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1.   Acceptance is a strategy adopted because it is not possible to eliminate all risks from a project. This strategy indicates that the project management team has decided not to change the project management plan to deal with a risk. What action does passive acceptance require?

   A) Passive acceptance is no longer adopted in projects and is not an accepted strategy.
   B) Passive acceptance requires no action except to document the strategy and come up with a risk management strategy.
   C) Passive acceptance requires no action.
   D) Passive acceptance requires no action except to document the strategy.
   

2.   As part of a strategy to handle negative risk, a project manager decided to adopt less complex processes, conduct more tests and choose a more stable supplier. What strategy would this be classified as?

   A) Acceptance
   B) Transference
   C) Mitigation
   D) Avoidance
   

3.  A project manager included contingency reserves and management reserves in the total budget of a high-risk project. He also made certain earned value measurement calculations. Which of the following is incorrect?

   A) Reserves are included as part of earned value measurement calculations.
   B) Reserves are not part of the project cost baseline.
   C) The project manager needs to get approval before spending management reserve.
   D) Reserves are usually included in the total budget of a project.
   

4.  Decision tree analysis is used to calculate the average outcome when the future includes scenarios that may or may not happen. What is the input and output in a decision node?

   A) Input: Cost of each decision Output: Probability of occurrence
   B) Input: Cost of each decision Output: Decision made
   C) Input: Scenario probability Output: Expected Monetary Value (EMV)
   D) Input: Cost of each decision Output: Payoff
   

5.  The Risk Management plan will usually contain the definitions of risk probability and impact. Which of the following has the highest impact (negative) on a project?

   A) A rating of 1.1 on the impact scale
   B) A rating of 0.8 on the impact scale
   C) A rating of 0 on the impact scale
   D) A rating of 0.1 on the impact scale