The following PMP® exam sample question is taken from http://www.free-pm-exam-questions.com – The answer is at the very bottom:

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PMBOK Section: Perform Quantitative Risk Analysis

Process Group: Planning Process Group

Question Type: Calculation

Knowledge Area: Risk Management

Difficulty Level: Easy

** Question**: A risk has a potential impact of $50,000 if it happens. The probability of the occurrence of this risk is 50%. What is the expected value for this risk?

A. 100000

B. 75000

C. -50000

D. -25000

Hint: Calculate the expected value by EMV formula. Also note that threats are treated as negative numbers.

Reference: PMBOK4 – pg:298

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** Explanation**: EMV for a risk is calculated by multiplying the value of its impact by its probability of occurrence. This will result in -$25,000. Choice D is the correct answer to this question

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