QSO 640 Module 6 - Pre-Test

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Southern New Hampshire University *

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640

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Information Systems

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Feb 20, 2024

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Question 1 Risk is best defined as ________. a) something bad that has happened on a project b) an event that, if it occurs, can be either good or bad for a project c) a factor that limits a team's ability to execute a project d) an unfortunate circumstance that project practitioners cannot control Feedback: The correct answer is b. Risk is an uncertain event that, if it occurs, will have either a positive or a negative effect on at least one project objective. Question 2 Chad wants to assess the strengths and weaknesses associated with his project and to determine what threats and opportunities exist as he identifies project risk. Which tool should he use? a) assumptions analysis b) SWOT analysis c) the Delphi technique d) a risk register Feedback: The correct answer is b. SWOT analysis allows project practitioners to assess the strengths, weaknesses, opportunities, and threats associated with a project. Question 3 Which of the following statements is false ? a) Qualitative and quantitative risk analysis should be done for all projects. b) Project practitioners tend to do qualitative risk analysis before quantitative risk analysis, to narrow down the number of risks that they will need to evaluate in depth.
c) Qualitative risk analysis tends to be less time- and resource- intensive than quantitative risk analysis. d) Quantitative risk analysis results are usually communicated as numbers, while qualitative risk analysis results tend to be described as ratings (such as "low," "medium," and "high"). Feedback: The correct answer is a because a is a false statement. For many small- or medium-sized projects, qualitative risk analysis may be sufficient for risk management purposes. Question 4 What is a risk score? a) a numerical rating of a project team's ability to combat risk b) a comparison tool that helps organizations decide which projects to include in their portfolios c) the sum of all of a project's severity ratings d) a way to prioritize risks by multiplying risk probability by risk impact Feedback: The correct answer is d. A risk score is the result of multiplying a risk's probability of occurring by its impact. The product of this calculation helps practitioners prioritize project risks. Question 5 In general, lower priority risks are added to a ________ so project practitioners can focus the majority of their attention on higher priority risks. a) probability and impact matrix b) sequenced list c) two-dimensional qualitative assessment matrix d) watch list Feedback: The correct answer is d. A watch list is a collection of identified risks that have been labeled as low priorities. Question 6
Expected monetary value analysis is most commonly associated with which of the following risk analysis tools? a) a tornado diagram b) Monte Carlo simulation c) a risk assessment matrix d) a decision tree Feedback: The correct answer is d. A decision tree is often used in expected monetary value analysis. Question 7 In a tornado diagram, negative impact is usually depicted ________. a) on the right side of the diagram b) on the left side of the diagram c) at the top of the diagram d) at the bottom of the diagram Feedback: The correct answer is b. Negative impacts are usually shown on the left side of a tornado diagram. Question 8 Constance wants to measure the risks for her project as a whole, rather than for individual parts of her project. Which tool would she not use? a) Monte Carlo analysis b) a simulation model c) sensitivity analysis d) what-if analysis Feedback: The correct answer is c. Simulation models, what-if analysis, and Monte Carlo analysis allow for the measurement of risk for a whole project; sensitivity analysis assesses only one variable on a project at a time. Question 9
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What are the four response strategies for dealing with negative risk? a) exploit, mitigate, avoid, share b) accept, avoid, mitigate, and transfer c) exploit, share, enhance, and transfer d) transfer, avoid, share, and mitigate Feedback: The correct answer is b. The four possible response strategies for dealing with negative risk are avoidance, mitigation, transference, and acceptance. Question 10 Which positive risk response strategy is most like the transference strategy for negative risks? a) exploiting b) acceptance c) sharing d) enhancing Feedback: The correct answer is c. The transference strategy is similar to the sharing strategy because both involve the use of a third party to deal with project risk. 60 / 100 PointsFinal Score: