1
Q
- You recently went on an official trip to another country to discuss a business proposition with a potential vendor. The vendor took you out for lunch and offered you gifts, as it is customary in that country. You must:
A.Tell the vendor that you cannot accept the gifts as per company policy
B.Accept the gifts as it is a local custom, but promptly inform your manager
C.Return the gifts, because accepting them could be interpreted as a personal gain
D.Accept the gifts, as they are not very expensive
A
Answer: B Explanation: A project manager has the responsibility to refrain from offering or accepting inappropriate payments, gifts, or other forms of compensation for personal gain, unless it is in agreement with applicable laws or customs of the country where the project management services are being provided.
2
Q
- All of the following relate to the Closing Process Group, except:
A.Managing procurement relationships, monitoring contract performance, and making changes/corrections to contracts as appropriate.
B.Procurements should be finalized prior to closing the project
C.Procurement information should be stored in a records management system
D.The project sponsor signs off on the project after the final lessons learned is complete
A
Answer: A Explanation: This is the definition for the Control Procurements Process, which is performed during monitoring and controlling.
3
Q
- You have identified important risks and planned the appropriate responses. Some risks (e.g. possibility of natural disasters impacting the project) have been documented and accepted in your risk management plan. What are the remaining risks called?
A.Unidentifiable Risks
B.Residual Risks
C.Secondary Risks
D.Inherent Risks
A
Answer: B Explanation: Components of the risk register…include: Residual risks that are expected to remain after planned responses have been taken, as well as those that have been deliberately accepted.
4
Q
- In a recent job interview, you are asked to define the most important characteristic of a project manager. Which of the following will be the best answer?
A.Subject matter expert
B.Integrator
C.Encoder
D.Risk manager
A
Answer: B Explanation: In the project management context, integration includes characteristics of unification, consolidation, articulation, and integrative actions that are crucial to project completion, successfully managing stakeholder expectations, and meeting requirements.
5
Q
- You have been asked to prepare a process improvement plan. You should consider all the following, except:
A.Costs of non conformance
B.Targets for improved performance
C.Process boundaries and process metrics
D.Continual process improvement analysis meetings during Executing
A
Answer: A Explanation: Costs of non conformance are rework, etc. The areas to be considered in the process improvement plan include process boundaries, process configuration, process metrics, and targets for improved performance.
6
Q
- You are responsible for managing a project in your company but you have little authority and have to constantly report to a functional manager. To which organizational structure does your company best relate to?
A.Matrix
B.Functional
C.Projectized
D.Balanced
A
Answer: B Explanation: A classic functional organization… is a hierarchy where each employee has one clear superior. Staff members are grouped by specialty, such as production, marketing, engineering, and accounting at the top level.
7
Q
- You are a project manager in a manufacturing company, and are developing a new product. In this context, you are conducting requirements workshop for the stakeholders to determine the product`s critical characteristics. Which technique would best be used for this purpose?
A.Quality Function Deployment (QFD)
B.Joint Application Development (JAD)
C.Voice Of Customer (VOC)
D.Key Performance Indicators (KPI)
A
Answer: A Explanation: Quality Function Deployment (QFD) is an example of a facilitated workshop technique that helps determine critical characteristics for new product development. KPI is a type of performance measurement used to evaluate the success of the project. (E.g. zero defects, meets business requirements, customer satisfaction.)
8
Q
- You establish clear expectations regarding acceptable behavior by project team members. You believe that early commitment to clear guidelines will decrease misunderstanding and increase productivity. These expectations and guidelines are also known as:
A.Team-building activities
B.Ground rules
C.Interpersonal skills
D.Core team rules of conduct
A
Answer: B Explanation: Ground rules establish clear expectations on acceptable behavior by project team members. Early commitment to clear guidelines decreases misunderstandings and increases productivity. Discussing ground rules allows team members to discover values that are important to one another.
9
Q
- You are in the process of determining the types of contracts to be used, need for standardized procurement documents, and ways of managing multiple providers. You can get the guidance for doing these activities through:
A.Project Management Plan
B.Contract Change Control Plan
C.Procurement Management Plan
D.Cost Management Plan
A
Answer: C Explanation: The procurement management plan describes how the procurement processes will be managed from developing procurement documents through contract closure. The procurement management plan can include guidance for:
- Types of contracts to be used
- Whether independent estimates will be used and if they are needed as evaluation criteria
- Managing multiple suppliers
10
Q
- You are beginning the Estimate Activity Durations Process. Which of the following would be helpful?
A.Source selection criteria, P-I matrix
B.Staffing management plan, Communications management plan
C.Quality metrics, Quality checklists
D.Activity list, Resource Calendars, Resource Breakdown Structure, Risk Register
A
Answer: D Explanation: Helpful inputs. Note that risk register is included as part of the contingency reserves needed for “reserve analysis.”
11
Q
- You are the project manager with seven team members. One more member will be joining the team after a week. What will be the number of communication channels once the new member joins your team?
A.28
B.21
C.18
D.36
A
Answer: D Explanation: There will be 9 people in your team (this includes 8 team members and you, the project manager). So, the number of communication channels = 9 * (9 - A) / 2 = 9 * 8 / 2 = 36.
12
Q
73.All of the following are inputs for the Monitor and Control Project Work Process, except:
●
A.Project management plan, enterprise environmental factors, organizational process assets
B.Validated changes, work performance information
C.Change requests & work performance reports
D.Schedule & cost forecasts
A
Answer: C Explanation: These are actually outputs for this process.
13
Q
- Half way through your construction project, the CPI is 0.85 and SPI is 1.25. What could be the possible reason?
A.A critical resource went on sick leave for a long period of time, which had not been anticipated earlier.
B.The cost of raw materials required for construction increased by 10%. (You had anticipated a cost increase of 12% in your project plans.)
C.In anticipation of delays, the project was crashed to decrease the duration.
D.There was four days waiting time in the curing of concrete, and work could not be done during that time.
A
Answer: C Explanation: Option C: This is the correct answer, because crashing of a project results in decreased duration and increased costs. This verifies the given data on CPI and SPI. Options 1 and 4: They are ruled out, because they do not verify the given data that SPI>1. Option B: This is also ruled out, because it does not verify the given data that CPI<1.
14
Q
- Even after carefully performing risk management for the project, you realize that possibility of new risks occurring in the future still exists. You will be able to handle such risks if you perform:
A.P-I Matrix Assessments
B.Continuous Process Improvement
C.Control Risks
D.Risk Response Analysis
A
Answer: C Explanation: The Control Risks is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.
15
Q
- Which of the following are not inputs to the Direct and Manage Project Work Process:
A.Organizational process assets
B.Approved change requests
C.Project management plan
D.Change control tools
A
Answer: D Explanation: Change control tools are a technique used in Perform Integrated Change Control process. The activities performed during the Direct and Manage Project Work process include but are not limited to manage sellers and suppliers, create project deliverables, implement the planned methods and standards, etc.
16
Q
- You are a project manager in XYZ Company, which has a projectized organizational structure. In this environment, all of the following are true, except:
A.Team members are often collocated.
B.There is a “home” for project team members after a project is completed.
C.You have a great deal of authority and independence.
D.Organizational units (or departments) either report directly to you or provide support services to the various projects.
A
Answer: B Explanation: One disadvantage of a projectized organization is that there is “no home” for the project team members once the project is completed. All the remaining features mentioned above are features of a projectized organization.
17
Q
- You have completed a NASA project for the launch of a weather forecasting satellite. The satellite is being tested for a specific quality metric. For which processes are quality metrics used?
A.Perform Quality Assurance and Plan Quality Management
B.Plan Quality Management and Perform Quality Control
C.Perform Quality Control, Plan Quality Management, and Perform Quality Assurance
D.Perform Quality Assurance and Perform Quality Control
A
Answer: D Explanation: Quality metrics are used in the Perform Quality Assurance and Perform Quality Control processes—Not in Planning.
18
Q
- In projects, expert judgment will often be used throughout all the project integration processes as a common tool/technique. This can be provided by all of the following, except:
A.Professional and technical associations
B.Competitors
C.Consultants
D.Other units within the organization
A
Answer: B Explanation: Expert judgment is available from:
- Other units within the organization
- Consultants
- Stakeholders, including customers or sponsors
- Professional and technical associations
- Industry groups
- Subject matter experts
19
Q
- In a previous project, the project manager told the team members what to do. The type of authority they likely had was:
A.Legitimate (formal, based on position)
B.Laissez faire
C.Expert
D.Penalty
A
Answer: A
20
Q
- Which of the following would not be used during the Control Procurements Process?
A. Contract change control, procurement performance reviews, payment systems
B. Performance reporting, inspections, audits
C. Claims administration, records management system
D. Procurement audits, closed procurements
A
Answer: D Explanation: Closed procurements is performed during the Close Procurements process.
21
Q
- All the following statements regarding the creation of duration estimates are correct, EXCEPT:
A.Mathematical analyses like CPM, GERT, and PERT indicate the dates on which the activity can be scheduled, given resource limits and other constraints.
B.Duration compression techniques, including fast tracking and crashing, can help in decreasing the project schedule.
C.WBS classification allows for useful activity ordering and sorting.
D.The duration of the project is the sum of the duration of all the activities in the project.
A
Answer: D Explanation: The duration of the project should be calculated after drawing a network diagram and determining the critical path. The duration of the project is the length of the critical path and not the sum of the duration of all the tasks in the project.
22
Q
- Which of the following motivation theories is attributed to Victor Vroom?
A.Three Needs Theory
B.Expectancy Theory
C.Theory Y
D.Situational Leadership II Theory
A
Answer: B Explanation: Victor Vroom is attributed with the Expectancy Theory. People “expect” to be recognized/rewarded, so plan on how to link their performance with their desired reward. (Three Needs: David MCleland. Theory Y: Ouichi. Situational Leadership II: Hersey & Blanchard)
23
Q
- The seller`s project is undertaken on contract and you are an employee of the seller. Since you earlier worked with ABC Bank, the buyer, you are aware of the evaluation criteria used in ABC Bank to select sellers. You understand this could be a potential conflict of interest situation. How do you propose to act?
A.Do nothing and continue to work as before.
B.Take the appropriate person in ABC Bank into confidence and discuss this issue with her to determine what to do.
C.Disclose the evaluation criteria to your (seller) organization and help their business grow.
D.Remove yourself from the project—this is a conflict of interest.
A
Answer: B Explanation: Option B (best answer): This is the correct answer. Since the evaluation criteria are proprietary information of ABC Bank, it is important for you to discuss the matter directly with the appropriate person in the ABC Bank. Option A: This introduces conflict of interest as to whether to act or not in favor of your current employer. Option C: This is unethical, because proprietary information of the buyer should not be disclosed. Option D: This is an extreme step that could be taken only if required after talking to the buyer.
24
Q
- Calculate the to-complete-performance index (TCPI) of your project, given that the actual cost of your project is $125,000, cost variance is $65,000, and the budget at completion is $250,000.
A..9
B.0.48
C.1.7
D..3
A
Answer: B Explanation: CV = EV - AC
So, EV = CV + AC = 65,000 + 125,000 = 190,000.
TCPI = (BAC-EV) / (BAC-AC)
= (250000-190000) / (250000-125000)
= 60000/125000
= 0.48
25
86. In your project, you have just conducted a risk data quality assessment to evaluate the degree to which the data about risks is useful for risk management. What is your next step?
A.Perform a structured review of project plans and assumptions, both at the total project and detailed scope levels.
B.Develop checklists to identify risks based on historical information and knowledge that has been accumulated from previous similar projects.
C.Conduct planning meetings to develop the risk management plan.
D.Conduct interviews to quantify the probability and impact of risks on project activities.
Answer: D Explanation: Justification: Risk data quality assessment is a tool for Perform Qualitative Risk Analysis process. It refers to "Interviewing" which is a tool and technique for Perform Quantitative Risk Analysis. Perform Quantitative Risk Analysis is conducted after Perform Qualitative Risk Analysis. Option A: This refers to "Documentation Reviews" which is a tool and technique for Identify Risks process. Identify Risks process is conducted before Perform Qualitative Risk Analysis process. Option B: This refers to "Checklist Analysis" which is a tool and technique for Identify Risks process. Identify Risks process is conducted before Perform Qualitative Risk Analysis process. Option C: This refers to "Planning Meetings and Analysis" which is a tool and technique for Plan Risk Management process. Plan Risk Management process is conducted before Perform Qualitative Risk Analysis process.
26
87. You are the project manager for a project managed under contract. You receive a change request from the buyer involving a new government regulation. What should you do FIRST?
A.Talk with the project team members to understand implications of the change.
B.Adopt an Agile project lifecycle.
C.Begin the change control process.
D.Implement the change and communicate to the customer.
Answer: C Explanation: Since the change request pertains to a government regulation and the project is being managed as part of a contract, it is mandatory to implement the change. The first step towards that is to activate the change control procedure. Agile (iterative type of lifecycle) relates to determining scope early, and modifying schedule and cost routinely over the course of the project. The product is developed through a series of iterations (repeated cycles, i.e. Agile).
27
88. In your project, you would like to identify logical groupings based on natural relationships. Which one of the following techniques would you use?
A.Force field analysis
B.Affinity diagrams
C.Voice of Customer
D.SWOT analysis
Answer: B Explanation: Affinity diagrams are used to visually identify logical groupings based on natural relationships.
28
89. Your project sponsor has specified that you have to complete your project within 3 months with a funding limit of $ 250,000. This is an example of:
●
A.Authoritative management
B.A constraint
C.An assumption
D.High-level risk
Answer: B Explanation: Project constraints are those constraints associated with the project scope that limit the team`s options. For example, a predefined budget or any imposed dates or schedule milestones that are issued by the customer or performing organization constitute constraints.
29
90. Your company exhibited a car model in two international auto expos and obtained feedback from the global automobile industry, auto magazines, and others. The company decided to go ahead with the designing and manufacturing of the car, taking into consideration the feedback received. Which of the following methods did your company use?
A.Observation technique
B.Prototype
C.Requirements analysis
D.Quality sample
Answer: B Explanation: Since prototypes are tangible, prototyping allows stakeholders to experiment with a model of their final product rather than only discussing abstract representation of their requirements. Prototype is a method of obtaining feedback on a requirement by providing a model to work on. Option A: Observation technique provides a direct way of viewing Individual in their environment and how they perform their jobs and tasks to carry out the processes Option C: Requirement documentation describes how individual requirements meet the business needs for the project. Option D: Requirement traceability matrix gives high level requirement to more detailed requirement.
30
91. You are determining project roles, responsibilities, and reporting relationships. All of the following will be useful inputs to you, except:
A.Enterprise environmental factors
B.Organizational process assets
C.Activity resource requirements
D.Project organization charts
Answer: D Explanation: Develop Human Resource Plan is the process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan. Inputs to this process are activity resource requirements, enterprise environmental factors, and organizational process assets. However, project organization charts are an output.
31
92. The subcontracting requirements for machining high-value equipment are very demanding. Hence, you have determined the technical criteria to evaluate the sellers. This is an example of:
A.Objective evaluation criteria
B.Source selection criteria
C.Statement of work
D.Work breakdown structure
Answer: B Explanation: Selection criteria are developed and used to rate or score seller proposals, and can be objective or subjective.
32
What is the float of activity 5?
A. 0
B. 1
C. 2
D.-1
Answer: A Explanation:
The lengths of different paths are:
Start -\> 1 -\> 2 -\> End: 10
Start -\> 3 -\> 5 -\> End: 11
Start -\> 4 -\> 5 -\> End: 12
Since the longest path is Start -\> 4 -\> 5 -\> End; this is the critical path. Activity 5 lies on the critical path; hence the slack for task 5 is "0".
33
94. You have been assigned seven project team members, and one more person will be joining next week. Once the new person joins, the number of communication channels will increase by:
A. 0
B. 8
C. 12
D. 20
Answer: B Explanation: For calculating the number of communication channels, the formula used is: N = n (n-1) / 2. So, in this instance, number of communication channels with 8 people = 8\*(8 -1) / 2 = (8\*7) / 2= 28. Number of communication channels with 9 people = 9\* (9 - 1) / 2 = (9\*8) / 2= 36
So, the communication channels will increase by: 36 - 28 = 8. (Did you forget to include yourself?)
34
95. Your company has recently been awarded a contract by the government to reconstruct houses devastated by an earthquake. In this context, the government’s role will most likely provide the:
A.Project scope baseline
B.Business case / Business need
C.Project charter
D.Project management plan
Answer: C Explanation: Option C: Since the government is an external agency, and this is a "recently awarded" project as mentioned in the question, hence inputs (e.g. contract) from the government will help the project manager in creation of the project charter for the performing organization. Option A: Scope Baseline includes the Scope Statement, WBS and WBS Dictionary. So, this will be created later on after the project charter is finalized. Option B: Business Need/Business case for the project should be already established because the government has contracted out the work to your company. Option D: The project management plan is a planning document created after the project charter is approved.
35
96. Which of the following processes has the Stakeholder Register as the output?
A.Plan Stakeholder Management
B.Identify Stakeholders
C.Plan Human Resources
D.Develop Business Requirements
Answer: B Explanation: The key output for the Identify Stakeholders Process is the Stakeholder Register. Business Requirements are requirements that are analyzed, prioritized, and documented as they relate to the needs for the preforming organization.
36
97. Your risk calculations show there is a risk of overrunning the project scope and schedule targets to levels that are beyond the threshold limits determined in the project. To bring the level of risk to a level acceptable to your organization, you should:
A.Consider using contingency reserves
B.Decrease the project scope and increase the project schedule
C.Talk with your sponsor about canceling the project
D.Add in training costs
Answer: A Explanation: Contingency reserves are needed to bring the risk of overrunning stated project objectives to a level acceptable to the organization.
37
98. You are managing a small project with five team members working part-time. At the beginning of every week, you allocate work to all the team members. This is an example of:
A.Work Authorization System
B.Improper planning because team members do not know in advance what needs to be done at what time
C.Responsibility Assignment Matrix (e.g. RACI)
D.Project schedule management
Answer: A Explanation: A work authorization system is a collection of formal documented procedures that specifies how project work is authorized to ensure that work is done by the identified organization at the right time and in the proper sequence.
38
99. After joining as a stand-in project manager for an ongoing project, you are informed by the team that certain features are added to the deliverable that were not requested by the customer, to earn the customer’s appreciation. In this situation:
A.You are concerned, because the project team is gold-plating
B.You are happy, because the project will “exceed customer expectations”
C.You are concerned that this is going to increase the project size
D.You are undecided about the increase in the quality metrics of the project
Answer: A Explanation: You should be concerned because the project team is gold-plating, which is not a recommended project management practice. Please note that “adding extra functionality beyond project scope” is not recommended by PMI, since a project is supposed to deliver what is defined in its scope. Similarly, one cannot request for additional sizing for the project because the customer had never asked for the additional requirements.
39
100. Project performance must be monitored and measured regularly to identify variances from the plan. All the following processes are performed during monitoring and controlling, except:
A.Validate Scope
B.Control Risks
C.Control Stakeholder Management
D.Perform Quality Assurance
Answer: D Explanation: Perform Quality Assurance is a process in the Executing Process group.
40
101. Some of the benefits of a well-constructed project scope statement include all, except:
A.Provides a documented basis for making future project decisions
B.Develops common understanding of project scope among stakeholders
C.Provides knowledge of project justification, deliverables, and objectives
D.Provides a basis for time and cost estimates
Answer: D Explanation: Work breakdown structure (which is an output from Create WBS process) helps in providing a basis for time and cost estimates. All the remaining are benefits of a well-constructed project scope statement.
41
102. You are managing a high priority project, requiring more than 1,000 team members. During human resource planning, you would like to apply proven principles to shorten the time needed to create a human resource plan to ensure you are when and how human resource requirements will be met. Which of the following “subsidiary plan” does this describe?
A.Stakeholder register
B.Linear Resource Chart
C.Staffing management plan
D.Stakeholder allocation plan
Answer: C Explanation: The staffing management plan describes when and how the human resource requirements will be met.
42
103. The following is the data for a CPIF project you are managing:
Target cost is $ 100,000; Actual cost is $ 80,000;
Target fee is $ 20,000; Maximum fee is $ 25,000;
Sharing ratio is 60:40.
What should be the final price of the contract?
A.$ 100,000
B.$ 108,000
C.$ 105,000
D.$ 92,000
Answer: C Explanation:
Target cost (TC) = $ 100,000
Target fee (TF) = $ 20,000
Maximum fee = $ 25,000
Sharing ratio=60:40
Actual fee (AF) = {(TC - AC) \* SSR} + TF = {($ 100,000 - $ 80,000) \* 40%} + $
20,000 = $ 20,000 \* 40% + $ 20,000 = $ 28,000,
Although the actual fee is more than the maximum fee, the maximum fee ($ 25,000) only is payable. So, final price = AC + AF = $ 80,000 + $ 25,000 = $ 105,000
43
104. Of the following documents, all of which are updated during the Control Schedule process, which is NOT a part of the project management plan?
A.Schedule baseline
B.Cost baseline
C.Schedule management plan
D.Schedule data
Answer: D Explanation: Elements of the project management plan that may be updated include, but are not limited to, schedule baseline, schedule management plan, and cost baseline. Schedule data is the project document that gets updated as an output to the Control Schedule process.
44
106. As part of your duties as a project manager, you provide confidential company data to a vendor. In this context, which of the following precautions should you take?
A.Insist that the vendor signs a non-disclosure agreement after you release the sensitive information.
B.Make sure that the vendor receives all the sensitive information in time.
C.Ensure that the vendor signs non-disclosure agreement before you release the sensitive information.
D.Monitor the vendor in order to prevent her from sharing the information with her competitors
Answer: C Explanation: PMI Code of Ethics and Professional Conduct requires a project manager not to disclose sensitive or confidential information. But, at times, an organization has a legitimate need to disclose confidential information to vendors, governmental agencies, or others. When disclosing confidential or sensitive information, it is the responsibility of the project manager to ensure that proper nondisclosure agreements are signed prior to the disclosure of the sensitive information.
45
105. What are the outputs for the Plan Scope Management Plan?
A.WBS, WBS Dictionary, Project Documents updates
B.Scope Management Plan, WBS
C.Requirements Traceability Matrix, Project Scope Statement
D.Scope Management Plan, Requirements Management Plan
Answer: D Explanation: Remember, all the scope baseline information is incorporated into the Scope Management Plan. Understanding the sequence of the performing the processes is key to these types of questions.
46
107. As the project manager at a small software development company, you are determining the possible costs to complete project activities. This is done as part of which process?
A.Variance Analysis
B.Estimate Costs
C.Determine Budget
D.Estimate Procurement Costs
Answer: B Explanation: Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities. Cost trade-offs and risks must be considered, such as make versus buy, buy versus lease, and the sharing of resources in order to achieve optimal costs for the project.
47
109. Ideally, when should a project manager begin working on a project?
A.As soon as a possible
B.After the Project Charter has been approved
C.When the WBS is completed
D.At any time during the project life cycle, depending on requirements
Answer: A Explanation: A project manager is identified and assigned as early in the project as is feasible. NOTE: THE PROJECT MANAGER IF FORMALLY ASSIGNED WHEN THE PROJECT CHARTER HAS BEEN APPROVED!
48
108. You have created a spreadsheet that shows cumulative cost at any particular point of time in the project duration. Your director wants to review the project costs and you decide to make a presentation. Cumulative costs plotted against time may be shown in which report?
A.S-curve
B.Histogram
C.Just in Time, LEAN, Kanban Charts
D.Pareto diagram
Answer: A Explanation: S-curve is a graphic display of cumulative costs, labor hours, percentage of work, or other quantities, plotted against time. The name derives from the S-like shape of the curve.
49
110. All the following statements about "Quality" and "Grade" are true, except:
A.Grade is a rank given to entities having the same functional use but different technical characteristics.
B.Low quality product may be of high grade.
C.Low grade products may have high quality levels.
D.It is a problem if the product is of high quality and low grade.
Answer: D Explanation: Grade is a category assigned to products or services having the same functional use but different technical characteristics. While a quality level that fails to meet quality requirements is always a problem, low grade may not be. For example, a software product can be of high quality (no obvious defects, readable manual) and low grade (a limited number of features), or of low quality (many defects, poorly organized user documentation) and high grade (numerous features). +=
50
111. ABC company has recently launched a new model of their car in the market and the market response has been overwhelming. Sales have gone up to a level much higher than what the company anticipated. To cater to the increased market demand, the company plans to start a project to create a new assembly line for the cars. Who is the end user?
A.Project Manager and Project Management Staff
B.People who may buy the cars in the future
C.Project Sponsor who provides funding
D.The assembly line worker who is going to work on the new assembly line being created
Answer: D Explanation: Customers refer to the entity acquiring the project`s product, and users refer to those who will directly utilize the project`s product.
51
112. Your project is very critical for the company and must be completed within six months. The project charter has been signed, but the project scope statement is not yet prepared. Management asks you to go ahead without a scope statement. What should you do?
●
A.Refuse to work on the project, because the management is not following standard project management practices.
B.To save time, you should start the project with inputs from the project charter.
C.Try to meet with management to discuss problems you may face if you start the project without a scope statement.
D.Escalate the issue to the project sponsor and issue a risk memo.
Answer: C Explanation: Option C: This is the best available alternative. Without the scope statement, you do not have a good understanding of the project justification, product, or project deliverables and project objectives. Also, you do not have all the inputs for the scope definition and for the creation of work breakdown structure (WBS). The best option is to talk to the management about the problems likely to be faced if you start a project without a scope statement. Option A: This is an extreme step and is not recommended. Option B: This will pose problems. For example, you will not be able to create a WBS without the help of a scope statement. Option D: This is an extreme measure and is not recommended.
52
113. Ten team members were assigned in advance to your project. This
pre-assignment could be because of all the following reasons, except:
A.Specific people were promised as part of a competitive proposal.
B.Suitable people volunteered to work on the project.
C.Staff assignments were defined in the project charter.
D.The project was dependent on the expertise of the pre-assigned persons
Answer: B Explanation: When project team members were selected in advance, they would be considered pre-assigned. This situation could occur if the project was the result of specific people being promised as part of a competitive proposal, if the project was dependent upon the expertise of particular persons, or if some staff assignments were defined within the project charter.
53
114. A contract which includes features of cost reimbursable and fixed price types of contract is a:
A.Fixed price plus incentive fee contract
B.Cost plus award fee contract
C.Time and material contract
D.Cost plus fixed fee contract
Answer: C Explanation: Time and material contracts are a hybrid type of contractual arrangements that contain aspects of both cost-reimbursable and fixed-price contracts. Option A: This type of contracts involves fixed-price arrangement that allows for deviation from performance, with financial incentives tied to achieving agreed metrics. Option B: In this type of contracts, the seller is reimbursed for all legitimate costs, but the majority of the fee is only earned based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract. Option D: In this type of contracts, the seller is reimbursed for all allowable costs for performing the contract work, and receives a fixed fee payment calculated as a percentage of the initial estimated project costs.
54
115. Activity attributes extend the description of the activities in the activity list. These activity attributes are inputs to all the following processes, except:
A.Sequence Activities
B.Define Activities
C.Estimate Activity Resources
D.Estimate Activity Durations
Answer: B Explanation: Activity attributes are outputs from the Define Activities process and inputs for Sequence Activities, Estimate Activity Resources, Estimate Activity Durations, and Develop Schedule processes, Again, knowing the sequence of the Planning Processes is key to answering these questions on the exam.
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116. Identify Stakeholders is the process to identify all people or organizations impacted by the project and to document:
A.Stakeholder influence, interest, involvement, interdependency, and impact on project success
B.Their needs and address issues as they occur
C.Project status reports, progress measurements and forecasts
D.Stakeholder needs and define a communication approach
Answer: A Explanation: Option A: (This is the correct answer). Project stakeholders are persons or organizations such as customers, sponsors, the performing organization, and the public that are actively involved in the project. Option B: Manage Stakeholder Engagement is the process to communicate and work with stakeholders to meet their needs and address issues as they occur. Option C: Report Performance is the process to collect and distribute performance information, including status reports, progress measurements and forecasts. Option D: Plan Communications is the process to determine the project stakeholder information needs and define a communication approach.
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117. You are a member of the selection committee, which is appointed to oversee the awarding of an important contract. In this context, all of the following can be treated as conflict of interest situations, except:
A.Your friend bids for the contract and you inform the committee and the project sponsor about it.
B.Your relative bids for the contract and you do not inform the project sponsor about it.
C.Your close friend bids for the contract and you refrain from participating in the contract awarding decision process without informing your sponsor.
D.Your friend bids for the contract and you make sure the contract is awarded to him.
Answer: A Explanation: Conflict of interest arises when personal interests outweigh professional considerations. A person`s associations and affiliations with others can also lead to conflict of interest. Please note that if there is a conflict of interest situation, please inform the appropriate stakeholders and distance yourself from the conflict situation, if possible.
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118. You have just completed drafting your Project Scope Statement with your Project Management Staff, what is the next step?
A.Collect Requirements
B.Plan Stakeholder Management
C.Create WBS
D.Define Scope
Answer: C Explanation: Create WBS is the next process—with the other Scope outputs, they all make up the Scope Baseline.
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119. Your company is a pioneer in the construction industry. The government recently floated a tender for setting up a new airport. Since you do not have all the requisite skills within the company, you enter into a joint venture with a leading airport construction company to bid jointly for the government contract. This is an example of:
A.Risk exploitation
B.Risk sharing
C.Risk enhancing
D.Risk mitigating
Answer: B Explanation: Opportunities: E.S.E.A. Strategies for positive risks or opportunities (share): Sharing a positive risk involves allocating some or all of the ownership to a third party who is best able to capture the opportunity for the benefit of the project. Examples of sharing actions include forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures, which can be established with the express purpose of taking advantage of the opportunity so that all parties gain from their actions.
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120. Which of the following relates to Physiological, Safety, Social Esteem, Self-Actualization?
A.Maslow’s Hierarchy of Needs
B.Herzberg’s Hygiene Theory
C.MacGregor’s Theory Y
D.Hersey/Blanchard Situational Leadership II
Answer: A Explanation: It’s important to know all motivation theorist, and understand their theories for the exam. Maslow, McClelland, Herzberg, Vroom, Hersey/Blanchard, MacGregor, Ouichi.
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121. Your company has implemented ISO standards for quality. In this context, which of the following statements regarding quality is NOT accurate?
A.Quality audits compare project deliverables against the product requirements as defined in the WBS.
B.Process analysis identifies the needed improvements from organizational and technical standpoint.
C.Perform Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.
D.The Quality Management Plan describes how the Project Management Staff will implement the performing organization`s quality policy.
●
Answer: A Explanation: A quality audit is a structured, independent review to determine whether project activities comply with organizational and project policies, processes, and procedures.
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122. You have reached the end of the design phase of your project. You decide to call a "phase end review" for obtaining authorization to close the design phase and initiate the next phase (i.e. execution phase) of your project. Your manager disagrees with your suggestion. He wants a "kill point" to formally end the design phase of the project. In this context, you should:
A.Disagree with your manager because you know that phase end reviews should be used at the end of each phase of the project
B.Agree with your manager
C.Escalate this issue to the project sponsor
D.Take advice from a senior project manager about what should actually be done at the end of each phase of the project
Answer: B Explanation: A phase-end represents a natural point to reassess the effort underway and to change or terminate the project if necessary. These points are referred to as phase exits, milestones, phase gates, decision gates, stage gates, decision gates, stage gates or kill points.
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123. During the Validate Scope Process, you formalize acceptance of the project deliverables and keep the project focused on the business need for which it was undertaken. This should be done:
A.After the Final Kickoff Meeting
B.At the end of the project
C.Immediately after the Change Control Board approves changes
D.After getting validated deliverables from the quality control process
Answer: D Explanation: Validated deliverables are the deliverables that have been completed and checked for correctness by the Perform Quality Control process (as per predefined acceptance criteria). They are an input to Validate Scope process.
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124. You are in the process of determining the project roles, responsibilities, and reporting relationships for your team members. At the end of this process, you will define/create all of the following, except:
A.Project staff assignments
B.Roles and responsibilities (i.e. RACI RAM)
C.Project organization charts
D.Staffing management plan
Answer: A Explanation: Project staff assignments are an output from the "Acquire Project Team" process and not the Develop Human Resource Plan process. Note: RACI relates to Responsible, Accountable, Consult, Inform.
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125. How do sole source contracts differ from single source contracts?
A.Single source contracts are forms of non-competitive procurements, where as sole source contracts are forms of competitive procurements.
B.Single source contracts are forms of competitive procurements, where as sole source contracts are forms of non-competitive procurements
C.In single source contracts, you (buyer) contract a seller because he is your preferred seller, where as in sole source contracts, you (buyer) contract a seller because there are no other sellers for your required procurement item.
D.Unlike sole source contracts, single source contracts help an organization to save time because they do not involve procurement process before bids or proposals are received.
Answer: C Explanation: The major difference between single source contracts and sole source contracts--though both are non-competitive forms of procurements-is that in single source contracts, contract is awarded to a seller because he is the organization’s preferred seller, where as in sole source contracts, contract is awarded to a seller because there are no other sellers for the organization’s required procurement item. Options A and B: Both types are forms of non-competitive procurements. Option D: Sole source contracts help organizations save time.
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126. Identifying and documenting interdependencies between the various project activities is done as part of which process?
A.Define Activities
B.Estimate Activity Durations
C.Sequence Activities
D.Develop Schedule
Answer: C Explanation: Sequence Activities is the process of identifying and documenting relationships among the project activities. The key process output is the Project Schedule Network Diagram.
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127. While identifying stakeholders, you plan to group the stakeholders based on their level of authority and their active involvement in the project. You can do this by using a:
●
A.Power/interest grid
B.Power/influence grid
C.Influence/impact grid
D.Salience model
Answer: B Explanation: There are multiple classification models (for stakeholders) available including, but not limited to: Power/interest grid, grouping the stakeholders based on their level of authority (power) and their level or concern (interest) regarding the project outcomes; Power/influence grid, grouping the stakeholders based on their level of authority (power) and their active involvement (influence) in the project; Influence/impact grid, grouping the stakeholders based on their active involvement (influence) in the project and their ability to effect changes to the project`s planning or execution (impact); and Salience model, describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate).
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128. Your company asks you to manage a project of its subsidiary unit in another country. You quickly realize that workers in the subsidiary unit have poor work ethics as compared with that of your parent company. In this context, which of the following will be the most appropriate course of action?
A.Ask your new team to emulate the work ethics of the teams of your parent concern.
B.Take steps to change the work culture of your new team.
C.Regard your new team as lazy and impose sanctions.
D.Treat it as cultural differences, and try to determine ways to improve productivity.
Answer: D Explanation: The PMI Code of Ethics and Professional Conduct requires a project manager to address things with an open mind and accept the cultural and ethical diversity that exists between different countries. So, it is not the responsibility of the project manager to enforce the work-ethics of one`s own country on the people of another country.
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129. What is the status of the project?
A.Behind schedule, but under budget
B.Ahead of schedule, and under budget
C.Ahead of schedule, but over budget
D.Behind schedule, and over budget
Answer: C Explanation: Earned value (EV) = The sum of the approved cost estimates for activities completed during a given period = Estimated cost of work that is completed after day 11
= $ 5,000 + $ 5,000 + $5,000\*.50 = $ 12,500 (because Activity A, Activity B are complete, Activity C is 50% complete)
Present value (PV) = Present work to be completed after day 11 = $ 5,000 + $ 5,000 + $ 5,000 \* (1/5) (because at end of day 11, according to our plan, Activity A, Activity B should be complete; Activity C only one day out of 5 days should be complete, i.e. 20% complete ($ 1,000 of work should be done) = $ 11,000.
Actual cost (AC) = Actual Cost of work completed = $ 13,000.
Schedule variance (SV) = EV - PV = $ 12,500 - $ 11,000 = $ 1,500
Since SV is positive, we are ahead of schedule.
Cost variance (CV) = EV - AC = $ 12,500 - $ 13,000 = - $ 500
Since CV is negative, we are over budget.
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130. You have identified disaster situations (e.g. floods, earthquakes, etc.) as potential risks. The project sponsor suggested that, at the project level, no steps could be taken to deal with such risks and recommended creation of a contingency reserve (with 5% of the project budget) which could be used in case of disaster situations. This is an example of:
A.Risk mitigation
B.Risk acceptance
C.Risk avoidance
D.Risk transfer
Answer: B Explanation: THREATS: A.T.M.A. Accept: This strategy is adopted because it is often not possible to eliminate all threats from a project. This strategy indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy. The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the risks when they turn into issues.
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131. Your project involves creating a launch vehicle for NASA satellites. For successful project implementation, it is important to coordinate activities with other NASA operational groups to decrease uncertainty/confusion, and also divide your project into several phases to provide better project management control. To facilitate this, you should:
A.Break the project into several sub-projects.
B.Adopt a life cycle approach to manage the project.
C.Develop specific deliverables, which are approved by the sponsor.
D.Create a very comprehensive project charter.
Answer: B Explanation: A project life cycle is a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization or organizations involved in the project, the nature of the project itself, and its area of application.
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132. In your pharmaceutical company, quality is an important criterion to determine project success. In this context, all the following are examples of cost of non-conformance, except:
A.Training
B.Rework
C.Loss of reputation
D.Warranty
Answer: A Explanation: Training is a cost of conformance. Cost of Quality: A method of determining the costs incurred to ensure quality. Prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to requirements (i.e., training, QC systems, etc.). Failure costs (cost of non-conformance) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation.
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133. As a project manager, you understand the importance of identifying and documenting project risks. Which of the following statements is true:
A.Risk identification occurs exclusively during Planning.
B.Risk identification occurs during Monitoring and Controlling of the project.
C.Risk identification occurs during Execution of the project.
D.Risk identification can occur throughout the project, but comprehensive risk identification is performed during the Planning Process Group.
Answer: D Explanation: Best answer. Comprehensive risk identification is done as part of the Planning Process Group.
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134. The process of monitoring the status of the project and product scope and managing changes to the scope baseline is referred to as:
A.Validate Scope
B.Control Scope
C.Monitoring and Controlling Project Work
D.Scope Verifications
Answer: B Explanation: Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline.
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135. Motivating your team members is important for the success of the project. You understand from the HR manager that employees are motivated by self-esteem, recognition, and self-actualization. To which theory is the HR manager referring?
A.Theory Y
B.Learning curve theory
C.Herzberg`s theory
D.Maslow`s Hierarchy
of Needs
Answer: D Explanation: Abraham Maslow`s hierarchy of needs states that different people are at different levels in the need hierarchy. Usually people start out looking for physiological needs and then progressively move up the needs hierarchy.
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136. During the Close Procurements process, you should attend to all the following, except:
A. Perform a structured review of processes from plan purchases and acquisitions through contract closure.
B. Perform procurement performance reviews to determine seller`s progress to deliver project scope and quality, within cost and on schedule, as compared to the contract.
C. Identify successes and failures that warrant recognition to prepare or administer procurement contracts in the future.
D. Use procurement audits as a technique.
Answer: B Explanation: Option B is ideally performed in Control Procurements Process. Options A, C, and D: These are performed as part of Close Procurements process.
