GAQM PPM-001 Exam - Topic 10 Question 75 Discussion

Actual exam question for GAQM's PPM-001 exam

Question #: 75
Topic #: 10

What is the expected activity cost for a project having a most likely cost of $140, a best case scenario of $115, and a worst case scenario of $165?

A$115

B$138

C$140

D$165

Show Suggested Answer

Suggested Answer: D

by Cecil at Oct 03, 2023, 04:06 AM

Limited Time Offer

25%

Off

Get Premium PPM-001 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ceola

5 months ago

I agree, $140 seems like the right pick.

upvoted 0 times

...

Wilson

6 months ago

Wait, is $115 really the best case? Seems low!

upvoted 0 times

...

Luis

6 months ago

Definitely not $165, that's way too high!

upvoted 0 times

...

Rosendo

6 months ago

I think it's closer to $138 based on the scenarios.

upvoted 0 times

...

Latosha

6 months ago

The most likely cost is $140.

upvoted 0 times

...

Xenia

7 months ago

I’m a bit confused about the options. I thought the expected cost would be calculated differently, but I can't recall the exact formula.

upvoted 0 times

...

Bernardo

7 months ago

I feel like the expected cost should be lower than the most likely cost since we have a best case scenario. Maybe it's closer to $138?

upvoted 0 times

...

Bettyann

7 months ago

I remember a similar question where we had to find an expected value using best, worst, and most likely costs. I think the answer was around the most likely cost.

upvoted 0 times

...

Bulah

7 months ago

I think we might need to use a weighted average for this, but I'm not completely sure how to calculate it.

upvoted 0 times

...

Diane

7 months ago

I think the key here is to use the formula for expected value, which is (best + worst + most likely) / 3. Let me work through that step-by-step.

upvoted 0 times

...

Nichelle

7 months ago

Easy peasy! The expected value is just the most likely cost, which is $140. No need to overthink it.

upvoted 0 times

...

Coral

7 months ago

I'm not sure about this one. I know there's a formula for expected value, but I can't remember it off the top of my head. I'll have to review my notes.

upvoted 0 times

...

Miesha

7 months ago

Okay, I've got this. The expected value is the average of the best, worst, and most likely costs. So the answer should be (115 + 165 + 140) / 3 = $138.

upvoted 0 times

...

Gilbert

7 months ago

Hmm, this looks like a tricky one. I'll need to think through the formula for expected value to solve this.

upvoted 0 times

...

Sharmaine

7 months ago

Hmm, I'm not totally sure about this one. Is it trying to minimize capital expenses or operating expenses? I'll have to think it through carefully.

upvoted 0 times

...

Lenora

7 months ago

Okay, I've got this. The two features are the placement class tag and SmartTier management at file level. Easy peasy!

upvoted 0 times

...

Tracey

7 months ago

Okay, I remember learning about risk pooling in class. I think the key is that aggregate demand is more accurate than disaggregate demand.

upvoted 0 times

...

Julene

7 months ago

I practiced some questions around IT governance, and I feel like a reduction in governance overhead (option C) is actually a positive outcome.

upvoted 0 times

...

Nickole

8 months ago

I believe "exploratory" analysis is used for examining scenarios without specific outcomes, so I'm leaning towards "deterministic."

upvoted 0 times

...

Reuben

1 year ago

I don't know about you, but I'm feeling a bit 'cost-conscious' today. Maybe we should just flip a coin and call it a day?

upvoted 0 times

Ronald

11 months ago

I agree, let's go with $138 for the expected cost.

upvoted 0 times

...

Sharika

11 months ago

Looks like the expected activity cost is $138. Let's go with option B)

upvoted 0 times

...

Lottie

11 months ago

So, (115 + 4 * 140 + 165) / 6 = $138

upvoted 0 times

...

Odette

12 months ago

I think the expected cost is $138 as well.

upvoted 0 times

...

Susana

12 months ago

Let's not leave it up to chance, the expected cost is $138.

upvoted 0 times

...

Janessa

1 year ago

Let's calculate the expected activity cost using the formula: (best case + 4 * most likely + worst case) / 6

upvoted 0 times

...

Rima

1 year ago

D) $165? Only if I'm planning a party for the project manager's retirement. This isn't the worst-case scenario, it's the 'let's add a hefty contingency' scenario.

upvoted 0 times

...