PMI-RMP Exam - Topic 7 Question 19 Discussion

Actual exam question for PMI's PMI-RMP exam

Question #: 19
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

Show Suggested Answer

Suggested Answer: A

by Cordelia at May 05, 2022, 12:50 AM

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Leah

5 months ago

Zero seems off; we need to factor in the probability!

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Vallie

6 months ago

I thought we only consider costs if the risk happens.

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Marylou

6 months ago

Wait, how can it be negative? That doesn't add up.

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Nickolas

6 months ago

Definitely going with $27,000! Makes sense.

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Brett

6 months ago

The expected monetary value is calculated as 0.4 * $65,000.

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Carlota

6 months ago

I’m confused about the options. If the risk hasn’t occurred yet, does that mean the expected value is zero? But I feel like it should be calculated anyway.

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Phuong

6 months ago

I practiced a similar question, and I think the expected value is just the cost times the probability, which would give us a positive number, right?

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Micah

6 months ago

I’m not entirely sure, but I remember something about negative values in risk analysis. Could it be negative $26,000?

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Natalie

7 months ago

I think the expected monetary value is calculated by multiplying the probability by the cost, so it should be 0.4 times $65,000.

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Kathrine

7 months ago

Hmm, I'm a bit unsure about this one. I'll need to think it through carefully. The question mentions the servers should only be able to reach the client through the ADC, so maybe Direct server return or Transparent mode would be better options.

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Timmy

7 months ago

I'm a little confused by the wording of the question. Can someone explain what they mean by "typical lot quantity"?

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Sommer

7 months ago

Ugh, I can never remember that one. Let me think... is it the tilde or the caret?

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