Certified Associate In Project Management CAPM · Free Practice Question Easy
Question 66
Examine the exhibit. Based on the following table, what is the needed contingency reserve?
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A
-11,600
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B
11,600
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C
4,000
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D
120 percent of the project budget
Reveal correct answer
Correct answer: B
Explanation
The contingency reserve is found by multiplying the probability times the impact. The sum of the expected monetary value equates, in positive numbers, the amount of the contingency reserve. 1 is incorrect because this is a negative number. The contingency reserve is a positive number. 3 is incorrect because this is an incorrect calculation for the contingency reserve. 4 is incorrect because this statement is false.Discussion
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