PMI-RMP Full Practice Test 3 — Questions and Answers
Question 1: A Monte Carlo simulation is most commonly used during which risk management process?
- Identify Risks
- Perform Qualitative Risk Analysis
- Perform Quantitative Risk Analysis (Correct answer)
- Plan Risk Responses
Correct answer: Perform Quantitative Risk Analysis
Monte Carlo simulation is a quantitative technique used to model the combined effect of risks numerically.
Question 2: What does a tornado diagram primarily display in sensitivity analysis?
- The schedule critical path
- The relative influence of individual variables on the outcome (Correct answer)
- The probability of project completion
- The cumulative cost over time
Correct answer: The relative influence of individual variables on the outcome
A tornado diagram ranks variables by how much each influences the project outcome, showing the most impactful first.
Question 3: Expected monetary value (EMV) of a risk is calculated by multiplying which two factors?
- Impact and urgency
- Probability and monetary impact (Correct answer)
- Cost and schedule variance
- Reserve and contingency
Correct answer: Probability and monetary impact
EMV equals the probability of a risk occurring multiplied by its monetary impact.
Question 4: In a decision tree analysis, a node represented by a square typically indicates what?
- A chance (probabilistic) event
- A decision point (Correct answer)
- The end payoff
- A risk trigger
Correct answer: A decision point
In decision trees, square nodes represent decisions while circular nodes represent chance events.
Question 5: A risk has an EMV of -$10,000. A proposed response costs $3,000 and is expected to eliminate the risk entirely. What is the net benefit of the response?
- $3,000
- $7,000 (Correct answer)
- $10,000
- $13,000
Correct answer: $7,000
Avoiding a -$10,000 expected loss for a $3,000 cost yields a net benefit of $7,000.
Question 6: What does the P80 value from a quantitative cost risk analysis represent?
- The cost with an 80% chance of being exceeded
- The cost with an 80% chance of not being exceeded (Correct answer)
- The 80th most likely cost outcome
- An 80% contingency reserve
Correct answer: The cost with an 80% chance of not being exceeded
P80 is the cost level that there is an 80% probability the actual cost will be at or below.
Question 7: Quantitative risk analysis is most justified on which type of project?
- Small, low-complexity projects
- Large or complex projects where overall risk exposure must be quantified (Correct answer)
- Projects with no identified risks
- Projects already in closing
Correct answer: Large or complex projects where overall risk exposure must be quantified
Quantitative analysis adds the most value on large or complex projects where numeric risk exposure informs decisions and reserves.
PMI-RMP Full Practice Test 3
A Monte Carlo simulation is most commonly used during which risk management process?