AACE International PRMP - Project Risk Management Professional Certification Exam
Question #1 (Topic: Demo Questions)
A project manager wants to rank risks quickly using probability and impact before selecting risks for detailed quantitative analysis. Which process should be performed?
Correct Answer: C
Explanation:
Qualitative risk analysis prioritizes risks using probability, impact, urgency, and other ranking factors. It is
Qualitative risk analysis prioritizes risks using probability, impact, urgency, and other ranking factors. It is
normally performed before quantitative analysis because it helps determine which risks deserve more
detailed modeling. The result may include risk rankings, risk owners, and risks requiring immediate
response planning.
Question #2 (Topic: Demo Questions)
A project has an Earned Value of $360,000 and an Actual Cost of $450,000. What is the Cost
Performance Index?
Correct Answer: A
Explanation:
Cost Performance Index is calculated as CPI = EV ÷ AC. Here, CPI = $360,000 ÷ $450,000 = 0.80. A CPI below 1.0 means the project is over budget because the value earned is less than the cost spent. CPI is commonly used to identify cost performance risk.
Question #3 (Topic: Demo Questions)
A project team performs risk reassessment during execution. What is the main purpose?
Correct Answer: D
Explanation:
Risk reassessment reviews existing risks, identifies new risks, updates probability and impact, checks response effectiveness, and closes risks that are no longer relevant. Risk management is continuous because project conditions change over time. Regular reassessment improves project control and decision making.
Question #4 (Topic: Demo Questions)
A risk analyst estimates a cost item as optimistic $80,000, most likely $100,000, and pessimistic $150,000. Using triangular distribution, what is the expected value?
Correct Answer: B
Explanation:
For a triangular distribution, expected value is calculated as (Optimistic + Most Likely + Pessimistic) ÷ 3. Here, ($80,000 + $100,000 + $150,000) ÷ 3 = $330,000 ÷ 3 = $110,000. This method gives equal consideration to all three estimates.
Question #5 (Topic: Demo Questions)
A project has a most likely activity duration of 20 days, optimistic duration of 14 days, and pessimistic duration of 32 days. What is the PERT expected duration?
Correct Answer: C
Explanation: