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Free Practice Quiz Question List

5 Quantitative Risk Analysis Online Quiz Questions

Use this free practice quiz with 20 questions to review 5 Quantitative Risk Analysis, test your knowledge, and prepare for your next test or exam.

20 questions
01
Fill in the blank
1 point

If a set of outcomes is exhaustive, their probabilities sum to .

02
True or false
1 point

Quantitative risk analysis is commonly applied to significant or high-priority risks because it can require more data and effort than qualitative assessment.

  1. A

    True

  2. B

    False

03
Written response
1 point

In expected monetary value analysis, what term identifies a risk whose impact is recorded as a gain?

04
Choose one
1 point

A project analyst wants to test how an estimate responds to changes in individual inputs. Which approach matches sensitivity analysis?

  1. A

    Change several inputs together so the analysis reflects the whole project.

  2. B

    Vary one factor at a time while holding other assumptions constant.

  3. C

    Keep all inputs fixed and compare only actual results with estimates.

  4. D

    Adjust inputs arbitrarily until the preferred option is clear.

05
Choose one
1 point

In a decision tree, what does a chance node represent?

  1. A

    A choice the project team makes between alternatives.

  2. B

    Possible outcomes and their probabilities.

  3. C

    The final payoff or cost at the end of a branch.

  4. D

    A record of assumptions and analysis dates.

06
Fill in the blank
1 point

Complete the statement: Expected monetary value is the probability-weighted of possible outcomes.

07
True or false
1 point

Once a project team calculates quantitative risk estimates, uncertainty has been removed from the project.

  1. A

    True

  2. B

    False

08
Choose all
1 point

Select all statements that describe limitations of expected monetary value as a basis for project decisions.

  1. A

    It is an average across possible outcomes, not a prediction of what will happen in a particular case.

  2. B

    It does not describe the full range of possible outcomes.

  3. C

    It fully captures how much risk an organization is willing to accept.

  4. D

    It guarantees that the project will realize the calculated value.

09
Choose one
1 point

A standard supplier costs $100,000 and has a 30% chance of a $50,000 delay cost. A more reliable supplier costs $112,000 and has a 5% chance of the same delay cost. Based on expected total cost, which alternative should the team prefer?

  1. A

    Choose the standard supplier; its expected total cost is $114,500.

  2. B

    Choose the more reliable supplier; its expected total cost is $114,500, compared with $115,000 for the standard supplier.

  3. C

    Choose the standard supplier; its expected total cost is $112,000.

  4. D

    The expected total costs are equal.

10
Written response
1 point

A supplier delay has a 30% probability of causing a $50,000 loss. Using a negative value for the loss, what is the expected monetary value in dollars?

11
Choose all
1 point

A team is considering adding the EMVs of several risks. Select all considerations that are supported by sound quantitative risk analysis.

  1. A

    Use estimates with a consistent scope and time frame.

  2. B

    Account for dependencies between risks because they can make a simple sum misleading.

  3. C

    Add the values regardless of whether the estimates cover the same time frame.

  4. D

    Assume that the risks are independent whenever each has a probability estimate.

12
Choose one
1 point

A project's conditions have changed since its risks were assessed. What should the team do with its analysis?

  1. A

    Keep the original assessment unchanged so comparisons remain consistent.

  2. B

    Update the assessment when conditions change and reassess planned responses.

  3. C

    Stop comparing estimates with actual results once the project is underway.

  4. D

    Replace changed estimates with arbitrary adjustments.

13
Open ended
1 point

A project team must choose between alternatives with uncertain outcomes. Explain how it can use a decision tree to evaluate the alternatives and make a choice.

14
True or false
1 point

True or false: Once probabilities and impacts have been estimated, quantitative risk analysis removes uncertainty from a project.

  1. A

    True

  2. B

    False

15
Choose one
1 point

In a decision tree, what does a decision node represent, and what does a chance node represent?

  1. A

    A decision node marks uncertain outcomes; a chance node marks a choice.

  2. B

    A decision node marks a choice; a chance node marks possible outcomes and their probabilities.

  3. C

    A decision node shows the final payoff; a chance node shows the analysis date.

  4. D

    A decision node records assumptions; a chance node ranks input factors.

16
Choose one
1 point

A team has limited time for analysis. Why might it reserve quantitative risk analysis for significant or high-priority risks?

  1. A

    It requires less data than qualitative assessment, so it is used for every minor risk.

  2. B

    It is used only when a project has already experienced a loss.

  3. C

    It can require more data and effort, so it is commonly applied to significant or high-priority risks.

  4. D

    It replaces the need to use judgment when deciding which risks matter.

17
Choose one
1 point

A team wants to find out how changes in one estimate affect a project decision. Which approach matches sensitivity analysis?

  1. A

    Vary one input while holding other assumptions constant, then compare the results.

  2. B

    Change several inputs at once so their combined effect can be isolated.

  3. C

    Keep all inputs fixed and compare the project’s actual result with its original estimate.

  4. D

    Adjust inputs until the preferred alternative has the lowest cost.

18
Written response
1 point

What chart can rank factors by how much they change a project estimate or decision? Enter the chart name.

19
Choose one
1 point

A project team plans to combine EMVs for several risks. Which consideration makes that approach most appropriate?

  1. A

    Always add the EMVs, because each risk is estimated independently.

  2. B

    Add them when scope and time frame are consistent, and consider whether dependencies make a simple sum misleading.

  3. C

    Add them only when every risk has the same probability.

  4. D

    Do not add EMVs under any circumstances, even when estimates are comparable.

20
Written response
1 point

An opportunity has a 40%40\% chance of producing a $25,000\$25{,}000 gain and a 60%60\% chance of producing no gain. What is its expected monetary value in dollars?