PMP TEST 3.2

Question 1

9Key members of a project are in the process of defining and assigning individual and team responsibilities. Which of the following is most critical for this team while the project management method is still not finalized?
SELECT THE CORRECT ANSWER

Understanding the location and time zone of team members

Knowing the attitudes of team members

Having open communication and effective collaboration

Skill and experience of team members

Answer 1

Correct Option:C

EXPLANATION

Project responsibilities within a team Open communications and effective collaboration are critical regardless of the specific project management method chosen

Question 2

17The Project Manager of a team observes that the project team is spending too much time during standups though this is meant to be a 15-minute ceremony every day. What could be the possible cause of this?
SELECT THE CORRECT ANSWER

Team members might not be sticking to the agenda

The team might be trying to find solutions to problems that were brought up.

Team might not be making effective use of parking lot to discuss issues post the standup meeting

All of the above

Answer 2

Correct Option:D

EXPLANATION

Standup meetings should be focusing on the following 3 questions for every team member and are typically timeboxed for 15 minutes: What did you do yesterday? What will you do today? Are there any impediments?

Question 3

20Agile has certain ceremonies like daily standup, sprint review, and sprint retrospective. Which of the following is not true about the ceremonies?
SELECT THE CORRECT ANSWER

Daily standups are status meetings.

Sprint planning is a collaborative event for planning the project release.

Both A and B are wrong

Both A and B are correct

Answer 3

Correct Option:C

EXPLANATION

Sprint planning plans the work for the current sprint, not an entire project. Daily standups are not status meetings. The are required for a team to reaffirm commitment to its objectives, coordinate work among team members, and surface potential blockers.

Question 4

27A senior member from the portfolio team of your organization has requested you to prepare a document to validate the benefits of a component since they do not have enough information. Which document would you prepare in this case?
SELECT THE CORRECT ANSWER

Project implementation plan

Business needs document

Charter

Business Case

Answer 4

Correct Option:D

EXPLANATION

Business case is a documented economic feasibility study used to establish the validity of the benefits of a selected component when there is a lack of sufficient information.

Question 5

28Agile Practice Guide categorizes project life cycle into 2 major types:
SELECT THE CORRECT ANSWER

Agile and Predictive

Predictive and Adaptive

Predictive and Incremental

Incremental and Iterative

Answer 5

Correct Option:B

EXPLANATION

Two major types of project life cycle as per Agile Practice Guide are predictive and adaptive.

Question 6

32A project manager requests his subject matter experts to build visuals to represent the project outcome with an intent to illustrate the functioning of a product. Which of the following is the project manager expecting from the SMEs?
SELECT THE CORRECT ANSWER

Work breakdown structure

Storyboarding

Join application design

Quality function deployment

Answer 6

Correct Option:B

EXPLANATION

Storyboarding is a prototyping method that can use visuals or images to illustrate a process or represent a project outcome.

Question 7

34Code of Accounts in WBS is used:
SELECT THE CORRECT ANSWER

As a management control point

As a tracking system by finance to verify costs

As a work package with dependencies

To identify components

Answer 7

Correct Option:D

EXPLANATION

A code of accounts is a numbering system used to uniquely identify each component of the WBS.

Question 8

35Which of the following can a Scope Baseline include?
SELECT THE CORRECT ANSWER

Cost baseline

Benefits plan

Planning package

Business case

Answer 8

Correct Option:C

EXPLANATION

A scope baseline may include any of the following components: Project scope statement, WBS, Work package, Planning package, WBS dictionary

Question 9

38A typical user story contains:
SELECT THE CORRECT ANSWER

Risks

Constraints

Assumptions

Value

Answer 9

Correct Option:D

EXPLANATION

User stories describe the value/objective.

Question 10

39Which of the following is NOT a tool/technique for verifying scope?
SELECT THE CORRECT ANSWER

Definition of Done

Definition of Ready

Acceptance Criteria

Team review comments

Answer 10

Correct Option:D

EXPLANATION

DOD, DOR, and Acceptance criteria are tools and techniques for verifying the scope.

Question 11

43A charter for a simple project without much dependency is approved, and the team is working on Iterative scheduling. Which of the following is NOT true about Iterative scheduling?
SELECT THE CORRECT ANSWER

The method uses progressive elaboration

Iterative scheduling works best for complex projects with dependency

Stories that provide the highest value are prioritized

Stories are prioritized based on how long they take

Answer 11

Correct Option:B

EXPLANATION

Iterative scheduling with a backlog does not work well with activities that have complex dependency relationships.

Question 12

47An Agile team is preparing for its retrospective. Which of the following is NOT correct about retrospectives?
SELECT THE CORRECT ANSWER

A retrospective is a review of what went well

A retrospective is a review of what could have been done better

A retrospective assesses team collaboration.

The product owner is not included as this is for the agile team

Answer 12

Correct Option:D

EXPLANATION

A retrospective meeting consists of the agile team, product owner, and key stakeholders

Question 13

49Minimum business increment best works for:
SELECT THE CORRECT ANSWER

A new product ideation

Creating MVP for a new product release

Products that are live and in-use

None of the above

Answer 13

Correct Option:C

EXPLANATION

Minimum Business Increment works best when the product and functions are understood or for improving products that are live and in-use.

Question 14

53Value stream mapping is used to:
SELECT THE CORRECT ANSWER

Develop earned value management

Develop expected monetary value

Analyze flow of information

Compute overall value of the project

Answer 14

Correct Option:C

EXPLANATION

Value stream mapping is used to document, analyze, and improve the flow of information or materials required to provide a product or service for a customer.

Question 15

55Impediments and blockers can be identified at various stages by the team. Which of the following is NOT true about impediments?
SELECT THE CORRECT ANSWER

Can be uncovered during daily standups.

Can be represented using sticky notes on a whiteboard

Can be tracked using sophisticated software

Cannot be a result of project risks

Answer 15

Correct Option:D

EXPLANATION

Impediments may be due to or as a result of project risks or issues.

Question 16

57Personality profile assessment can help assess and present the personality profile of each individual, which suggests ways to work with them. Which of the following is not a personality style assessment for individuals?
SELECT THE CORRECT ANSWER

DiSC model

Theory of Psychological types

Tuckman’s model

True colors methodology

Answer 16

Correct Option:C

EXPLANATION

Tuckman’s model articulates team formation cycle and is not about individual styles

Question 17

60Project risks are captured, tracked, and managed using a risk register. Which of the following is true in relation to compliance with legal and regulatory requirements?
SELECT THE CORRECT ANSWER

Risks related to compliance should include risk owner and impact.

Compliance validation must be assured as the project deliverables are created.

Risks are meant for the project team and are not related to compliance.

Both A and B

Answer 17

Correct Option:D

EXPLANATION

Identified risk, owner, impact and risk responses should be tracked to establish compliance with legal and regulatory requirements. It is also necessary to assure compliance validation as the deliverables are created.

Question 18

66Which of the following is done by QA?
SELECT THE CORRECT ANSWER

Review the deliverable so that it meets functional and nonfunctional requirements

Suggest potential improvements

Make recommendations to address any noncompliance

All of the above

Answer 18

Correct Option:D

EXPLANATION

As the project team produces deliverables, quality assurance (QA) will review the deliverable, verify that it meets functional and nonfunctional requirements, and often identify and suggest potential improvements. QA will validate whether the deliverables align with compliance requirements and provide feedback on any variances.

Question 19

68Quality audits are used to verify compliance and are generally conducted by an external team. Audits are generally used to: (Choose all options that are correct)
SELECT THE CORRECT ANSWER(S)

Share good practices from other projects in the organisation or industry

Highlight contributions to lessons learned

Identify critical path

None of the above

Answer 19

Correct Option:A, B

EXPLANATION

Quality audits are used to verify compliance with organizational policies, processes, and procedures. They are generally used to identify good practices being used, share good practices from other projects, proactively offer improvements to improve productivity, and highlight contributions to lessons learned.

Question 20

69Which of the following are components of Business value?
SELECT THE CORRECT ANSWER

Employee knowledge

Customer value

Channel partner value

All of the above

Answer 20

Correct Option:D

EXPLANATION

Shareholder value, customer value, channel partner value, and employee knowledge are all part of business value.

Question 21

70A project management plan can contain many subsidiary plans. Which of the following is not correct about Benefits Management Plan?
SELECT THE CORRECT ANSWER

It describes how the benefits of a project will be derived.

It describes how the benefits are measured.

It is a subsidiary component of the project management plan.

It describes when the benefits will be realized, usually by project phase.

Answer 21

Correct Option:C

EXPLANATION

Benefits Management plan is a business document and is not a subsidiary component of the project management plan.

Question 22

73PESTLE factors are:
SELECT THE CORRECT ANSWER

Techniques used to build project schedule

Used in aggregation of costs

Used to prioritize backlog items

Used to identify impact on business case

Answer 22

Correct Option:D

EXPLANATION

It is critical that project managers are aware of PESTLE factors that can impact their projects business case and be prepared to adapt accordingly.

Question 23

75Which of the following is NOT true about continuous improvement?
SELECT THE CORRECT ANSWER

It is an ongoing effort.

You can make small incremental improvements.

It is a business strategy

It is not for large, breakthrough improvements

Answer 23

Correct Option:D

EXPLANATION

Continuous improvement is a business strategy that is developed at the organizational level for projects and can bring small, incremental or large, breakthrough improvements.

Question 24

77Which of the following is NOT true about continuous improvement approaches? (Select all that apply)
SELECT THE CORRECT ANSWER(S)

Small development cycles in Agile project management give teams opportunity for continuous improvements.

Kaizen believes in large breakthroughs as small incremental improvements are not efficient.

Agile teams frequently go through the complete development process.

Kaizen believes in research, as improvement ideas come from researchers rather than workers themselves

Answer 24

Correct Option:B, D

EXPLANATION

Kaizen features include: Improvements based on many small changes Ideas come from workers themselves, rather than from expense research, consultants, or equipment.

Question 25

78Which of the following statements is NOT true about a product life cycle?
SELECT THE CORRECT ANSWER

It starts with conception of a new product and ends with its withdrawal.

A product can spawn a single project in its life.

The five stages of each product lifecycle are product development, introduction, growth, maturity, and decline.

It focuses on managing the properties of a product from a company’s business point of view.

Answer 25

Correct Option:B

EXPLANATION

A product can spawn a single project in its life. Product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal. PLM integrates people, data, processes, and business systems to provide a product information backbone for companies. The five stages of each product lifecycle are product development, introduction, growth, maturity, and decline. A product can spawn or require many projects over its life.

Question 26

81A manager who manages a collection of projects grouped together to facilitate effective management to meet strategic business objectives is called a:
SELECT THE CORRECT ANSWER

Program Manager

Portfolio Manager

Project Manager

Stakeholder

Answer 26

Correct Option:B

EXPLANATION

Portfolio refers to a collection of projects or programs grouped together to facilitate effective management to meet strategic business objectives, and the person managing it is called a Portfolio Manager. Portfolio management describes methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics like business objectives, technical strategy, goals, etc.

Question 27

89A Project Manager has defined the key deliverables of the project based on the business and compliance requirements and is now identifying and documenting high-level risks, assumptions, and constraints based on current environment, historical data, and/or expert judgment to identify project limitations and propose an implementation approach. Which process group is the Project Manager in?
SELECT THE CORRECT ANSWER

Initiating

Planning

Executing

Closing

Answer 27

Correct Option:A

EXPLANATION

It is during the initiating process group that you identify and document high-level risks, assumptions, and constraints to identify project limitations and thereafter propose an implementation approach.

Question 28

90Which of the following is NOT a function of the project management office?
SELECT THE CORRECT ANSWER

Monitoring compliance with project management standards policies, procedures, and templates via project audits

Coaching, mentoring, training, and oversight

Managing shared resources across all projects administered by PMO

Identifying and developing the organization’s methodology, administrative practices, and rules

Answer 28

Correct Option:D

EXPLANATION

The PMO’s role is to identify and develop the project management methodology, best practices, and standards.

Question 29

97A key stakeholder from the quality department wants to know more about how the process tailoring was done by the project team. Additionally, the stakeholder would like to know the rationale for selecting processes, their implementation-level details, and how they will be used to manage interdependencies. Which document should the Project Manager refer the stakeholder to?
SELECT THE CORRECT ANSWER

Project Statement of Work

Project Scope Statement

Project Management Plan

Work performance Information

Answer 29

Correct Option:C

EXPLANATION

The results of the process tailoring by the project team, along with all the other information required by the stakeholder, are captured in the project management plan.

Question 30

100A Project Manager is in the process of documenting and defining a stakeholder’s needs to meet project objectives. What is the output of this process?
SELECT THE CORRECT ANSWER

Stakeholder Register

Stakeholder Management Strategy

Requirements Documentation

Issue Log

Answer 30

Correct Option:C

EXPLANATION

The Project Manager is in the process of collecting requirements. The output of this is requirements documentation. This document describes how individual requirements meet the business need for the project. It is important that the requirements documented are unambiguous (measurable and testable), traceable, and acceptable to key stakeholders. Option A, stakeholder register, is only a list of stakeholders in the project; option B, stakeholder management strategy, describes the strategy to manage stakeholder expectations. Option D, issue log, is a document to capture project issues.

Question 31

101You have taken over as the Project Manager of a complex and technically challenging project. In addition, your team members are from diverse cultures and lack bonding. You want the team to participate and take ownership of project activities, as well as understand the big picture of the project. Which of the following activities would be most helpful?
SELECT THE CORRECT ANSWER

Use colocation to help the team bond better, which in turn would maximize productivity

Create Work Breakdown Structure (WBS)

Develop Responsibility Assignment Matrix to describe the roles and responsibilities of every team member

Conduct knowledge sessions where each member appraises the team about his or her culture

Answer 31

Correct Option:B

EXPLANATION

The Project Manager wants the team to take ownership as well as understand how individual project activities affect the overall project deliverable (the big picture). The Project Manager also wants the team to develop bonding. All these objectives are met when the team gets involved in creating the Work Breakdown Structure (WBS) and WBS dictionary. Option A may not be always possible due to physical constraints in the project. Option D has limited utility, but Option B is the best choice as it fulfills multiple project objectives

Question 32

103A Project Manager is in the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create an approved project schedule. What should the Project Manager do NEXT?
SELECT THE CORRECT ANSWER

Determine Resource Requirement for each activity in the project

Use techniques like Critical Path method and What-if Analysis to calculate the optimum duration of the project

Use this approved schedule duration as a baseline and start tracking the project

Create a Network diagram of the project using one of the diagramming methods

Answer 32

Correct Option:C

EXPLANATION

The Project Manager is in the develop schedule process. Since the project schedule has already been approved, options A, B, and D are already completed as part of the processes estimate activity resources, develop schedule, and sequence activities. The next step would be to treat this estimate as a schedule baseline and start tracking the project as part of the process control schedule.

Question 33

105A project activity has the following values for the earliest and latest it can start and the earliest and latest it can be completed. An activity’s Late Start (LS) is 5/day and Late Finish (LF) is 10/day. Similarly, Early Start (ES) is 3/day and Early finish (EF) is 8/day. What is the float of this activity?
SELECT THE CORRECT ANSWER

0 days

4 days

2 days

-3 days

Answer 33

Correct Option:C

EXPLANATION

Float for an activity can be calculated using the formulae (i.e. Float = LS-ES or LF-EF). In this case, float = 5-3 or 10- 8 or 2 days. Remember, float or slack is the amount of time a task in a project network can be delayed without causing a delay to subsequent tasks (free float) or the project completion date (total float).

Question 34

108You are managing a project which would provide e-learning solutions to your customer. The requirements of this project are not clearly defined in the beginning, and there would be modifications based on customer feedback as the project evolves. You decide to plan as much as you can and begin to create work while continuing the planning. Which of the following techniques would be most helpful while defining activities for the project?
SELECT THE CORRECT ANSWER

Rolling Wave Planning

Templates

Extreme Programming

Just in Time

Answer 34

Correct Option:A

EXPLANATION

Rolling wave planning is a form of progressive elaboration where work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the Work Breakdown Structure. Therefore, work can exist at various levels of detail depending on where it is in the project lifecycle. As more information is known about upcoming events, the higher-level work packages can be decomposed further. Templates, which are usually standardized, would not be a very helpful tool for evolving requirements. Option (c) and (d) are not recognized tools and techniques of project time management.

Question 35

109Which of the following statements about critical path is TRUE?
SELECT THE CORRECT ANSWER

It needs SMEs to work.

All the activities on the critical path do not have any float.

A project will have only one critical path.

A critical path takes into consideration logical as well as resource dependencies.

Answer 35

Correct Option:B

EXPLANATION

Critical path activities do not have any float. If any activity on the critical path is delayed, the completion of the project will be delayed by an equal amount. To determine the critical path, you have to add the amount of time estimated for the duration of each activity to the previous activity.

Question 36

110Which of the following are the MOST important to derive the total funding requirements and periodic funding requirements of the project?
SELECT THE CORRECT ANSWER

Management Reserve and Contingency Reserve

Cost Baseline and Management Reserve

Funding Limit Reconciliation

Project Budget and Contingency Reserve

Answer 36

Correct Option:B

EXPLANATION

The total funds required in the project are those included in cost baseline, plus management reserve if any. Remember, the cost baseline includes contingency reserves because the cost baseline will include projected expenditures plus anticipated liabilities.

Question 37

113John, a project manager, wants to capture the details of activities, including their inputs, outputs, and interfaces with other processes, to enhance the value of the process. Which of the following documents would be MOST helpful?
SELECT THE CORRECT ANSWER

Project Management Plan

Quality Management Plan

Process Improvement Plan

Product Management Plan

Answer 37

Correct Option:B

EXPLANATION

Quality management plan would be most helpful as it considers the continuous improvement procedure.

Question 38

114Which of the following would NOT be part of cost of conformance?
SELECT THE CORRECT ANSWER

Prevention cost

Appraisal cost

Internal failure cost

Cost of training

Answer 38

Correct Option:C

EXPLANATION

Internal failure cost (including failure found by the project internally, like rework and scrap) is not part of the cost of conformance. All the failure costs (including external failure costs) are referred to as the cost of poor quality. The cost of conformance denotes the money spent during the project to avoid failures.

Question 39

117A pharmaceutical company wants to launch a new over-the-counter medication for flu in the U.S. The Project Manager is identifying project communication constraints. Which of the following is NOT a valid constraint?
SELECT THE CORRECT ANSWER

The company should get an FDA approval before producing or selling the medicine.

The key person responsible for communicating the information on the project may not be available through the entire project.

The milestone meeting should be attended by all the major key stakeholders.

The project has teams working in different geographical locations and time shifts.

Answer 39

Correct Option:B

EXPLANATION

A communication constraint is usually derived from specific legislation or regulation (Option A), organizational policies (Option C), or a project constraint (Option D). This limits the project’s options during communication management. However, Option B is an uncertain event or risk in the project which needs to be addressed through risk management.

Question 40

119Which of the following is NOT a tool used in the perform qualitative risk analysis process?
SELECT THE CORRECT ANSWER

Probability and Impact Matrix

Facilitation

Monte Carlo Simulation

Interview

Answer 40

Correct Option:C

EXPLANATION

Monte Carlo Simulation is typically associated with the quantitative risk analysis process. It generates the output as a range instead of a fixed value and shows how likely the output value is to occur in the range.

Question 41

25A Project Manager is facing many serious issues in his project to create an application for a hospital management system. The project’s final deliverable is scheduled for two weeks from now. It needs to fulfill compliance with mandatory government health standards. In addition, there are some changes required to improve performance, which the Project Manager feels will make the customer happy. Amidst all of this, a senior test engineer asks the Project Manager for a long leave. Which is the most critical issue the Project Manager needs to address FIRST?
SELECT THE CORRECT ANSWER

Ensure the product is compliant to government health standards

Find a replacement for the senior tester and ensure he completes knowledge transfer before leaving

Complete change control process to incorporate changes to enhance performance

Notify the customer about probable delay in the final deliverable to avoid surprises later

Answer 41

Correct Option:A

EXPLANATION

This question exemplifies a typical scenario when a Project Manager needs to integrate information and prioritize the most critical issue. In this scenario, Option C is part of gold plating and is not actually required for the project. Option B can pose some trouble to the Project Manager. The question doesn’t clearly establish whether the resource is leaving before or after the final delivery. There is no indication that his absence would adversely affect the project delivery. In this situation, the most important thing to focus on is the compliance testing, as it is a mandatory requirement on the project.

Question 42

147A key stakeholder expresses concern over lack of project visibility and progress and says that project status reports lack information relevant to the stakeholder’s department. How should the Project Manager respond?
SELECT THE CORRECT ANSWER

Review the Project Communication Management Plan to determine the stakeholders’ needs

Take another look at the Manage Communications process to identify the gaps

Raise a change request to address the stakeholder’s feedback

Take another look at the monitor Communications process to understand the problem

Answer 42

Correct Option:A

EXPLANATION

The communication management plan determines the project stakeholders’ information needs and defines the communication approach. It is the document that would help resolve the stakeholder’s issues. Since the stakeholder is receiving timely performance reports, options (b) and (c) are not correct.

Question 43

152A Project Manager is conducting a bidder conference to select the most suitable sellers. Which of the following tools will NOT be helpful?
SELECT THE CORRECT ANSWER

Advertising

Proposal evaluation

Procurement Negotiations

Make-or-Buy analysis

Answer 43

Correct Option:D

EXPLANATION

The Project Manager is in the process of conducting procurements. Make-or-buy analysis is not a part of the tools and techniques used in this process but is part of the plan procurement process.

Question 44

161A Project Manager, Joe, is discussing the observed variations between planned and actual values of defects with his quality engineer. He realizes that he has forgotten to identify one of the important metrics to analyze defects. Which process group is the Project Manager in if he evaluates the current result for the metric to see if it requires corrective action?
SELECT THE CORRECT ANSWER

Planning

Executing

Monitor and Control

Quality Audit

Answer 44

Correct Option:C

EXPLANATION

The activity of identifying applicable quality standards, processes, and metrics is completed as part of project planning. In this case, the Project Manager is evaluating the variation in the current results for the new metric and whether it requires corrective action. Hence, he is in the monitor and control process group.

Question 45

166Your project is in the final stages of testing, and the team is interacting with the customer on a daily basis to update the customer about the project status and incorporate feedback. Which of the following would be the most critical process to be followed in this scenario?
SELECT THE CORRECT ANSWER

Control Quality

Control Scope

Manage Communications

Monitor Risks

Answer 45

Correct Option:B

EXPLANATION

In this case, frequent changes are expected to be made by the team based on customer feedback. When a change is presented, a part of considering the change involves additional planning. The Project Manager and the team must examine how the change affects the project work and knowledge areas. Thus, Control scope ensures that the project scope is protected from unnecessary changes and all eligible changes are made using the scope change control system. Option A, Control Quality, is more focused on ensuring conformance to documented standards and is not the correct choice.

Question 46

167John, a Project Manager, is proactively managing change through the control scope process. Which of the following should he be MOST worried about?
SELECT THE CORRECT ANSWER

Value-Added Changes

Errors and Omissions

Risk Response

Verbal communication from key stakeholders

Answer 46

Correct Option:D

EXPLANATION

Undocumented changes should never be allowed by the Project Manager. He or she should ensure that whenever a change is requested, the impact on features and functions of the product (including that on the triple constraints) is documented with a change request. Only then should the change continue through integrated change control. Option A, value-added changes, describes changes in the scope that would provide benefits such as cost reduction. Option B, errors and omissions, could be both in project scope, which is the work required to complete the project, and the product scope, which refers to the features and functions of the deliverables. Option C, risk response, involves changes in the scope required to mitigate an identified risk. Option D, verbal undocumented changes, poses maximum potential threat to a project.

Question 47

171You are managing an infrastructure project that is nearing completion when a major stakeholder points out a flaw in the design that could make the entire structure weak. He suggests that you construct two support pillars that would provide the necessary support. You are worried that this change could impact the schedule and cost of the project significantly. What is your BEST response to the stakeholder?
SELECT THE CORRECT ANSWER

Refuse his suggestion as the project is already nearing completion and it’s not possible to make any changes at this stage

Do a root cause analysis with the team to determine how this design flaw could have been missed and if there could be more potential problems with the design

Proceed with the change and communicate the impact on project schedule and cost to the customer

Use a schedule compression technique as part of integrated change control to investigate and minimize the adverse impact of the change

Answer 47

Correct Option:D

EXPLANATION

Schedule compression technique is useful not only during project planning to see if the desired completion date can be met but also during integrated change control to look at the schedule impacts of changes to time, cost, scope, or risk. Option B seems to be in good faith but doesn’t address the immediate problem. Option C should be done once all the alternatives are explored to minimize the adverse effect of the change on the project schedule and other constraints.

Question 48

172As a Project Manager, you realize that the initial budget cost, Budget at Completion (BAC), for your project is no longer viable. You need to develop a new Estimate At Completion (EAC) forecast assuming that current variances would continue in the future. Which of the following formulae should you use to calculate EAC? Here, AC is the Actual Cost, EV is the Earned Value, and PV is the Planned Value.
SELECT THE CORRECT ANSWER

EAC = AC + ETC

EAC= AC+ (BAC - EV)

EAC = EV/PV

EAC = BAC/Cumulative CPI

Answer 48

Correct Option:D

EXPLANATION

This method assumes current variances to be typical of the future. The remaining work is assumed to be performed at the same cumulative cost performance index (CPI) as what has been incurred by the project to date.

Question 49

173Earned value management is the tool and technique of which process?
SELECT THE CORRECT ANSWER

Perform Integrated Change Control

Control Costs

Direct and Manage project work

Control Schedule

Answer 49

Correct Option:B

EXPLANATION

Earned value management is a tool and technique of the Control Costs process. See page 261 of PMBOK Guide - Sixth Edition

Question 50

174A project team with a CPI of 0.78 is looking for options to reduce cost. Which of the following would be the BEST option to do so?
SELECT THE CORRECT ANSWER

Reduce a test cycle in the system testing phase

Reduce scope by cutting down non-essential features

Add more resources to expedite the schedule

Revisit estimates, eliminate risks, and then re-estimate

Answer 50

Correct Option:D

EXPLANATION

Option C wouldn’t reduce cost. Option A and B would have a negative effect as they compromise on quality or scope. Of all the available options, D is the one with minimum negative effect.

Question 51

175You are a Project Manager. You need to decide whether to buy insurance for a temporary manufacturing facility. The likelihood of a mishap is assessed at 10% and the likely impact is evaluated at $500,000. The cost of insuring is $20,000 and has a $10,000 deductible. Would you buy insurance?
SELECT THE CORRECT ANSWER

Yes, because 50,000 > 21,000

Yes, because 50,000 > 30,000

No, because 30,000 < 500,000

No, because 21,000 < 50,000

Answer 51

Correct Option:A

EXPLANATION

EMV when there is no insurance is -500,000 * 0.1 = $50,000. EMV when there is insurance is -(20,000+ 0.1*10,000) = -21,000. Therefore, it makes sense to buy insurance.

Question 52

177As a manager, you would like to get the status on the remaining work with respect to the remaining funds. Which of the following measures will give you the information?
SELECT THE CORRECT ANSWER

To-Complete Performance Index

Earned Value Technique Performance

Variance Analysis

Trend Analysis

Answer 52

Correct Option:A

EXPLANATION

To-Complete Performance Index (TCPI) is the calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal. The formula to calculate TCPI is Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-AC), where AC is the Actual Cost, EV is the Earned Value, EAC is Estimate at Completion, and BAC is Budget at Completion.

Question 53

178In a normal distribution, what is the probability of finding the actual value between 1 standard deviation distance from the mean?
SELECT THE CORRECT ANSWER

0. 95
1. 9973
2. 5
3. 68

Answer 53

Correct Option:D

EXPLANATION

The answer is based on the property of the normal distribution where 68% of data falls within 1 SD, 95 % of data falls within 2SD and 99% data falls within 3 SD.

Question 54

180Your project is going through an audit cycle. One of the senior auditors points out that the target value for Schedule Performance Index (SPI) is set to a low value and should be increased by at least 5 percent. You try to tell the auditor that this target value is in accordance with the organization baseline and cannot be changed. Which of the following is the CORRECT statement in this case?
SELECT THE CORRECT ANSWER

The auditor is right; as the project must meet a critical deadline, target SPI should be increased.

The auditor is right; the target value of SPI is a benchmark for the project, and it should be kept high.

The Project Manager is right; as the project schedule is not critical, target SPI value needn’t be kept too high.

The Project Manager is right; target SPI is based on an organization baseline derived from its process maturity level and should be followed by the project.

Answer 54

Correct Option:D

EXPLANATION

Most organizations set up an organization-level baseline called Process Capability Baseline (PCB). This specifies what results to expect when a process is followed. Using PCB, a project manager can predict, at the gross level, effort required at various stages, defect densities, overall quality, and productivity. In this case, the Project Manager is right to set the target values of his project metrics based on the organization baseline value.