project Management -Net present value (NPV) is a tool that can be used to assess risk impact.

1) Net present value (NPV) is a tool that can be
used to assess risk impact.

True

False
2) When a vendor’s truck arrives at your loading
dock and you examine the contents of some of
the boxes of goods being delivered, you are engaged in the process
of:
a. quality review
b. acceptance sampling
c. quality assessment
d.
Pareto optimization
3) Points outside the control limits usually
come from:
a. random variability
b. poor implementations
c. special causes
d.
Pareto variability
4) Which of the following is not a risk
management tool?
a. standard deviation
b.
Expected monetary value
c.
Contracting
d.
Crashing
5) The utility function captures the extent to
which:
a. people are either risk takers or risk
avoiders
b. senior management is satisfied with the
project team’s risk management plan
c. the project team feels good about its
risk management plan
d. the customer is satisfied with the
project team’s risk management plan
6) There is a definite link between the level
of risk an enterprise faces and the project time frame.

True

False
7) If the cheapest cost per widget has
historically been $30, the most typical $40, and the most expensive $70, what
is the expected cost of a widget (use the Beta distribution as the basis of
your computation)?
a. $40.00

b. $43.33

c. $45.00

d. $46.67

8) If a risk event has a 0.8 probability of
occurrence and $20,000 target value, what does $16,000 represent?

a. Management reserve
b.
Contingency allowance
c.
Expected value
d.
Project budget
9) As a project nears completion, which of the
following is likely to occur?

a. Risk increases
b.
Stake increases
c.
Stake decreases
d.
Risk and stake decreases
10) What is the principal criticism of Crosby’s
definition of quality as “conformance to specifications”?

a. The specifications themselves may be off target
b.
It doesn’t take into account that 85% of quality problems can only be fixed by
management actions
c.
Crosby is not a quality expert
d.
It is too difficult to test for quality using Crosby’s definition
11) A measure is said to be reliable if:
a. it actually measures what it purports to
measure
b. after repeated measurements, it leads to
results that are close to each other
c. it is on target
d. it provides answers that are
precise
12) When we have objective data on the
probability of an event, we are involved with decision making under conditions
of risk.

True

False
13) With proper planning all project risks can be
eliminated.

True

False
14) In quality management, the most expensive
problems to fix are the problems fixed:
a. at the project initiation phase
b. at the planning phase
c. at the implementation phase
d. after the product is released
15) In developing Ishikawa diagrams, it is
typical for a problem under consideration to be stated on the left side, with
the possible causes on the right.

True

False
16) The legal structure
an organization assumes can be a source of risk.

True

False