrence? A. Planning risk management B. Identifying risks C. Performing qualitative risk analysis D. Performing quantitative risk analysis

C

Your organization hired a specialist in a certain field to provide training for a short period of time. Which reason for outsourcing would this example fall under? A. reducing costs B. allowing the client organization to focus on its core business C. Accessing skills and technologies D. Providing flexibility

C

Your project involves using a new release of a common software application, but if that release is not available, your team has ______ plans to use the current release.

Contingency

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

Contingency plans

______ or ______ are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level

Contingency reserves, allowances

Contract where the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs

Cost plus fixed fee (CPFF)

Contract where the buyer pays the supplier for allowable performance costs plus a predetermined fee and an incentive bonus

Cost plus incentive fee (CPIF)

Contract where the buyer pays the supplier for allowable performance costs plus a predetermined percentage based on total costs

Cost plus percentage of costs (CPPC): T

contracts that involve payment to the seller for direct and indirect costs

Cost reimbursable

Which knowledge area was first introduced in the PMBOK guide in 2013? A. Project engagement management B. Project consulting management C. Project stakeholder engagement D. Project stakeholder management

D

The ______ is used to derive a consensus among a panel of experts who make predictions about future developments

Delphi Technique

Which risk identification tool involves deriving a consensus among a panel of experts by using anonymous input regarding future events?

Delphi Technique

______ is a term used to describe various procurement functions that are now done electronically.

E-procurement

When should you start controlling stakeholder engagement on a project?

Early phases

What type of information about stakeholders is not included in a stakeholder register?

Engagement level

______ is the product of a risk event probability and the risk event's monetary value

Estimated monetary value (EMV)

Which type of matrix can help clarify which knowledge areas are most important to stakeholders on a project?

Expectations management matrix

Suppliers and concerned citizens are examples of which type of stakeholders?

External

______ are developed for risks that have a high impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective

Fallback plans

contract that Involves a fixed total price for a well-defined product or service

Fixed price

Which type of contract has the least amount of risk for the buyer?

Fixed-price

Whose risk study has the lowest maturity rating of all knowledge knowledge areas?

Ibbs and Kwak

Determining which risks are likely to affect a project and documenting the characteristics of each

Identifying risks

What tool can you use to document, monitor, and track items that need resolution on a project?

Issue log

______ study shows the benefits of following good software risk management practices

KLCI

______, a large consulting firm, published a study in 1995 that found that 55 percent of runaway projects—projects that have significant cost or schedule overruns—did no risk management at all, 38 percent did some (but half did not use their risk findings after the project was underway), and 7 percent did not know whether they did risk management or not

KPMG

General management technique used to determine whether an organization should make or perform a particular product or service inside the organization or buy from someone else

Make-or-buy analysis

One of your project stakeholders has a high amount of authority and a high amount of interest. How should you manage that relationship?

Manage closely

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

Monte Carlo analysis

__________ is like a form of insurance; it is an investment

Negative risk management

Prioritizing risks based on their probability and impact of occurrence

Performing qualitative risk analysis

Deciding how to approach and plan the risk management activities for the project

Planning risk management

The ______ is the point at which the contractor assumes total responsibility for each additional dollar of contract cost.

Point of Total Assumption

The ______ is the cost at which the contractor assumes total responsibility for each additional dollar of contract cost

Point of Total Assumption (PTA)

______ are risks that result in good things happening; sometimes called opportunities

Positive risks

If your college or university wanted to get information from potential sellers for providing a new sports stadium, what type of document would be required of the potential sellers?

Proposal

A risk ______ is a document that contains results of various risk management processes, and is often displayed in a table or spreadsheet format.

Register

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

Risk

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

Risk utility, risk tolerance

A person who is risk-______ receives greater satisfaction when more payoff is at stake and is willing to pay a penalty to take risks

Seeking

Buyers often prepare a ______ list when selecting a seller to make the process more manageable.

Short

______ is a quantitative risk analysis tool that uses a model of a symptom to analyze its expected behavior or performance

Simulation

_______ developed an IT success potential scoring sheet based on potential risks

The Standish Group

contract that is a Hybrid of both fixed price and cost reimbursable contracts, often used by consultants

Time and material

Indicators or symptoms of actual risk events

Triggers

______ are indicators or symptoms of actual risk events, such as a cost overrun on early activities being a symptom of poor cost estimates.

Triggers

After a series of large project disasters, what country is requiring people to complete a new academic program in project management before leading a large government project?

U.K.

Contract that requires the buyer to pay the seller a predetermined amount per unit of service

Unit price

A proposal evaluation sheet is an example of a(n) ______

Weighted scoring model

______ are oral or written acts or omissions by someone with actual or apparent authority that can be construed to have the same effect as a written change order

constructive change orders

______ are funds held for unknown risks

management reserves

What type of grid can categorize stakeholders based on their level of authority and concern?

power/interest

A ______ is a description of the work required for the procurement

statement of work