Do you need customer support or technical assistance? Click here to submit a support ticket...
 Page:1

# TOPIC: QuestionEMV question

## EMV question 2 years 5 months ago #6191

 Ganesh Muniyandy Topic Author Visitor Need answer for the below question which I saw in one of the mobile apps. You are managing a software engineering project,when two team members come to you with a conflict. The lead developer has identified an important project risk: you have a subcontractor that may not deliver on time. The team estimates that there is a 40% chance that the subcontractor will fail to deliver, if that happens, it will cost an additional \$15,250 to pay your work engineers to rewrite the work and the delay will cost the company \$20,000 in lost business. Another team member points out an opportunity to save money an another area to offset the risk:if an existing component can be adapted,it will save the project \$ 4500 in engineering costs. There is a 65% probability that that team can take advantage of that opportunity. What is the EMV of these two things? A.-\$14,100 B.\$6100 C.-\$11,175 D.\$39,750. Could you please let me know the answer with an explanation? Thanks! Ganesh Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## EMV question 2 years 5 months ago #6192

 Rahul Kakkar Offline Gold Boarder Posts: 161 Karma: 6 Thank you received: 47 Can you quote the name of the mobile app where you got this question? Answer: C To calculate the expected monetary value (EMV) of a set of risks and opportunities, multiply each probability by its total cost and add them together. In this question, the cost of the risk is –\$15,250 + –\$20,000 = –\$35,250, so its EMV is 40% x –\$35,250 = -\$14,100. The value of the opportunity is \$4,500 and its probability is 65%, so its EMV is 65% x \$4,500 = \$2,925. So the total EMV for the two is –\$14,100 + \$2,925 = –\$11,175. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable. Rahul Kakkar, PMP, MBA Community Moderator How are we doing? Your opinion matters. To help us improve, please check out our survey at www.surveymonkey.com/s/pmpexamforum

## EMV question 2 years 5 months ago #6193

 Ganesh Muniyandy Offline Fresh Boarder Posts: 1 Thank you received: 0 Thank you Rahul for your answer and explanation. Name of the mobile app: PMP TEST PREP. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
 Page:1
Moderators: Yolanda MabutasTimothy EnallsScott GillardMary Kathrine PaduaERIC BARTLETTKevin NasonSteven Mudrinich, PMPMark Wuenscher, PMPJohn WolvertonTracy Shagnea, PMPJada GarrettMark LacattivaPatrick Floris PhD PMPTy Weston, PMPGenevieve Pluviose, PMP

OSP INTERNATIONAL LLC
OSP INTERNATIONAL LLC
Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®
Company Info
Customer Service
Resources
Exam Prep Training

Boost Your PMP Exam Prep in Only Six Hours! Join the Live PMP Coaching Class on Feb 24/25 for just \$79.
The PMP Exam is Changing in 2018
Free Interview - Listen Now

This interview with Simona Fallavollita (LinkedIn Profile) was recorded at the magnificient Project Management Institute (PMI)® Global Conference 2017 in Chicago, Illinois. We discuss the how, what, why and when of the changes that are coming to the PMP exam.

Thank you!
Cornelius Fichtner, PMP, CSM