PMP® (Project Management Professional) an exam conducted by the PMI®, is a globally recognized certification. The exam consists of 200 multiple choice questions that outlines the five process groups (Initiation, Planning, Executing, Monitoring and controlling, and Closing) and nine knowledge areas (Integration, Scope, Time, Cost, Quality, Human Resource, Communication, Risk, and Procurement) .

Of the 200 questions, 25 questions are pretest questions. Pretest questions do not affect the candidate’s score and are used in examinations as an effective way to increase the number of examination questions that can be used in future PMP®exams. The passing score for the exam is almost 61% (106 questions correct out of 175 scored questions).

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Below are some basic examples of the questions with explained answers:
1) A project has a 60% chance of a US $ 100,000 profit and a 40 percent of a US $100,000 loss, the Expected monetary value for the project is :

1. $100,000 profit.
2. $60,000 loss.
3. $ 20,000 profit.
4. $40,000 loss.

Answer: C Explanation: Expected monitory value (EMV) is computed by EMV = Probability X Impact. We need to compute both positive and negative values and then add them. 0.6 X $100,000 = $60,000 0.4 X $100,000= $ 40,000 EMV = $60,000 - $ 40,000 =$ 20,000 Profit

2) Assuming that the ends of a range of estimates are +/- 3 sigma from the mean, which of the following range estimates involves the LEAST risk?

1. 30 days, plus or minus 5 days.
2. 22- 30 days.
3. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days.
4. Mean of 28 days.

Answer: C The range of estimates with the smallest range is less risky.

3) If a risk has a 20 percent chance of happening in a given month, and the project is expected to last five months, what is the probability that the risk event will occur during the fourth month of the project?

1. Less than 1 percent.
2. 20 percent.
3. 60 percent.
4. 80 percent.

Answer: B

4) If a risk event has a 90 percent chance of occurring, and the consequences will be US $ 10,000, what does US $ 9,000 represent?

1. Risk value.
2. Present value.
3. Expected monetary value.
4. Contingency budget.

Answer: C EMV = .9 X $ 10,000 = $ 9, 000

5) Risk will be identified during which risk management process (es) ?

1. Perform Quantitative Risk Analysis and Identify Risks.
2. Identify Risks and Monitor and Control Risks.
3. Perform Qualitative Risk Analysis and Monitor and Control Risks.
4. Identify Risks.

Answer: B
For details please refer: PMBOK 5 Page 312, Figure 11.1

6) All of the following are ALWAYS inputs to the risk management process EXCEPT :

1. A. Historical information.
2. B. Lessons Learned.
3. C. Work Breakdown structure.
4. D. Project status reports.

Answer: D Project Status report can be an input to risk management. However when completing risk management for the first time, you would not have the project status report. Therefore the project status report is not always an input to risk management.

7) Risk tolerance are determined in order to help :

1. The team ranks the project risks.
2. The project manager estimates the project.
3. The team schedules the project.
4. Management knows how other managers will act on the project.

Answer: A If you know the tolerance of the stakeholders you can determine how they might react to the different situation and risk events. You see this information to help assign levels of risk on each work package activity.

8 ) You are finding it difficult to evaluate the exact cost impact of risk. You should evaluate on a (n) :

1. Quantitative basis.
2. Numerical basis.
3. Qualitative basis.
4. Economic basis.

Answer:  C If you cannot determine an exact cost impact to the event, use qualitative estimates such as Low, High, and Medium.

9 ) During which risk management process is a determination to transfer a risk made?

1. Identify Risks
2. Perform Quantitative Risk Analysis
3. Plan Risk Response.
4. Monitor and Control Risks.

Answer: C Transference is a Risk Response Strategy.

10) A project manager is quantifying risk for her project. Several of her experts are offsite, but wish to be included. How can this be done?

1. Use Monte Carlo analysis using the Internet as a tool.
2. Apply the critical path method.
3. Determine options for recommended corrective action.
4. Apply the Delphi Technique.

Answer D: The Delphi technique is mostly commonly used to obtain expert opinions on technical issues, the necessary project or Product scope.

Preparing for PMP® Certification? Take this test to know where you stand!

PMP is a registered trademark of the Project Management Institute, Inc.