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PMI-RMP Exam - Topic 7 Question 19 Discussion

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?
A) Negative $26,000
B) Negative $67,000
C) Zero - the risk event has not yet occurred
D) $27,000

PMI-RMP Exam - Topic 7 Question 19 Discussion

Actual exam question for PMI's PMI-RMP exam
Question #: 19
Topic #: 7
[All PMI-RMP Questions]

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?

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Suggested Answer: A

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

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Leah
10 months ago
Zero seems off; we need to factor in the probability!
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Vallie
11 months ago
I thought we only consider costs if the risk happens.
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Marylou
11 months ago
Wait, how can it be negative? That doesn't add up.
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Nickolas
11 months ago
Definitely going with $27,000! Makes sense.
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Brett
11 months ago
The expected monetary value is calculated as 0.4 * $65,000.
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Carlota
11 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
11 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
11 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
11 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
12 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
12 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
12 months ago
Ugh, I can never remember that one. Let me think... is it the tilde or the caret?
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