PJM 6015 Final
Due 21 May at 23:59 Points 140 Questions 35 Available 16 May at 0:00 - 21 May at 23:59 6 days
Time limit 60 Minutes
Instructions
Final Exam Parameters
Logistics: Online
Number of Questions: 35
Duration: 60 minutes
Possible points: 140 points
Questions Type: Fill in the blank, multiple choice, multiple answer, and matching
Question Delivery: One question at a time
Multiple Attempts: Not allowed. This Test can only be taken once
Force Completion: Once started, this Test must be completed in one sitting. Do not leave the Test before clicking Save and Submit.
Due date: Saturday of the last week of the course
Special Instructions
This is an online and open book exam. Students are allowed to use their course materials, including electronic books (eBooks) and lecture notes. No proctoring is required.
Attempt history
Attempt Time Score
LATEST Attempt 1 43 minutes 140 out of 140
Correct answers will be available on 21 May at 23:59.
,Score for this quiz: 140 out of 140
Submitted 20 May at 16:32
This attempt took 43 minutes.
Question 1 pts
In a brainstorming session, Frank Thomson was asked to identify a risk that may affect the F4045 project.
He said, “A change in government regulations may require additional investment leading to a loss of profit.”
What is the best category for this risk? (Select the best answer).
Technical risk
Schedule risk
Project management risk
Business risk
Business risks are risks associated with whether or not project will deliver business objectives (e.g.
maximizing profits and/or minimizing costs). With business risks, there is the possibility for gain as
well as loss.
,Question 2 pts
Chen Lee is examining whether to investigate a labor efficiency variance in his project management
processes. It will cost $4,800 to undertake the investigation and another $14,400 to correct the processes if
found faulty. If the processes are faulty and Chen failed to make the investigation, labor costs from the
various inefficiencies are expected to amount to $26,400. Chen would be indifferent between investigating
and not investigating the variance if the probability of faulty processes is
.71
.60
.40
.30
, Costs will be either $4,800 or 19,200 if the variance is investigated and either $0 or $26,400 if not.
The probabilities at which the expected costs of investigation are equal to the expected costs of not
investigating can be determined from the following equation (X = the probability that the processes
are faulty):
$19,200X +$4,800(1 – X) = $26,400X + $0(1-X).
$19,200X + $4,800 - $4,800X = $26,400X
$19,200X - $4,800X -26,400X = -$4,800
$12,000X = $4,800
X = 0.40
The probability that the processes are faulty and Chen is indifferent about investigating the variance
is 40%.
Question 3 pts
Wagner Ltd wants to implement two projects. Cash inflows were heavily weighted in the project selection
process. The probability for positive cash flows in each project is 50%, and the probability for negative cash
flows in each project is 50%. What is the probability that at least one of the projects will have positive cash
flows?
Due 21 May at 23:59 Points 140 Questions 35 Available 16 May at 0:00 - 21 May at 23:59 6 days
Time limit 60 Minutes
Instructions
Final Exam Parameters
Logistics: Online
Number of Questions: 35
Duration: 60 minutes
Possible points: 140 points
Questions Type: Fill in the blank, multiple choice, multiple answer, and matching
Question Delivery: One question at a time
Multiple Attempts: Not allowed. This Test can only be taken once
Force Completion: Once started, this Test must be completed in one sitting. Do not leave the Test before clicking Save and Submit.
Due date: Saturday of the last week of the course
Special Instructions
This is an online and open book exam. Students are allowed to use their course materials, including electronic books (eBooks) and lecture notes. No proctoring is required.
Attempt history
Attempt Time Score
LATEST Attempt 1 43 minutes 140 out of 140
Correct answers will be available on 21 May at 23:59.
,Score for this quiz: 140 out of 140
Submitted 20 May at 16:32
This attempt took 43 minutes.
Question 1 pts
In a brainstorming session, Frank Thomson was asked to identify a risk that may affect the F4045 project.
He said, “A change in government regulations may require additional investment leading to a loss of profit.”
What is the best category for this risk? (Select the best answer).
Technical risk
Schedule risk
Project management risk
Business risk
Business risks are risks associated with whether or not project will deliver business objectives (e.g.
maximizing profits and/or minimizing costs). With business risks, there is the possibility for gain as
well as loss.
,Question 2 pts
Chen Lee is examining whether to investigate a labor efficiency variance in his project management
processes. It will cost $4,800 to undertake the investigation and another $14,400 to correct the processes if
found faulty. If the processes are faulty and Chen failed to make the investigation, labor costs from the
various inefficiencies are expected to amount to $26,400. Chen would be indifferent between investigating
and not investigating the variance if the probability of faulty processes is
.71
.60
.40
.30
, Costs will be either $4,800 or 19,200 if the variance is investigated and either $0 or $26,400 if not.
The probabilities at which the expected costs of investigation are equal to the expected costs of not
investigating can be determined from the following equation (X = the probability that the processes
are faulty):
$19,200X +$4,800(1 – X) = $26,400X + $0(1-X).
$19,200X + $4,800 - $4,800X = $26,400X
$19,200X - $4,800X -26,400X = -$4,800
$12,000X = $4,800
X = 0.40
The probability that the processes are faulty and Chen is indifferent about investigating the variance
is 40%.
Question 3 pts
Wagner Ltd wants to implement two projects. Cash inflows were heavily weighted in the project selection
process. The probability for positive cash flows in each project is 50%, and the probability for negative cash
flows in each project is 50%. What is the probability that at least one of the projects will have positive cash
flows?
