PMI-RMP Full Practice Test 3

Question 1

A Monte Carlo simulation is most commonly used during which risk management process?

Accepted Answer

Perform Quantitative Risk Analysis

Answer

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?

Accepted Answer

The relative influence of individual variables on the outcome

Answer

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?

Accepted Answer

Probability and monetary impact

Answer

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?

Accepted Answer

A decision point

Answer

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?

Accepted Answer

$7,000

Answer

Avoiding a -$10,000 expected loss for a $3,000 cost yields a net benefit of $7,000.

PMI-RMP Practice Test

PMI-RMP Practice Test

PMI-RMP Full Practice Test 3