1)
Net present value (NPV) is a tool that can be used to assess risk impact.
True
False
2) When a vendor’s truck arrives at your loading dock and you examine the contents of
some of the boxes of goods being delivered, you are engaged in the process of:
a. quality review
b. acceptance sampling
c. quality assessment
d. Pareto optimization
3)
Points outside the control limits usually come from:
a. random variability
b. poor implementations
c. special causes
d. Pareto variability
4)
Which of the following is not a risk management tool?
a. standard deviation
b. Expected monetary value
c. Contracting
d. Crashing
5) The utility function captures the extent to which:
a. people are either risk takers or risk avoiders
b. senior management is satisfied with the project team’s risk management plan
c. the project team feels good about its risk management plan
d. the customer is satisfied with the project team’s risk management plan
6) There is a definite link between the level of risk an enterprise faces and the project
time frame.
True
False
7) If the cheapest cost per widget has historically been $30, the most typical $40, and
the most expensive $70, what is the expected cost of a widget (use the Beta distribution
as the basis of your computation)?
a. $40.00
b. $43.33
c. $45.00
d. $46.67
8) If a risk event has a 0.8 probability of occurrence and $20,000 target value, what does
$16,000 represent?
a. Management reserve
b. Contingency allowance
c. Expected value
d. Project budget
9)
As a project nears completion, which of the following is likely to occur?
a. Risk increases
b. Stake increases
c. Stake decreases
d. Risk and stake decreases
10) What is the principal criticism of Crosby’s definition of quality as "conformance to
specifications"?
a. The specifications themselves may be off target
b. It doesn’t take into account that 85% of quality problems can only be fixed by management
actions
c. Crosby is not a quality expert
d. It is too difficult to test for quality using Crosby’s definition
11) A measure is said to be reliable if:
a. it actually measures what it purports to measure
b. after repeated measurements, it leads to results that are close to each other
c. it is on target
d. it provides answers that are precise
12) When we have objective data on the probability of an event, we are involved with
decision making under conditions of risk.
True
False
13) With proper planning all project risks can be eliminated.
True
False
14) In quality management, the most expensive problems to fix are the problems fixed:
a. at the project initiation phase
b. at the planning phase
c. at the implementation phase
d. after the product is released
15) In developing Ishikawa diagrams, it is typical for a problem under consideration to
be stated on the left side, with the possible causes on the right.
True
False
16) The legal structure an organization assumes can be a source of risk.
True
False
