Reference no: EM133978902

Question

1. Which of the following are not valid considerations regarding the use of correlations in Monte Carlo analyses?

A. Only strong correlations and anti-correlations (coefficients 80-100%) should be taken into account

B. Strong correlations and anti-correlations have no effect and should not be taken into account

C. There is no need to spend time discussing weak correlations-they do not make much difference

D. Use correlations to suppress unrealistic scenarios in Monte Carlo models

E. Never use correlations in Monte Carlo analyses

2. When can an uncertainty be closed?

A. When addressing actions are unsuccessful and the uncertainty is still capable of having a high severity impact on project objectives.

B. When the time window of an uncertainty relevance is past (e.g., permits received; no permitting risks left).

C. When it is avoided and no longer relevant to the project (e.g., new reference case, change of design, etc.).

D. When it is fully mitigated or reduced to the green level and neglected after all planned addressing actions are completed.

E. When it is fully transferred (e.g., good insurance policy purchased with no or very low deductible).

3. A particular uncertainty may be managed at more than one level. Which of the following statements are recommended regarding the promoting and demoting of uncertainties?

A. The promoting of critical uncertainties is necessary only if you think the project manager or business unit managers are capable of dealing with them.

B. Low-level/small/green uncertainties should be promoted from the discipline logs/registers to the business-unit register.

C. Game changers and show-stoppers should be listed in the business-unit (or even corporate) register.

D. Medium-level/material/yellow uncertainties should be placed in either discipline or project registers.

E. High-level/critical/red uncertainties should be shown in both project and business-unit registers.

4. Which of the following represent soft project objectives?

A. Schedule

B. Environment

C. Health and Safety

D. Cost

E. Reputation

F. Scope

5. Assuming three-point input distributions, which of the following are required inputs to probabilistic Monte Carlo analysis for an uncertain event?

A. Mapping of uncertian events to impacted normal activities (only for schedule analysis)

B. Most likely duration/cost impact of the uncertain event

C. Main correlations among distributions

D. Probability range (min and max)

E. Duration/cost impact range (min and max)