PK0-005 Project Life Cycle Practice Question
A project manager is using a risk probability and impact matrix. A 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.
- ✓
$15,000
Why this is correct
Expected monetary value multiplies probability by impact: 0.3 × $50,000 = $15,000. This quantifies the risk's average financial exposure, letting the project manager compare it against other risks in the matrix and prioritise responses accordingly.
- ✗
$50,000
Why it's wrong here
$50,000 is the raw impact alone; EMV requires multiplying it by the 0.3 probability, giving $15,000. It tempts because impact is the most visible figure in the matrix, but expected monetary value weights that impact by likelihood, not the unadjusted amount.
- ✗
$1,500
Why it's wrong here
$1,500 results from misplacing the decimal, treating 0.3 as 0.03. The correct EMV is 0.3 x $50,000 = $15,000. It tempts when probability is entered as a percentage without converting correctly, but the arithmetic is straightforward multiplication.
- ✗
$150,000
Why it's wrong here
Multiplying impact by probability gives $15,000, so $150,000 misreads the calculation as impact multiplied by a factor of three. It tempts when probability is confused with a multiplier rather than a decimal likelihood, but EMV is always probability times monetary impact.
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This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.