CAPM Predictive Plan-Based Methodologies Practice Question
Exhibit
Refer to the exhibit.
```json
{
"risk_id": "R001",
"description": "Server hardware failure",
"probability": "0.8",
"impact": "High",
"cost_impact_usd": 50000,
"response": "Mitigate: Redundant servers"
}
```Using the risk register entry shown, 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
✓
$40,000
$40,000. EMV = Probability * Impact = 0.8 * $50,000 = $40,000. Option A ($10,000) incorrectly uses a probability of 0.2. Option B ($50,000) uses the impact alone without probability. Option C ($80,000) is likely from multiplying 0.8 by $100,000 or a calculation error.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$10,000
Why it's wrong here
This would be the EMV if probability were 0.2.
- ✗
$50,000
Why it's wrong here
This is the impact without considering probability.
- ✗
$80,000
Why it's wrong here
This would be the EMV if probability were 1.6, which is impossible.
- ✓
$40,000
Why this is correct
0.8 * $50,000 = $40,000 correct EMV.
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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.