Information Technology Project Management 5e – Marchewka
21. Which of the following distributions has mean which is equal to (a +b +c) / 3
where a, b, and c are denote optimistic, most likely, and pessimistic estimates
respectively?:
a) Discrete Distribution
b) Normal Distribution
c) Pert Distribution
d) Triangular Distribution
e) Binomial Distribution
22. _____ randomly generates specific values for a variable with a specific
probability distribution.
a) Discrete Distribution
b) Normal Distribution
c) Pert Distribution
d) Monte Carlo Simulation
e) Binomial Distribution
23. In a normal distribution we would expect to find _______ of all values with in +
or – 1 standard deviation.
a) 13%
b) 34%
c) 68%
d) 95%
e) 99%
24. In a normal distribution we would expect to find _______ of all values with in +
or – 2 standard deviation.
Information Technology Project Management 5e – Marchewka
a) 13%
b) 34%
c) 68%
d) 95%
e) 99%
25. _____involves determining the likelihood and project impact of a risk.
a) risk identification
b) risk assessment
c) risk planning
d) risk monitoring and control
e) risk evaluation
26. _____determines how to deal with the occurrence of a risk.
a) risk identification
b) risk assessment
c) risk planning
d) risk monitoring and control
e) risk strategies
27. Risks may be positive or negative. For a positive risk, a project manager would
want to _____.
a) accept the risk
b) share ownership
c) avoid the risk
d) reduce the impact of the risk
e) transfer the risk
Information Technology Project Management 5e – Marchewka
28. Reserves and contingency plans would be used in which risk strategy ?
a) accept or ignore
b) avoidance
c) mitigation
d) transfer
e) none of these
29. Through _____, the project manager will scan the project environment to watch
for risks as they may arise.
a) risk identification
b) risk assessment
c) risk planning
d) risk monitoring and control
e) risk strategies
30. _____ determines each identified risk’s probability of occurrence and impact on
the project.
a) Risk mitigation
b) Risk assessment
c) Risk avoidance
d) Risk analysis
e) Risk monitoring and control
Information Technology Project Management 5e – Marchewka
31. Once a risk is made known, _____ will execute the planned risk strategy.
a) risk identification
b) risk assessment
c) risk planning
d) risk response
e) risk strategies
32. _____ lead to lessons learned to determine how the risk was handled.
a) risk identification
b) risk assessment
c) risk planning
d) risk response
e) risk evaluation
Information Technology Project Management 5e – Marchewka
Short Answer Questions
1. What is meant by crisis management? And why do many organizations find
themselves in this mode?
2. What is project risk?
3. What is project risk management?
4. What are the six project risk management processes?
5. Why can identifying IT project risks be difficult?
Information Technology Project Management 5e – Marchewka
6. Describe how learning cycles can be used to identify IT project risks.
7. What is the Delphi Technique? How can this technique be used to identify IT
project risks?
8. What is SWOT analysis? How can this technique be used to identify IT project
risks?
9. What is a fishbone (Ishikawa) diagram? How can this tool be used to identify IT
project risks?
Information Technology Project Management 5e – Marchewka
10. What is the purpose of a risk impact table?
11. What is a Monte Carlo simulation? Describe a situation (other than the one used
in this chapter) that could make good use of a Monte Carlo simulation.
12. Define and discuss the seven risk strategies described in this chapter.
Information Technology Project Management 5e – Marchewka
13. What is a contingency plan?
14. What is a risk response plan? What should be included?
15. What is risk monitoring and control?
Information Technology Project Management 5e – Marchewka
Information Technology Project Management 5e – Marchewka
Essay Questions
1. The text discusses three common mistakes found in managing project risk. Choose
two of them and after stating them, discuss the implications of making that mistake.
2 What should be required of project stakeholders with regard to managing project
risk successfully?
3. Briefly describe the six IT Project Risk Management processes.
4. Compare the three types of project risk: known, known-unknown, and unknown-
unknown. Give an example of each.
5. What are the strengths and weaknesses of using the Delphi Technique for
identifying threats and opportunities?
6. What are the potential advantages that qualitative approaches have over quantitative
ones when it comes to risk analysis and assessment?
7. How is a Monte Carlo simulation conducted?
8. What factors determine the appropriate risk strategy to deploy?
9. The text discusses seven main risk response strategies. Briefly describe them and
the implications of choosing one over another.
10. Describe some of the tools that are typically employed to monitor and control risk.