Jeff, a key stakeholder in your project, wants to know how the risk exposure for the risk events is calculated during quantitative risk analysis. He is worried about the risk exposure which is too low for the events surrounding his project requirements. How is the risk exposure calculated?

• A.The risk exposure of a risk event is determined by historical information.
• B.The probability of a risk event times the impact of a risk event determines the true risk exposure.
• C.The probability of a risk event plus the impact of a risk event determines the true risk exposure.
• D.The probability and impact of a risk event are gauged based on research and in-depth analysis.

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You are the project manager for a construction project. The project involves casting of a column in a very narrow space. Because of lack of space, casting it is highly dangerous. High technical skill will be required for casting that column. You decide to hire a local expert team for casting that column. Which of the following types of risk response are you following?

• A.Avoidance
• B.Mitigation
• C.Transference
• D.Acceptance

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Holly is the project manager of the NSS Project for her company. She is discussing some of the project risks and the issues that have happened in the project. Holly has faxed the status report to her project client for their review. Based on the standard communication model, which component in this scenario is the decoder?

• A.Project customer's fax machine
• B.Project customer
• C.Holly
• D.Telephone wire

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Sensitivity analysis is a technique for systematically changing parameters in a model to determine the effects of such changes and is useful for computer modelers for a range of purposes. Which of the following purposes does the sensitivity analysis include? Each correct answer represents a complete solution. Choose all that apply.

• A.Model development
• B.Decision making or the development of recommendations for decision makers
• C.Increased understanding or quantification of the system
• D.Estimating the average outcome

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You are the project manager of the KJH Project and are working with your project team to plan the risk responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within the KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of
$350,000. When it comes to creating a risk response for this event what is the risk exposure of the event that must be considered for the cost of the risk response?

• A.The risk exposure of the event is $850,000.
• B.The risk exposure of the event is $245,000.
• C.The risk exposure of the event is $500,000.
• D.The risk exposure of the event is $350,000.

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