PRACTICE EXAMS

Question 1

Choose the answer that best describes the relationship of Project Quality Management to Project Management.

a. Plan-Do pertains to project management; Check-Act pertains to Project Quality Management
b. Quality Management processes occur only in the close out phase of project management
c. Quality Planning occurs in the project initiation phase; Quality Assurance occurs in the Project Planning phase; Quality Control occurs in the Project Execution phase; and Quality Improvement occurs in the close out phase
d. Quality Management needs to be performed in each phase of the project lifecycle

Answer 1

D

The best answer choice is D because the Quality Management plan provides guidance and direction on how quality will be managed and validated throughout the life of the project.

Question 2

The Program Evaluation Review Technique is used for:

a. Developing cost histograms
b. Estimating project duration when there is a degree of uncertainty with the activity duration estimates
c. Determining project duration when it is necessary to factor in the conditional probabilistic treatment of logical relationships
d. Presenting project summary status to upper management

Answer 2

B

The best answer choice is B because PERT uses three estimates to define an approximate range for an activity’s duration. Duration estimates based on three points with an assumed distribution provide an expected duration and clarify the range of uncertainty around the expected duration. It may also be used for cost and labour hour estimates.

Question 3

You are a project manager in a large software development company. Your former manager, Susan, was director of the Project Management Office. Susan left the company on very good terms. When she was at your company, she developed a comprehensive Project Management methodology with a number of useful forms and templates. Susan was also a personal friend of yours. She called you last week and left you a voicemail requesting that you send her electronic copies of the forms and templates she developed. When you return Susan’s call, what should be your response to her request?

a. Try to avoid the question unless she brings it up in conversation
b. “Since you developed the templates, I would be happy to send them to you.”
c. “I’m sorry but I cannot send you the templates as they are proprietary information of the company.”
d. Do not call back and attempt to end your friendship with Susan

Answer 3

C

The best answer choice is C because according to the PMI Code of Ethics and Professional Conduct, every project manager has the responsibility to respect the confidentiality of sensitive information obtained in the course of professional activities.

Question 4

You have just finished the Dodd-Frank project that involved the implementation of a new product for your financial corporation. What are the next steps you should take?

a. Ensure all of the changes that were requested are properly approved and that all stakeholders are aware of the changes that have been requested
b. Collect and disseminate all project performance information
c. Complete and settle all contracts related to the project, including resolution of any open items
d. Talk to your manager to find out the next project to which you are being assigned to prevent any downtime

Answer 4

C

The best answer choice is C because you should formally close the project and ensure all of the contracts are completed and settled, including settling any open items, along with payment for final invoices.

Question 5

The contingency reserve is at $20,000 on the project. The project manager has authorized the following reserve allocations to the cost accounts: Design +$4,000, Build +$8,000, Test –$2,000, Rollout $0, Training +$4,000. The remaining contingency reserve is:

a. $14,000
b. $18,000
c. $34,000
d. $6,000

Answer 5

D

The best answer choice is D because adding together the Design, Build, Test, and Training phases costs ($14,000) and subtracting that from the contingency reserve of $20,000 leaves $6,000.

Question 6

You are the project manager on a large technology contract. This project involves installing your new customer information system application. You need to get to market quickly in order to maintain a competitive advantage. What type of contract should you negotiate with the contracting company to motivate it to implement the new application as quickly as possible?

a. CPFF
b. FFP
c. FIP
d. CPIF

Answer 6

D

The best answer choice is D because CPIF, Cost Plus Incentive Fee, is a contract type where the buyer reimburses the seller for the seller’s allowable costs and the seller earns a profit if it meets defined performance criteria. In this example the criterion would be speed of implementation.

Question 7

You have been assigned to lead a global project with team members from Korea, Germany, and Japan. Your team members from Germany insist that German engineering is superior. You have been evaluating what you can do in this situation and have identified this as an example of:

a. Ethnocentrism
b. Stereotyping
c. Lack of cultural sensitivity
d. A diversity issue

Answer 7

A

The best answer choice is A because ethnocentrism is the idea that one’s own group is superior.

Question 8

You are the project manager for a major telecommunications project. The company has just announced plans to undertake a reduction in force and you are concerned that this may negatively impact your ability to get resources for your project. To make a case to senior management, you determined that you should create a report that shows the expected effort hours from the beginning to the end of the project. What report will you create?

a. Historical data curve
b. Standard deviation
c. S Curve
d. Resource levelling

Answer 8

C

The best answer choice is C because an S-curve shows a graphical display of cumulative costs, labor hours, or other relevant quantities plotted against time.

Question 9

You are the project manager for a major software implementation project, and you have just completed a major phase of the project. You and your team have started to conduct a review of key deliverables and project performance. The reason for this review is to:

a. Learn from the success of the phase
b. Plan the next phase
c. Gain approval to continue the project
d. Estimate resources for the next phase

Answer 9

A

The best answer choice is A because each phase and end of the project should be closed out with a review of the key deliverables and project performance to formalize the acceptance of the products or services, to analyze project success, to gather lessons learned, and to archive information for future use.

Question 10

You are the project manager on a very large highway transportation project. You have just received the remaining costs for the project and need to calculate the final payment to the subcontractor. You used a Fixed Price Incentive Fee contract for this agreement. Per the contract, the target cost was $500,000, the target profit was $50,000, the ceiling price was $700,000, and the share ratio was 80/20. You calculated an actual cost of $465,000 through a review of the last invoices. What is the amount of the incentive the contractor will receive?

a. $35,000
b. $7,000
c. $20,000
d. $42,000

Answer 10

B

The best answer choice is B because the cost savings is $500,000 – $465,000 = $35,000. With the 80/20 split, the contractor will receive $7,000 incentive (or 20% of the cost savings).

Question 11

A new project manager has just been assigned a project that is in progress and is three weeks behind schedule. Her team members are about to be redistributed to another project based on original time estimates provided by the functional manager. What is the first step she should take?

a. She should revise the Gantt chart with new timelines
b. She should contact the steering committee for the project and request new team members
c. She should first show sympathy with the current team and delay decision making for another week
d. She should check the project plan for contingencies concerning resources and speak with the functional manager

Answer 11

D

The best answer choice is D since contingencies may have been planned for to address this risk and therefore minimize the impact of resources being redistributed.

Question 12

You work for a major project management consulting firm. A potential client with a large data-warehousing project has requested that your company respond to its request for proposal (RFP). In your response, you have outlined that you will engage a subcontractor from a small database consulting firm specializing in object- oriented databases. You have identified three possible consulting companies that may be able to provide the level of expertise you will need for this project. To ensure all the sellers have a common understanding of the project, you should:

a. Advertise the opportunity
b. Send them the request for proposal
c. Get proposals back from each of the three vendors
d. Hold a bidder conference

Answer 12

D

The best answer choice is D because the bidders’ conference is a meeting between the buyer and all prospective sellers prior to submittal of a bid or proposal. Bidder conferences are used to ensure that all prospective sellers have a clear and common understanding of the procurement requirements and that no bidders receive preferential treatment.

Question 13

Terry is a project manager in your company. He approached you for advice on ways that he can expand his list of prospective sellers. What is your advice for Terry so that he can get more sellers engaged in responding to his proposal?

a. Advertise in the professional journals
b. Hold a bidder conference
c. Send the procurement documents to all of the sellers
d. All of the above

Answer 13

A

The best answer choice is A because often existing lists of potential sellers can be expanded by placing advertisements in general circulation publications, such as trade publications, or online.

Question 14

You are the project manager on a new software system implementation project for your company. This is your very first assignment as a project manager for your organization. You are trying to decide what roles you need to complete the project successfully. After review, you have decided that you need all the following roles except one. Which role do you not have on this project?

a. Team Lead
b. Human resources administrator
c. Requirements manager
d. Quality assurance

Answer 14

B

The best answer choice is B because human resource administration activities are seldom a direct responsibility of the project management team.

Question 15

There are five general techniques for resolving conflict on projects. The method that considers searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict is called:

a. Problem solving
b. Forcing
c. Smoothing
d. Compromising

Answer 15

D

The best answer choice is D because compromising considers various issues by bargaining and searching for solutions that attempt to bring some degree of satisfaction to the parties in conflict.

Question 16

According to Herzberg’s theory, which of the following are examples of motivating factors?

a. Social needs
b. Company policies
c. Working conditions
d. Opportunity for recognition

Answer 16

D

The best answer choice is D because Herzberg’s theory states that poor hygiene factors destroy motivation but changing hygiene factors alone will not increase motivation. The motivating factors are: opportunity for achievement, opportunity for recognition, the work itself, responsibility, advancement, and personal growth.

Question 17

“Expected value” is a is a statistical concept that calculates the average outcome of a decision. The two values used to calculate the EV are:

a. Probability and occurrence
b. Impact and occurrence
c. Present and future value
d. Probability and impact

Answer 17

D

This option is correct.

Question 18

Projects typically are authorized as a result of any of the following except:

a. Market demand
b. Organization need
c. Project team member request
d. Customer request

Answer 18

C

The best answer choice is C because the business case determines whether or not the project is worth the required investment. The business case is created as a result of one or more of the following: market demand, organizational need, customer request, technological advance, legal requirement, ecological impacts, or social need.

Question 19

Your project is approximately 50% complete. Cost performance is expected to be similar to current performance. Given the following information, what is the VAC? EV = 950; AC = 800; PV = 850; BAC = 1,000; CPI = 1.19; and SPI = 1.12.

a. 160
b. 133
c. 50
d. 200

Answer 19

A

The best answer choice is A because VAC = BAC – EAC with EAC = BAC / CPI. Therefore, 1,000 / 1.19 = 840.34. Therefore, 1,000 – 840.34 = 159.66, or 160.

Question 20

You are a project manager on a small insurance claims project designed to improve service quality and remove inefficient steps. One of your coworkers indicated that she worked on a similar type of project a year ago. Where will you go to get the most comprehensive information about this project?

a. Review the project plan of her project
b. Review the Quality Management plan of her project
c. Set up a meeting with her to discuss her experience on the project
d. Review historical data and lessons learned

Answer 20

D

The best answer choice is D because historical data and lessons learned will provide you with information that can be used to help you plan your current project.

Question 21

Your project team identified six related projects with major dependencies on your deliverables. Some of these projects have a very similar scope and may overlap with your deliverables. In light of this, which of the following should you be most concerned about?

a. Scope change control
b. Scope verification
c. Risk response planning
d. Communications planning

Answer 21

C

The best answer choice is C because the number of dependencies on your deliverables increases the likelihood of increased risk. Risk response planning is critical to ensuring the on-time and on-budget completion of your deliverables.

Question 22

In Risk Management, purchasing insurance is an example of:

a. Risk transference
b. Risk mitigation
c. Risk acceptance
d. Risk avoidance

Answer 22

A

The best answer choice is A because you are transferring the financial risk to the insurance company. Having insurance would minimize any cost impacts that might occur as a result of the risk event.

Question 23

An activity has an early start date of the 15th and a late start date of the 24th. The activities duration is 5 days, and there are no nonworking days. Given this information, what can be concluded about the activity?

a. The Late Finish is the 27th
b. The Early Finish date of the activity is the end of the day on the 18th
c. Total Float for the activity is 9 days
d. Total calendar time to complete the activity is 5 days

Answer 23

C

The best answer choice is C because total Float is the amount of time that a scheduled activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint. Total float is determined by subtracting the early start date from the late start date: 24 – 15 = 9.

Question 24

Which term describes a modification of a logical relationship that delays a successor task?

a. Slack
b. Float
c. Lead
d. Lag

Answer 24

D

The best answer choice is D because lag is the amount of time whereby a successor activity will be delayed with respect to a predecessor activity.

Question 25

Which of the following includes the processes required to ensure the project includes all the work and only the work required to complete the project successfully? a. Cost Management b. Scope Management c. Schedule Management d. Customer satisfaction management

Answer 25

B The best answer choice is B because the Scope Management plan establishes the activities for developing, monitoring, and controlling project scope.

Question 26

Effective project integration usually requires an emphasis on: a. The personal career goals of the team members b. Timely updates to the project plan c. Effective communication at key interface points d. Establishing internal controls

Answer 26

C The best answer choice is C because project integration requires the direction and management of project work across all knowledge areas and phases of the project.

Question 27

A project manager discovers during planning that part of the scope of work is undefined. The project manager should: a. Continue to plan the project because the scope of work is not ready to be defined b. Do what he or she can get the scope of work defined c. Wait until the scope of work is defined and issue a change request to the project d. Inform senior management of the problem

Answer 27

B The best answer choice is B because without definition of scope, the project cannot be defined, validated, and controlled. The Scope Management plan is a significant input into the Develop Project Plan process and other Scope Management processes.

Question 28

You are a new project manager who has never managed a project before, and you have been asked to plan a new project. It would be best in this situation to rely on ___________________ during planning in order to improve your chances of success. a. Your intuition b. Your project management training c. Historical records d. Responsibility Assignment Matrices

Answer 28

C The best answer choice is C because historical information and lessons learned information are transferred to the lessons learned knowledge base for use by future projects or phases. This can include information on issues and risks as well as techniques that worked well that can be applied to future projects.

Question 29

A project manager is unsure how much cost reserve to add to a project. There is a 50% chance of a weather delay causing an impact of $100,000 and a 30% chance of a delay in the testing center with a $20,000 impact. How much should the cost reserve be? a. Less than $50,000 b. More than $120,000 c. Less than $20,000 d. More than $56,000

Answer 29

D The best answer choice is D because 50% of $100,000 = $50,000 and 30% of $20,000 = $6,000. $50,000 + $6,000 = $56,000.

Question 30

You are the chair of the project portfolio committee that meets for purposes of identifying and selecting projects that best serve the organization to achieve its strategic objectives. Everyone on the committee has many years of experience with the organization and its products and services. The committee prefers to use informal methods to select projects. Which of the following methods is the committee least likely to use? a. Comparative approaches b. Decision trees c. Customer reviews d. Benefit contribution

Answer 30

B The best answer choice is B because decision trees are examples of a constrained optimization method and are a generalized technique. All other choices listed each serve as a type of benefit measurement method.

Question 31

Which of the following regarding work performance reporting is correct? a. It is part of the executing processes b. It is part of the planning processes c. It is part of the monitoring and control processes d. It is part of the closing processes

Answer 31

C The best answer choice is C because work performance reporting organizes and summarizes the performance data gathered. The performance data typically provides status and progress information on the project at the level of detail required by the various stakeholders.

Question 32

You are the project manager on a large multimillion-dollar project to implement a new financial reporting system. You have just engaged a consulting firm to complete an audit of your new financial system. What are the four project management practices you need to apply in dealing with the consulting firm in the contracting relationship? a. Project Plan Execution, Performance Reporting, Quality Control and Change Control b. Change Control, Performance Reporting, Project Plan Execution and Contract Documentation c. Change Control, Quality Control, Performance Reporting and Contract Documentation d. Change Control, Quality Control, Performance Reporting and Procurement Audit

Answer 32

A The best answer choice is A because the project manager is responsible for applying the appropriate processes in managing the relationship, including: (1) Project Plan Execution to authorize the contractor's work at the appropriate time; (2) Performance Reporting to monitor contractor cost, schedule, and technical performance; (3) Quality Control to inspect and verify the adequacy of the contractor's product; and (4) Change Control to ensure that changes are properly approved and that all those with a need to know are aware of such changes.

Question 33

You are the project manager on a new business improvement project. Your stakeholder calls you frequently to ask you the status of the project and has indicated a number of times that there is not enough information available to him on a timely basis. This could have been avoided by: a. Sending a hard copy report on a consistent basis b. Determining the appropriate sponsor for your project c. Sending a weekly email to the stakeholder to communicate status d. Developing and implementing a Stakeholder Management plan

Answer 33

D The best answer choice is D because projects require the development and implementation of a Stakeholder Management plan so that information is disseminated based on the information needs of the project stakeholders.

Question 34

You have just completed a software implementation project for your organization that was performed under budget by an outside vendor. You have called the vendor to finalize the contract. As your last steps in the project, what documents do you need to have available to review for purposes of closing out the contract? a. Project archives b. Payments provided on the contract c. All project performance and product documentation d. Only the project performance documents that relate to the specific contract

Answer 34

C The best answer choice is C because all documentation produced to record and analyze project performance must be available for review. In addition, all documents produced to describe the implemented products must be available.

Question 35

You are the project manager on a website development project. You hired a software company to assist you in developing this new software product. Since this is a new product, your company wants to limit the risk and have the contractor cover the risk of cost overruns. What type of contract will you want the contractor to accept for this engagement? a. Cost Plus Percentage Fee b. Cost Plus Incentive Fee c. Cost Plus Fixed Fee d. Firm Fixed Price

Answer 35

D The best answer choice is D because in price-based contracts, such as lump-sum contracts, the contract price is deemed to cover all costs, overheads, and profits. The contractor covers all overruns for risks specified or implied in the total price.

Question 36

You are a project manager for a large telecommunications project that is tasked with implementing a new global network. A database server that you had installed in Canada has failed. You did not have any extra server equipment or funding identified in your risk response plan to accommodate this failure. You do have a backup database server in another facility location that you could use on a temporary basis until a replacement server can be procured. What is this called? a. Risk avoidance b. A workaround c. A contingency plan d. Risk transference

Answer 36

B The best answer choice is B. Since this failure was not identified in the risk response plan, this was an unplanned response to a negative risk event—a workaround.

Question 37

As a project becomes more complex, the level of uncertainty in scope: a. Decreases b. Remains the same c. Increases d. Decreases then increases

Answer 37

C The best answer choice is C because as complexity increases, the adequacy of available information tends to decline, which contributes to scope uncertainty.

Question 38

Which of the following aspects of leadership is MOST important for a project manager? a. Team building b. Technical capabilities c. Communication d. Project control

Answer 38

C As project managers spend over 80% of their time communicating, especially during project execution, the correct choice is communication.

Question 39

You are the project manager for a project that has just received numerous change requests from the customer. You are preparing the scope change requests for the Change Control Board comprised of key stakeholders. The Change Control Board plans to meet next week to review changes that have been submitted. The board will want to know how these requested changes will affect the project. In order to understand how the scope change requests will affect the project, you will: a. Review the impact of the changes requested by reviewing their impact to the project charter b. Compare the work required to accommodate the change requests against the Work Breakdown Structure c. Review the lessons learned to determine how previous changes affected the project scope d. Conduct a planning meeting with the team to discuss the change requests

Answer 39

B The best answer choice is B. Change requests affect the scope of the project. The impact to scope can be determined by reviewing the WBS.

Question 40

You are a project manager who is managing a project for the construction of a new office building. During this past week, initial inspections were conducted on the plumbing work that was completed. The inspection reported that the flow rate is not high enough and the water pressure is way too low. The inspector has submitted a change request to bring the plumbing system up to code. You are concerned about how this is going to impact the remaining project work. After careful consideration, you figure out that by doing some of the work after hours and some on weekends, and by rearranging the sequence of the contractor's work, you can have the plumbing system up to code within five days and not lose any time on the schedule. This approach demonstrates: a. Problem solving and collaboration b. Effective listening skills c. Effective project management skills d. The kinds of risks that occur on every project

Answer 40

A The best answer choice is A because to resolve these issues, you'll need to meet with various stakeholders and employ communication, interpersonal, and management skills.

Question 41

As the project manager, you are reviewing the project schedule. You discover that one task has been reestimated with a longer duration. The critical path includes tasks A, D, E, and F. The task that has been reestimated is task B. It was originally planned to take 6 days with 4 days of float. The reestimate indicates that it will take 8 days to complete. After inputting the new information into the project schedule, you should expect to see the following affect on the schedule: a. Task B has become a part of the critical path b. The critical path still includes only tasks A, D, E and F c. Resources will need to be reallocated to complete task B d. The project completion date is now extended by two days

Answer 41

B The best answer choice is B because task B will not become part of the critical path until all float is expended. Critical path is the longest path through the project where the float is equal to zero.

Question 42

As the project manager for the Acme project, you just finished demonstrating the prototype of the new product to the sponsor. The new features the sponsor had requested were approved. However, the sponsor has determined that three of the deliverables that were previously requested are no longer needed. Eliminating the three deliverables reduces the project budget by $50,000, the project completion date is three months earlier, and five technical Subject Matter Experts will no longer be needed for previously defined work assignments. The scope change request was submitted and approved by the Change Control Board. The best course of action for you to take as the project manager is to: a. Move the hours and costs from the cancelled deliverables to tasks that are behind schedule and over budget b. Reallocate the budget to purchase higher quality materials for the project, and reassign the five Subject Matter Experts to another project c. Add the unused budget to the management reserve for potential future risks and do not change the project completion date d. Update the project schedule to remove the cancelled deliverable and re-baseline the project to reflect the approved changes

Answer 42

D The best answer choice is D because replanning the project by canceling the deliverables and reallocating resources to reduce the critical path will ensure that the changes in the schedule are incorporated to reflect the changes in scope.

Question 43

You are the project manager, and your company uses the 50/50 rule to calculate earned value. You have determined that task A is 75% complete with a BAC of 500 hours. Task B is 25% complete with a BAC of 250 hours. Task C is 50% complete with a BAC of 500 hours. The schedule indicates that the planned value is 1,000 hours. You have calculated the Schedule Performance Index and will report this project as: a. Ahead of schedule by 250 hours b. Ahead of schedule by 500 hours c. Behind schedule d. On schedule

Answer 43

C The best answer choice is C because this question requires you to calculate the SPI. SPI is calculated with the following formula: SPI = EV / PV. All tasks meet the 50/50 rule since none is complete, and the tasks are included in the calculation of the SPI as follows: Task A: EV = 250; Task B: EV = 125; Task C: EV = 250. Totaling all EVs = 625. PV = 1,000. Therefore, 625 / 1,000 = 0.625. Less than 1 is behind schedule.

Question 44

The Acme Company uses the payback method to select projects. You are presenting a project for approval. The accountant assigned to the project has provided the following information about the project: Initial Investment = $100,000; Cash Flows Year 1 = $20,000; Cash Flows Year 2 = $50,000; Cash Flows Year 3 = $30,000; Cash Flows Year 4 = $50,000; and Cash Flows Year 5 = $400,000. Using this information, you calculate the payback period for the project as: a. 3 years b. 5 years c. 2 years d. 7 years

Answer 44

A The best answer choice is A because a payback period is the length of time needed to recover the initial investment. The length of time is calculated using cash inflows. Initial investment – Cash flow until the results = 0. Therefore, $100,000 (initial investment) – (20,000 Y1 + 50,000 Y2 + $30,000 Y3) = 0.

Question 45

You have been assigned to be the project manager in the middle of a project. The project is within tolerances of the baseline, but the customer is not happy with project performance. What is the first thing you should do? a. Discuss it with the project team b. Recalculate the baseline c. Renegotiate the contract d. Meet with the customer

Answer 45

D The best answer choice is D because meeting with the customer in a timely manner will help you understand the customer's issues with the project so that you can then determine an effective course of action.

Question 46

You are a project management consultant and have been hired by a company to help it develop a new high- precision medical product. To complete the quality planning, you need to review the company's quality policy. The quality policy will provide: a. A formal statement of the company's view of quality that is expressed and supported by senior management b. The results of the completed checklist c. Specifically which quality methods and tools should be used by project managers d. Specific improvements that must be made for the project to be considered successful

Answer 46

A The best answer choice is A because a quality policy states the organizations acceptable level of quality. The quality policy usually is created by the quality experts and supported by senior management.

Question 47

Your company has recently received several complaints from customers regarding the quality of a new product they have purchased. As a senior project manager, you have been asked to help assess the reasons for the complaints. You decide that a quality audit should be performed to determine the nature and cause of the errors. The audit team found that there is an error in the sampling process. The failure in the sampling process resulted in what Cost of Quality? a. Special cause variations b. Training costs c. External failure costs d. Prevention costs

Answer 47

C The best answer choice is C because external failure costs occur when products or services are delivered to the customer that do not meet requirements. Costs included are customer complaints and warranty repairs.

Question 48

Your company has recently learned that quality assurance practices result in higher-quality products. The company already has a very successful quality control program. The company has created a new policy requiring that quality assurance processes be part of every project. The company has asked you to implement a quality assurance program. You are reviewing a number of different options to include in the program. Which of the following will not be included in the quality assurance program? a. Training resources on the correct manufacturing process b. The use of quality audits to determine future quality improvements c. Inspecting work results to find defects d. Quality improvement opportunities in the current project

Answer 48

C The best answer choice is C because inspecting work results to find defects is a method used in quality control. It is also a reactive approach to managing quality as opposed to addressing it proactively.

Question 49

You are the project manager for a new project that involves the installation of the new retooling machinery. The quality control team is concerned about the quality of the output of a specific machine. After discussing the issue with the team, you ask them to provide quantitative data to validate their concerns. The quality control team leader informs you that on average, 6 articles out of every 250 produced by a certain machine are defective. What is the probability that an article chosen at random is defective? a. 1.5 b. 0.17 c. 0.02 d. 0.05

Answer 49

C The best answer choice is C because there are 6 chances out of 250. 6 / 250 = .024.

Question 50

You work for an international company that designs and implements manufacturing plants in international locations. You are currently leading an international project team to establish a new manufacturing site. You have become aware that the project team members in the other country have a high group-dependent culture. In managing the project team in this other country, you should expect that: a. The team will consider team issues to be more important than individual issues b. The team will value individual rewards and recognition over team rewards c. Team members will expect everyone to think for themselves d. The team will prefer that decisions to be by majority rules

Answer 50

A The best answer choice is A because group-dependent cultures focus on consensus and working together more than on individualism.

Question 51

Generally speaking, one of the most common sources of conflict during planning is: a. Project deliverables and priorities b. Cost objectives c. Personality differences d. Technical opinions

Answer 51

A The best answer choice is A because when developing the project management plan, competing priorities often surface across various stakeholder groups who are potentially impacted by the project.

Question 52

A document that formally recognizes the existence of a project and identifies the project manager's authority to achieve the project objectives is called: a. An invitation for bid b. A Statement of Work c. A project charter d. A Request for Proposal

Answer 52

C The best answer choice is C because Develop Project Charter is the process of developing a document that formally recognizes the existence of a project and provides the project manager with the authority to apply organizational resources to achieve the project objectives.

Question 53

Project Communications Management can best be described as: a. Meeting management techniques, such as preparing agendas, facilitating meetings and managing conflict b. Processes necessary to ensure that the information needs of a project and its stakeholders are met through development and implementation of activities designed to achieve effective information exchange c. A broad body of knowledge that is not unique to project management d. Sender-receiver models including feedback loops, barriers and channels of communication

Answer 53

B The best answer choice is B because it is the definition of Project Communications Management in the PMBOK® Guide—Sixth Edition.

Question 54

The type of power that comes from the ability to gain support because project personnel perceive the project manager as being officially empowered to issue work assignments is: a. Expert power b. Referent power c. Formal power d. Reward power

Answer 54

C The best answer choice is C because formal power is the ability to gain support when project personnel perceive the project manager as being officially empowered to issue directions to the project team members.

Question 55

A project manager needs to determine how the manufacturing is going for the new micro satellites. Each satellite takes about three days to manufacture and costs $125,000. The inspection process has been a source of concern. The satellites are so small that inspection would destroy them. Under these circumstances, what should the project manager do? a. Outsource the inspection to another firm with more expertise b. Evaluate the attributes of the population c. Inspect a sample of the satellites d. Decrease the costs of quality

Answer 55

C The best answer choice is C because sampling involves choosing a part of the population of interest for inspection.

Question 56

Which is an output of the Develop Project Charter process? a. Performance measurements b. Project Charter c. Work Breakdown Structure d. Expert judgment

Answer 56

B The best answer choice is B because project charter and assumption log are identified in the PMBOK® Guide—Sixth Edition as outputs.

Question 57

Organizational process assets include all of the following except: a. Templates b. Company culture c. Project files d. Lessons learned

Answer 57

B The best answer choice is B because organizational process assets include organizational standard processes, policies and processes definitions, templates, and historical information and lessons learned.

Question 58

A contract has been signed with an external customer for work to be performed on a project that you have been assigned as the project manager. The contract includes a detailed Statement of Work, a milestone schedule, a Requirements Traceability Matrix, and user acceptance criteria. You next step is to: a. Write a business case for the project b. Start detailed planning for the project c. Create a project charter for the project d. Begin identifying requirements for the project

Answer 58

C The best answer choice is C because the project charter formally authorizes the existence of a project and gives the project manager authority to apply organizational resources to accomplish the project objectives.

Question 59

All of the following are tools and techniques used during the Acquire Resources process except: a. Pre-assignment b. Risk assessment c. Negotiation d. Virtual teams

Answer 59

B The best answer choice is B because the tools and techniques for Acquire Resources include: preassignment, negotiation, acquisition, virtual teams, and multicriteria decision analysis.

Question 60

In many process areas in the PMBOK® Guide, a change request is an output. When managing the project work, it is an input. This is because directing and managing the project work: a. Typically follows monitoring project work in the sequence of processes b. Involves setting the performance measurement baseline for the project c. Is concerned with implementing approved change requests d. Involves measuring performance to detect variances from the project management plan

Answer 60

C The best answer choice is C because this process involves performing the work defined in the project management plan and implementing approved changes to achieve the project's objectives.

Question 61

You are managing a project and have come to realize that one of your virtual project team members is not fulfilling the tasks that have been assigned to her. You have decided to remove her from the project team. Assuming you can carry through with this decision, what is going to be your immediate priority? a. The impact this termination has on the individual b. The human resource implications that your decision has on you c. Finding someone else to perform her responsibilities d. Making sure that your boss supports your decision

Answer 61

C The best answer choice is C because you want to ensure that you have someone to assume her responsibilities on the project so as not cause any delays in task accomplishments.

Question 62

All of the following are activities performed during the Develop Team process except: a. Establish ground rules b. Provide performance feedback c. Identify pre-assignments d. Colocation

Answer 62

C The best answer choice is C because pre-assignment is part of the Acquire Resources process.

Question 63

Every organization has specific guidelines for measuring project team performance. Most managers agree on which of the following objectives? a. Achievement of technical specifications and staying within budget b. Achieving technical specifications and staying within budget c. On-time performance, staying within budget and achieving performance specifications d. On-time performance and staying within budget

Answer 63

The best answer is C because these parameters typify the competing demands of a project: cost, time, and scope.

Question 64

You have inherited a cost reimbursable contract project reported to be on schedule. However, as you review the status, you realize the project is seriously behind schedule. There is also an important time constraint. The client really needs the end product when originally promised. What is your strategy? a. Meet with the project team to develop a crash schedule that includes overtime b. Bring in some proven contractors to try to put the project back on track c. Meet with the client to evaluate the realistic schedule and cost and scope trade-offs d. Develop several different fast-track scenarios

Answer 64

C The best answer choice is C because meeting with the client will help manage needs and expectations while clarifying and resolving the issues that have been identified.

Question 65

To manage communication effectively within the project team, all of the following are important for the project manager except: a. Promoting harmony and trust between team members b. Recognizing the importance of the interpersonal communication network c. Ensuring feedback occurs in both directions d. Formalizing and controlling communications between team members

Answer 65

D The best answer choice is D because all of the other choices are tools and techniques of the Manage Communications process.

Question 66

Which tool would you use to identify which functional units are responsible for work packages? a. Work Breakdown Structure b. Responsibility Assignment Matrix c. Organizational Breakdown Structure d. Organization Chart

Answer 66

C The best answer choice is C because an Organizational Breakdown Structure is arranged according to an organization's existing departments with project activities or work packages listed under each department.

Question 67

As the project manager, you find that your schedule has slipped. In order to meet the current deadline, you must adjust the schedule. Which option provides the least amount of cost impact? a. Crashing b. Fast tracking c. Working overtime d. Reducing scope

Answer 67

B The best answer choice is B because fast tracking is a schedule compression technique in which activities normally done in sequence are performed in parallel for at least a portion of their duration. Fast tracking may result in rework and increased risk, but does not typically result in increased costs.

Question 68

What is the difference between Manage Quality and Control Quality? a. Manage Quality is concerned with verification of measures; Control Quality is concerned with processes b. Manage Quality means to identify alternative ways of coming back into compliance; Control Quality is measuring those alternatives c. Manage Quality is concerned with satisfying standards defined in the Quality Management Plan; Control Quality is concerned with monitoring and recording the results of executing quality management processes d. Manage Quality is monitoring changes to quality; Control Quality is documenting the impacts of quality changes

Answer 68

C The best answer choice is C because as defined by the PMBOK® Guide, quality assurance is the process of ensuring that appropriate quality standards are used, and quality control is the process of monitoring and recording results of quality activities to assess compliance to standards.

Question 69

Which of the following conflict resolution techniques will generate the most lasting solution? a. Forcing b. Smoothing c. Compromising d. Problem solving

Answer 69

D The best answer choice is D because problem solving incorporates multiple viewpoints and insights from differing perspectives and requires an open dialogue and attitude that typically results in consensus and commitment.

Question 70

What does a Gantt chart show that a Responsibility Assignment Matrix does not? a. Scheduled time b. Tasks c. Owners of each task d. Interrelationships

Answer 70

A The best answer choice is A because a Responsibility Assignment Matrix equates project team resources to tasks and does not show time.

Question 71

A project stakeholder is known to make many changes during the projects that involve them. What should the project manager do if this person is one of the project stakeholders on a new project? a. Not allow the stakeholder to make changes b. Get the stakeholder involved early on in the project planning phase c. Talk to the stakeholder's boss d. Complain to management about the stakeholder's past behaviours

Answer 71

B The best answer choice is B, which is an example of developing appropriate management strategies to engage stakeholders both early and effectively throughout the project life cycle based on an understanding of their needs and interests in the project.

Question 72

The primary customer of a project has requested an application change during user testing. As the project manager, how should you address this issue? a. Develop a risk mitigation plan b. Through a formal change request c. Inform the project sponsor of how this change impacts cost, time and scope parameters of the project d. Ensure that the scope change complies with all relevant contractual provisions

Answer 72

B The best answer choice is B as any changes requested should go through formal change control during any phase of the project.

Question 73

A project manager has just been notified of a cost increase from a seller. The project manager should first determine if: a. There is enough reserve to handle the change b. Less expensive resources are available c. Another task can save money d. The task is on the critical path

Answer 73

A The best answer choice is A because there may be no need to pursue other options if there is enough money in contingency reserves to cover the increased cost.

Question 74

The testing results for the new computer modulation project have arrived from the seller. The results indicate the project is not meeting overall quality requirements. If the project manager meets with the team to analyze the problem, the project manager is involved in: a. Project Quality Management b. Plan Quality Management c. Manage Quality d. Control Quality

Answer 74

D The best answer choice is D because one of the key benefits of Control Quality is identifying the causes of poor process or product quality and recommending or taking action to eliminate those causes.

Question 75

You are in the middle of executing a major modification to an existing product when you learn that the resources promised at the beginning of the project are not available. The best thing to do is to: a. Show how the resources were originally promised to your project and request that they be placed back on your project b. Replan the project without the resources c. Explain the project impact ramifications to the resource manager if the resources are not made available d. Crash the schedule

Answer 75

C The best answer choice is C because you should always communicate the impact of decisions made regarding your project in terms of the impact decisions have on the cost, time, scope, quality, and risk of your project.

Question 76

As the project manager, you have determined that following regarding the status of your project: PV = $2,200, EV = $2,000, AC = $2,500, and BAC = $10,000. What is your project's Schedule Variance? a. + $500 b. - $500 c. + $200 d. - $200

Answer 76

D The best answer choice is D because the formula for Schedule Variance = EV – PV; therefore, $2,000 – $2,200 = –$200.

Question 77

As the project manager, you have determined the following regarding the status of your project: PV = $2,200, EV = $2,000, AC = $2,500, and BAC = $10,000. What is the CPI for this project, and what does it tell you about cost performance thus far? a. 0.20, and costs are exactly as planned b. 0.80, and costs have exceeded planned costs c. 80, and costs have exceeded planned costs d. 0.20, and costs are below planned costs

Answer 77

B The best answer choice is B because the formula for calculating CPI = EV / AC; therefore, $2,000 / $2,500 = .80. With a CPI of less than 1.00, the project is exceeding planned costs.

Question 78

If a risk has a 90% chance of occurring and the impact will be $10,000, what does $9,000 represent? a. Risk value b. Present monetary value c. Expected monetary value d. Contingency budget

Answer 78

C The best answer choice is C because Expected Monetary Value is determined by multiplying the probability of occurrence by the potential impact costs; therefore, .90 ×10,000 = $9,000.

Question 79

You are the project manager on a large multinational customer service project. You have a diverse number of stakeholders on your project. You understand that their affect or influence and involvement in the project may not occur or become evident until later stages in the project. What is the best thing you can do to ensure that you focus on the relationships necessary to ensure the success of the project? a. Develop a comprehensive Communications Management plan b. Provide weekly status updates via conference calls to all interested stakeholders c. Review and update your stakeholder engagement plan regularly and treat it as a living document d. Rely on senior managers to keep their direct reports informed and involved in the project

Answer 79

C The best answer choice is C because it is critical for project success to identify stakeholders early in the project or phase and to analyze their levels of interest, their individual expectations, as well as their importance and influence on a regular basis as stakeholder needs and interests will change throughout the project life cycle.

Question 80

It is important to collect project records at the end of the project for all of the following reasons except to: a. Document decisions made on the project b. Recall what happened on the project c. Show implications of cost decisions d. Support the risks on the project

Answer 80

D The best answer choice is D because documenting your decisions is part of creating document records for OPA. Recalling what happened on the project is part of lessons learned and historical information and documenting implications of cost decisions made during the life of the project. You would not do it for purposes of supporting risks.

Question 81

Using a structured problem-solving method will help eliminate the problem and develop and long-lasting solution. Problem solving methods include all of the following except: a. Defining the problem and identifying the root cause b. Determining who is responsible for the problem c. Generating and choosing the best solution d. Implementing the solution and verifying the solution effectiveness

Answer 81

B The best answer choice is B. All the other choices address the problem. Assessing blame is not an effective problem-solving technique.

Question 82

A project is considered closed when the: a. Client accepts the product b. Lessons learned are completed c. Archives are completed d. Contract is finished

Answer 82

C The best answer choice is C, which is the last step in finalizing all activities to complete a project.

Question 83

Which of the following statements concerning bid documentation is/are correct? a. Well-designed bid documentation can simplify comparison of responses b. Bid documentation must be rigorous with no flexibility to allow consideration of seller suggestions c. Bid documents generally should not include evaluation criteria d. Bids are always a component of the SOW

Answer 83

A The best answer choice is A because the goal of bid documentation is to ensure that it is designed in such a way to facilitate ease of vendor selection.

Question 84

Based on the following information, what is the total expected value? Task A: 10% probability with a $20,000 impact. Task B: 30% probability and a $45,000 impact. Task C: 68% probability and an $18,000 impact. a. $83,000 b. $27,740 c. $65,653 d. $34,657

Answer 84

B The best answer choice is B because multiplying the probability of each task by its impact and adding them up results in $27,740. 10% × $20,000 = $2,000, 30% × $45,000 =$ 13,500, and 68% × $18,000 = $12,240; therefore, $2,000 + $13,500 + $12,240 = $27,740.

Question 85

Tim is a new project manager to his organization. He has been assigned a new project and has been asked to begin developing the project charter. What is the best document that Tim should consider in order to get started? a. Lessons learned from previous projects b. Business case c. Organizational Breakdown Structure d. A Work Breakdown Structure from a similar project

Answer 85

B The best answer choice is B because the business case describes the necessary information from a business perspective to determine whether or not the project is worth the required investment. It is a key input to the development of a project charter.

Question 86

Which of the following would be the best project to select? a. A project that will take six years to complete and has a NPV of $45,000 b. A project that will take three years to complete and has a NPV of $85,000 c. A project that will take eight years to complete and has a NPV of $30,000 d. A project that will take ten years to complete and has a NPV of $60,000

Answer 86

B The best answer choice is B because the Net Present Value (NPV) of a project is the potential change in an investor's wealth caused by that project while time value of money is being accounted for. NPV equals the present value of net cash inflows generated by a project less the initial investment on the project. In case of standalone projects, accept a project only if its NPV is positive, reject it if its NPV is negative, and stay indifferent between accepting or rejecting if NPV is zero. In case of mutually exclusive projects (i.e., competing projects), accept the project with the higher NPV.

Question 87

Which of the following choices indicates that your project is under budget? a. PV = 100, EV = 110 b. AC = 110, EV = 100 c. AC = 100, EV = 110 d. PV = 100, AC = 110

Answer 87

C The best answer choice is C because if we use the formula for examining cost variance (EV – AC = CV), we conclude that our cost variance is 110 – 100 = +10. Positive means that we are under planned costs.

Question 88

You are the project management on the XYZ project and are developing a duration estimate on Activity D to build a widget. There are five resources assigned to the activity that are available to work four hours each day. You have estimated that this activity should require approximately 160 hours of effort to complete. What is the duration of this activity? a. 10.5 days b. 9 days c. 7.5 days d. 8 days

Answer 88

D The best answer choice is D because the formula for calculating duration is Duration = Effort / Availability / # of resources. Therefore, 160 / 4 = 40, then 40 / 5 = 8 days.

Question 89

What is the present value of $300,000 received three years from now if we expect the interest rate to be 10%? a. $230,544 b. $218,561 c. $225,394 d. $210,924

Answer 89

C The best answer choice is C because present value means the value today of future cash flows. The formula is as follows: PV = FV / (1 + r) n with FV = future value, r = investment rate, and n = the number of time periods. To solve the problem, 300 / (1 + .1) 3 = 300 / 1.331, which equals $225,394.

Question 90

As the project manager, you have begun planning your project. You have an initial meeting with your team to help clarify a valid sequence of core planning processes. Your team members disagree on the order in which key planning activities should occur. You decide a valid sequence of core planning processes for your project is as follows: a. Resource planning, cost budgeting, procurement planning b. Scope development, schedule development, activity duration estimates c. Project plan development, cost estimating, staff acquisition d. Define activities, sequence activities, estimate activity resources

Answer 90

D The best answer choice is D, as those areas list the sequence of planning processes for time management.

Question 91

The data date for a current project is taken midway through a 12-month, $500,000 baseline. The PV at this date equals $350,000, EV is equal to $360,500, and the cost variance is $7,210. What does the AC equal? a. $352,960 b. $346,040 c. $349,790 d. $353,290

Answer 91

D The best answer choice is D because by knowing that the EV is $360,500 and using the formula for cost variance, EV – AC = CV, we can solve this algebraically by subtracting $7,210 from $360,500, resulting in the answer of $353,290.

Question 92

You are a project manager working for a company that uses a straight-line depreciation method. For your project, the total cost of the new desktops is $200,000, with a useful life of five years. At the end of five years, your company plans to sell the desktops for $50,000. How much will the company depreciate by the end of year 5? a. $200,000 b. $150,000 c. $250,000 d. $30,000

Answer 92

B The best answer choice is B because straight-line depreciation is calculated by (Cost – Salvage) / Years, giving the depreciation amount per year. To calculate the total for five years: (200,000 – 50,000) / 5 = 30,000 × 5 years = $150,000.

Question 93

Given the following information, which project has the least amount of Cost Variance? Project A with PV = $1,500, AC = $1,400, and EV = $1,200. Project B with PV = $2,200, AC = $1,500, and EV = $2,300; Project C with PV = $3500, AC = $3,500, and EV= $3,500. Project D with PV = $1,800, AC = $2,200, and EV = $1,700. a. Project A b. Project C c. Project B d. Project D

Answer 93

B The best answer choice is B because the formula for Cost Variance is EV – AC. $3,500 – $3,500 = 0, which means this project is on budget.

Question 94

Your project is wrapping up, and your sponsor has provided formal written acceptance of the final deliverables. The project uses four different consulting firms. You have reviewed the termination clauses in each contract to ensure compliance. The accounting department has reviewed all of the invoices, and payment of the final bill has been authorized. The final remaining task is to: a. Prepare performance appraisals for each of your project team members b. Invite all of the team members to the celebration party c. Formally notify the consulting firms that you wish to close the contracts d. Determine if the resources should be retained for work assignments on your other projects

Answer 94

C The best answer choice is C because the last step in closing a contract is to notify the consulting firms that the contract has been completed.

Question 95

You are working on a building construction project and are creating the Work Breakdown Structure for the construction of the new building. To fully understand the total scope of work, you continue to break the work down into smaller components. You stop breaking down the work when the work package describes the work and an estimate can be completed. The technique you are using is called: a. The refinement technique that enhances the development of deliverables b. The application of lessons learned to work packages to create a scope statement c. The application of historical information to create a Work Breakdown Structure d. The decomposition of the deliverables into work packages that can support further planning

Answer 95

D The best answer choice is D because decomposition is a technique used for dividing and subdividing the project scope deliverables into smaller, more manageable parts until there is a sufficient level of detail to support estimating and planning.

Question 96

Your project has a series of deliverables that are now ready for review by your project sponsor. The sponsor has requested a formal inspection of the work results at a meeting that will take place today. Upon completion of the meeting, the project sponsor has agreed to provide you with written notification to signify his approval of the work products. Which of the following best describes the process used to inspect the deliverables? a. A performance measurement to inspect the project deliverables b. Validate Scope to formally accept the project's deliverables c. A Manage Quality technique to verify the quality of the deliverables d. A scope change technique the sponsor uses to assess the need for scope changes

Answer 96

B The best answer choice is B because Validate Scope is concerned with acceptance of the project deliverables.

Question 97

Team development normally occurs in which process? a. Initiating b. Planning c. Executing d. Controlling

Answer 97

C The best answer choice is C because Develop Team is an executing process.

Question 98

A Configuration Management plan is any documented procedure used to apply technical administrative surveillance and direction to: a. Identify and correct problems arising in functional areas of project implementation b. Test new systems c. Estimate and control risks d. Identify and document physical characteristics of an item

Answer 98

D The best answer choice is D because Configuration Management is the application of technical and administrative direction and surveillance to identify and document the functional and physical characteristics of a product, result, or service component and used to control any changes to characteristics of such.

Question 99

The sum of the expected values of all the risk events provides an indication of the: a. Worst case PERT estimate b. Contingency funding requirements c. Probability of each occurrence d. Highest risks on the risk matrix

Answer 99

B The best answer choice is B because contingency reserves are the budget within the cost baseline that is allocated for identified risks, which are accepted and for which contingent or mitigating responses are developed.

Question 100

During the completion of the project, a project manager wants to ensure that the quality processes identified in the Quality Management plan were effective. The best way to do this is by: a. Checking quality processes used against the standards set in the Quality Management plan b. Identifying the quality standards you want the end product to meet c. Performing cost-benefit analysis d. Determining the cause of a problem using a fishbone diagram

Answer 100

A The best answer choice is A because Manage Quality is the process of translating the quality management plan into executable quality activities that incorporate the organization's quality processes into the project.

Question 101

“I cannot test the software until I code the software.” This statement describes which type of dependency relationship? a. Discretionary logic b. Soft logic c. Hard logic d. Preferential logic

Answer 101

C The best answer choice is C because this type of dependency is also referred to as mandatory dependency and is either required or inherent in the nature of the work.

Question 102

You are a project manager for a large multinational company. You have team members all over the country who need to have access to copies of documents, design specifications, and test plans. You decide the best ways to do this is to create a: a. Manual filing system b. Database management system c. Information management system d. Communications management system

Answer 102

C The best answer choice is C because an Information Management system is the tool identified for managing and distributing project information.

Question 103

Which of the following best describes the project manager's role relating to changes? a. Serve the customer and do what the customer wants b. Monitor and track changes to ensure they benefit the project c. Evaluate how a change impacts the project and communicate that to the project steering committee d. Deny change requests whenever possible

Answer 103

C The best answer choice is C because it is the responsibility of the project manager to understand and monitor how changes can impact the project plan, project documents, or product deliverables.

Question 104

When evaluating the Gantt chart, the project manager determines that the project is behind schedule. What should she do? a. Obtain approval from the project sponsor to push the end date b. Report findings to the project steering committee c. Evaluate alternatives with the team d. Evaluate alternatives with the customer

Answer 104

C The best answer choice is C because prior to speaking with the customer, the project manager is responsible for considering and evaluating alternatives, in this case, schedule compression techniques, and for understanding potential impacts.

Question 105

A Monte Carlo analysis is used to: a. Get an indication of the overall risk involved in the project b. Estimate the duration of an activity c. Simulate the order in which activities will occur d. Prove to management that additional resources will be needed

Answer 105

A The best answer choice is A because a Monte Carlo analysis is a simulated process that generates hundreds or thousands of performance outcomes based on probability distributions for cost and schedule on individual tasks.

Question 106

Project information has been distributed according to the Communications Management plan. Some project deliverables have been changed. Those changes were made according to the Change Control plan. One stakeholder expressed surprise to the project manager upon being informed of a previously published change to a project deliverable. All stakeholders received the communication containing notification of the change. What should the project manager do? a. Determine why the stakeholder did not receive the information and let him or her known when it was published b. Review the Communications Management plan to determine why the stakeholder did not understand his responsibility c. Review the Communications Management plan and make revisions if necessary d. Address the situation in the next steering committee meeting so others do not miss published changes

Answer 106

C The best answer choice is C because it is the responsibility of the project manager to develop and implement a Communications Management plan that defines and addresses the specific information needs of each stakeholder and aids in the management of their engagement.

Question 107

During earned value analysis, you, as project manager, want to forecast a new estimate at completion knowing that the current variances are seen as atypical and similar variances are not likely to occur in the future. What formula would you use for EAC? a. EAC = AC + ETC b. EAC = AC + BAC - EV c. EAC = (AC + (BAC - EV)) / CPI d. EAC = BAC / CPI

Answer 107

B The best answer choice is B because this EAC method accepts project performance to date (whether favorable or unfavorable) as represented by the actual costs and predicts that all future ETC will be accomplished at the budgeted rate. It is used when variances are atypical and will not occur in the future.

Question 108

Value engineering is performed to get: a. More value from the cost analysis b. Management to buy into the project c. The team to buy into the project d. A less costly way of doing the same scope of work

Answer 108

D The best answer choice is D because value engineering is an approach used to optimize project life cycle costs, save time, increase profits, improve quality, solve problems, and use resources more effectively.

Question 109

Formal written correspondence with the customer is required when: a. Defects are detected b. A customer requests additional work not covered under contract c. The project has a schedule slippage that includes changes to the critical path d. A project has cost overruns

Answer 109

B The best answer choice is B because it is necessary to document the request in writing since it is not covered under the existing contract.

Question 110

A report that is focused on predicting future project status is called a: a. Trend report b. Forecast report c. Status report d. Variance report

Answer 110

B The best answer choice is B because a forecast report provides a prediction of conditions and events in the project's future based on information available at the time of the forecast.

Question 111

Validate Scope is normally done in parallel with: a. Control Quality b. Activity sequencing c. Quality assurance d. Quality planning

Answer 111

A The best answer choice is A because verified deliverables are project deliverables that are completed and checked for correctness through the Control Quality process.

Question 112

You have just discovered an error in the Implementation plan that will prevent you from meeting a milestone date. The best thing you can do is: a. Develop alternative solutions to meet the milestone date b. Change the milestone date c. Remove any discussion about due dates in the project status report d. Educate the team about the need to meet milestone dates

Answer 112

A The best answer choice is A because it is the responsibility of the project manager to consider various schedule compression techniques that could be used to shorten the schedule in order to meet schedule constraints without reducing project scope.

Question 113

You are the project manager working in a small software company that has invested heavily in the latest technology hardware and software. You have a dispute with a vendor about the features and cost of a product you need to use in conjunction with your latest software project. Before contacting the vendor to discuss these issues, you decide that you need to look up the dispute resolution procedures. Where would you find this information? a. Project performance system b. Work authorization system c. Project management information system d. Contract change management plan

Answer 113

D The best answer choice is D because the Contract Change Management plan includes the paperwork, tracing systems, dispute resolution procedures, and approval levels necessary for authorizing changes.

Question 114

You are the project manager on a large new financial system project. After a careful selection process, you have hired a large company with a significant contract. This vendor has been acquired to analyze the requirements of your new system. You need to monitor the performance of the consultants against the plan set out in the SOW. What is the best approach to accomplish this task? a. Meetings with the vendor b. Variance analysis c. Monitoring constraints d. Calculating planned value

Answer 114

B The best answer choice is B because variance analysis involves comparing actual project results to the plan.

Question 115

Quality control measurements, verified deliverables, work performance information, and change requests are all examples of: a. Inputs to Control Quality b. Outputs of Control Quality c. Tools and techniques used in Control Quality d. Quality reviews

Answer 115

B The best answer choice is B as these are all defined as outputs to Control Quality.

Question 116

You are a project manager working on a project to build a new bridge over a river. You have been working on a contract with one of the subcontractors. You are ready to negotiate. What must the contract negotiations resolve? a. A proposal of the requirements on the new bridge b. Standard contract language approved by the legal staff and sponsors c. Mutual agreement on the structure and requirements of the contract prior to signing d. Contract financing including the specifics on payments and incentives

Answer 116

C The best answer choice is C because contract negotiation is a tool to clarify and gain mutual agreement on the structure and requirements of the contract prior to signing the contract.

Question 117

You are managing a landscaping project for a new housing development neighborhood. The customer has signed a Time and Materials contract with your company. There are no penalties for early termination. After reviewing the site, the customer feels the landscaping is complete and the project is done. The customer wishes to terminate the contract. This special case of contract close-out is: a. Procurement audit b. Early termination c. Contract change request d. Statements of work

Answer 117

B The best answer choice is B because early termination is defined as a special case of contract close-out because not all work may have been completed or not all funds may have been paid.

Question 118

The Delphi technique is a tool that can be used in risk identification. This technique is used to: a. Derive a consensus using a panel of experts to arrive at a convergent solution for a specific problem b. Explore assumptions validity c. Interview subject matter experts to identify risks based on their experience d. Diagram how the various risks of the project interrelate

Answer 118

A The best answer choice is A because the Delphi technique is a way to reach consensus of experts.

Question 119

You have been assigned as the project manager on a very large project. One of your first activities is to identify inputs you need to consider in developing a Risk Management plan. You have a meeting scheduled with the project team to discuss developing a Risk Management plan. Which of the following documents will you not bring to this meeting? a. Roles and responsibilities b. Work breakdown structure c. Risk response plan d. Project charter

Answer 119

C The best answer choice is C because the Risk Response plan is a document created after the Risk Management plan has been developed to respond to specific risks.

Question 120

You are the project manager of a project designed to implement a new software system. Several months ago, the sponsor reviewed and approved the Project Charter and Work Breakdown Structure. Your team has been working hard on the prototype for the sponsor to review. At the meeting to present the prototype of the new system, the sponsor requested a few modifications. To ensure that the requests are properly approved, funded, and tracked, you decide a process is needed. What type of process will you implement to track and approve modifications requested? a. A configuration management process b. A performance measurement process c. A scope change control process d. A project management information system

Answer 120

C The best answer choice is C because a scope Change Control process ensures that the changes are approved and budgeted.

Question 121

Susan is a project manager for a very large company and has been assigned to assume responsibility for a large project that is in the planning phase. She has become increasingly concerned about the lack of responsiveness on the part of stakeholders to information she disseminates. She discusses this dilemma with a coworker and realizes that perhaps she doesn't understand the information needs of her stakeholders. Susan realizes her next step should be to: a. Analyze project objectives b. Analyze business needs in support of requirements c. Conduct a cost-benefit analysis d. Conduct a stakeholder analysis

Answer 121

D The best answer choice is D because a stakeholder analysis is a technique of systematically gathering and analyzing qualitative and quantitative information to determine whose interests should be taken into account throughout the life of the project.

Question 122

All of the following are interpersonal skills used to manage stakeholder's expectations except: a. Build trust b. Fast track the schedule to keep stakeholders happy c. Resolve conflict d. Practice active listening

Answer 122

B The best answer choice is B because all of the other choices listed are examples of interpersonal skills that can serve as tools and techniques to manage stakeholder expectations.

Question 123

Which of the following are benefits to formally planning the close-out of a project or phase? a. Billing the vendor for work completed b. Freeing up resources for additional training opportunities c. Providing lessons learned to the organization's knowledge base d. Scheduling conflicts have been resolved

Answer 123

C The best answer choice is C because at the close of a project or phase, historical information and lessons learned are transferred to the organization's knowledge base for use by future projects or phases.

Question 124

The Project Charter has been approved on your project, and an extremely large number of stakeholders have expressed interest in the project. You decide to meet with your team to complete a Salience model. The purpose of this tool is to: a. Group stakeholders based on their level of authority b. Group stakeholders based on their ability to effect change c. Group stakeholders based on their organizational breakdown structure d. Group stakeholders based on their ability to impose their will, their need for immediate attention and to determine if their involvement is appropriate

Answer 124

D The best answer choice is D because a Salience model describes classes of stakeholders based on their power, urgency, and legitimacy.

Question 125

The output of Identify stakeholders is: a. A stakeholder management plan b. An issues log c. A stakeholder register d. An organization breakdown structure

Answer 125

C The best answer choice is C because the Stakeholder Register contains all details related to the identified stakeholders and is a living document that should be updated throughout the life of the project.

Question 126

During a steering committee meeting, the project manager reported that his project was on schedule. The project has an earned value of $2,000, a planned value of $5,000, and the actual cost is $3,000. Why do you question the project manager about his interpretation of the schedule? a. The Project Cost and Schedule Performance Indices are less than 1, meaning the project is behind schedule and over budget b. The project has a Schedule Variance greater than 1, which means the project is on schedule c. The Project Cost Performance Index is less than 1, which means that the project is over budget d. The Project Cost Performance and Schedule Performance Indices are less than 1, which means the project is on budget and on schedule

Answer 126

A The best answer choice is A because the project is both behind schedule and over budget based on the Cost Performance Index and the Schedule Performance Index. Cost Performance Index is calculated by Earned value / Actual cost. Schedule Performance Index is calculated by Earned value / Planned value. CPI = 2000/3000 = .66, SPI = 2000/5000 = .4. Indices less than 1 indicate behind-schedule or over-budget situations. While C is also correct, A is the best answer as it gives a more complete description of project status.

Question 127

You are finalizing the monthly project status reports that are due now to your manager when you discover that several project team members are not reporting actual hours spent on their assigned project activities. Consequently, the project plan statistics are skewed. What is the most appropriate action you should take? a. Discuss the impact of these actions with team members b. Report team member actions to the functional manager c. Continue to report information as it is presented to you d. Provide accurate and truthful information regarding all project information in reports

Answer 127

D The best answer choice is D because it is the responsibility of the project manager to validate any and all project information that is provided prior to disseminating the information to stakeholders. Doing this ensures that all project information is accurate.

Question 128

Once a risk response is created, which of the following statements best describes the project manager's role regarding risks while the project work is being completed? a. Meet with stakeholders to inform them that risk responses have been created b. After a risk event occurs, reassess risk rankings c. Implement planned workarounds d. Decide if risk owners need to be assigned to identified risks

Answer 128

B The best answer choice is B because controlling risks is an ongoing process throughout the life of the project. Monitoring Risks involves tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk processes effectiveness.

Question 129

When would a milestone chart be used instead of a Gantt chart? a. During project planning b. When reporting to team members c. During risk analysis d. When reporting to senior management

Answer 129

D The best answer choice is D because senior management is primarily concerned with a summary view of the accomplishment of key deliverables, which is depicted in a milestone chart.

Question 130

A project has a payback period of 10 months. What does this mean? a. It will take the project 10 months to start incurring costs b. The project will be complete in 10 months c. The first 10 months of the project will provide a profit to the organization d. It will take the project 10 months to cover the investment and start generating revenue

Answer 130

D The best answer choice is D because the definition of payback period is the number of time periods it takes to recover your investment in the project before you start generating revenue.

Question 131

If a project has a 60% chance of a US $100,000 profit and a 40% chance of a US $100,000 loss, the Expected Monetary Value for the project is: a. US $100,000 profit b. US $60,000 loss c. US $40,000 loss d. US $20,000 profit

Answer 131

D The best answer choice is D because by subtracting the $40,000 loss from the $60,000 profit, the answer yielded is $20,000 profit.

Question 132

As a senior project manager, you have been asked to coach a newly hired project manager in the area of Project Risk Management. How do you describe how Risk Management fits into the project management process? a. Risk Management is an event that occurs only in the Initiation and Planning phase of a project b. Risk Management is an event that occurs only in the Planning phase of a project c. Risk Management is a process that continues through the first three phases of project management d. Risk Management continues throughout a project up through the close out phase

Answer 132

D The best answer choice is D because Risk Management planning is the process of defining how to conduct Risk Management activities effectively throughout the entire project life cycle.

Question 133

Your project charter has been approved, and you have received direction to begin planning the project for a new resource management system for your organization. In order to ensure that key stakeholders have a common understanding of the rationale for the project, the major deliverables, and the project objectives, you decide that the next key task is: a. Ask for stakeholder involvement in the development of the project plan b. Create a Work Breakdown Structure c. Develop a Communications Management plan d. Develop a written scope statement

Answer 133

D The best answer choice is D because preparation of a detailed project scope statement is critical to project success and builds on major deliverables, assumptions, and constraints that are documented during project initiation.

Question 134

The data date for a current project is taken midway through a 12- month, $500,000 baseline. The PV at this date equals $350,000 and the SPI is 1.03. What does the EV equal? a. $345,750 b. $353,250 c. $360,500 d. $357,000

Answer 134

C The best answer choice is C because by using the formula SPI = EV / PV with the unknown being EV, we multiply PV × SPI. Therefore, $350,000 × 1.03 = $360,500.

Question 135

You have just been assigned to lead a major technology project that is approximately 50% complete. The project involves numerous vendors and 25 people on your project team. You would like to review communications requirements for the project and what technology is being used to aid in project communications. You should refer to: a. The Information Distribution plan b. The Gantt Chart c. The Communications Management plan d. The project plan

Answer 135

C The best answer choice is C because the Communications Management plan is a component of the project management plan and describes how project communications are planned, structured, monitored, and controlled.

Question 136

You have been assigned as the project manager for a top-priority project in your organization. The deliverables defined for the project have hard time constraints, and the project is very complex. As the project manager, what must you do to get the resources you need to staff this project in a timely manner? a. Insist on getting the best project resources in the organization to ensure timely delivery b. Negotiate the appropriate staff who are available in the necessary time frame c. Build in a reward program to motivate people on your project team d. Identify team members in the same location so they can work closely together to ensure an on-time delivery

Answer 136

B The best answer choice is B because most projects require negotiation to gain the staffing required to complete them in the needed time frame.

Question 137

You have just been assigned as the project manager to rescue a troubled project. You have completed an initial evaluation of the problems and have uncovered a number of items that need to be addressed. The project is behind schedule and over budget due to a number of requests by the customer for additional functionality. The initial product that was selected has failed many initial quality assurance tests. The project team is seriously considering replacing the product with a different one. The product vendor has indicated the company is locked into the contract, and it cannot be changed. What should you do first? a. Hire an attorney and sue the vendor for damages b. Perform a quality audit on the testing processes c. Implement an integrated Change Control system d. Discuss the impacts on schedule and cost because of change requests made by the customer

Answer 137

C The best answer choice is C because you need to get control over the project. Implementing an integrated Change Control process will provide you with formal procedures to start monitoring the project. The Change Control process will include the approval process and levels necessary to make changes to the project.

Question 138

You have been assigned to manage a new business improvement project. You want to ensure the right people are involved and communicated to during the project. To identify all the stakeholders who should be involved in the project, you decide to conduct a stakeholder analysis. You decide that all of the following will be included in your analysis with the exception of: a. Those who have a direct relationship with the project b. Everyone with a hierarchical relationship to the resource managers for the project c. Those who can influence the project d. Those whose interests will not be affected by the project

Answer 138

D The best answer choice is D because a stakeholder analysis consists of determining those who have a relationship with the project, can influence the project, and have a vested interest in the project.

Question 139

The ZM Desk implementation project is planned to take 20 months to complete for a project cost of $150,000. Currently the status at month 12 reveals the following information: PV = $90,000, EV = $120,000, and AC = $100,000. Based on this information, what is the new ETC? a. $60,000 b. $25,000 c. $30,000 d. $50,000

Answer 139

B The best answer choice is B because the formula for calculating ETC is: ETC = EAC – AC. In order to complete this calculation, EAC must be calculated with the formula of EAC = BAC / CPI. We can first determine the CPI by dividing $120,000 (EV) by $100,000 (AC). Therefore, CPI = 1.2. Using this information, we can now calculate EAC using the aforementioned formula: EAC = 150,000 / 1.2 = $125,000. Using the original formula for ETC: ETC = $125,000 – $100,000 = $25,000. This indicates that the expected cost to finish all project work is $25,000.

Question 140

You are a senior project manager and have been asked to lead a team to put measures in place in support of project selection. The company's senior management has determined that the current method of selecting projects using the payback method is inadequate. Several of the team members have opposing opinions on which decision model should be selected. You have called a meeting to discuss various decision models. Which of the following will not be discussed at the meeting? a. Cost benefit analysis b. Estimate at completion c. Scoring models d. Net present value

Answer 140

B The best answer choice is B because Estimate at completion is a forecasting technique used in earned value management. It is not a project selection calculation.

Question 141

You are a project manager on a project that has just received several change requests from the customer. You are preparing the scope change requests to be presented to the Change Control Board next week. At the meeting, the Change Control Board will want to know how the scope change requests will affect the project. In order to provide this information to the Change Control Board, you will: a. Review the affect of the change by reviewing its impact to the project charter b. Compare the work required for the change requests against the Work Breakdown Structure, along with the project schedule c. Review the lessons learned to determine how previous changes affected project scope d. Conduct a planning meeting with the project team to discuss the changes

Answer 141

B The best answer choice is B because scope change requests affect the scope and schedule of the project. The impact to scope can be determined by reviewing the Work Breakdown Structure.

Question 142

You are the project manager at a manufacturing plant. Your current project is to upgrade several of the manufacturing processes with new equipment. The timing of human resources and equipment is critical to your project. In planning your project schedule, you make two assumptions: that equipment will be delivered on time and that human resources will be made available to your project as scheduled. The assumptions you made are: a. Considered real, true or certain b. Project scope constraints c. Stated as part of the project objectives d. Factors that limit the project team options

Answer 142

A The best answer choice is A because assumptions are defined as factors that are considered real, true, or certain until validated.

Question 143

You are a project manager who works primarily on projects that are heavily regulated by state and federal government agencies. As a result, when planning your Schedule Management approach, you know it is critical that project stakeholders have a very clear understanding of the task relationships on your project. You decide to use: a. A milestone chart b. An Organizational Breakdown Structure c. An Arrow Diagramming Method schedule d. A project schedule network diagram

Answer 143

D The best answer choice is D because project schedule network diagrams are used to show activity relationship dependencies in a pictorial manner.

Question 144

The project sponsor is reviewing the schedule variances of several projects that you have been managing. The sponsor is pleased to find that the majority of the projects are ahead of schedule. What conclusion can the sponsor make about the costs associated with those projects that are ahead of schedule? a. The projects will finish under budget b. The projects are ahead of schedule but spending more than the budget on resources c. No conclusions can be drawn about the costs or budgets d. The unused budgets from the projects can be reallocated to those that are over budget

Answer 144

C The best answer choice is C because schedule variances do not include cost variances.

Question 145

Which of the following is an example of quality assurance? a. Pareto diagrams b. Team training c. Fishbone diagrams d. Inspection

Answer 145

B The best answer choice is B as quality assurance seeks to build confidence that a future output or an unfinished output will be completed in a manner that meets specified requirements and expectations. Training the team would help prevent defects.

Question 146

You are the project manager of a project to create high-precision atmospheric measurement instruments. A quality control analyst found variations in your new manufacturing process. The quality control team has been analyzing the variations for the last three weeks. To date, the analysis has not impacted the project schedule. The team found that variation is due to special causes. The most appropriate action for you to take is: a. Ignore the variations since some variations in a process are normal b. Identify and eliminate the sources of variation c. Conduct a quality audit to determine the sources of variation d. Prepare a Quality Management plan to present to the sponsor

Answer 146

B The best answer choice is B because special-cause variations can be controlled. These variations can be eliminated from the process to improve quality.

Question 147

You are the project manager for a pharmaceutical company. Producing quality products is very important to your company, and your customers have always associated the company name with high-quality products. As a result, the company has set a Six Sigma standard for all products. You know that the cost of nonconformance to quality can exceed the original development costs in the industry. You are preparing a report on the cost of nonconformance to quality for the project. You determine the following information will be included in your report: a. Training doctors on the correct dosages of the drugs b. An ongoing quality control team to continuously monitor the new drug c. Audit the project for conformance to standards and regulations d. The liability costs of producing and distributing a poor quality drug

Answer 147

D The best answer choice is D because liability costs are costs of nonconformance to quality.

Question 148

You are evaluating the defects in the current manufacturing process to determine the best approach to improve the process. You decided to include only the top 20% of the defects that appear to be causing 80% of the problems in the process improvement project. You arrive at this information by using: a. A control chart b. A scatter diagram c. A cause and effect diagram d. A Pareto diagram

Answer 148

D The best answer choice is D because Pareto diagrams are used to stratify data into groups from the largest to the smallest. Such diagrams identify the most common causes or occurrences of variation in a process.

Question 149

Fixed-price contracts place the most risk on the: a. Buyer b. Seller c. Project Manager d. Project Sponsor

Answer 149

B The best answer choice is B because under fixed-price contracts, sellers are legally obligated to complete such contracts and face possible financial damages if they do not.

Question 150

Careful inspection of goods and services produced: a. Is the most effective way to ensure the delivery of quality products b. Is used to determine if the deliverable conforms to the documented standards c. Needs to be carried out only randomly d. Should be carried out on the first 10% of produced goods

Answer 150

B The best answer choice is B because an inspection is the examination of a work product to determine if it conforms to documented standards.

Question 151

You have been asked to update the organizational process assets as part of closing your project. You have decided it is appropriate to include: a. Deliverable acceptance and sign off b. Lessons learned documents c. Procurement documents d. All of the above

Answer 151

D The best answer choice is D because these are key elements that are part of organizational process asset updates upon closing out a project.

Question 152

You have been working as the project manager on a one-year project and have decided to conduct a post-project review at the end of your project. You advise your project sponsor of your plans to do this because: a. It provides an opportunity to look back over the life of the project and conduct a lessons learned b. It provides an opportunity to place blame for things that did not go well on the project c. It provides an opportunity to celebrate the successes accomplished by the project d. It provides an opportunity for the stakeholders to conduct a detailed technical review of the project deliverables

Answer 152

A The best answer choice is A because lessons learned provide information as to what has been experienced and process improvement recommendations that could be used to improve future procurements.

Question 153

You are new to your organization and have been assigned as the project manager to initiate a new project. You realize one of the first things you need to do is to identify stakeholders on your project. The best approach to identifying stakeholders would be to use the following documentation: a. Project Charter and any procurement documents b. Project plan and communications matrix c. Stakeholder register d. Meeting minutes and project charter

Answer 153

A The best answer choice is A because the purpose, project description, and high-level requirements that are documented in the charter are a good first place to identify people.

Question 154

You are managing a project for a highly bureaucratic organization where the culture and politics are very influential in how you manage the project. In this highly bureaucratic organization, you need to make sure you have plenty of documentation as well as a Communications Management plan that takes into consideration the multiple layers of information and approvals required throughout your project. In response to this type of organizational culture, you need to: a. Develop a comprehensive communications matrix b. Have weekly meetings that are open to interested stakeholders c. Provide project information in person supported by written reports d. Develop a stakeholder management plan

Answer 154

D The best answer choice is D because organizational culture and politics is highly influential in how you plan to manage stakeholder engagement on a project.

Question 155

You are the project manager leading an enterprise wide project to implement a new Project Management Information System. Throughout the preliminary meetings you have held, you have discovered that there are competing needs and interests across stakeholder groups who will be using the new project management software tool. The best strategy to mitigate this situation is to: a. Publish all scope documents so that stakeholders understand the boundaries of the project up front b. Prioritize the functionality to be delivered based on organizational hierarchy c. Talk to your stakeholders throughout the project to ensure a common understanding of the project scope, benefits and time and cost estimates d. Plan the project in phases that will address all stakeholder needs

Answer 155

C The best answer choice is C because engaging stakeholders early and throughout the project, so they have a common understanding, will help ensure their continued support of the project.

Question 156

You are managing a software implementation project for your company, and throughout the customization phase, numerous changes have surfaced from key stakeholders. At the same time, other stakeholders are expressing their frustration with the number of changes and are becoming increasingly concerned about meeting the schedule deadline for implementation. The best thing you should do to manage these stakeholders is: a. Schedule face-to-face meetings and employ active listening skills to build trust b. Discuss the concerns with your project sponsor c. Meet with your project team to define response strategies d. Allow them to vent their frustrations

Answer 156

A The best answer choice is A because in order to manage stakeholders effectively, you need to pay particular attention to their needs, promoting open communication and building trust.

Question 157

You are the project manager on a project, and you are working to determine when an activity will be completed. You decide to use a weighted average (PERT). The optimistic duration is 7 days, the most likely duration is 10 days, and the pessimistic duration is 16 days. What is the PERT weighted average for the activity duration? a. 10.5 b. 11.2 c. 9.5 d. 8.7

Answer 157

A The best answer choice is A based on the following PERT formula: Optimistic + (4). Most likely + Pessimistic / 6. Therefore, 7 + 40 + 16 / 6 = 10.5.

Question 158

You are the project manager for the installation of the new customer relationship management software for your company. The project has been proceeding successfully; however, you have begun to notice that key decision makers on your project have not been present at the last three meetings. The best thing you should do is to: a. Document this as an issue in the issues log and monitor it closely b. Meet with these stakeholders to determine their support for the project and see how you can get them actively engaged in the project again c. Discuss the issue in a team meeting and seek input from resolution strategies d. Discuss the issue with your project sponsor since he or she should be informed of any issues on the project

Answer 158

B The best answer choice is B because controlling stakeholder engagement involves revisiting the Stakeholder Management plan and comparing it with work performance data to determine whether the plan is having the intended effect or whether you need to find more effective ways to engage the project stakeholders.

Question 159

As a project manager, you have learned that good Risk Management practices help you understand what risks should or can be mitigated on projects. You heard that you might eventually be assigned to a new project that requires procuring vendors to provide key deliverables for the project. The procurement office in your organization has proceeded with the necessary steps to finalize the contract process. You express concern that a contract should not be finalized before a project manager is assigned to the project. Your rationale is that: a. Contracts are one way to help manage risks and should not be created before a project manager is assigned b. You need to understand all detailed aspects of the project so it can be properly planned c. You have not had a chance to review the project charter d. You have not been involved in the creation of the SOW

Answer 159

A The best answer choice is A because the project manager is considered the authority on project risks and can greatly assist in making the contract appropriate to the project.

Question 160

You are the project manager assigned to a very complex project that spans geographical territories. You rarely have the chance to meet with your sponsor face to face. You recently realized that much of the communications you provide via telephone is not interpreted properly. You realize this is a problem of: a. Encoding b. Decoding c. Transmitting d. Receiving

Answer 160

B The best answer choice is B because decoding is interpreting the message that has been sent.

Question 161

You work for a major consulting company. The project manager from Expert Financial Management Inc. has asked your company to respond to a Request for Quotation. You have been asked by your company to respond to this request. The next thing you should do is to: a. Submit a proposal b. Contact Expert Financial Management Inc. and ask for information to tailor your SOW c. Submit a contractor response d. Attend the bidders' meeting

Answer 161

A The best answer choice is A because proposals are documents that describe the seller's ability and willingness to provide the requested product and/or service.

Question 162

You are a project manager on a sewage system implementation project in a third world country. You need permits to complete your project. The minister of public works calls to inform you that a payment is required to perform work in the country and get the permits within schedule. Failure to pay could result in a three-month schedule delay. What do you do in this situation? a. Make the payment since it is the custom in that country, and it will keep you on schedule b. Refuse to pay the bribe, and demand that the permits are provided legitimately in a timely manner c. Explain to the minister of public works that payments in advance are not acceptable practice in your country d. Refuse to pay the bribe, and notify the stakeholder of the delay

Answer 162

C The best answer choice is C because you have a moral obligation to comply with your own country's standards of conducting business.

Question 163

You are a project coordinator who reports to the accounting manager. She has assured you that the work involved on a certain project is only part time. After reviewing the project management plan, you have several issues that your manager needs to resolve before the project can proceed. You schedule a meeting to discuss the issues and to request that resources be added to the project. The best description of your company's organizational structure is: a. A functional organization b. A balanced matrix organizational structure c. A strong matrix organizational structure d. A projectized organizational structure

Answer 163

A The best answer choice is A because in a functional organization, the title often given to a project manager's role is project coordinator. The role is typically part time, and the coordinator has little or no decision-making authority.

Question 164

You are the senior project manager for a transportation manufacturing company, and your projects are usually the result of customer surveys. A recent survey revealed that customers would like a new type of motorcycle that can function effectively on road as well as off road. The VP of marketing has determined that a project will be initiated to create this new motorcycle. Whose responsibility is it to create the project charter? a. A person should be designated by the PMO to write the charter b. The customers responding to the survey should complete the charter c. The project manager assigned to the project should complete the project charter d. The VP of marketing should write the charter

Answer 164

D The best answer choice is D because project charters should be issued by the project initiator or sponsor that formally authorizes the existence of a project. The charter provides the project manager with the authority to apply organizational resources to achieve the project objectives.

Question 165

You are a project manager who has just been notified that some of your team members are needed for a critical project within the organization that is scheduled to begin very soon. You have been told to find a way to complete your project before the expected delivery date with minimal to no impact to cost. You evaluate the project and determine the best way to accomplish this objective is to: a. Crash the schedule b. Fast track the schedule c. Recalculate the critical path using different assumptions for estimates d. Use the Program Evaluation and Review Technique

Answer 165

B The best answer choice is B because fast tracking is performing activities that would normally occur in a serial fashion to be done in parallel reducing the schedule duration with minimal impact to project costs.

Question 166

You are the project manager on a project that has several key deliverables that are estimated to take approximately four months each to complete. You do not have a lot of experience managing projects so you ask two of your coworkers who are experienced project managers to help you with resource planning. What information do they tell you that you need to get started? a. Activity resource requirements b. Activity duration estimates c. The Responsibility Assignment Matrix d. Further defined scope of the project

Answer 166

A The best answer choice is A. Resource planning uses activity resource requirements to determine the human resources needs for the project.

Question 167

You are managing a project with a number of important deliverables that are being released in phases. Your best strategy to ensure that the customer accepts the deliverables as they are released is to: a. Hold frequent meetings b. Conduct prototype reviews c. Validate scope d. Control scope

Answer 167

C The best answer choice is C because Validate Scope is the process of formalizing acceptance of the completed project deliverables.

Question 168

You are a senior project manager for your company and have been asked to coach a more junior project manager in the project management standards that exist in your organization's PMO. You have been asked to explain how Validate Scope differs from Control Quality. You respond by saying that: a. Validate scope differs from Control Quality in that Validate Scope is concerned with acceptance of work results while Control Quality is primarily concerned with the processes to get work results b. Validate scope differs from Control Quality in that Validate Scope is concerned with acceptance of work results, while Control Quality is primarily concerned with correctness of work results c. Validate scope differs from Control Quality in that Validate Scope is concerned with process to get the work results, while Control Quality is primarily concerned with correctness of work results d. Validate scope differs from Control Quality in that Validate Scope is concerned with the process to get work results, while Control Quality is primarily concerned with acceptance of work results

Answer 168

B The best answer choice is B because Validate Scope is concerned with “completeness” and Control Quality is concerned with “correctness.”

Question 169

You have been assigned as a project manager on a very large project with multiple providers. Your project sponsor has directed you to be responsible for controlling all procurements for this project. You advise the sponsor that this might not be the best approach because: a. A Project Procurement administrator is typically responsible for controlling procurements on a large project with multiple providers b. The project is too large and would require additional staff for the activities involved in controlling procurements c. A project coordinator is typically assigned these duties d. The PMO will provide oversight for these activities

Answer 169

A The best answer choice is A because Control procurements is the process of managing procurement relationships, monitoring contract performance, making changes and corrections as appropriate, and closing out contracts. These responsibilities fall within the realm of a Project Procurement administrator.

Question 170

You are a senior project manager and have been approached by a department manager about your experience with a particular vendor on a previous project. The department manager specifically wanted to know whether a procurement audit had been completed to date. This information would be useful because: a. The objective of a procurement audit is to identify successes and failures that warrant recognition on the project b. The objective of a procurement audit is to identify if an early termination request was initiated c. The objective of a procurement audit is to identify if the invoicing process was followed properly d. The objective of a procurement audit is to identify if any legal issues surfaced

Answer 170

A The best answer choice is A because a procurement audit is a structured review of the procurement process originating from the Plan Procurement Management process through Control Procurements.

Question 171

You are a project manager who is in the process of planning your project. Today you are working with your team to develop the Communications Management plan for your project. Your team members want to know the three main reasons for maintaining good document control. You inform them that the three main reasons for good document control are: a. Timely communication, collection of performance appraisal data, and assuring proper disposal of sensitive information b. Change management, ability to reconstruct what decisions were made, and historical value c. Timely communication, maintaining proper approvals, and communication cost control d. Security, change management, and process documentation

Answer 171

B The best answer choice is B because these are all defined as outputs from the Monitor Communications process.

Question 172

You are kicking off the planning of your project and have assembled your project team for the first time. You plan to introduce team members to one another and help them understand the objectives of the project and the roles they will be playing to achieve the project objectives. You plan to conduct some team-building and getting-acquainted exercises because you realize your team: a. Is in the forming stage b. Needs to get reacquainted because some of them have worked together previously c. Is in the storming stage d. Is in the norming stage

Answer 172

A The best answer choice is A because the forming stage is where the team meets and learns about the project and their formal roles and responsibilities.

Question 173

You are a project manager on a multiphased project. Your project is about to end one of its phases. What should be done before moving on to the next phase? a. Conduct a team meeting b. Conduct a stakeholder meeting c. Review the schedule for newly identified risks d. Validate scope

Answer 173

D The best answer choice is D because deliverables that meet the acceptance criteria are formally signed off and approved by the customer or sponsor and are forwarded to the close project or phase process.

Question 174

You are the project manager of a highly successful project. Your project is on budget, and many of the deliverables produced have exceeded time and quality parameters. Your project sponsor recommended you implement a reward and recognition system on your project for purposes of recognizing performance. The best thing you can do that is within your authority as a project manager is to: a. Provide spot bonuses for high achievers on your project b. Give team members extra vacation time c. Recommend that team members receive a promotion d. Provide premier performance certificates to project team members who delivered above and beyond their required task at each milestone

Answer 174

D The best answer choice is D because a good strategy for project managers is to give their team recognition throughout the life cycle of the project rather than waiting until the project is complete.

Question 175

You are the project manager leading a project to implement new accounting software. A decision to purchase software instead of building it has been made by your organization. In your project meeting with key stakeholders, you recommend that vendor responses be evaluated using a numerical weighting system. You recommend this approach to: a. Enter into contract negotiations faster b. Minimize the effect of personal prejudice c. Define limitations of the scope of work d. Ensure compliance with the Statement of Work

Answer 175

B The best answer choice is B because analytical techniques can help organizations identify the vendor's readiness to provide the desired end state and minimize subjective bias in the process.

Question 176

You are managing a project for the construction of a new school in a rural area of the country to serve the needs of low-income families. Soil tests have been conducted on the proposed site, and results show that the soil is contaminated and not currently safe for construction. If remediation of the soil is required, the costs for the project will triple and result in the potential cancellation of the project. As the project manager, what should you do regarding this latest information? a. Tell the community there is a minor problem but nothing to worry about until you can find a solution b. Educate the public about the threats of soil contamination, and provide education on preventive measures c. Inform the public that a detailed soil test has been ordered to determine the root cause of the problem d. Continue with the project since the test results did not indicate you need to inform the community

Answer 176

C The best answer choice is C because the PMI Code of Ethics and Professional Conduct requires that project managers provide accurate and truthful representation to the public in the preparation of estimates concerning costs, services, and expected results.

Question 177

Tim is a project manager in a very large health care provider organization. He has been very busy with key deliverables and managing the timeline for their timely release. As a result he has not spent a lot of one-on-one time with his project sponsor. He recently found out that someone has supplied incorrect project status information to the sponsor regarding the completion of the deliverables. The sponsor has requested an immediate meeting to explain the information. This problem could have been prevented by: a. Updating and following the Communications Management plan b. Increasing the number of status reports provided c. Increasing the frequency of scope validation activities d. Monitoring the project schedule

Answer 177

A The best answer choice is A because Monitor Communications requires that project communications be carefully monitored and evaluated to ensure that the right message is delivered to the right audience at the right time.

Question 178

You have just received a scope change request from one of your stakeholders that may increase the project schedule and budget. What are the best actions you should take? a. Accept the change and update the schedule b. Evaluate the remaining funds in the contingency reserves to accommodate the change c. Call a Change Control meeting d. Document the change and assess its impact

Answer 178

D The best answer choice is D because Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline and changes to project scope could have impacts on other components of the project management plan.

Question 179

You are a project manager on an internal technology upgrade project. You have a minor conflict over a technical issue with a team member and decide that the best approach to resolving this conflict is avoiding. Your rationale for doing so is: a. You do not interact with the team member frequently, and he will probably forget about it b. You do not believe that confrontation would be productive for the project c. There is no time pressure, and the conflict will resolve itself in time d. You'd rather focus on areas of agreement and minimize the negative

Answer 179

C The best answer choice is C because avoiding is an appropriate conflict resolution technique when you believe the issue will go away and there is no time pressure.

Question 180

With a clearly defined scope of work, a contractor completes work as specified, but the customer is not pleased with the results. Under these circumstances, the contract is considered to be: a. Incomplete because the buyer is not pleased b. Incorrect because the specifications were not clearly defined c. Complete because the contractor made the determination d. Complete because the contractor met the terms and conditions of the contract

Answer 180

D The best answer choice is D because as long as the contractor met the terms and conditions of the contract, the contract is considered complete.

Question 181

A vendor is working on a cost-reimbursable contract when the customer decides to expand the scope of services and change to a fixed-price contract. The vendor's options include: a. Completing the original work and rejecting the additional work b. Negotiating a fixed-price contract that includes all of the work c. Completing the original work on a cost-reimbursable basis and then negotiating a fixed-price contract for the additional work d. All of the above

Answer 181

D The best answer choice is D because all of the options are viable, given the situation outlined. In practice, it is not unusual to combine one or more types of contracts into a single procurement.

Question 182

Today you discovered that a contractor has withdrawn from your project. A new contract has been established with a new contractor. His crew is scheduled to arrive at the project site tomorrow. What is the first thing you should do when his team arrives? a. Update your Communications plan b. Update your Project plan c. Bring your team in to meet with his team for introductions d. Meet with the contractor and review the roles, responsibilities, and authority for yourself and the contractor

Answer 182

D The best answer choice is D because meeting with the new contractor and clarifying roles, responsibilities, and authority is a necessary part of managing the procurement relationship with the contractor so that contract performance can be monitored and controlled.

Question 183

Chris is the project manager for a financial software development project for a business group in his organization that is scheduled to take a year to implement. This project will require a high degree of stakeholder engagement for purposes of decision making and sign-off at the end of each development cycle. Six months into the project, Chris has become aware that a critical stakeholder has begun to send a representative to the review meetings. The representative has said that she is unable to officially sign off on any software components as she does not have the authority to do so. Chris is concerned that the stakeholder's lack of involvement may cause the schedule to slip. What is the best thing for Chris to do? a. Discuss the issue with the project sponsor to identify a stakeholder to fill this role b. Meet with the originally designated stakeholder to discuss his or her interest in the project c. Send documentation to the stakeholder for review and sign-off since he or she is unable to attend the meetings d. Re-baseline the schedule

Answer 183

B The best answer choice is B because it is the responsibility of project management to manage stakeholder engagement. Doing this requires communication and working with stakeholders to meet their needs and expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities.

Question 184

You are a project manager working on a project that is utilizing a vendor to help meet a tight schedule. Your project has an emergency and needs some work done as soon as possible. What do you recommend as the most helpful approach to add to the contract under these circumstances? a. A well-defined scope of work b. Specific requirements detailing which subcontractors need to be utilized c. Offer incentives d. A force majeure clause

Answer 184

C The best answer choice is C because incentives help bring the seller's objectives in line with the buyer's. With an incentive, both buyer and seller work toward the same objective, which is particularly useful when time is constrained.

Question 185

You are the project manager on a very large telecommunications project. The project is approximately 50% complete. At this point, it involves four different vendors and 28 people on the project team. You are concerned that the large number of people involved and the complexity of the project could result in schedule and cost overruns if information is not properly disseminated and received. In order to address this potential risk, you should: a. Hold weekly meetings requiring participation on the part of all stakeholders b. Ensure that all project communications are formal and in writing c. Develop and follow a Communications Management plan d. Designate team members to be communication links to project stakeholders

Answer 185

C The best answer choice is C because managing communications is the process of creating, collecting, distributing, storing, retrieving, and ultimately disposing of project information in accordance with the Communications Management plan.

Question 186

You are a project management consultant and have been assigned to manage a very large project for a company with a matrix organization. The project team you inherited works in disparate parts of the organization and does not have a lot of experience working together on projects. You know you need to spend time developing the project team, but it seems that the team members have a lot of competing demands, and motivation for this project seems to be low. This is because: a. Teams are too large to manage b. Team members often have competing priorities in a matrix organization and often do not have loyalty to projects c. Teams are too centralized d. Team organization tends to be technically focused

Answer 186

B The best answer choice is B because a matrix organization reflects a blend of functional and projectized characteristics and can result in power and influence issues between the functional manager and the project manager.

Question 187

You are managing a very complex project with tight time constraints. At this point, the project has been successful in meeting its deadlines for deliverables. Today you learned that a functional manager is trying to pull a team member off your project to do other work. What course of action should you take? a. Fast track the remaining work, and see if you can accomplish the project without the resource b. Assign the work to your remaining project team c. Discuss the issue with the functional manager and explain the ramifications of removing the resource from the project d. Escalate the issue to your project sponsor

Answer 187

C The best answer choice is C because project managers are required to negotiate with functional managers to ensure that the project receives appropriately competent staff in the required time frame and that project team members will be able and authorized to work on the project until their responsibilities are completed.

Question 188

The project team is in conflict over priorities between tasks. You should: a. Examine each of their issues to assess the best way to accomplish the work b. Analyze the what-if scenarios and their impact on cost and scope c. Rely on your original plan d. Validate the project objective priorities with the customer, and use that information to resolve conflicts consistent with the priorities

Answer 188

D The best answer choice is D because it is the role of the project manager to successfully manage conflict in a manner that leads to increased creativity and decision making for achieving the project objectives. The project manager is responsible for facilitating a successful resolution.

Question 189

You are managing a project to implement a new capital markets trading system. The head of capital markets requires very specific functionality in the new system, and your boss, the chief technology officer, requires a specific budget amount to be maintained. The functionality that has been requested far exceeds the budget allowance. What knowledge do you need to strive for fair resolution in order to satisfy these competing needs? a. Knowledge of conflict resolution techniques b. Knowledge of standards for professional communication c. Knowledge of ethnic norms of the stakeholders d. Knowledge of the stakeholder's communication preferences

Answer 189

A The best answer choice is A because in order to balance the competing demands of stakeholders, you will need to have knowledge of conflict resolution techniques. The preferred technique for this situation would be to use problem solving and resolve the issue.

Question 190

You are a project manager for a large technology implementation project and just finished reporting progress to your stakeholders at a quarterly meeting. Your stakeholders were happy with the progress reported and expect the project to continue to proceed as planned. When you returned to your office, you discovered that the project schedule information you reported was missing key metrics and the data you provided was incorrect. What course of action should you take first? a. Do nothing because in examining the schedule, you know you can make up the time and get back on schedule before the next reporting period b. Make a note of the error and communicate the updated and corrected information to the stakeholders c. Re-baseline the schedule d. Call a team meeting to discuss how the errors occurred in reporting progress

Answer 190

B The best answer choice is B because when we make errors or omissions, we take ownership and make corrections promptly. When we discover errors or omissions caused by others, we communicate them to the appropriate body as soon they are discovered. We accept accountability for any issues resulting from our errors or omissions and any resulting consequences. Following this action, you should meet with the team to discover how the error occurred.

Question 191

You are the project manager who is managing a large project. You have decided that the best way for the project team members to perform to their greatest potential is to create a war room so that team members work in the same physical location. This is known as: a. Team building b. Effective resource planning c. Collocation d. Facilities management

Answer 191

C The best answer choice is C because collocation involves placing many or all of the most active project team members in the same physical location to enhance their ability to perform as a team.

Question 192

While all projects need to communicate project information, the information needs and methods of distribution can vary widely from project to project. What document would provide the information needed to plan the communications? a. The Work Breakdown Structure b. The Project Plan c. The Stakeholder Register d. The Risk Management Plan

Answer 192

C The best answer choice is C because the Stakeholder Register provides the information needed to plan the communications with project stakeholders.

Question 193

You are the project manager for a software development project that has been initiated based on a high-level vision with plans to elaborate the scope of the project as you proceed. It has been determined that you will deliver the software components in stages to different stakeholder groups without impact to the final set of deliverables. This is an example of: a. A Predictive life cycle b. A Waterfall delivery c. An Incremental life cycle d. An Agile life cycle

Answer 193

C The best answer choice is C because Incremental life cycles generally are used when the partial delivery of a product is beneficial and provides value to one or more stakeholder groups with impact to the final deliverable.

Question 194

When a project manager is engaged in negotiations, nonverbal communication skills are: a. Of little importance b. Of major importance c. Important only when scope and cost objectives are being discussed d. Important only when dealing with people who have a different cultural background from the project manager

Answer 194

B The best answer choice is B because the majority of information that gets communicated occurs on a nonverbal basis.

Question 195

You are managing a large technology project that will involve many vendors. Today you learned that a former colleague whom you worked with is providing a proposal to bid on the project as one of the vendors. You have been invited to the bidders' conference. What action should you take? a. Participate in the bidders' conference b. Propose that an objective scoring approach be used to rate the vendors c. Have a meeting with your friend to advise him of the needs on the project d. Ask to be removed from the project

Answer 195

B The best answer choice is B because bidders' conferences are designed so that everyone gets the same information and there is impartiality.

Question 196

You are the project manager for a very large, complex project that requires numerous resources from various divisions in your organization. You are about to complete the project management plan for your project and have been unsuccessful in negotiating for the necessary resources. What is the best thing you should do? a. Acquire them from outside the organization b. Settle for less skilled resources and hope for the best c. Provide training to get the acquired resources up to speed d. Delay the execution of the project

Answer 196

A The best answer choice is A because if you aren't able to negotiate for on-site or virtual team members, you will need to acquire them from outside the organization. Doing this can be as simple as bringing in an external Subject Matter Expert or as complex as outsourcing the capabilities of an entire department.

Question 197

A senior manager wants to make a change to the scope of work. What is the best thing the project manager should do? a. Implement the change b. Ask the senior manager to be a member of the Change Control Board c. Evaluate the impact of the change to the project d. Complete the change request for the senior manager

Answer 197

C The best answer choice is C because all changes must be evaluated for their impact on the overall project (cost, time, scope, risk, quality, resources) before a decision can be made.

Question 198

You are the project manager for a project that has well-defined and agreed-upon requirements, and the time and cost to deliver those requirements have been agreed upon. What type of life cycle would be best for accommodating this type of project? a. Iterative b. Incremental c. Predictive d. Agile

Answer 198

C The best answer choice is C because predictive life cycles generally are preferred when the product to be delivered is well understood and agreed upon by stakeholders.

Question 199

You are managing a telecommunications project that will require specialized work from qualified vendors. You decide you want to work with a particular contractor whom you have had a good relationship in the past. He is familiar with your business and has specific, unique qualifications. This is an example of: a. Sole-source selection criteria b. Single-source selection criteria c. Unethical behaviour d. When the procurement of a vendor can occur through a purchase order

Answer 199

B The best answer choice is B because when you have worked with a particular contractor and you have had a good relationship in the past, and/or he or she may be familiar with your business, or you held a similar competition in the near-term past, you may select the vendor without competition. This is known as single sourcing.

Question 200

What is the role of project managers in the contracting process? a. They are not involved b. They provide the details for the scope of work c. They coach the contracting officer how the contract should be handled d. They provide an understanding of the risks that are associated with the project

Answer 200

D The best answer choice is D because project managers are responsible for providing the project documents, which include the risk-related contract decisions included within the Risk Register.

Question 201

Plan Scope Management provides for the development of: a. The project charter b. A written Scope Management plan that includes project justification, major deliverables and the project objectives c. A three-level decomposition of the work breakdown structure d. The project specification that includes project objectives and design principles

Answer 201

B The best answer choice is B because Plan Scope Management is the process of creating a Scope Management plan that documents how the project scope will be defined, developed, monitored, controlled, and validated. The output of Plan Scope Management is a Scope Management plan and a requirements management plan.

Question 202

A Responsibility Assignment Matrix is used to depict: a. The reporting structure of the project b. The same information as the Organizational Breakdown Structure c. Which individuals are responsible for specific project activities d. How the end product is to be built

Answer 202

C The best answer choice is C because a Responsibility Assignment Matrix is a grid that shows the project resources assigned to each work package. It is used to illustrate connections between work packages or activities and project team members.

Question 203

Using the PERT analysis, what is the expected duration of an activity with the following duration estimates? Optimistic duration = 8 days, pessimistic duration = 15 days, and most likely duration =10 days. a. 8.2 b. 6.6 c. 7.9 d. 10.5

Answer 203

D The best answer choice is D because using the PERT formula of: Optimistic + (4) most likely + Pessimistic / 6 gives us: 8 + 40 + 15 / 6 = 63 / 6 = 10.5.

Question 204

Which of the following is an example of a project constraint? a. A fixed completion date b. The threat of a strike by a subcontractor c. The method used to measure project performance d. A business risk

Answer 204

A The best answer choice is A because a constraint is defined as a limiting factor that affects the execution of a project, program, portfolio, or process and is typically associated with cost, time, or resources.

Question 205

Measurement baselines for performance should: a. Change in order to keep the customer satisfied b. Change only intermittently and generally only in response to an approved change c. Remain the same throughout all phases of the project d. Change only when senior management directs them to change

Answer 205

B The best answer choice is B because elements of the project management plan that may be updated as a result of approved change requests include baselines and any subsidiary plans.

Question 206

If Planned Value = $10,000, Earned Value = $9,800, and Actual Cost = $10,400, the project is: a. Headed for a cost overrun b. Operating at project cost projections c. Likely to come in under budget at completion d. Ahead of schedule

Answer 206

A The best answer choice is A because Cost Variance is calculated by subtracting the Actual Costs from the Earned Value: CV = EV – AC. 9800 – 10400 = –600. A negative number represents that the project is over its planned costs.

Question 207

Of the following statements, which is true of the WBS? a. Each level represents a product component b. The WBS is the same as the Organizational Breakdown Structure c. The WBS includes 100% of the project work to be performed d. The WBS is an unstructured list of activities in graphical format

Answer 207

C The best answer choice is C because a WBS is hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables.

Question 208

Using decision analysis, determine which vendor will potentially cost you the least amount of money. Vendor A has an estimated contract cost of $80,000 and an 80% chance of delivering on time, as well as a 20% chance of being late by 6 days with a cost of the delay being $9,000. Vendor B has an estimated contract cost of $95,000 with a 95% chance of being on time, as well as a 5% chance of being late by 11 days with a cost of the delay being $16,500. Vendor C has an estimated contract cost of $83,000 with a 90% chance of delivering on time as well as a 10% chance of being late with a cost of the delay being $4,000. a. Vendor A b. Vendor B c. Vendor C d. Vendors A and C

Answer 208

A The best answer choice is A because Expected Monetary Value for a project is calculated by multiplying the value of each possible outcome by its probability of occurrence and adding the products together. Therefore, based on the following decision tree analysis calculations: Vendor A: 80% × $80,000 = $64,000 (chance of being on time) and 20% × $89,000 (cost of the contract + the cost of the delay) = $17,800. The total Expected Monetary Value for Vendor A is $64,000 + $17,800 = $81,800. Vendor B: 95% × $95,000 (chance of being on time) and 5% × $111,500 (cost of the contract + the cost of the delay) = $5,575. Therefore the total Expected Monetary Value for Vendor B is $90,250 + $5,575 = $95,825. Vendor C: 90% × $83,000 = $74,700 (chance of being on time) and 10% × $87,000 (cost of the contract + the cost of the delay) = $8,700. Therefore the total Expected Monetary Value for Vendor C is $83,400. The vendor that will potentially cost the least amount of money is Vendor A.

Question 209

Defining project roles is important because it: a. Clarifies accountability and reduces duplication b. Allows for shared resources c. Sets behavioural norms d. Gives more authority to the project manager

Answer 209

A The best answer choice is A because clarifying roles and accountability is part of the human resource management plan and provides guidance on how human resources should be defined, staffed, managed, and eventually released.

Question 210

The Project Integration Management knowledge area includes: a. Scope planning b. Project Management Plan development c. Scope verification d. Procurement planning

Answer 210

B The best answer choice is B because Develop Project management Plan is a planning process of Project Integration Management.

Question 211

The critical path is calculated by establishing the following dates: a. Predecessor to successor, predecessor to predecessor, successor to successor b. Planned start, actual start, planned finish, actual finish c. Early Start, Early Finish, Late Start, Late Finish d. Start-to-Start, Finish-to-Finish, Finish-to-Start

Answer 211

C The best answer choice is C because the Critical Path Method is used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths with the schedule model. This is accomplished by conducting a forward pass to identify the Early Start and Early Finish dates, and a backward pass to identify the Late Start and Late Finish dates for each activity within the logical network.

Question 212

Task A has an effort estimate of 80 hours of effort. Three resources have been assigned to work on this activity and each of them is available 50% time per day. What is the estimated duration of Task A? a. 5.8 days b. 6.7 days c. 10 hours d. 4 days

Answer 212

B The best answer choice is B because to determine duration for a variable duration activity the formula is: Duration = Effort Estimate divided by availability all divided by the number of resources. Therefore, 80 / 4 = 20 / 3 = 6.7 days.

Question 213

You have been asked to develop a three-day project management training program for project managers with limited experience that are new to the organization. A year ago you developed a four-day project management training program that was more complex for participants with no project management experience. What is the best estimating technique to use for your assigned project? a. Parametric b. Analogous c. PERT d. Expert Judgment

Answer 213

B The best answer choice is B because analogous estimating in its most basic form compares past projects with the current project, determines the areas of similarity and the areas of difference, and then develops an estimate based on that.

Question 214

During source selection, seller responses are evaluated and a ranking system is developed to identify the preferred seller in order to enter contract negotiations and sign the contract. During the evaluation, why would it be important to use a numerical weighting system? a. To ensure full compliance with the Statement of Work b. To overcome subjective interpretation of the seller's response c. To define limitations of scope d. To enter into contract negotiations faster

Answer 214

B The best answer choice is B because a numerical weighting system is useful on complex procurements as a way to formally evaluate seller responses in an objective manner.

Question 215

Which of the following risk response development strategies would reduce the expected value of a risk event? a. Avoidance b. Mitigation c. Acceptance d. Expected value cannot be reduced once determined

Answer 215

B The best answer choice is B because mitigation means to lessen the probability and/or impact of the risk event. Expected value for a project is calculated by multiplying the value of each possible outcome by its probability of occurrence and adding the products together.

Question 216

A diagram that focuses on problems that offer the greatest potential for improvement by showing their relative frequency or size in a descending bar graph is called: a. A histogram b. An affinity diagram c. A Pareto diagram d. A scatter diagram

Answer 216

C The best answer choice is C because Pareto diagrams are a special form of vertical bar chart and are used to identify the vital few sources that are responsible for causing most of the problem's effects.

Question 217

When you've seen signs of waning commitment and you want to renew team commitment to the project, what is the best thing for you to do? a. Revisit ground rules, use team process review, and open up communications b. Focus on individuals contributing to the problem and coach and counsel them c. Hold a special meeting, identify who is accountable and punish them d. Let it go so as not to reinforce the problem because you know it will dissipate in time

Answer 217

A The best answer choice is A because managing project team performance is the process of tracking team member performance, providing feedback, resolving issues, and managing team changes to optimize project performance.

Question 218

Which is an acceptable cause for re-baselining a $10 million project? a. The contractor's company has instituted a quality program in which it has pledged to spend $1 million during the next year. b. The productivity in the drafting department is lower than anticipated, which has resulted in 100 additional hours, and a slight increase in budget. c. The monthly consumer price index on some commodities essential to the project has gone up by 1.6%, and will cause a $12,000 variance. d. The client has authorized a $10,000 addition to the scope of the project.

Answer 218

D The best answer choice is D because re-baselining a project is the result of performing integrated change control and project baseline is updated only as a result of approved change requests.

Question 219

You have been named project manager for a new project involving automating the inventory system for a large auto parts manufacturer. The executives are happy about this new project's potential, but the warehouse employees are fearful that the automated system will result in a loss of jobs. What should you do to help reduce this fear? a. Ask the project sponsor what the best practice would be b. Include a representative of the warehouse workers as a stakeholder c. Create an impact document d. Tell the warehouse workers not to worry

Answer 219

B Option B is the best choice. Because the warehouse workers have some degree of power and influence in the success of the company, and of the project, they should be considered stakeholders in the success of the project.

Question 220

Sometimes it is necessary to withhold a contractor's payment to ensure full performance compliance. This is known as: a. Fixed load b. Fixed price c. Cost plus reimbursable d. Retainage

Answer 220

D The best answer choice is D because retainage is considered a tool or technique used in the process of control procurements. The key benefit of this process is that it ensures that both the seller's and buyer's performance meets procurement requirements according to the terms of the legal agreement.

Question 221

During planning procurements necessary for a project, the solicitation documents are distributed to sellers. Prior to distribution, advertising will be required in which of the following situations? a. The performing organization has a list of qualified sellers involved in previous purchases b. The performing organization has a list of known sellers c. The performing organization does not have a qualified sellers list or list of known sellers d. The performing organization has a targeted list of preferred sellers

Answer 221

C The best answer choice is C because placing advertisements in general circulation publications such as selected newspapers, or in trade specialty publications will enable identification of sellers.

Question 222

Herzberg's theory of motivation contends that there are two types of factors: hygiene and motivators. What do hygiene and motivator factors relate to? a. Work environment and the work itself b. Job enrichment and recognition c. Relationship with peers and organizational policies d. Working conditions and money

Answer 222

A The best answer choice is A because Herzberg's theory of work and motivation focused on the role that working conditions (hygiene factors) and the work itself played in the lives of “normal” working people. As a result of his research, Herzberg concluded that real motivation resulted from the worker's involvement in accomplishing an interesting task, not from working conditions or environmental factors.

Question 223

The product description and business need are identified in the process group of_________________, and first documented in the project's________________. a. Scope planning, scope statement b. Initiating, Statement of Work c. Initiating, project charter d. Scope definition, scope charter

Answer 223

B The best answer choice is B because the business need and product description are inputs into developing the project charter during initiation and the project Statement of Work contains a narrative description of the products, services, or results to be delivered by the project.

Question 224

Feasibility studies are sometimes used to examine and evaluate alternatives in terms of: a. Understanding resource capabilities of the performing organization b. Whether a project should be undertaken by the organization c. Building support among potential stakeholders d. Identifying the duration of the proposed project

Answer 224

B The best answer choice is B because feasibility studies are sometimes used in the creation of a business case to determine whether the project should be undertaken by an organization.

Question 225

The primary outputs of project initiation are: a. Creation of the project charter, assignment of the project manager, and creation of an assumption log b. A product description and an Organizational Breakdown Structure c. The overall project plan and a Request for Proposal (RFP) d. A scope statement

Answer 225

A The best answer choice is A, as the project charter is the document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with authority to apply organizational resources to accomplish the project objectives.

Question 226

A project management plan generally has less detail in its early phases of development and more detail is added as information becomes available. This is called: a. Prototyping b. Planning c. Progressive elaboration d. Chartering

Answer 226

C The best answer choice is C because progressive elaboration is the iterative process of increasing the level of detail in a project management plan as greater amounts of information and more accurate estimates become available.

Question 227

The project charter should contain which of the following? a. The selection criteria used and a strategic plan b. Identified resources to be deployed on the project c. The business need that the project was undertaken to address and a description of the product d. A set list of specifications outlining the various courses of action to proceed

Answer 227

C The best answer choice is C because the project charter documents the business needs, an assumptions log, constraints, the understanding of the customer's need and high-level requirements, and the new product, service, or result that it is intended to satisfy.

Question 228

You are managing a project and after careful analysis of the work results, you believe that modifying the scope of the project may provide added value for the customer. As the project manager the best course of action to take is: a. Prepare a variance report b. Convene a meeting of the Change Control Board to propose the change c. Change the project's objectives d. Defer the modification for a later project, subject to approval and funding

Answer 228

B The best answer choice is B because issuing change requests and implementing approved changes into the project's scope, plans, and environment is a key activity of directing and managing project work.

Question 229

If a risk event has a chance of occurring 15 out of 45 times, based on experience with like events, what is the probability that the event will occur on the next project? a. 90% b. 45% c. 33% d. 6.75%

Answer 229

C The best answer choice is C because the probability is determined by 15 / 45 = .333 or 33%.

Question 230

During conducting procurements, getting all prospective sellers to have a common understanding of the requirements, an organization may: a. Advertise the job b. Request an RFP c. Hold a bidders conference d. Seek silent bids

Answer 230

C The best answer choice is C because bidder conferences are meetings between the buyer and all prospective sellers prior to submittal of a bid or proposal. They are used to ensure that all prospective sellers have a clear and common understanding of the procurement requirements, also known as contractor conferences, vendor conferences, or pre-bid conferences.

Question 231

Given the following information: work package 1: PV = 5,000, AC = 6,000, EV = 4,125, BAC = 8,000, work package 2: PV= 6,000, AC = 5,200, EV = 7,000, BAC= 10,000, work package 3 3: PV = 3,000, AC = 2,300, EV = 2,500, BAC = 7,000, and work package 4: PV = 4,125, AC = 3,800, EV = 5,000, BAC = 9,500. Which work package has a CPI of 1.09? a. Work package 1 b. Work package 2 c. Work package 3 d. Work package 4

Answer 231

C The best answer choice is C because using the formula: CPI = EV / AC if we insert the data from work package 3 as follows: 2,500 / 2,300 = 1.09.

Question 232

Given the following information: Project 1: PV = 5,000, AC = 6,000, EV = 4,000, BAC = 8,000, Project 2: PV= 6,000, AC = 5,800, EV = 7,000, BAC= 10,000, Project 3: PV = 3,000, AC = 2,000, EV = 2,500, BAC = 7,000, and Project 4: PV = 4,000, AC = 3,000, EV = 5,000, BAC = 9,000. Project 2 has a status of: a. On schedule, under budget b. Ahead of schedule, over budget c. Behind schedule, under budget d. Ahead of schedule, under budget

Answer 232

D The best answer choice is D because the Cost Variance is determined by the formula: EV – AC = CV. Therefore 7,000 – 5,800 = 1,200. A positive number means that the project is performing under the planned costs and therefore under budget. The Schedule Variance is determined by the formula: EV – PV = SV. Therefore 7,000 – 6,000 = 1,000. A positive number means that the project is ahead of schedule.

Question 233

Given the following information: Project 1: PV = 5,000, AC = 6,000, EV = 4,000, BAC = 8,000, Project 2: PV= 6,000, AC = 5,800, EV = 7,000, BAC= 10,000, Project 3: PV = 3,000, AC = 2,000, EV = 2,500, BAC = 7,000, and Project 4: PV = 4,000, AC = 3,000, EV = 5,000, BAC = 9,000. What is the projected Estimate at Completion (EAC) for Project 4? a. 4,800 b. 12,120 c. 6,000 d. 7,000

Answer 233

D The best answer choice is D because the Estimate at Completion is the expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete. Because the question does not specify, it is safe to assume that future work will be accomplished at the planned rate and the appropriate formula to use is: AC + BAC – EV = EAC. Therefore, 3,000 + 9,000 – 5,000 = 7,000.

Question 234

Given the following information: work package 1: PV = 5,800, AC = 6,000, EV = 5,170, BAC = 8,000, work package 2: PV= 6,000, AC = 5,350, EV = 6,250, BAC= 10,000, work package 3: PV = 3,000, AC = 2,200, EV = 2,500, BAC = 7,000, and work package 4: PV = 4,000, AC = 4,100, EV = 5,000, BAC = 9,000. What is the Cost Variance (CV) for work package 1? a. 2,000 b. -830 c. 1,000 d. 830

Answer 234

B The best answer choice is B because Cost Variance is determined by using the formula: EV – AC = CV. Therefore, 5,170 – 6,000 = –830.

Question 235

Given the following information: Project 1: PV = 5,000, AC = 6,000, EV = 4,000, BAC = 8,000, Project 2: PV = 6,000, AC = 3,000, EV = 7,000, BAC = 10,000, Project 3: PV = 3,000, AC = 2,000, EV = 2,500, BAC = 7,000, and Project 4: PV = 4,000, AC = 3,000, EV = 5,000, BAC = 9,000. Which project is progressing at 1.25% of its planned rate. a. Project 1 b. Project 2 c. Project 3 d. Project 4

Answer 235

D The best answer choice is D because this question requires that you calculate the SPI 9 (Schedule Performance Index) of each project. The formula used is: SPI = EV / PV, therefore using information from Project 4: 5,000 / 4,000 = 1.25.

Question 236

What output is created as a result of the Develop Team process? a. Rewards and recognition systems b. Training c. Staffing management plan d. Team performance assessments

Answer 236

D The best answer choice is D because effective team development strategies and activities are expected to increase the team's performance, which increases the likelihood of meeting project objectives.

Question 237

Upon completing a contingency plan, another risk surfaces. This new risk is called a: a. Secondary risk b. Residual risk c. Additional risk d. Workaround

Answer 237

A The best answer choice is A because a secondary risk is a risk that occurs as a direct result of implementing a risk response.

Question 238

You are the project manager for an important project in your organization. You have just reviewed the Gantt chart and see that the project is one week late due to slippage on a critical task. What could you do as the project manager to crash the schedule? a. Change dependency types b. Add additional resources to the project c. Eliminate non-critical tasks d. Cut non-critical functionality of the end product

Answer 238

B The best answer choice is B because crashing the schedule is a technique used to shorten the schedule duration for the least incremental cost by adding resources.

Question 239

An action to bring a defective or nonconforming item into compliance is known as: a. Workaround b. Scope change c. Rework d. Flowcharting

Answer 239

C The best answer choice is C because rework is defined as an action to bring in a defective or nonconforming component into compliance with requirements or specifications.

Question 240

In order to more effectively manage communications, you decide to create a document that includes only major variations from plan, rather than all variations. This document is called a(n): a. Variance report b. Exception report c. Control report d. Earned Value report

Answer 240

B The best answer choice is B because an exception report is a report designed to document only major variations from plan.

Question 241

You have recently been assigned the role of project manager for a companywide project that is designed to deliver key business benefits to various organizations within your company. One of the first things you should do is: a. Solicit team members for your project b. Identify project stakeholders c. Develop the project plan d. Develop a Responsibility Assignment Matrix

Answer 241

B The best answer choice is B because as soon as you hear about your project, sometimes even before you have a project charter you should start identifying those people who are affected by your project, have expectations or needs associated with your project, or can influence your project. These people are the project stakeholders.

Question 242

As the project manager for a newly authorized project, you have been very successful at identifying the key stakeholders for your project. However, you realize that not all stakeholders have the same level of concern or interest regarding your project. In order to get a better understanding of stakeholder needs you decide the best thing to do next is to: a. Consult with your sponsor regarding their impressions of key stakeholders b. Create a grid that maps stakeholder positions across levels of power and interest c. Plan a strategy to overcome resistance to change d. Review previous project records

Answer 242

B The best answer choice is B because once all potential stakeholders have been identified, the next step is to analyze the potential impact and support each stakeholder could generate and classify them so as to define an approach strategy.

Question 243

A project is plagued by changes to the features and functions of the product. What Process Group should you revisit to ensure the project is aligned with the expected business value? a. Executing b. Planning c. Initiating d. Monitoring and Controlling

Answer 243

C The best answer choice is C since you will need to revisit the charter that provides the justification for the project, identifies the project objectives and the criteria for success. You may also have missed identifying some stakeholders who have needs you did not document.

Question 244

In order to manage a project effectively, work should be broken down into small pieces. Which of the following does not describe how far each task should be broken down? a. Can be completed in less than 80 effort hours b. Cannot be logically subdivided further c. Can be accomplished by one person d. Can be realistically estimated for time and cost parameters

Answer 244

C The best answer choice is C because all of the other options serve as heuristics for decomposing project work.

Question 245

The process of identifying and analyzing stakeholders should be conducted _________________. a. After the charter is signed b. As soon as the charter is signed c. Periodically throughout the project as needed d. Upon direction from the sponsor

Answer 245

C The best answer choice is C because the PMBOK® Guide? states that analyzing stakeholder needs begins when you first start developing the project charter. Therefore, you should expect to conduct the process concurrently and iteratively throughout the project.

Question 246

You are a project manager for a very large complex project. Your project sponsor has recommended that the project be divided into separate phases. As a result, the initiating process(es) a. Occurs only at the beginning of the project b. Are carried out during subsequent phases to validate the decisions made during the original develop project charter c. Serve as the input to developing a phased project plan d. Are continually reviewed by project stakeholders

Answer 246

B The best answer choice is B because the initiating process group consists of those processes performed to define a new project or a new phase of an existing project. Performing the initiating processes of Develop Project Charter and Identify Stakeholders at the start of each phase helps to keep the project focused on the business need that the project was undertaken to address.

Question 247

The main output of the Identify Stakeholders process is a(n): a. Influence plan b. Stakeholder management plan c. Updated Organizational Breakdown Structure d. Stakeholder register

Answer 247

D The best answer choice is D because the main output of the Identify Stakeholders process is the stakeholder register. It contains all the details related to the identified stakeholders and provides the information needed to plan appropriate ways to engage project stakeholders.

Question 248

The stakeholder engagement plan along with the resource management plan becomes an input into: a. The Communication Management plan b. Organizational process assets c. Close procurements d. Planning resources

Answer 248

A The best answer choice is A because communication is the main way you can manage stakeholder engagement.

Question 249

A financial close out of a project requires that: a. All project funds have been spent b. No follow up work from the client is possible c. No further charges can be made against the project d. No cost accounts have been exceeded

Answer 249

C The best answer choice is C because a financial close out of a project means that all funding has been frozen or funds expended and no further spending can be incurred on the project.

Question 250

Every organization has specific guidelines for measuring project team performance. On which of the following objectives do most managers agree? a. Achievement of technical specifications and staying within budget b. Achieving technical specifications, staying within budget, on-time performance, and the professional growth of team members c. On-time performance, staying within budget, and achieving performance specifications d. On-time performance and staying within budget

Answer 250

C The best answer choice is C because time, cost, and performance specifications (deliverables) comprise what is referred to as the Performance Measurement Baseline, which is used to evaluate and report project progress. Although appreciated, professional growth of a project team's members is rarely an objective of a project.

Question 251

Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or is known as___________________. a. A data item b. A deliverable c. A work package d. A chart of accounts

Answer 251

B The best answer choice is B because a deliverable is any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project.

Question 252

Phase-end reviews should be used to help the project sponsor: a. Determine if the projects should continue into the next phase b. Detect and correct defects c. Provide evidence for keeping team members on the project d. Conduct lessons learned

Answer 252

A The best answer choice is A because the role of the project sponsor and other key stakeholders during phase end reviews is to make go/no-go decisions for the project to proceed into the next phase.

Question 253

In performing project close out, the project manager's main responsibility is to: a. Document formal acceptance of the deliverables b. Ensure payment schedules are defined c. Sign off on the scope of work d. Provide change control procedures

Answer 253

A The best answer choice is A because the key output from close project or phase is the transition of the final product, service, or result that the project was authorized to produce.

Question 254

The review of contracts and contracting processes for completeness, accuracy, and effectiveness is known as: a. Formal acceptance b. Procurement audit c. Payment requests d. Contract files

Answer 254

B The best answer choice is B because a procurement audit is a structured review of the procurement process originating from the Plan Procurement Management process through control procurements.

Question 255

Three outputs from the close project or phase process are: a. Quality improvements, acceptance decisions, completed checklists b. Inspection, formal acceptance, lessons learned c. Final product, service or result transition, final report, and updates to project documents and organizational process assets d. Final contract, resource redeployment, customer billed

Answer 255

C The best answer choice is C because the organizational process assets that are updated as a result of the close project or phase process include, but are not limited to: project files, project or phase closure documents, and historical information and lessons learned.

Question 256

Given the following information, Optimistic = 14 hours, Most likely = 27 hours, and Pessimistic = 47 hours, what is the estimate for Task A? a. 29.12 b. 28.17 c. 36.50 d. 27.21

Answer 256

B The best answer choice is B because using the PERT formula of (P + 4M + O) / 6 = (47 + 108 + 14) / 6 = 28.17.

Question 257

Given the following information, Optimistic = 14 hours, Most likely = 27 hours, and Pessimistic = 47 hours, what is the standard deviation for Task A? a. 6.5 b. 7.2 c. 8.0 d. 5.5

Answer 257

D The best answer choice is D because this question requires that you calculate the standard deviation of the task using the following formula: (P – O) / 6 = (47 – 14) / 6 = 5.5.

Question 258

Given the following information, Optimistic = 14 hours, Most likely = 27 hours, and Pessimistic = 47 hours, what is the variance Task A? a. 33.10 b. 30.25 c. 28.92 d. 31.40

Answer 258

B The best answer choice is B because this question uses the following formula to determine the variance of a task: (P – O / 6) squared. Therefore, (47 – 14 / 6) squared = 5.5 squared, which equals 30.25.

Question 259

During the execution phase of the project, your company decides to begin making use of control charts on your project. A control chart can help to: a. Focus on the most critical issues to improve quality b. Focus on stimulating thinking c. Explore a desired future outcome d. Determine if a process is out of control

Answer 259

D The best answer choice is D because control charts are used to monitor, control, and improve process performance over time by studying variation and its source.

Question 260

During a team meeting, your project team determines that the customer would benefit from a specific area of extra work and they add it to the project. This is known as: a. An approved change order b. Gold plating c. Achieving customer satisfaction d. Achieving quality criterion

Answer 260

B The best answer choice is B because PMI does not recommend giving the customer extras, for example, extra functionality, higher quality components, extra scope of work, or better performance. Gold plating adds no value to the project. Often such additions are included based on the project team's impressions of what the customer would like and that impression may not be accurate.

Question 261

Tom has very little project management experience but he has been assigned as the project manager of a new project. Because he works in a matrix organization, he can expect communication to be: a. Simple b. Open and accurate c. Difficult to automate d. Complex

Answer 261

D The best answer choice is D because in a matrix organization communication efforts need to be tailored horizontally and vertically within the organization thus adding complexity.

Question 262

Which of the following is not referenced by the project Statement of Work? a. Business need b. Strategic plan c. Product scope description d. Roles and responsibilities

Answer 262

D The best answer choice is D because the project Statement of Work is a narrative description of products, services, or results to be delivered by a project. The SOW references the following: business need, product scope description, and strategic plan.

Question 263

Individuals, groups, or organizations who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project are referred to as: a. Team members b. Operating organization c. Stakeholders d. Customer or client

Answer 263

C The best answer choice is C because the definition of a stakeholder is: an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio.

Question 264

Susan is a new project manager in your organization and a peer to you. She has been assigned to begin managing a new project and is not sure where to begin her efforts in identifying stakeholders, you advise her that the best place to start is to: a. Review the project description, and high-level requirements that are documented in the charter b. Review the procurement plan c. Review the communications plan d. Review the Responsibility Assignment Matrix

Answer 264

A The best answer choice is A because reviewing the purpose of the project, project description, and high-level requirements that are documented in the charter are a good first place to identify people who will be involved with a project, or will have an interest in the outcome.

Question 265

Organizational process assets that would be helpful in identifying stakeholders include all of the following except: a. Information from prior projects b. Policies and procedures for identifying stakeholders c. Templates or forms to record information about your stakeholders d. Organizational structure and culture

Answer 265

D The best answer choice is D because organizational culture and structure are considered an Enterprise Environmental Factor and not an organizational process asset in identifying stakeholders.

Question 266

Stakeholder analysis meetings are meetings designed to: a. Ensure a high-level understanding of the project to key stakeholders b. Develop an understanding of major project stakeholders c. Develop an understanding of major scope deliverables d. Develop an understanding of the risk profile of the project

Answer 266

B The best answer choice is B because profile analysis meetings are project meetings designed to develop an understanding of major project stakeholders and they can be used to exchange and analyze information about roles, interests, knowledge, and the overall position of each stakeholder facing a project.

Question 267

Stakeholder analysis generally follows the following steps: a. Identify all potential stakeholders, analyze their potential influence and support, assess how they are likely to respond in various situations b. Identify all potential stakeholders, determine their position from the company organizational chart, review organizational decisions they have made c. Identify all potential stakeholders, ask them if they will participate in your project, determine their role d. Identify all potential stakeholders, determine their relationship to your department, create a stakeholder plan

Answer 267

A The best answer choice is A because according to the PMBOK® Guide stakeholder analysis generally follows these steps: identify all potential stakeholders and relevant information, analyze the potential influence or support each stakeholder could generate, and assess how key stakeholders are likely to react or respond in various situations.

Question 268

You have been assigned as the project manager to kick off a major financial systems implementation project for your organization. You have learned that the approach to your project will require that you outsource some of the development work of your project and purchasing software that is required. You know it is critical for the success of your project to identify the stakeholders early and to analyze their level of interest. What would be the best information to help you identify key stakeholders on your project? a. The Organizational Breakdown Structure b. Procurement documents c. The project plan d. The Responsibility Assignment Matrix

Answer 268

B The best answer choice is B because if a project is the result of a procurement activity or is based on an established contract, the parties in that contract are key project stakeholders.

Question 269

Ensuring that all project work is both authorized and funded through developing the project charter is the responsibility of: a. The project manager b. The functional manager c. The project sponsor d. The project customer

Answer 269

C The best answer choice is C because the project charter would formally authorize the project and provide authority to a project manager to apply organizational resources to achieve the objectives. This document, according to PMI, is issued by the project initiator or sponsor that formally authorizes the existence of a project. The signed charter signifies an agreement about the work involved and the end product, service, or result.

Question 270

The project Statement of Work might include a statement that establishes the overarching goal of the project. This is called: a. Mission b. Market demand c. Scope d. Major deliverables

Answer 270

A The best answer choice is A because the Statement of Work references business need, product scope description, and strategic plan. The strategic plan documents the organization's strategic vision, goals and objectives, and may contain a high level mission statement.

Question 271

You have been assigned as the project manager for a very large complex project to replace all human resource management systems in your company. You have held initial meetings with the key stakeholders you have identified and have found a few of them to be very vocal in their lack of support for your project. You might classify these individual stakeholders as: a. Enemies b. Power controllers c. Resistors d. Unreliable

Answer 271

C The best answer choice is C because a resistor actively and vocally does not support your project. He can cause disruption to your project and take up your time in trying to work with him. You want to find ways to show the resistor the WIIFM (What's in it for me?) in supporting your project. You may also try to find ways to minimize his influence on the project.

Question 272

The project portfolio selection committee maintains that fulfilling organizational strategy and providing business value are the key drivers for project selection. As a result, in reviewing proposed projects for selection it is important to determine: a. Is the proposed project aligned with the company's strategic plan? b. Is the project the right size? c. Are resources available? d. What are the non-financial benefits?

Answer 272

A The best answer choice is A because strategic alignment means that the project is in alignment with the company's strategic plan and that it helps the company meet stated objectives or key performance indicators as documented in an annual operating plan, or similar document. If it doesn't meet these criteria, it should not be selected.

Question 273

The project portfolio selection committee conducts a cost-benefit analysis for all projects. They have the following information on Net Present Value for four projects: Project A NPV = $195,000, Project B NPV = $175,000, Project C NPV= $125,000, and Project D NPV = $150,000. Given only this information, which project should they select? a. Project A b. Project B c. Project C d. Project D

Answer 273

A The best answer choice is A because the higher the NPV, the better the project opportunity.

Question 274

You have been asked to conduct a benefit cost ratio of a proposed project in order to determine whether the project will be profitable. The project involves a $3,000,000 investment and will return $3,500,000. What is the benefit cost ratio? a. 1.25 b. 1.35 c. 1.17 d. 11.7

Answer 274

C The best answer choice is C because benefit-cost ratio compares the benefit or revenue of a project with the cost or investment of a project. The benefit number is always the first number. Therefore, if you have a project that involves a $3,000,000 investment and will return $3,500,000, you calculate the benefit-cost ratio as 3,500,000 / 3,000,000 = 1.17. The higher the ratio, the better the project. Any project with a benefit-cost ratio higher than 1.0 means the project will be profitable.

Question 275

You are the project manager on a project with an initial budget of $1,000,000. You are 50% complete with the project and have spent $1,250,000 to date. Should you consider the $250,000 over budget when determining whether to continue the project? a. No b. Yes c. It is the determination of the project sponsor d. Only if cost is the project driver

Answer 275

A The best answer choice is A because this is a sunk cost. It has already been incurred and cannot be recovered. Sunk cost is an accounting principle that states that money you have already spent should not be factored into future expenditures.

Question 276

Your organization has down-sized and now has a vacant building. The facilities department is looking at two options for the building. Project A involves refurbishing the building and renting it out as office space. Project B involves turning it into a warehouse allowing your organization to store goods for less cost than they are currently paying. Refurbishing to rent out as office space has an estimated NPV of $2 million. Using it as a warehouse has an NPV of $1.5 million. What is the opportunity cost if they choose project A? a. $2 million b. $1.5 million c. $3.5 million d. $1 million

Answer 276

B The best answer choice is B because the opportunity cost of selecting Project A is the $1.5 million NPV of Project B.

Question 277

You are preparing several proposals for the project portfolio selection committee. The payback period is one variable that the committee analyzes. If Project A has a payback period of 16 months, Project B has a payback period of 21 months, and Project C has a payback period of 12 months, which project should they select? a. The project with the lowest investment b. Project A c. Project B d. Project C

Answer 277

D The best answer choice is D because the payback period is the amount of time that will pass before you recoup your investment and begin making a profit. Therefore the project with the smallest payback period would be the best project to select.

Question 278

Which of the following is NOT a characteristic of the project charter? a. Provides criteria for tailoring the organization's processes to achieve the project objectives b. Links the project to the strategic plan of the organization and shows how the project aligns with the organization's operations c. Demonstrates commitment for the project and formalizes project manager authority d. Identifies the project sponsor and the project manager

Answer 278

A The best answer choice is A because the project charter document identifies the project sponsor and the project manager, demonstrates commitment for the project, and formalizes project manager authority and links the project to the strategic plan of the organization and shows how the project aligns with the organization's operations.

Question 279

You are a project manager with the responsibility for managing a large project with numerous team members. During a project team meeting a conflict arises that needs to be resolved. Which is the best method for you to use to resolve the conflict? a. Forcing b. Smoothing c. Compromise d. Confronting

Answer 279

D The best answer choice is D because PMI tends to position conflict as: (1) conflict is an inevitable consequence of organizational interactions; (2) conflict can be beneficial if successfully managed; and (3) conflict is resolved through identifying the causes and problem solving by the people involved and their immediate manager. As a result, confronting the conflict together as a problem to be solved tends to be the priority particularly when you have confidence in the other party's ability to problem-solve, when the relationship is important, and you need a win-win solution, all of which are important when a conflict arises among your project team members.

Question 280

You are the project manager for a project that has now entered the closing phase. You have become aware that your project team members have begun looking for other projects to work on. As the project manager you should: a. Do nothing yet b. Threaten your team with your positional authority if they do not complete their assigned tasks c. Replace your team members with ones that are more dedicated to you and the project d. Encourage your team to prepare for their next project, but remind them that they are still accountable for the work remaining on your project

Answer 280

D The best answer choice is D because it is important to position the remaining activities and those that are involved in project close out as important. They should be captured in the WBS and built into the project schedule with assigned resources. Reminding your team that their responsibilities are not complete until the project is officially closed out is important in confronting the potential problem.

Question 281

A major project close-out activity is to: a. Share status reports b. Perform final risk analysis c. Determine the project's return on investment d. Disseminate information to key stakeholder to formalize project completion

Answer 281

D The best answer choice is D because informing key stakeholders about the steps necessary in closing out the project allows for the transition of the final product, service, or result that the project was authorized to produce.

Question 282

Of the following types of contracts, which provides the highest risk to the buyer? a. Cost Plus Fixed Fee b. Fixed price c. Cost Plus Incentive Fee d. Time and materials

Answer 282

A The best answer choice is A because all legitimate costs are reimbursed regardless of the final cost of the project. There is no incentive for the seller to manage costs because their fee is the same regardless of their performance.

Question 283

You are trying to decide whether to lease or buy an item for your project. The daily lease cost is $120. To purchase the item, the investment cost is $1,000 and the daily cost is $20. How long will it take for the lease cost to be the same as the purchase cost? a. 20 days b. 10 days c. 15 days d. 25 days

Answer 283

B The best answer choice is B because: let D equal the number of days when the purchase and lease costs are equal. Therefore $120D = $1,000 + $20D, then $120D – $20D = $1,000 then $100D = $1,000, so D = $10 or the lease cost will be the same as the purchase cost after 10 days. If you think you need the item for more than 10 days you should consider purchasing it to reduce the total costs. PMI advocates that the actual out-of- pocket costs to purchase the product as well as the indirect cost of managing the procurement be considered in any make or buy decision.

Question 284

Which of the following statements concerning bid documentation is/are correct? a. Well-designed bid documentation can simplify comparison of seller responses b. Bid documentation must be rigorous with no flexibility to allow consideration of seller suggestions c. Bid documents should generally not include evaluation criteria d. Bid documents are used instead of a bidder conference

Answer 284

A The best answer choice is A because bid documents are documents put together by the buyer to tell the seller their needs. It generally includes the following: background information, procedures for replying, guidelines for preparation of the proposal, evaluation criteria, pricing forms, scope of work, and proposed terms and conditions of the contract.

Question 285

You are the project manager for company A and managing a very large construction project. You have hired Company B to perform some work on your project. Company B subcontracts work to Company C. You are on the job site and notice there is something wrong with the work that is being performed by Company C. You tell company C to “stop work.” Does company C have to listen to you? a. Yes, they are under contract b. No, they have no contractual relationship c. Depends on the scope of work being performed d. Only if it violates company policy

Answer 285

B The best answer choice is B because Company C has no contractual relationship to you or Company A, of which you are an employee. This refers to the concept of Privity and means a contractual relationship.

Question 286

An organizational theory where workers are seen as inherently lazy and requiring an authoritarian management style is: a. Theory Y b. Herzberg's theory c. Maslow's theory d. Theory X

Answer 286

D The best answer choice is D because as proposed by Douglas McGregor, Theory X and Theory Y describe two different types of workers and how they should be managed. Theory X states that management believes that workers will do as little as possible to get by, and thus need a great deal of direction. Theory Y states that management believes that workers are interested in doing their best and, given the freedom, will perform well.

Question 287

You are the project manager on a significant project with a multiyear timeline. You have been monitoring the risks on schedule slippage and now have found a major problem with one of your key deliverables that will set you back a month. A contingency allowance has been established to accommodate crashing the schedule. What is the best corrective action you can take, considering the stakeholders have made business commitments to deliver the product to your customers, based on your original timeline? a. Implement the contingency allowance b. Implement the workaround c. Change the project plan to respond to the risks d. Tell the stakeholders they need to communicate the delay to the customers

Answer 287

A The best answer choice is A because implementing the contingency allowance will allow you to add funding (reserves) to the project to mitigate the risk.

Question 288

What risk control output is of the most value during project close out? a. Risk Management plan b. Risk register and its updates c. Risk simulations d. Monte Carlo analysis results

Answer 288

B Answer B is the best answer choice because the risk register is a repository for collection, maintenance, and analysis of risk information gathered and used in risk management on the project. Use of this risk information serves as lessons learned for future projects.

Question 289

As a senior project manager you often use information from similar projects to help plan a new project. The PMO in your organization is responsible for collecting project documentation at project close out for comparison and planning purposes. The documentation is stored in a database that is indexed by project type, date, costs, resources, and other relevant project information. The best description of this type of documentation is: a. Expert judgment b. Work performance results c. Historical information d. Project management plan

Answer 289

C The best answer choice is C because historical information is the collection of previous projects documentation and results that are collected as part of phase end reviews or project close out and provide information for the planning of future projects.

Question 290

Given the following information: Control Account A: PV = $1,500, AC = $1,400, EV = $1,200. Project B: PV = $2,200, AC = $1,900, EV = $1,200. Project C: PV = $1,500, AC = $1,800, EV = $1,600. Project D: PV = $3,500, AC = $3,800, EV = $3,500. Which control account has the best cost performance? a. Control Account A b. Control Account B c. Control Account C d. Control Account D

Answer 290

D The best answer choice is D because the Cost Performance Index (CPI) is determined by using the following formula: EV / AC = CPI. Therefore, Control Account D $3,500 / $3,800 = .92.

Question 291

Given the following information: Control Account A: PV = $1,500, AC = $1,400, EV = $1,200. Control Account B: PV = $2,200, AC = $1,900, EV = $2,200. Control Account C: PV = $1,500, AC = $1,800, EV = $1,600. Control Account D: PV = $3,500, AC = $3,800, EV =$3,300. Which control account has the best schedule performance? a. Control Account A b. Control Account B c. Control Account C d. Control Account D

Answer 291

C The best answer choice is C because the SPI is determined by using the formula: EV / PV = SPI. Therefore for Control Account C: $1,600 / $1,500 = 1.06 or 1.1.

Question 292

Given the following information: Project A: PV = $1,500, AC = $1,400, EV = $1,200. Project B: PV = $2,200, AC = $1,500, EV = $2,300. Project C: PV = $1,500, AC = $2,000, EV = $1,600. Project D: PV = $3,500, AC = $2,500, EV = $3,500. Which control account has the most schedule concerns? a. Control Account A b. Control Account B c. Control Account C d. Control Account D

Answer 292

A The best answer choice is A because the Schedule Performance Index is calculated by: EV / PV = SPI. Therefore for Project A: $1,200 / $1,500 = .8. Less than one is behind schedule.

Question 293

You need to report the project performance at the next project review board meeting. You determine the Planned value is $27,000, the Actual Costs are $29,000 and the Earned Value is $28,000. How will you present the project's performance at the next project review board meeting? a. The project is ahead of schedule and is over budget b. The project is behind schedule and is over budget c. The project is ahead of schedule and spending less than planned d. The project is behind schedule and spending less than planned

Answer 293

A The best answer choice is A based on the cost and Schedule Performance Index. The CPI is determined by the formula: EV / AC = CPI therefore, CPI = $28,000 / $29,000 = .96 and the SPI is determined by the formula: EV / PV = SPI, therefore $28,000 / $27,000 = 1.03. Indices less than one indicate behind schedule or over budget situations. Indices greater than one indicate ahead of schedule or under budget situations.

Question 294

If the baseline duration of a project is 20 weeks, the budget at completion is $10,000, the time spent to date on the project is 15 weeks and the amount of work still to be completed is estimated at 60%. Determine the Earned Value. a. $4,000 b. $6,000 c. $16,667 d. $7,500

Answer 294

A The best answer choice is A because dividing percent complete of 40% into the budget at completion of $10,000 equals $4,000.

Question 295

A task must be completed within two weeks. You, as the project scheduler, have determined the work effort to complete the task to be equal to 280 efforts hours. How many 40-hour per week, full-time, fully qualified resources will you need in those two weeks to accomplish the task? a. 3.5 b. 2.5 c. 3.0 d. 4.0

Answer 295

A The best answer choice is A because the question requires that you calculate the problem as follows: 280 / x = 80. Solving the formula yields 3.5.

Question 296

Calculate the total funding being requested based on the following information: base project estimate (allocated budget) is $500,000. Risk event A with a potential impact of $5,000 and a probability of 10%, Risk event B with a potential impact of $25,000 and a probability of 30%, and Risk event C with a potential impact of $10,000 and a probability of 45%. a. $112,000 b. $387,000 c. $512,500 d. $459,000

Answer 296

C The best answer choice is C because the question requires you to calculate the Expected Monetary Value of each risk event and add it to the base project estimate. Therefore Risk event A is $5,000 × .10 = $500, Risk event B is $25,000 × .30 = $7,500, and Risk event C is $10,000 × .45 = $4,500. The total Expected Monetary Value for all risk events = $12,500. $500,000 + $12,500 = $512,500.

Question 297

A project is behind schedule is the EV is less than: a. AC b. BAC c. PV d. CV

Answer 297

C The best answer choice is C because the Earned Value is less than the planned value, you are accomplishing less work than planned.

Question 298

The contingency reserve was at $100,000 on your project. You as the project manager now authorize increases to the cost account allocation as follows: Design +$15,000, Build + $20,000, Test = $5,000, Rollout $0 and Training + $10,000. What is the remaining contingency reserve? a. $40,000 b. $140,000 c. $50,000 d. $28,000

Answer 298

C The best answer choice is C because the solution is achieved by adding up the cost for the project phases and subtracting them from the original reserve. $100,000 – $50,000 = $50,000.

Question 299

Tom is a project team member on your team and tells you that it will most likely take him 5 days to complete his assigned work package. If everything goes well, however, it could take him as little as 3 days. He also identified three risks, and if they happen it could take 10 days to complete the tasks. What is the PERT mean? a. 1.1 b. 6.5 c. 6.0 d. 5.5

Answer 299

D The best answer choice is D because by using the formula for PERT: (P + (4)M + O) / 6 = (10 + 20 + 3) / 6 = 33 / 6 = 5.5.

Question 300

If the following five tasks make up the critical path, and their PERT estimates are as follows: Task A is 10.2 days, Task B is 7.0 days, Task C is 23.5 days, Task D is 5.8 days, and Task E is 11.0 days. What is the mean duration of the project? a. 38 days b. 4.7 days c. 52 days d. 57.5 days

Answer 300

D The best answer choice is D because by adding up the PERT estimates for each activity it provides the mean duration of the project, which is 57.5 days.

Question 301

What information about the scheduled activities that are behind schedule will alert the project manager when to be proactive in making future schedule adjustments? a. The total float and free float b. The lead or the lag c. The Early Start and Early Finish d. The Late Start and Late Finish

Answer 301

A The best answer choice is A because every work package that is behind schedule and that does not have free float will be impacting other work packages in the schedule.

Question 302

If the mean of the critical path of the project is day 134, there is a: a. 97.7% chance of getting all of the work of the critical path done by day 134 or sooner b. 84% chance of getting all of the work of the critical path done by day 134 or sooner c. 50% chance of getting all of the work of the critical path done by day 134 or sooner d. 10% chance of getting all of the work of the critical path done by day 134 or sooner

Answer 302

C The best answer choice is C because the mean is the middle of a normal bell curve.

Question 303

The data date for a current project is taken midway through a 12-month project with a cost baseline of $500,000. The PV at this date equals $350,000 and the SPI is 1.03. What does the EV equal? a. $345,750 b. $353,250 c. $360,500 d. $357,000

Answer 303

C The best answer choice is C because you can determine the EV by multiplying the PV by the SPI. Therefore, $350,000 × 1.03 = $360,500.

Question 304

The program evaluation and review technique is used for: a. Developing cost histograms b. Estimating project duration when there is a high degree of uncertainty with the individual activity duration estimates c. Determining project duration when it is necessary to factor in the conditional probabilistic treatment of logical relationships d. Presenting project summary status to upper management

Answer 304

B The best answer choice is B because the program evaluation and review technique is used for estimating, which applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates.

Question 305

Which of the following conflict management styles considers multiple viewpoints in reaching consensus? a. Avoiding b. Competing c. Smoothing d. Collaborating

Answer 305

D The best answer choice is D because collaborating incorporates multiple viewpoints and insights from differing perspectives; requires a cooperative attitude and open dialogue that typically leads to consensus and commitment.

Question 306

As the project manager, you discover that your schedule has slipped. In order to meet the current deadline you must adjust the schedule. Which option provides the least amount of cost impact without compromising the deliverables to be produced? a. Crashing b. Add resources c. Reducing scope d. Fast-tracking

Answer 306

D The best answer choice is D because fast-tracking is the only option in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration. This does not require an increase in cost.

Question 307

During risk identification an approach used to reach consensus on the major risks is known as: a. Check lists b. Delphi technique c. Monte Carlo analysis d. Simulation analysis

Answer 307

B The best answer choice is B because the Delphi technique is a method of reaching consensus of experts on a subject. Experts on the subject participate in the technique anonymously. A facilitator uses a questionnaire to solicit ideas. The responses are summarized and are then recirculated to the experts for further comment. Consensus may be reached in a few rounds of this process. The Delphi technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome.

Question 308

In which stage of team development are you likely to employ a delegating leadership style? a. Forming b. Storming c. Norming d. Mourning

Answer 308

C The best answer choice is C because in the norming phase, team members begin to work together and adjust their work habits and behaviors to support the team. The team learns to trust each other and as a result one's leadership style can shift from directing to more of a role of delegating.

Question 309

According to Maslow's Hierarchy of Needs theory, which need must be satisfied before one can fulfill safety needs? a. Esteem b. Social c. Physiological d. Motivational

Answer 309

C The best answer choice is C because according to Maslow human beings have basic needs and that we need to meet lower-level needs before we can move onto the next level of needs. In his model, physiological needs must be fulfilled before safety needs can be accommodated.

Question 310

In a design review, a key stakeholder has indicated the need for an additional product requirement. What is the appropriate response to this potential change? a. Reject the request since the requirements are already baselined b. Incorporate the change into the project plan c. Address it through your Change Control process and evaluate the impact on the competing demands d. Push the schedule out one week and request an additional resource to complete the change

Answer 310

C The best answer choice is C because changes may be requested by any stakeholder at any time in the project. All change requests are subject to the process specified in the change control and configuration control systems for the project.

Question 311

Your project team identified that the workforce is unionized at the preferred supplier of a major component in the project product. The union contract is set to expire in the middle of your project. Two alternative suppliers have been identified for the product components. You are sourcing from all three suppliers. This is an example of what type of risk response? a. Avoid b. Exploit c. Mitigate d. Share

Answer 311

C The best answer choice is C because mitigating a risk means to lessen the probability and/or impact of the threat. Identifying and having two alternative suppliers available would serve to lessen the impact of the identified risk event.

Question 312

Your project team has informed you that a product component is being supplied from a plant in an overseas country. They have also advised you that shipping tariffs are set to increase at the end of this fiscal quarter. You need 1,500 units of this component for our project. As a result of this risk, you decide to purchase and warehouse the units to save your project $500,000. This is an example of what type of risk response? a. Avoid b. Transfer c. Mitigate d. Contingency plan

Answer 312

A The best answer choice is A because risk avoidance is a risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact. It usually involves changing the project management plan to eliminate the threat entirely.

Question 313

You are in the executing phase of your project and various team members have approached you regarding quality issues that are surfacing with the deliverables being produced. You know your project is under tight time constraints and need to gain consensus from your team on the relative importance of the issues that are surfacing. The technique you decide to use to accomplish this is: a. A matrix b. Nominal group technique c. Attribute data table d. A fishbone diagram

Answer 313

B The best answer choice is B because the nominal group technique allows a team to quickly come to a consensus on the relative importance of issues, problems, or solutions by completing individual importance rankings into a team's final priorities.

Question 314

What are the steps of communications management? a. Plan, manage, monitor b. Classify, plan, close c. Plan, evaluate, report d. Plan, distribute, close

Answer 314

A The best answer choice is A because project communications management involves: plan communications management, manage communications, monitor communications.

Question 315

Communication planning inputs include: a. Stakeholder requirements, project schedule, and project logistics b. Project management plan, which includes resource management plan and stakeholder engagement plan; and project documents, which includes requirements documentation and stakeholder register c. Stakeholder survey, WBS, and environmental process assets d. Communication requirements analysis, communication methods, and project updates

Answer 315

B The best answer choice is B because the inputs to communication planning include: Project management plan, which includes resource management plan and stakeholder engagement plan; and project documents, which includes requirements documentation and stakeholder register.

Question 316

To effectively manage communication within your project team, all of the following are important except: a. Promoting harmony and trust between team members b. Recognizing the importance of the interpersonal communications network c. Ensuring that feedback occurs in both directions d. Formalizing and controlling communication between team members

Answer 316

D The best answer choice is D because formalizing and controlling communications could result in imposing constraints on the open communications that exists between team members.

Question 317

The benefit of the Determine Budget process is: a. It is the process of developing an approximation of the costs of the resources needed b. It provides the baseline and project funding requirements for the project c. It helps define the WBS based on financial reporting needs d. It helps to reconcile planned and actual costs

Answer 317

B The best answer choice is B because Determine Budget is defined as the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. The key benefit of this process is that it determines the cost baseline against which project performance can be monitored and controlled.

Question 318

Risk mitigation assumes: a. The risk is going to occur b. The risk is going to occur c. The risk is probably going to occur and there is no way to lessen the impact d. The risk is probably going to occur and there are ways to lessen not only its probability but its impact as well

Answer 318

D The best answer choice is D because risk mitigation is a risk response strategy whereby the project team acts to reduce the probability of occurrence and/or impact of a risk.

Question 319

Motivation factors can be divided into two categories: satisfiers and dis-satisfiers. Some examples of satisfiers are: a. Work satisfaction, fringe benefits b. Plush office space, performance based salary raise c. A bonus for completion on time, major recognition events d. A sense of personal achievement, work satisfaction

Answer 319

D The best answer choice is D because Frederick Herzberg believed that the two aspects to the work environment are hygiene and motivation. He stated that hygiene factors don't motivate a worker to perform. However, the way they are implemented—or not implemented—can lead to employee dissatisfaction. On the other hand, motivation factors lead to higher individual performance. He defined hygiene and motivation factors as follows: hygiene factors (dis-satisfiers): policies, working conditions, salary, supervision, administration, status, security, and motivation factors (satisfiers): achievement, recognition, growth, job challenge, job satisfaction, advancement.

Question 320

Although they may have a variety of side effects, the primary objective of incentive clauses in a contract is to: a. Reduce costs for the buyer b. Help the supplier control costs c. Help bring the seller's objectives in line with that of the buyer d. Reduce risk for the contractor by shifting risk to the buyer

Answer 320

C The best answer choice is C because incentives (or bonus) on top of the agreed upon price is for beating cost, time, performance, scope, or work or quality. An incentive helps bring the seller's objectives in line with the buyer's. With an incentive both buyer and seller work toward the same objectives, for example, completing the project on time.

Question 321

The outputs of control procurements are: a. Change requests and work performance information b. Finalized project plan, procurement documents c. Records management, seller performance evaluation d. Finalized SOW, contract fees billed

Answer 321

A The best answer choice is A because the outputs of close procurements are: change requests and work performance information, which would include: procurement file, deliverable acceptance, and lessons learned documentation.

Question 322

In a Cost Plus Fixed Fee contract, the fee: a. Never changes b. Changes if change orders are issued c. Is small d. Will always decrease with time

Answer 322

A The best answer choice is A because in a Cost Plus Fixed Fee contract the buyer will pay all costs, but the fee (or profit) will be fixed at a specific dollar amount. This helps to keep the seller's cost in line because a cost overrun will not generate any additional fee or profit.

Question 323

A risk event has occurred on your project and you need work performed by a contractor as soon as possible. Which of the following would be the most helpful to add to the contract under these circumstances? a. A clear scope of work b. A force majeure clause c. Incentives d. Requirements as to which subcontractors can be used

Answer 323

C The best answer choice is C because incentives (or bonus) on top of the agreed on price is for beating cost, time, performance, scope of work, or quality. An incentive helps bring the seller's objectives in line with the buyer's. With an incentive both buyer and seller work toward the same objectives, for example, completing the project on time.

Question 324

An RFP is issued during which step in the procurement process? a. Conduct procurements b. Plan procurements c. Control procurements d. Source selection

Answer 324

B The best answer choice is B because procurement documents are an output of plan procurement management and can include an RFI, RFP, or IFB.

Question 325

The most common cause of conflict on a project are: a. Schedule, project priorities, personalities b. Schedule, project priorities, resources c. Schedules, project priorities, costs d. Schedules, project priorities, management

Answer 325

B The best answer choice is B because conflict on projects listed by frequency of occurrence are: schedule, project priorities, and resources. Many project managers think that the main source of conflict on a project is personality differences. It only becomes personal if the root cause of the problem is not resolved.

Question 326

You are a project manager leading a very high-risk complex project. Your team members have limited experience with the scope of work to be performed. You are currently working with your team to develop the WBS. One of the best things you can do to ensure a greater understanding of the packages to be completed by each team member is to: a. Ensure a detailed scope of work b. Ensure that budget estimates are clearly communication c. Create WBS dictionaries d. Make sure there is an understanding of the cost estimates

Answer 326

C The best answer choice is C because the WBS dictionary is used on larger projects to provide a detailed explanation for each component of the WBS.

Question 327

You are the project manager of a companywide project. In your initial meetings you discover that different stakeholder groups have competing needs around the requirements. You realize that you need to balance several criteria to determine the best set of requirements for the product. The best technique to help you accomplish this is: a. Multi-criteria decision analysis b. Mind mapping c. Benchmarking d. Affinity diagram

Answer 327

A The best answer choice is A because when gathering requirements, you often need to balance several criteria to determine the best set or requirements for a product, service, or result. Multi-criteria decision analysis starts with the criteria that you will use to evaluate requirements and then assigns a weighted value to each criterion. Then solutions are rated against the criteria.

Question 328

Which of these is not a criterion of good requirements? a. Measurable b. Implementation dependent c. Independent d. Traceable

Answer 328

B The best answer choice is B because requirements should be written in such a way that they are implementation free and address the “what,” not the “how".

Question 329

You are the project manager on a project to implement a new collateral management system for a financial institution. Time is the driver of this project because the old system is inefficient and stakeholder needs have changed. You inform your team that a number of meetings need to be established with key stakeholders to gain their involvement in the Requirements Management process. The reason for this is: a. To help define and keep the schedule on track b. To ensure a timely product deployment c. To ensure agreement with the requirements d. To ensure timely test plans

Answer 329

C The best answer choice is C because your stakeholders agree to the requirements. You may want to get sign-off or some other written form of agreement for the requirements.

Question 330

As the project manager, you have assigned one of your team members to the task of tracing requirements. What is the best tool to do that? a. A Requirements Traceability Matrix b. Requirements documentation c. A Responsibility Assignment Matrix d. A requirements breakdown structure

Answer 330

A The best answer choice is A because a Requirements Traceability Matrix allows you to trace requirements from their source through high-level to detailed requirements and then to their associated deliverable.

Question 331

You are in the process of developing a major project for your organization and suddenly realize that there are no formal plans for validating scope. At this point in the project you decide: a. It is not necessary as the project will complete on time and on budget b. It is not necessary because all of the cost estimates match the work being performed to date c. It is necessary because it is a part of the final project report d. It is necessary as it represents formal acceptance of the project scope by stakeholders

Answer 331

D The best answer choice is D because scope validation is the process of formalizing acceptance of the completed project deliverables.

Question 332

You are in the process of completing a major project that involved numerous contracts to deliver the end product. Your sponsor has asked you to complete a procurement audit. This is because: a. It is required as part of communications management b. It is required as part of finalizing project costs c. It is used to identify the successes and failures that warrant recognition in closing contracts d. It is used in determining quality metrics for the project

Answer 332

C The best answer choice is C because a procurement audit is a structured review of the procurement process originating from the Plan Procurement Management process through control procurements. It is a review of contracts and contracting processes for completeness, accuracy, and effectiveness.

Question 333

You are managing a large project that is designed to enhance the customer interface website for your organization. You are working with your project team to determine if your measurement of quality is appropriate. This is known as: a. Plan Quality Management b. Manage Quality c. Conformance to requirements d. Control Quality

Answer 333

B The best answer choice is B because Manage Quality is the process of translating the Quality Management Plan into executable quality activities that incorporate the organization's quality policies into the project.

Question 334

You are leading a project that is designed to manufacture new widgets. You know from experience that production can never be exact so you decide to examine each widget produced to assess whether it is within a range of normal and acceptable limits. The tool you would use for this analysis would be: a. An Ishikawa diagram b. A Pareto diagram c. A histogram d. A control chart

Answer 334

D The best answer choice is D because control charts are a graphic display of the results over time, of a process used to determine if the process is “in control.” A control chart helps monitor production and other processes to see the process is within these limits and therefore if a problem exists.

Question 335

From the project perspective, quality sampling a. Determines how effectively the performing organization supports the project b. Can be subjective or objective c. Are specific characteristics for which a product is designed and tested d. b and c

Answer 335

D The best answer choice is D because attribute sampling is a method of measuring quality that consists of noting the presence (or absence) of some characteristic (attribute) in each of the units under consideration. After each unit is inspected, the decision is made to accept a lot, reject it, or inspect another unit. Therefore attributes are the characteristics (which can be objective or subjective) for which the product is designed and tested.

Question 336

You are managing a very large infrastructure investment project where time, cost, and quality are key drivers. You decide that it is a good idea to conduct training on the skill and knowledge needed for teams to perform their role and to have documented processes that reduce the variability of outcomes helps ensure quality outcomes. These are examples of: a. Prevention costs b. Appraisal costs c. Quality control d. The costs of nonconformance

Answer 336

A The best answer choice is A because prevention costs are associated with not allowing defects to occur. Examples of these are training, robust documentation of processes, and appropriate tools and equipment.

Question 337

Project management software, reports, and electronic text databases are examples of: a. Internal communications systems b. Project records c. Information Management systems d. Communication models

Answer 337

C The best answer choice is C because project information is managed and distributed using a variety of tools. Examples of these include: hard-copy document management, electronic communications management, and electronic project management tools.

Question 338

Communication planning inputs include: a. Stakeholder, requirements, project schedule, project logistics b. Communication technology, project organization charts, and communication requirements c. Stakeholder survey, WBS procedures, and a RAM d. Project management plan (which includes both the Resource Management and Stakeholder Engagement Plans), project documents (which include Requirements documentation and a Stakeholder register), and enterprise environmental factors

Answer 338

D The best answer choice is D because the inputs to plan communications management include: Project management plan (which includes both the Resource Management and Stakeholder Engagement Plans), project documents (which include Requirements documentation and a Stakeholder register), and enterprise environmental factors.

Question 339

A project charter has been created for a large, time critical project that has the attention of senior management. One absolute requirement is that the project uses the company's existing Earned Value Management system. As the project manager, the first thing you should do is: a. Create a detailed WBS to facilitate further planning b. Start work and backfill the plan as needed c. Create a schedule of project activities because time is critical d. Determine project cost estimates using the project charter

Answer 339

A The best answer choice is A because a detailed WBS would serve to represent the total scope of work to be carried out by the project team to accomplish the project objectives. The WBS provides a structure for hierarchical summation of costs, schedule and resource information, and would serve as the basis for further planning.

Question 340

A large, high-profile project has been identified in your organization. A project charter with ambitious scope, schedule, and budget targets has been created; it is the only existing project documentation. It will be necessary to procure outside contractors for the majority of the project work. The project sponsor tells the project manager that she must have a finalized Performance Measurement Baseline (PMB) to present to the board at the end of the week. The project manager should: a. Create a PMB with the information available in order to meet the deadline b. Perform Delphi estimating to determine the contract prices and create a PMB c. Explain that no valid PMB can be created using the current information d. Create a schedule using the high level milestones in the charter and then the PMB

Answer 340

C The best answer choice is C because a Performance Measurement Baseline is an approved, integrated scope, schedule, and cost plan for the project, against which project work is compared to measure and manage performance. A valid PMB cannot be provided based on the information available at this point in time on the project.

Question 341

You are the project manager on a mission critical project (failure of the project could mean the end of the company). After much struggle over the requirements, budget, and schedule you believe a rational, achievable project plan, and a Performance Measurement Baseline has been created. Shortly after you baseline, the CEO requests that a major scope deliverable be added. You should: a. Accept the new deliverable with no modifications to the plan b. Reduce scope in other areas on your own to make the project work out as planned c. Implement the project's existing, formal change control procedures to evaluate and communicate the impact the new scope addition would have on the project d. Lengthen the schedule to accommodate the scope increase

Answer 341

C The best answer choice is C because any proposed change must be subjected to the project's formal Change Control process.

Question 342

All of the following are tools and techniques used during the Acquire Resources process, except: a. Pre-assignment b. Risk assessment c. Virtual teams d. Decision making

Answer 342

B The best answer choice is B because risk assessment is not a tool and technique of the Acquire Resources process. All of the others are a tool and technique of this process with the addition of interpersonal and team skills.

Question 343

In many process areas in the PMBOK® Guide a change request is an output. When managing the project work, it is an input. This is because directing and managing the project work: a. Typically follows monitoring project work in the sequence of processes b. Involves setting the performance measurement baseline for the project c. Is concerned with implementing approved change requests d. Involves measuring performance to detect variances from the project management plan

Answer 343

C The best answer choice is C because this process involves performing the work defined in the project management plan and implementing approved changes to achieve the project's objectives.

Question 344

You believe that your team members are inherently motivated to be highly successful. You feel that they are very capable of making good decisions that ultimately benefit the entire project. You are clearly aligned with a motivational management theory known as: a. Theory Y b. Theory X c. Hygiene maintenance theory d. Vroom's expectancy theory

Answer 344

A The best answer choice is A because as proposed by Douglas McGregor, Theory X and Theory Y describe two different types of workers and how they should be managed. Theory X states that management believes that workers will do as little as possible to get by, and thus need a great deal of direction. Theory Y states that management believes that workers are interested in doing their best and, given the freedom, will perform well.

Question 345

A quality audit is a powerful tool in any quality improvement program. You've decided to implement a quality improvement program on your project. The initial audit is used to: a. Identify all of the sub-quality work that has been completed to this point b. Identify all of the work that has been accomplished correctly to this point c. Determine the single most urgent area for improvement d. Determine the quality baseline from which improvements will be made

Answer 345

B The best answer choice is B because a quality audit is a structured independent process to determine if project activities comply with organizational and project policies, processes, and procedures correctly.

Question 346

Due to a reduction in force in your organization, a project you have been managing for the past eight months has now been canceled. The Close Project or Phase process should: a. Document the level of work that has been completed b. Provide the basis for a project audit c. Determine the correctness of the work results d. Be canceled since the project has been canceled

Answer 346

A The best answer choice is A because the Close Project or Phase process establishes the procedures to investigate and document the reasons for actions taken if a project is terminated before completion.

Question 347

A contractor is not renewed in the middle of a project you are managing. A new internal resource has been brought onto the project to replace the contractor. As the project manager, what is the first thing you should do? a. Review the schedule b. Make your level of authority explicit to the new resource c. Identify and document their roles and responsibilities d. Share the cost estimates for the project

Answer 347

C The best answer choice is C because bringing on a new resource to the project requires updates to the resource management plan. The resource management plan would include updates roles and responsibilities, project organizational structure and a staffing management plan.

Question 348

Your project sponsor is somewhat risk averse and seems to be concerned about the potential risk on critical task activities. When reviewing the critical path you should: a. Look to see if the critical path work packages are themselves high risk work packages and, if so, examine ways to ensure their successful on-time completion b. Consider the resources assigned to the critical work packages as special c. Meet with other stakeholders to assess their concerns d. Build more time into your schedule

Answer 348

A The best answer choice is A because an important responsibility of the project manager is balancing scope to time and resources and the viability of the schedule must be evaluated by assessing the amount of potential risk that can occur based on how the schedule is planned.

Question 349

You are managing a project and realize there is a need to perform resource leveling on your project. Which work packages should you first consider for rescheduling? a. Any work package scheduled during the over-utilized period time frame b. Work packages scheduled during the over-utilized period time frame that have free float c. Work packages scheduled during the over-utilized period time frame that have total float but no free float d. No work packages should be considered because the schedule will change

Answer 349

B The best answer choice is B because those work packages with free float are the easiest to reschedule because they will not impact other work packages and therefore not cause any schedule delays.

Question 350

You are a seasoned and certified project manager who has a long history of successfully managing projects within your organization. You have also built many positive relationships with stakeholders at all levels of your organization. You are managing a project with a very large and diverse project team. In an effort to be successful you have relied on the following types of power to effectively manage your team and get the work completed: a. Formal and penalty b. Position and charisma c. Expert and reward d. Referent and position

Answer 350

C The best answer choice is C because the best forms of power that yield buy in and commitment are expert and reward given the scenario. Expert power is based on what you know. Subject matter experts and team members have expert power for their portion of the project. There may be people who outrank them in position power, but these people may have a greater influence on an outcome because of their expertise. Reward power is the ability to give people something they desire. This can be a raise, good review, or good assignment.

Question 351

You are managing a project and learn that the provider of the new software you are implementing is about to come out with a new updated release. There are numerous advantages and disadvantages of changing the project to accommodate the new release. You decide that it is critical to get buy-in from your stakeholders on how to resolve this dilemma. As a result, the problem-solving approach you choose to use is: a. Command b. Consensus c. Majority voite d. Subject Matter Expert consultation

Answer 351

B The best answer choice is B because consensus decisions tend to lead to better decisions. Consensus is used when you need buy-in from the people involved.

Question 352

Quality is: a. Conformance to the customer's needs b. Adding extras to make the customer happy c. Conformance to requirements, and fitness of use d. Conformance to requirements defined by management

Answer 352

C The best answer choice is C because quality is the degree to which a set of inherent characteristics fulfills requirements. (Quality management then are those processes required to ensure that the project will satisfy the needs for which it was undertaken to address.)

Question 353

The statement that “Quality must be planned in, not inspected in” is based on the premise that: a. Poor quality contributes to low morale, which impacts performance b. Test specifications cannot always show true results c. Costs of quality are the responsibility of project stakeholders d. Costs of nonconformance can be so high that it is better to spend money preventing problems with quality

Answer 353

D The best answer choice is D because modern quality management approaches seek to minimize variation and to deliver results that meet defined requirements. Investments generally are made in the areas of conformance work that act to prevent defects or act to mitigate the costs of defects by inspecting out nonconforming units.

Question 354

You are managing a large manufacturing project that will involve the implementation of new safety processes and procedures. Midway through your project, the quality assurance department informs you that they will be conducting a quality audit of your project. The purpose of this effort is to: a. Identify and correct any deficiencies and to determine whether the team is complying with project and organization policies, procedures, and processes b. Identify the causes of poor processes c. Identify alternatives as a set of decisions for quality implementation d. Identify training plans

Answer 354

A The best answer choice is A because quality audits are used to perform a structured review of the project to determine whether the team is complying with project and organization policies, procedures, and processes. Those areas not in compliance will result in some type of deficiency report. The team will then develop a corrective action plan and assign someone to implement the plan and follow up on the deficiency report.

Question 355

The intended outcome of quality audit and process improvement activities is to: a. Reduce the cost of quality and/or to increase customer satisfaction b. Document actual technical performance against the plan c. Determine what variables will improve quality d. Consider the benefits versus the costs of quality requirements

Answer 355

A The best answer choice is A because the intended outcome of quality audit and process improvement activities is to reduce the cost of quality and/or to increase customer satisfaction. Any corrective actions identified in quality audit, as well as any opportunities to improve processes, will go through the Perform Integrated Change Control process.

Question 356

You are managing a process improvement project for the call center in your organization. A customer service metric has been established that all calls are answered by a human being within the first three minutes. Which tool would you use to chart the history and pattern of potential variation? a. Pareto chart b. Fishbone diagram c. Interrelationship diagraph d. Run chart

Answer 356

D The best answer choice is D because a run chart charts the history and pattern of variation, and can show whether certain times of day have longer average hold times than others.

Question 357

You are managing a very large Windows upgrade implementation project for your organization. Lately you notice that there is a decline in meeting attendance across various stakeholder groups. You are concerned that relevant information can no longer be properly disseminated to stakeholders as a result of poor meeting attendance. You decide to: a. Report the problem to senior management b. Reduce the frequency of meetings c. Use Information Management systems to post information for access by stakeholders d. Continue to meet with those who are present in meetings

Answer 357

C The best answer choice is C because project managers should take advantage of both push-pull systems of communications and tailor the communications to the information needs of stakeholders. Information Management systems can be used to improve the usability and readability of information by putting data in charts, tables, and graphic formats for access by stakeholders.

Question 358

The existence of communication blockers is likely to cause: a. The project to be on time b. Trust levels to be enhanced c. Senior management to be pelased d. Conflict to occur

Answer 358

D The best answer choice is D because communication blockers are things people do that inhibit good communication. If these are present on a project, they tend to increase conflict on a project.

Question 359

The project status report is an example of which form of communication? a. Formal written communication b. Formal verbal communication c. Informal written communication d. Informal verbal communication

Answer 359

A The best answer choice is A because a status report is a type of performance reporting and is used to formally communicate project information to stakeholders.

Question 360

When a project manager is engaged in negotiations, nonverbal communication skills are of: a. Little importance b. Major importance c. Important when only cost and schedule objectives are involved d. Important only when dealing with other cultures

Answer 360

B The best answer choice is B because nonverbal aspects of communications are critical and about 55% of all communication is nonverbal (e.g., based on physical mannerisms).

Question 361

If a team of four people adds one more person to the team, how many more channels of communication are there? a. 8 b. 6 c. 10 d. 4

Answer 361

D The best answer choice is D because using the formula of n(n – 1) / 2, originally there were 6 communication channels and now there are 10. The question asks how many more so the answer is 10 – 6, which equals 4.

Question 362

You are executing a large complex project for a large geographically dispersed company. There are numerous communication channels and complex problems that have surfaced throughout implementation. The best communication methods that you should utilize for this project are: a. Formal written b. Formal verbal c. Informal written d. Informal verbal

Answer 362

A The best answer choice is A because formal written communications are best utilized for projects that have complex problems, and require communications across geographical boundaries.

Question 363

You are managing a very large software implementation project for a major financial institution. The implementation schedule is a hard constraint and stakeholders are very interested in receiving timely information that they can act on quickly should the need arise. The best information to provide would include: a. Memos, e-mails, meeting minutes b. Deliverable status, schedule progress, costs incurred c. Requirements management plan and test plans d. Project plan, and communication plan

Answer 363

B The best answer choice is B because the Monitor Communications process involves the activities that are required for information and communications to be monitored, acted on, and released to stakeholders. This information may include: deliverable status, schedule progress, and costs incurred.

Question 364

You are managing a challenging project that involves competing needs across stakeholders groups. You have successfully developed a Communications Management plan but as of late you have begun to wonder about the effectiveness of the plan. What tool or technique would be helpful in allowing you to assess the impact of project communications and to ascertain whether there is a need for action or intervention? a. Project meeting b. Information Management system c. Expert judgment d. Issue log

Answer 364

C The best answer choice is C because expert judgment is often relied on by the project team to assess the impact of project communications, need for action or intervention, actions that should be taken, responsibility for taking such actions, and the time frame for taking action.

Question 365

You are managing a large project that utilizes multiple vendors and has a two-year time frame. Over the course of the project you have been able to develop very positive relationships with the vendors on your project. The best communication method to utilize on this type of project is: a. Formal written communications b. Formal verbal communications c. Informal written communications d. Informal verbal communications

Answer 365

A The best answer choice is A because formal written communications is appropriate as a way to document project communications when contractual agreements are involved.

Question 366

You are managing a large project that has been challenged in achieving key milestones on schedule. Additional resources have been added in an effort to get the project back on schedule. Your project sponsor would like to know what you now expect the total project to cost when it's completed. What measure would you use to determine this information? a. ETC b. SPI c. CPI d. EAC

Answer 366

D The best answer choice is D because the EAC (estimate at completion) provides information regarding the expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.

Question 367

You are executing a very large project that requires specialized skills on the part of your resources assigned to the project. They have worked extra hours in an effort to meet the schedule demands of the project. Recently another project has completed and there are new resources that could be available to your project. What would be the value of levelling resources? a. Give resources comp time b. Avoid using expensive contract labor c. Save money d. Smooth the peaks and valleys of resource usage consumed by the project

Answer 367

D The best answer choice is D because resource level is a technique in which the start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with available supply.

Question 368

You are executing a project that has very firm quality and cost parameters. During the past month your performance reports are showing a trend that could indicate your project could be over budget before completion. Your project sponsor has asked you to find a less costly way to complete the work without affecting quality. This is known as: a. Critical Chain Method b. Value analysis c. Resource optimization d. Scope minimization

Answer 368

B The best answer choice is B because value analysis is finding a less costly way to complete the deliverables of the project without affecting quality.

Question 369

During planning you sit down and estimate the time needed for each task and total them to determine the project duration estimate. The duration is what you commit to completing the project. What is wrong with this scenario? a. The team did not create the estimate and estimating takes too long using that method b. The team did not create the estimate and a network diagram was not used c. The estimate is too long using that approach and should involve management d. The project estimate should match the customer's required completion date

Answer 369

B The best answer choice is B because you should always involve the resources that are performing the work to be involved in creating the estimates and a network diagram should be created to understand the relationships between activities and to determine the critical path as well.

Question 370

You are the project manager for a very large complex project and you have asked your team members for assistance in structuring the project milestones. The team members do not have any previous project management experience and require instruction about milestones. You should inform the team that milestones have: a. A duration less than the activity it represents b. A duration greater than the activity it represents c. An unlimited duration d. No duration

Answer 370

D The best answer choice is D because a milestone represents a significant point or event in a project, program or portfolio and has zero duration.

Question 371

You are managing a project and are trying to get the project completed faster. You start by looking at the cost associated with crashing each task. A more complete approach to crashing would be to also look at: a. The cost and risk impact of crashing each task b. The customer's input of what tasks to crash c. The day of the week the task is to take place d. The project phase in which the task is due to occur

Answer 371

A The best answer choice is A because while crashing involves adding more resources to critical path activities it almost always results in increased costs. In any type of schedule compression technique it is best to see all potential choices and then select the choice or choices that have the least amount of risk on the project.

Question 372

You are in the middle of a very large construction project when you realize that the time needed to complete the project is longer than the time available. What should you do? a. Meet with the customer and tell them that their required date cannot be met b. Meet with management and tell them the required date cannot be met c. Crash or fast-track the project d. Show options to crash or fast track the project and meet with project stakeholders to review the options

Answer 372

D The best answer choice is D because fast tracking or crashing the schedule will allow you to potentially shorten the schedule, but the impact of doing so needs to be shared with stakeholders so that a decision can be made that represents their willingness to follow a particular option and absorb the impact of doing so.

Question 373

You are executing a systems implementation project and based on work performance results you realize that you will not meet the mandated end date. If your project network diagram cannot change but there are extra available skilled resources, you should: a. Fast-track the project b. Perform a Monte Carlo analysis c. Crash the project d. Perform a value analysis

Answer 373

C The best answer choice is C because crashing the project involves adding more resources to critical path activities for purposes of shortening the duration of the project.

Question 374

As a project manager on a large project that involves numerous venders, your project sponsor has asked you to make sure that the payment terms defined within the contract are met and that seller compensation is linked to seller progress as defined in the contract. The work you are being asked to perform is a part of: a. Manage stakeholder engagement b. Monitor stakeholder engagement c. Plan procurement management d. Control procurements

Answer 374

D The best answer choice is D because control procurements is the process of managing procurement relationships and monitoring contract performance. Control procurements also has a financial management component that involves monitoring payments to the seller.

Question 375

You are managing a complex project that involves numerous stakeholders across various lines of business. You have asked your project team to assist you in engaging and managing the various stakeholders on the project. This is important because: a. Managing stakeholder engagement increases the chances of project success b. You want to avoid conflict c. Your resources have available time built into their tasks to do this d. It's defined in your Communications Management plan

Answer 375

A The best answer choice is A because managing stakeholder engagement helps to increase the probability of project success by ensuring that stakeholders clearly understand the project goals, objectives, benefits, and risks. This enables them to be active supporters of the project and to help guide activities and project decisions.

Question 376

You are the project manager for a major project in your company and have been working effectively to manage stakeholder engagement. You realize that as a result of this ongoing process, information on stakeholders change, and new stakeholders have been identified. The best practice is to make sure this information is updated and documented in the: a. Project plan b. Organizational process assets c. Stakeholder register d. Meeting minutes

Answer 376

C The best answer choice is C because a stakeholder register contains all details related to the identified stakeholders on the project. The stakeholder register should be consulted and updated on a regular basis, as stakeholders may change or new ones identified throughout the life cycle of the project.

Question 377

One of your co-workers, Sarah, is a new project manager with your company. She knows that your company places a heavy emphasis on the importance of managing stakeholder engagement on all projects within your company. Sarah is unsure as to what key tools and techniques are critical to managing stakeholder engagement and asks for your input. You inform Sarah that the techniques for managing stakeholder engagement include: a. Stakeholder management plan, communications plan, and the project management plan b. Project management plan, change logs, and issues logs c. Communication skills, interpersonal and team skills, ground rules, and meetings d. Project schedule, project charter, project plan

Answer 377

C The best answer choice is C because according to the PMBOK® Guide, communication skills, interpersonal and team skills, meetings, and ground rules are the tools and techniques for managing stakeholder engagement.

Question 378

You are managing a project that requires use of a contractor with a cost plus fixed fee contract. Your customer is not familiar with this type of contract and wants to know the benefit for using this type of contract. You explain that one of the benefits of this type of contract is: a. This contract type pays all costs and an agreed on fee plus a bonus for beating the incentive b. This contract type requires the buyer to pay for all costs plus a percent as a fee c. This contract type requires that one price is agreed on for all work d. This contract types keeps the seller's cost in line because a cost overrun will not generate any additional fee or profit

Answer 378

D The best answer choice is D because the CPFF contract is the most common form of cost reimbursable contracts. In this form of contract, the buyer will pay all costs, but the fee (or profit) will be fixed at a specific dollar amount. This helps to keep the seller cost in line because a cost overrun will not generate any additional fee or profit.

Question 379

You are managing a multiyear project with a contract that is for $1,100,000 but a price increase will be allowed in year 2 of the contract based on the U.S. Consumer Price Increase report for year 1. This type of contract is known as: a. Time and materials b. Cost plus percentage of costs c. Cost reimbursable d. Fixed Price Economic Price Adjustment

Answer 379

D The best answer choice is D because a Fixed Price Economic Price Adjustment (FPEPA) is a type of fixed-price contract that will allow for price increases if the contract is for multiple years.

Question 380

You are managing a construction project that requires the purchase of 50 linear meters of wood at a US$12 per meter. What type of contract would be best to secure these materials? a. Time and materials b. Fixed price c. Purchase order d. Cost as is

Answer 380

C The best answer choice is C because a purchase order is a form of contract that is unilateral (signed by one party) instead of bilateral (signed by both parties). It is usually used for simple commodity procurements such as the one defined in the above question.

Question 381

A key disadvantage of a Cost Plus Fixed Fee contract is that: a. Seller may charge extra on change orders b. Profit is in every hour billed c. The total price is unknown d. More expensive than a cost reimbursable contract

Answer 381

C The best answer choice is C because a CPFF contract is cost reimbursable, the buyer bears the highest risk because final costs are unknown upfront.

Question 382

You are managing a project that has a mandated end date with very specific performance specifications. You are using a vendor for the design, development, and implementation of key deliverables. You have recommended the use of incentives on the contract because: a. Incentives help bring the seller's objectives in line with the buyer b. It will be cheaper in the long run c. The costs are fixed on the project d. You are allowing the seller to define the quality parameters

Answer 382

A The best answer choice is A because incentives are used as a bonus on top of the agreed on price for beating cost, time, performance, scope of work or quality on a project. With an incentive, both buyer and seller work toward the same objective, for instance, completing the project on time.

Question 383

You are the project manager for a technology project for something that has never been done before and involves a cost-reimbursable contract. What type of statement of work (SOW) should be used for this type of contract? a. The SOW can describe performance or requirements because you are buying the expertise of “how to do the work.” b. The SOW should provide a brief description of design requirements c. The SOW must be extremely detailed because you are buying “do it” not “how to do it.” d. The SOW must outline a complete scope of work

Answer 383

A The best answer choice is A because in this case, the scope of work can describe only the performance or requirements because you are buying the expertise of how to do the work. You may not be able to say what to do or when. This form of SOW tends to be appropriate for IT projects, high tech, and “never been done before” type of projects. Although there are many reasons to handle contracts differently, using an inappropriate contract form can result in project failure, increased risk, and conflict.

Question 384

You are planning to attend a bidder's conference and your project sponsor has asked you to make sure all questions and answers are put in writing and issued to all potential sellers by the buyer as an addendum to the procurement documents. This is a good idea because: a. It helps eliminate sellers who do not meet the minimum standard b. It ensures that all sellers are responding to the same scope of work c. It allows sellers to not ask their questions in front of their competition d. It will help define the advertisement need for the newspaper

Answer 384

B The best answer choice is B because a bidders conference can be the key to making sure the pricing in the seller's response matches the work that needs to be done and is therefore the lowest price. Bidder conferences benefit both the buyer and the seller and by putting all questions and answers in writing and issuing them to all potential sellers ensures that all sellers are responding to the same scope of work.

Question 385

You are executing a software implementation project that is nearing the end of testing. While all tests are working as planned, the customer has decided that there is new functionality that they would like to have that requires a change to the scope of work when the project is almost complete. You should: a. Make the change because the customer is paying for it b. Analyze the change and inform the customer of the impact of the change to the project c. Explain that there is a freeze change during testing d. Report the issue to your project sponsor

Answer 385

B The best answer choice is B because any and all changes that take place during the project should be subjected to the agreed on Change Control process and any impacts assessed as a result of implementing or not implementing the change should be shared with the customer and other key project stakeholders.

Question 386

You are executing a project that involves the implementation of a new product. During a team meeting, one of your developers assigned to the project suggests an enhancement that is beyond the agreed on scope defined in the project plan. You point out that the team needs to concentrate on completing the scope of work as defined and only the work required by the customer. This is an example of: a. A conflict that occurs on projects b. Scope decomposition c. Scope control d. Scope validation

Answer 386

C The best answer choice is C because controlling scope is the process of monitoring the project scope to ensure that all of the work and only the work defined in the project charter and project plan are implemented. Giving the customer enhanced functionality that was not requested is considered gold plating and not recommended by PMI.

Question 387

Validating scope should be done: a. At the end of the project b. At the beginning of a project c. During each phase of the project d. Once during executing

Answer 387

C The best answer choice is C because validating scope is the process of formalizing acceptance of the completed project deliverables. The key benefit of the process is that it brings objectivity to the acceptance process and should be performed during each phase of the project thereby increasing the chance of final product, service, or result acceptance by validating each deliverable through the life of the project.

Question 388

You are conducting a team meeting and a conflict surfaces over the different approaches to accomplishing the work on an activity that involves three team members. You decide that there are multiple ways to accomplish the work and suggest: “Why can't we solve this problem by all sides giving in a little?” This is an example of what type of conflict resolution technique? a. Problem solving b. Collaborating c. Competing d. Compromising

Answer 388

D The best answer choice is D because compromising involves searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve a conflict.

Question 389

You are a PM and you have a new deputy PM who was assigned to your project. You note that he has great technical skills in the field, and comes highly recommended. However, his organizational and people skills are not at the level you would expect for a project manager. This is an example of a. Promote project managers from within b. Hire the best project managers c. The Halo Effect d. Move people into project management because they have had project management training

Answer 389

C The best answer choice is C because the Halo Effect is the tendency to rate high or low on all factors due to the impression of a high or low rating on some specific factor. This can also mean, “You are a great programmer so therefore we will make you a project manager and also expect you to be great.”

Question 390

You are managing a project with a very dedicated team that has remained motivated throughout the project. During a lessons learned meeting, many of your team members explained that the project work gave them an opportunity to contribute and use their skills. In Maslow's Hierarchy this is known as: a. Responsibility b. Self-actualization c. A hygiene factor d. Esteem

Answer 390

B The best answer choice is B because Maslow's message is that people do not work for security or money. They work to get a chance to contribute and use their skills. Maslow calls this self-actualization. His Hierarchy of Needs pyramid depicts how people are motivated and states that one cannot ascend to the next level until the levels below are fulfilled.

Question 391

Key outputs from manage stakeholder engagement include: a. Meetings, interpersonal skills, expert judgment b. Project management plan updates, change requests, project document updates c. Meetings, organizational process assets, communication plan d. Communication plan, stakeholder plan, issues log

Answer 391

B The best answer choice is B because key outputs from manage stakeholder engagement include: change requests, project management plan updates, and project document updates.

Question 392

The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders is known as: a. Manage stakeholder engagement b. Addressing stakeholder needs c. Monitor Stakeholder Engagement d. Plan stakeholder engagement

Answer 392

C The best answer choice is C because Monitor Stakeholder Engagement is the process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders. The key benefit of this process is that it will maintain or increase the efficiency and effectiveness of stakeholder engagement activities as the project evolves and its environment changes.

Question 393

Advertising, bidders conference, and interpersonal and team skills are tools used in: a. Develop project charter b. Assess project success c. Conduct lessons learned d. Conduct procurements

Answer 393

D The best answer choice is D because advertising, bidder conferences, data analysis, and interpersonal and team skills are defined as “Tools & Techniques for Conduct Procurements” in the PMBOK® Guide.

Question 394

There are five primary sources of power from which the project manager can utilize in managing the project team. Which of the following is not one of these sources of power? a. Reward b. Referent c. Formal d. Exclusive

Answer 394

D The best answer choice is D because the five primary sources of power from which the project manager can utilize is: formal, referent, expert, reward, and penalty.

Question 395

Given the following information, identify what proportion of the scheduled work has been performed: EV = 800, AC = 900, and PV = 850. a. 0.88 b. 0.94 c. 0.62 d. 1.06

Answer 395

B The best answer choice is B because this questions requires you to calculate the SPI (Schedule Performance Index), which is determined by using the following formula: SPI = EV / PV therefore 800 / 850 = 0.94.

Question 396

All of the following are primary benefits of meeting quality requirements except: a. Fewer change requests b. Fewer meetings c. Stakeholder satisfaction d. Lower costs

Answer 396

A The best answer choice is A because while achieving quality requirements will result in higher productivity, stakeholder satisfaction, and lower costs, it does not guarantee that it will result in fewer change requests.

Question 397

A purchase order issued by the buyer to the seller without negotiation is an example of which type of agreement? a. Unilateral b. Bilateral c. Collateral d. Trilateral

Answer 397

A The best answer choice is A because a purchase order is a form of a contact that is unilateral (signed by one party). It is typically used for simple commodity procurements.

Question 398

During a major milestone review toward the end of the project, the client is surprised to learn that the project is on schedule, but seriously over budget. What was most likely missing from the project status report? a. CPM information b. CPA information c. CPI information d. EMV information

Answer 398

C The best answer choice is C because CPI information would provide a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost.

Question 399

Effective communications is critical to project success. In order to effectively manage communications which factor is critical to ensuring that effective communications take place? a. Good technology b. A feedback mechanism c. A projectized organizational structure with the entire project team co-located d. Every team should be a subject matter expert for their assigned work

Answer 399

B The best answer choice is B because a feedback mechanism is the last step in the sequence of steps in the communications model and ensures that the message received is equal to the message intended.

Question 400

You have discovered your project is falling behind schedule. As you review the Gantt chart for the project you discover that some of the software that needed to be tested was not fully developed. During an analysis of your precedence diagram, you find that the software development must be fully completed before it can be tested. This is an example of: a. External dependency b. Discretionary dependency c. Mandatory dependency d. Inferential logic

Answer 400

C The best answer choice is C because a mandatory dependency is a relationship between activities that is either contractually binding or inherent in the nature of the work.