Exam PMI-RMP topic 1 question 143 discussion

Actual exam question from PMI's PMI-RMP

Question #: 143
Topic #: 1

The risk manager evaluates two contractors, contractor A and contractor B, for a project with a finish date of 15 December. The contractors' bids are the same, including the cost. After performing a Monte Carlo assessment on the contractors' schedules, the risk manager returns the following information:

In order for contractor A to meet the finish date of 15 December, it will cost an additional US$750,000, and will not change the confidence level. In order for contractor B to meet the finish date of 15 December, it will cost an additional US$600,000, and will increase the confidence level by 10%.
Which contractor should the risk manager select?

A. Contractor A, based on the probability and confidence levels, as there is a higher cumulative probability of completion by 15 December.
B. Contractor B, based on the probability and confidence levels, as there is a higher cumulative probability of completion by 15 December.
C. Contractor B, based on costing US$150,000 less than contractor A.
D. Contractor A, based on the confidence level.

Show Suggested Answer

Suggested Answer: C 🗳️

by AKB968 at Dec. 18, 2023, 12:45 p.m.

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MikeMarlo

6 months, 3 weeks ago

Selected Answer: B

Contractor B has both a higher probability of completion and a higher confidence level, making it the preferred choice. Additionally, the additional cost of US$600,000 seems justified given the improvement in confidence level.

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AKB968

11 months, 3 weeks ago

Additional Cost is main factor here, 750-600 = 150 lesser for project B. So choose option C. All other details are just time taking and of no use.

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