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PK0-005 · Question #259

A project manager and team are reviewing a task that is supposed to take nine days to complete and cost $3,000. There is a 20% chance that an associated risk related to changing requirements could…

The correct answer is B. 10 days and $3,200. This question requires calculating the Expected Monetary Value (EMV) and expected duration for the risk. The risk has a 20% probability of adding 5 days and $1,000. Expected additional days: 20% × 5 = 1 day. Expected additional cost: 20% × $1,000 = $200. Adding these to the…

Project Management Concepts

Question

A project manager and team are reviewing a task that is supposed to take nine days to complete and cost $3,000. There is a 20% chance that an associated risk related to changing requirements could occur, resulting in rework that would add an additional five days and $1,000 in costs. Which of the following represents the total amount that should be budgeted for the task?

Options

  • A9 days and $3,000
  • B10 days and $3,200
  • C12 days and $3,800
  • D14 days and $4,000

How the community answered

(29 responses)
  • A
    17% (5)
  • B
    72% (21)
  • C
    7% (2)
  • D
    3% (1)

Explanation

This question requires calculating the Expected Monetary Value (EMV) and expected duration for the risk. The risk has a 20% probability of adding 5 days and $1,000. Expected additional days: 20% × 5 = 1 day. Expected additional cost: 20% × $1,000 = $200. Adding these to the base estimates: 9 + 1 = 10 days and $3,000 + $200 = $3,200. This is the standard EMV technique used in risk-adjusted budgeting and scheduling.

Topics

#Risk Management#Expected Monetary Value (EMV)#Project Budgeting#Project Cost Management

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