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PMI-RMP · Question #366

PMI-RMP Question #366: Real Exam Question with Answer & Explanation

The correct answer is B: Contractor B, based on the probability and confidence levels, as there is a higher cumulative. See the full explanation below for the reasoning.

Perform Targeted Risk Analysis

Question

The risk manager evaluates two contractors, contractor A and contractor B, for a project with a finish date of 15 December. The contractors' bids are the same, including the cost. After performing a Monte Carlo assessment on the contractors' schedules, the risk manager returns the following information: In order for contractor A to meet the finish date of 15 December, it will cost an additional US$750,000, and will not change the confidence level. In order for contractor B to meet the finish date of 15 December, it will cost an additional US$600,000, and will increase the confidence level by 10%. Which contractor should the risk manager select?

Options

  • AContractor A, based on the probability and confidence levels, as there is a higher cumulative
  • BContractor B, based on the probability and confidence levels, as there is a higher cumulative
  • CContractor B, based on costing US$150,000 less than contractor A.
  • DContractor A, based on the confidence level.

Topics

#Monte Carlo Analysis#Schedule Risk Analysis#Risk Response Selection#Cost-Benefit Analysis

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