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Chapter 7 material - Self-assessment review questions and answers for Chapter 7

1. The impact of a risk event is calculated by multiplying which of the following?

   1.   ?    The likelihood of the event by the consequence of its occurrence
   2.   ?    The likelihood of the event by the number of risk events
   3.   ?    The number of risk events by the consequences of their occurrence
   4.   ?    None of the above

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2. When trying to manage and reduce the risks associated with a project, how should the risk events be grouped?

   1.   ?    By the effect that the risk event will have on the project
   2.   ?    By the impact of the risk event should it occur
   3.   ?    By the source of the risk event
   4.   ?    By the project manager's tolerance for the risk event

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3. When changing the scope of a project to lower the associated risk, a project manager should consider the impact on which of the following?

   1.   ?    Schedule
   2.   ?    Cost
   3.   ?    Quality
   4.   ?    All of the above

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4. In what type of projects should the principles of risk management be applied?

   1.   ?    Only when the project is large
   2.   ?    Only when the project is large and there is substantial uncertainty
   3.   ?    All projects
   4.   ?    When no project sponsor has been assigned

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5. During which phase of a project is the level of uncertainty the greatest?

   1.   ?    Planning
   2.   ?    Execution
   3.   ?    Initiation
   4.   ?    Closure

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6. A project manager states "I will share this risk with others or totally shift it to them." He/she is exercising which method of risk reduction?

   1.   ?    Transfer
   2.   ?    Avoidance
   3.   ?    Mitigation
   4.   ?    Acceptance

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7. Proper implementation of project management will guarantee which of the following?

   1.   ?    That budgets will be met
   2.   ?    That schedules will be adhered to
   3.   ?    That quality/performance will be met
   4.   ?    None of the above

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8. What is the ultimate goal of applying the principles of risk management to a project?

   1.   ?    To eliminate all project risks
   2.   ?    To reduce project risks significantly
   3.   ?    To reduce the cost of completing the project
   4.   ?    To reduce the time required to complete the project

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9. Which of the following is correct?

   1.   ?    Inspection is an appropriate way to ensure quality
   2.   ?    Inspection is expensive and time consuming
   3.   ?    Inspection reduces rework and overall costs
   4.   ?    Inspection is always effective in stopping defective products from reaching the customer

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10. Which of the following is considered a cost of prevention?
    I Creating quality control charts
    II Rework costs
    III Collecting data for use in process improvement efforts

    1.   ?    I only
    2.   ?    II only
    3.   ?    I and II only
    4.   ?    I and III only

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11. Using the data in the figure below, which supplier would you eliminate if you could eliminate only one vendor (assume that correcting each defect has the same cost per defect in all categories)?

    	Supplier
    Defect	A	B	C	Total
    Incorrect Invoice	IIII	I	II	7
    Incorrect Inventory	IIII	II	I	8
    Damaged Material	III		III	6
    Incorrect Test Doc	I	III	II	6
    Total	13	6	8	27

     

    1.   ?    Supplier A
    2.   ?    Supplier B
    3.   ?    Supplier C
    4.   ?    Cannot determine the correct answer from the available data.

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12. Which of the following is (are) true about quality costs when quality management principles are applied?
    I Prevention costs may actually rise over time
    II Prevention costs and failure costs (internal and external) are inversely related
    III Prevention costs and failure costs (internal and external) are directly related

    1.   ?    I only
    2.   ?    II only
    3.   ?    I and II only
    4.   ?    I and III only