You are the project manager of the GGK project for your company. The GGK project has a budget of $1,265,100 and is currently 40 percent complete. In this project, you elected to add labor to the project to increase the likelihood of completing the project early as the project was only scheduled to be 35 percent complete at this time. This positive risk response, while keeping the project ahead of schedule, has added significant costs to the project. You have already spent $575,000 to reach this point in the project. Management would like to know what your cost performance index and the schedule performance index is for this project. What are these values?

1. A. The CPI is -$68,960 and the SPI is $63,255.
2. B. The CPI is .88 and the SPI is zero.
3. C. The CPI is .88 and the SPI is 1.14.
4. D. The CPI is 1.14 and the SPI is .88.

Correct Answer: C

You are the project manager of the BJA Project for your company. Management is worried about one of the identified risks in your project. The risk event has a probability of 90 percent and a cost impact of $85,000. Management and you discuss possible solutions to address the risk. You share with them that for $75,000 you can reduce the probability of the risk event to 15 percent and the impact to $25,000. This solution will add three weeks to the project schedule. Management thinks this is a good idea and they would like you to add the time and cost additions to your project plan. What type of risk response is used?

1. A. Avoidance
2. B. Acceptance
3. C. Exploit
4. D. Mitigation

Correct Answer: D

Ned is the project manager of the HNN project for your company. Ned has asked you to help him complete some probability distributions for his project. What portion of the project will you most likely use for probability distributions?

1. A. Bias towards risk in new resources
2. B. Risk probability and impact matrixes
3. C. Risk identification
4. D. Uncertainty in values such as duration of schedule activities

Correct Answer: D

Consider the risk probability-impact matrix in the figure given below:
If Risk B happens in this project, how much will be left in the contingency reserve?

1. A. $193,500
2. B. -$334,500
3. C. It depends on the total budget of the project.
4. D. $148,300

Correct Answer: A

You are the project manager of the NHQ Project for your company. You have completed qualitative and quantitative analysis of your identified project risks and you would now like to find an approach to increase project opportunities and to reduce threats within the project. What project management process would best help you?

1. A. Monitor and control project risks
2. B. Create a risk governance approach
3. C. Create the project risk register
4. D. Plan risk responses

Correct Answer: D