You Are the Project Manager for Your Organization

question 160

Multiple Choice

You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor, however, may not complete the assigned work on time which could cause delays in subsequent work beginning. This is an example of what type of risk event?

• A) Secondary risk
• B) Transference
• C) Internal
• D) Pure risk

Calculate probabilities in the context of both discrete and continuous random variables.

Recognize and critique fallacies in reasoning about probability and common misconceptions.

Understand and apply the concept of conditional probability in contexts such as gambling and insurance.

Use contingency tables to calculate probabilities in joint frequency distributions.

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Definitions:

Planning Budget

A budget created for a specific level of activity, it helps in planning and controlling costs based on projected operational activities.

Net Operating Income

The profit a company makes from its normal business operations, calculated by subtracting operating expenses from operating revenues.

Planning Budget

An estimate of future income and expenditures that is used as a guideline for financial planning and decision-making.

Total Fixed Cost

The sum of all costs that do not change with the level of output produced, such as rent, salaries, and insurance.