PMP Exam Prep Question of the Week


Which of the following is not true for the expected monetary value of a project?

  1. For an investment to be considered pursuable, expected value must exceed or at least equal initial value.
  2. Expected value of a project equals the initial value plus the algebraic sum of the expected values of the risk events.
  3. Best case means that the full values of all positive conditions are added to the initial value while all negative conditions are ignored.
  4. Best case and worst case scenarios should be equal.

The correct answer is 4.

Answers A, B, and C are all correct considerations in the expected monetary value approach.

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