Specialized Risk Analyses

You are conducting sensitivity analysis using a scatter plot in a simulation tool. What does a tight clustering of data points along a diagonal line suggest?

When modeling a risk event that might happen multiple times (e.g., machine breakdowns), what is the most appropriate technique in a simulation?

Which THREE actions are appropriate when a decision tree analysis reveals that the 'Do Nothing' option has a higher EMV than the 'Investigate' option?

Which of the following is an example of a quantitative risk analysis technique?

During a Monte Carlo simulation in @RISK, you notice the project completion date distribution is heavily skewed. Which distribution type is most appropriate for modeling task durations that have a hard 'minimum' but a long 'maximum' tail?

You are reviewing a Monte Carlo simulation result. The histogram shows a bimodal distribution for the project completion date. What does this likely suggest about your model?

What is the primary function of a 'risk-adjusted' schedule?

You are analyzing a project schedule and realize that a 'Risk Event' is correlated with multiple tasks. How should this be handled in your risk simulation tool?

When modeling 'uncertainty' using a distribution, what does the 'Mode' value represent in a Triangular distribution?

When running a Monte Carlo simulation, you find that the results do not change between runs. What is the most likely cause?

What is the primary output of a sensitivity analysis in a project risk assessment?

Which TWO of the following are potential causes of a 'non-converging' Monte Carlo simulation?

A project manager is reviewing the results of a sensitivity analysis performed using a tornado diagram. The diagram shows that the 'Supplier Delivery Delay' risk has the longest bar. What does this indicate about this risk?

Which TWO of the following are prerequisites for conducting a valid Monte Carlo simulation in a project schedule?

In the context of risk-adjusted cost analysis, what is the primary purpose of adding a 'Risk Contingency' reserve to the project budget?

Which THREE of the following are common pitfalls when performing an Expected Monetary Value (EMV) analysis?

Which THREE factors should you consider when choosing the distribution type for a specific project task during risk analysis?

Which THREE data inputs are required to model a risk event in a quantitative simulation?

In decision tree analysis, what is the 'Decision Node' (represented by a square) used for?

You are adjusting the logic of your schedule to include a 'probabilistic branch'. What does this allow you to do in a risk analysis simulation?

You are performing a risk-adjusted schedule analysis using a 'Correlation Coefficient' between two tasks. What does a value of -0.8 indicate?

When evaluating project risks using EMV, why is it critical to include both threats and opportunities in the calculation?

In Risk-Adjusted schedule analysis, what is the primary difference between a 'Risk Event' and 'Uncertainty' (duration variability)?

Which document is the primary input for identifying risks to be included in a quantitative risk analysis?

Which TWO of the following statements about risk-adjusted cost analysis are true?

Which of the following is an advantage of using a Monte Carlo simulation over a static schedule analysis?

What is the primary benefit of using a 'Tornado Diagram' for reporting risk analysis results to stakeholders?

You are performing a quantitative risk analysis on a construction project using Oracle Primavera Risk Analysis. The project manager wants to understand the likelihood that the project will exceed the approved budget of $5 million. After running a Monte Carlo simulation with 1,000 iterations, the cost S-curve shows that the P80 value is $5.2 million. What does this indicate?

Which TWO output reports are commonly used in Primavera Risk Analysis to communicate risk results to the project sponsor?

When configuring a simulation in Oracle Primavera Risk Analysis, what is the impact of checking the 'Correlate Task Durations' option?

In a decision tree analysis, what occurs if you 'fold back' the decision tree?

When calculating the Expected Monetary Value (EMV) for a risk, why do we multiply probability by impact?

You are reviewing a S-curve generated from a cost simulation. What does the P80 value represent on this curve?

Which TWO of the following are common types of probability distributions used in risk simulation?

When interpreting the results of a cost simulation, what does the 'Distribution' (histogram) tell you that a 'Mean' value does not?