PK0-005 Tools and Documentation Practice Question
A project manager is creating a risk register. One risk has a probability of 0.3 and an impact of $50,000. What is the expected monetary value (EMV) of this risk?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
$15,000
EMV = Probability * Impact = 0.3 * $50,000 = $15,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$1,500
Why it's wrong here
$1,500 misplaces the decimal by a factor of ten; 0.3 × $50,000 equals $15,000. It is tempting because it looks like a correctly scaled small result, and it would be correct if the impact were $5,000 rather than $50,000.
- ✓
$15,000
Why this is correct
Multiplying probability by impact gives the expected monetary value: 0.3 × $50,000 = $15,000. This quantifies the risk's average financial exposure, satisfying the register's requirement to express each risk in monetary terms for comparison and contingency budgeting.
- ✗
$150,000
Why it's wrong here
Multiplying probability by impact gives $15,000, not $150,000; this figure results from dividing impact by probability or misplacing the decimal. It is tempting because it is the largest number offered, and it would be correct if the probability were 3.0, which is impossible since probability cannot exceed 1.
- ✗
$50,000
Why it's wrong here
$50,000 is the raw impact, ignoring the 0.3 probability entirely. It is tempting because impact is the headline figure in a risk register, and it would be correct if the question asked for the monetary loss should the risk occur with certainty.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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