PMI Certification Exam Question:
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Explain A benefit-cost ratio of 3.22 indicates a:
A. Profit of s3.22 per unit produced.
B. Profit of s3.22 for each dollar expended.
C. Resources assigned to other tasks on the critical path.
D. Payback of s3.22 for each dollar expended.

Answer:

D. Payback of s3.22 for each dollar expended.

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Explain Although they have a variety of side-effects, the primary objective of incentive clauses in a
contract is to:
A. Aligning contractor and buyer goals.
B. Reduce risk for the contractor
C. Controlling contractor costs
D. Reduce costs to the buyer
E. Reducing production costs.
An individuals willingness to take a risk can be determined by:
A. Decision tree modeling.
B. Monte Carlo method,
C. Sensitivity analysis.
D. Utility theory.
E. Maslows hierarchy of needs.