PMI Exam PMI-RMP Topic 7 Question 85 Discussion

Actual exam question for PMI's PMI-RMP exam

Question #: 85
Topic #: 7

Harry works as a project manager for the NHQ Project. He is performing quantitative risk analysis for his project. One of the project risks has a 40 percent probability of happening, and it will cost the project $65,000 if the risk happens. What is the expected monetary value of this risk event?

ANegative $26,000

BNegative $67,000

CZero - the risk event has not yet occurred

D$27,000

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Suggested Answer: A

by Jeannetta at Aug 23, 2024, 01:37 PM

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Jenifer

2 months ago

This is easy peasy! The expected monetary value is the probability of the risk event multiplied by the cost if it happens. So, D) $27,000 is the way to go. Now, where's the coffee machine? I need a boost after all this brain power.

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Nickolas

2 months ago

I'm feeling lucky today, so I'll go with A) Negative $26,000. Just kidding, I know the right answer is D) $27,000. Not too hard of a question, really.

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Mila

2 months ago

C) Zero - the risk event has not yet occurred? What kind of answer is that? Of course, the expected monetary value is not zero just because the risk hasn't happened yet. Gotta be more logical than that.

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Loreta

2 months ago

C) Zero - the risk event has not yet occurred

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Marget

2 months ago

D) $27,000

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Marva

2 months ago

B) Negative $67,000

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Myra

2 months ago

A) Negative $26,000

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Luis

3 months ago

I'm going with B) Negative $67,000. Why would the expected monetary value be positive if the risk event has a negative impact on the project?

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Wilburn

2 months ago

The expected monetary value is actually D) $27,000 because it takes into account the probability and cost of the risk event.

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Teddy

2 months ago

I'm going with B) Negative $67,000. Why would the expected monetary value be positive if the risk event has a negative impact on the project?

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Julie

2 months ago

I think the expected monetary value is D) $27,000.

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Ashlee

3 months ago

I agree with Angelo, the expected monetary value is $27,000.

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Angelo

3 months ago

I think it's option D) $27,000 because it's the probability multiplied by the cost.

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Francisca

3 months ago

Hmm, I think the correct answer is D) $27,000. The expected monetary value is calculated by multiplying the probability of the risk event (40%) by the cost if the risk event occurs ($65,000), which equals $26,000.

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