CAPM Predictive Plan-Based Methodologies Practice Question
A project manager is evaluating the impact of a potential risk on project objectives. The 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
Expected monetary value is probability times impact, so $15,000. Option A is correct.
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
EMV = 0.3 x $50,000 = $15,000.
- ✗
$50,000
Why it's wrong here
This is just the impact, not multiplied by probability.
- ✗
$150,000
Why it's wrong here
This would be 3 x $50,000, incorrect.
- ✗
$1,500
Why it's wrong here
This is 0.03 x $50,000, incorrect.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAPM practice question is part of Courseiva's free PMI 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 CAPM exam.