PK0-005 Tools and Documentation Practice Question
A project manager is reviewing the risk register and sees that a high-impact risk has a probability of 0.3 and an impact of $50,000. The team implements a response that reduces the probability to 0.1 and the impact remains $50,000. The response cost is $5,000. What is the net expected monetary value (EMV) of implementing the response?
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
✓
$5,000
Original EMV = 0.3 * 50,000 = $15,000. Residual EMV = 0.1 * 50,000 = $5,000. Reduction in EMV = $10,000. Net benefit = reduction - response cost = $10,000 - $5,000 = $5,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
-$5,000
Why it's wrong here
A negative value would indicate the response is not cost-effective.
- ✗
$15,000
Why it's wrong here
This is the original EMV, not the net benefit.
- ✓
$5,000
Why this is correct
Correct: The net EMV benefit is $5,000 (reduction of $10,000 minus cost of $5,000).
- ✗
$10,000
Why it's wrong here
This is the reduction in EMV before subtracting cost.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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