You are the project manager of the GHE Project. You have identified the following risks with the characteristics as shown in the following figure: How much capital should the project set aside for the risk contingency reserve?
Correct Answer:
D
Contingency reserves are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain, events. These events are "known unknowns" and are part of the project scope and cost baselines. The contingency reserve is calculated by multiplying the probability and the impact for the risk event value for each risk event. The sum of the risk events equals the contingency reserve for the project. Note that Risk D is a positive risk amount.
Answer option C is incorrect. This value is the sum of the risk events if you did not include Risk D as a positive risk value.
Answer option A is incorrect. This is a sum of the risk event.
Answer option B is incorrect. This is a sum of the risk events without including Risk D as a positive risk event.
The figure given below demonstrates the communication model for a project. What role does the component D play in the communication model?
Correct Answer:
B
The phone lines are the medium between the sender/encoder and the decoder/receiver. The communication model shows the traversal of information between two hosts, known as the sender and the receiver. The key components of the model are as follows: Encode: It is used to crypt or code the message into a language that is understood by others. Decode: It is used to decrypt the message back into the meaningful codes. Message and feedback message: It is the output of encoding. Noise: It is referred to anything, which interferes with the transmission and understanding of the message. Medium: It is the method used to convey the message. In the communication process, it is the duty of the sender to send clear and complete information to the receiver so that it is properly received by the receiver, and for confirming that it is properly understood. The duty of the receiver is to make sure that the information received is understood and acknowledged properly. A failure in communication can negatively impact the project.
Answer option A is incorrect. The sender is the person sending the message. Answer option C is incorrect. The encoder is the outgoing fax machine.
Answer option D is incorrect. The transporter is not part of the communication model.
What is the term assigned to graphic in the figure given below?
Correct Answer:
A
The graphic shown in the figure is a communications bull's eye. The project manager must keep the project within the boundaries defined by the bull's eye or he will need to generate a performance report. This is an example of management by exception because the project manager only communicates with management when there is an exception, or variance, within the project.
Answer options C, B, and D are incorrect. These are not valid terms for the communications bull's eye.
Kenny is the project manager for the NHQ organization. She is creating the project duration estimates. She has stressed to her project team that they will need to create accurate and reliable project duration estimates without padding their estimates for errors or risks. Kenny is also relying on historical information to help her predict the duration of the project work. Jennifer, one of the project team members, wants to know how Kenny will account for the certain-to-happen errors and delays in the project schedule. What approach should Kenny use in the project?
Correct Answer:
D
Management reserve is an allotment of time added to the end of the project schedule. When delays happen within the project, the delays are subtracted from the management reserve.
Answer option C is incorrect. Kenny is not using a three-point estimate in this instance. Answer option A is incorrect. Rewards and recognitions are a good incentive for accurate work, but errors and delays may still happen and the rewards would not necessarily prevent delays in the project.
Answer option B is incorrect. Kenny may be using some type of analogous estimating to predict activity duration, but the best answer is the reliance on the management reserve.
George is the project manager of the NHQ Project and has a budget of $778,000. The project is scheduled to last for one year with an equal amount of work completed each quarter. The second quarter of the project has ended and George has spent $325,000 but has only finished forty percent of the project. Management needs a variance report for the project schedule. What value should George report in this instance?
Correct Answer:
B
Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target. The earned value in this instance is forty percent of the project budget, $778,000, and the planned value is
$398,000 because George is to be fifty percent done at the end of the second quarter, as the work is spread evenly across all quarters. The schedule variance is -$77,800 for the project.
Answer option A is incorrect. .96 represents the cost performance index.
Answer option C is incorrect. -$34,500 represents the project's variance at completion if the project continues as is.
Answer option D is incorrect. -$13,800 is the cost variance for the project.