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Phase B. During Development Phase C. During Implementation Phase D. Risk identification should be performed on a regular basis throughout the project. 133. Which of the following statements is false? A. Uncertainty and risk are greatest at the start of the project and lowest at the end. B. The amount at stake is lowest at the end of the project and greatest at the start. C. Expected monetary value can be expressed as the product of the risk event probability and the risk event value. D. Opportunites are positive outcomes of risk. 134. A contingency plan is executed when: A. A risk is identified. B. An identified risk occurs. C. When a workaround is needed. D. All of the above E. b and c 135. Management reserves are used to handle which type of risk? A. Unknown unknowns B. Known unknowns C. business risks D. pure risks 136. Which of the following techniques accounts for path convergence and generally estimates project durations more accurately? A. CPM B. PERT C. Schedule simulation D. Path convergence method 137. Most schedule simulations are based on some form of which of the following? A. Delphi B. PERT C. CPM D. Monte Carlo Analysis 138. When should a risk be avoided? A. When the risk event has a low probability of occurrence and low impact. B. When the risk event is unacceptable -- generally one with a very high probability of occurrence and high impact. C. When it can be transferred by purchasing insurance. D. A risk event can never be avoided. 139. If a project has an 80% chance of having the scope defined by a certain date and a 70% chance of obtaining approval for the scope by a certain date, what is the probability of both events occurring? A. 75% B. 65% C. 50% D. 56% E. 66% 140. The independence of two events in which the occurrence of one is not related to the occurrence of the other is called: A. event phenomenom B. independent probability C. statistical independence D. statistical probability 141. The one document that should always be used to help identify risk is the: A. Risk Management Plan B. WBS C. Scope Statement D. Project Charter E. Contigency Plan 142. Risks are accepted when: A. You develop a contigency plan to execute should the risk event occur. B. You accept the consequences of the risk. C. You transfer the risk to another party. D. You reduce the probability of the risk event occurring E. a and b 143. An example of risk mitigation is: A. Using proven technology in the development of a product to lessen the probability that the product will not work B. Purchasing insurance C. Eliminating the cause of a risk D. Accepting a lower profit if costs overrun E. a and b 144. A unilateral contract under which the seller is paid a preset amount per unit of service is called: A. A cost reimbursable contract B. A lump sum contract C. A unit price contract D. A fixed price contract E. b or d 145. Which of the following is considered during the Procurement Planning Process? A. Whether to procure B. How to procure and how much to procure C. What and when to procure D. b and c E. all of the above 146. From a buyer's standpoint, which of the following is true? A. Procurement planning should include consideration of potential subcontracts B. Procurement planning does not include consideration of potential subcontracts since this is the duty of the contractor. C. Subcontractors are first considered during the Solicitation Process D. none of the above 147. Which of the following processes involves obtaining information (bids and proposals) from prospective sellers? A. Procurement Planning B. Source Selection C. Contract Administration D. Solicitation E. Solicitation Planning 148. Which of the following is true about procurement documents? A. Procurement documents are used to solicit proposals from prospective sellers. B. Invitation for Bid and Request for Proposal are two examples of procurement documents. C. Procurement documents should be structured to facilitate accurate and complete responses from prospective sellers. D. b and c E. all of the above 149. Which of the following is a method for quantifying qualitative data in order to minimize the effect of personal prejudice on source selection? A. Weighting system B. Screening system C. Selecting system D. none of the above E. all of the above 150. Which of the following is true concerning evaluation criteria? A. Can often be found in procurement documents B. Can be objective or subjective C. Used to rate or score proposals D. May be limited to purchase price if procurement item is readily available from number of sources E. all of the above 151. Which of the following are inputs to the Source Selection Process? A. Evaluation criteria B. Organizational policies C. Procurement documents D. a and b E. all of the above 152. A significant difference between independent estimates and proposed pricing could mean that: A. The independent estimates are most likely incorrect and the proposed pricing correct B. The SOW was not adequate C. The prospective seller either misunderstood or failed to respond fully to the SOW. D. b or c E. a or c 153. Which of the following are examples of indirect costs? A. Salaries of corporate executives B. Salaries of full-time project staff C. Overhead costs D. a and b E. a and c 154. Which of the following contract types places the greatest risk on the seller? A. Cost-plus-fixed-fee contract B. Cost plus-incentive-fee contract C. Fixed-price-incentive contract D. Firm-fixed-price contract 155. In which of the following contract types is the seller's profit limited? A. Cost-plus-percentage-cost contract B. Cost-plus-fixed-fee contract C. Fixed-price-plus-incentive D. b and c E. none of the above 156. A cost-plus-percentage-cost (CPPC) contract has an estimated cost of $120,000 with an agreed profit of 10% of the costs. The actual cost of the project is $130,000. What is the total reimbursement to the seller? A. $143,000 B. $142,000 C. $140,000 D. $132,000 157. A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $150,000 with a predetermined fee of $15,000 and a share ratio of 80/20. The actual costs of the project is $130,000. How much profit does the seller make? A. $31,000 B. $19,000 C. $15,000 D. none of the above 158. A fixed-price-plus-incentive-fee (FPI) contract has a target cost of $130,000, a target profit of $15,000, a target price of $145,000, a ceiling price of $160,000, and a share ratio of 80/20. The actual cost of the project was $150,000. How much profit does the seller make? A. $10,000 B. $15,000 C. $0 D. $5,000 159. Under what circumstances is it better for a contractor to subcontract? A. The subcontractor possesses special technical and engineering skills that the contractor does not have. B. The work to be subcontracted represents almost all of the overall work effort. C. The subcontractor can perform the work at a lower cost than the contractor. D. all the above E. a and c 160. Which type of bilateral contract is used for high dollar, standard items? A. Purchase order B. Request for proposal (RFP) C. Invitation for bid (IFB) D. Request for quotation (RFQ) E. all of them are appropriate 161. Which of the following are characteristics of a purchase order? A. A bilateral contract used for low dollar items B. A unilateral contract used when routine, standard cost items are required. C. A bilateral contract