Join Oliver Yarbrough for an in-depth discussion in this video Expected monetary value (EMV) question, part of Exam Tips: Certified Associate in Project Management (CAPM)®.
- When you're faced with multiple options…but you can only choose one,…how do you make the best decision?…For example, do you build a new plant…or upgrade the old one?…To make the right decision,…you calculate an expected monetary value.…EMV is primarily used in risk management…to numerically prioritize risk.…EMV analysis allows potential alternatives to be evaluated…by factoring in both probability and impact…for every possible decision.…
EMV is a risk neutral technique that's void of all emotion.…It's a process that will help you decide…based strictly on the numbers.…If you recall,…exposure equals probability multiplied by impact.…Positive risks or opportunities…are normally expressed as positive values…while negative risks or threats…are normally expressed as negative values.…Another way to look at EMV…is that it's the summation of the exposures…for each possible outcome.…
Let me give you an example of the type of question…you might see on the exam.…You're working on a project where you have to decide…whether to build a new piece of software for $100,000…
- What to expect on exam day
- Reviewing the fundamental aspects of project management
- Key success factors
- Navigating the CAPM® exam
- Managing your time on the exam
- Reviewing practice questions
- Establishing a solid study routine
- Reading for understanding
Skill Level Intermediate
Project Management Foundationswith Bonnie Biafore3h 20m Beginner
Project Management Foundations: Ethicswith Bob McGannon1h 14m Intermediate
1. CAPM® Foundations
2. Tips and Tricks for Passing the CAPM® Exam
3. Practice Questions
4. Mentally Preparing for the Exam
Next steps1m 9s
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