100 Free PMP Exam Sample Questions - PM Study Circle

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Question: 1

Which of the following is not true?


(a) Every project is unique
(b) A project gives some output
(c) Projects are not repetitive
(d) Car manufacturing is an example of project

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Question: 2

What is a Product Scope?


(a) Features and functions that characterize a product
(b) The work done to deliver the product
(c) Both A & B
(d) None of above

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Question: 3

In Rolling Wave Planning:


(a) Near term work is planned in more detail
(b) All planning is completed before starting the actual work
(c) 50% of planning is completed before starting the actual work
(d) None of the above

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Question: 4

Which of the following is not a basic element of Earn Value Management (EVM)?
(a) Earned Value
(b) Planned Value
(c) TCPI
(d) Actual Cost

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Question: 5

What is meant by RACI?


(a) Responsible, Accountable, Confirm, Inform
(b) Recommended, Accountable, Consulted, Inform
(c) Responsible, Accountant, Consulted, Inform
(d) Responsible, Accountable, Consulted, Inform

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Question: 6

Risks included in the Watch List are known as:


(a) High priority
(b) Low priority
(c) Negative risk
(d) Positive risk

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Question: 7

You hired a programmer for $25/hour for two months. What kind of contract is this?
(a) CPIF
(b) Fixed Price
(c) Time & Material
(d) CPAF

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Question: 8

A person who is directly or indirectly involved with your project, or affected by your project or its
outcome, is known as:
(a) Customer
(b) Manager
(c) Team Member
(d) Stakeholder

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Question: 9

Code of Ethics and Professional Conduct applies to:


(a) PMI members
(b) PMP holders
(c) PMI volunteer
(d) All of the above

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Question: 10

Which of the following statement is true about a Program?


(a) A Program is a group of related projects
(b) A Program is group of unrelated projects
(c) A Program is a part of a big project
(d) None of the above
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Question: 11

What is the duration of the Milestone?


(a) Zero
(b) One
(c) Duration of the project
(d) None of the above

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Question: 12

Money spent during a specific time period is known as:


(a) Budgeted Cost
(b) Actual Cost
(c) Earned Value
(d) Planned Value

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Question: 13

Which of the following is part of the Maslow theory?


(a) Hygiene Theory
(b) Hierarchy Theory
(c) Expectancy Theory
(d) Theory X & Y

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Question: 14

Which of the following strategies is not used for negative risks?


(a) Exploit
(b) Transfer
(c) Avoid
(d) Mitigate

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Question: 15

Which contract is considered most risky for the bidders?


(a) Time & Material
(b) Fixed Price
(c) Cost Reimbursable
(d) CPAF
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Question: 16

During a bidder conference you see that one bidder is your close friend. What should your next step
be?
(a) You will pass some confidential info to him
(b) You will disclose this relationship to your management
(c) You will resign immediately from the bidding process
(d) You will try not to give the contract to him to prove your integrity

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Question: 17

In which type of organization does the Functional Manager manage the project budget?
(a) Projectized
(b) Strong Matrix
(c) Balanced Matrix
(d) Weak Matrix

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Question: 18

For your project you need to outsource some work, so you sign a fixed price contract with a contractor.
In this contract, the price above which the seller bears all costs of cost overrun is known as:
(a) Point of Total Assumption
(b) Cost Overrun
(c) Target Cost
(d) Target Price

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Question: 19

Which of the following statement is true about the Project Charter?


(a) It authorizes the existence of a project
(b) It is a bidding document
(c) It is used to rank the risks
(d) All of the above

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Question: 20

You have been given 100,000 USD to complete the project. 60,000 USD has been spent, though as
per the schedule, 55,000 USD should have been spent to complete the same work. What is the
Budget at Completion (BAC)?
(a) 55,000 USD
(b) 100,000 USD
(c) 60,000 USD
(d) 105,000 USD

Go to the Answer

Question: 21

You have six team members working under you. How many lines of communication will you have in
your communication plan?
(a) 16
(b) 15
(c) 21
(d) 30

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Question: 22

A Risk that is caused by the response of another risk, is known as:


(a) Primary Risk
(b) Secondary Risk
(c) Residual Risk
(d) Negative Risk

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Question: 23

What should be your goal while negotiating with the seller?


(a) Press for lower price
(b) Press for early completion
(c) To arrive at a fair deal
(d) Give him extra benefits

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Question: 24

How will you deal with the stakeholders with High Interest but Low Power?
(a) Keep them informed
(b) Monitor them
(c) Manage them closely
(d) Try to satisfy them

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Question: 25
Which of the following is not an example of Enterprise Environmental Factor?
(a) Rules and Regulations
(b) Organization Culture
(c) Procedures
(d) Market condition

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Question: 26

Which of the following is not a component of the Scope Baseline?


(a) Project Scope Statement
(b) WBS
(c) WBS Dictionary
(d) Risk Register

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Question: 27

You have been given 100,000 USD to complete the project. 60,000 USD has been spent, though as
per the schedule, 55,000 USD should have been spent to complete the same work. What is the Actual
Cost (AC)?
(a) 55,000 USD
(b) 100,000 USD
(c) 60,000 USD
(d) 105,000 USD

Go to the Answer

Question: 28

Which of the following risks will be managed with the Contingency Reserve?
(a) Known Risks
(b) Unknown Risks
(c) Low Priority Risks
(d) High Priority Risks

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Question: 29

Which of the following is not an example of Organizational Process Assets?


(a) Policies
(b) Procedures
(c) Government Regulation
(d) Lessons learned

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Question: 30

You have been given 100,000 USD to complete the project. 60,000 USD has been spent, though as
per the schedule, 55,000 USD should have been spent to complete the same work. What is the
Planned Value (PV)?
(a) 55,000 USD
(b) 100,000 USD
(c) 60,000 USD
(d) 105,000 USD

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Question: 31

A subcontractor is delaying the delivery of the deliverables. Which of the following should you do?
(a) Cancel the contract
(b) Schedule a meeting with contractor
(c) Inform management
(d) Delay the payment

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Question: 32

In which of the following phases of the project will most of the money be spent?
(a) Initiating
(b) Planning
(c) Executing
(d) Closing

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Question: 33

Which of the following statements is not true about the Project Charter?
(a) It may contain the names of important stakeholders
(b) It gives authority to the project manager
(c) It is signed by the project sponsor
(d) It should be approved by the project manager

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Question: 34

What does the Schedule Performance Index (SPI) say about the project?
(a) It says whether you are ahead of or behind schedule
(b) It says whether you are overspending or under-spending
(c) It says whether your process is under control or not
(d) Specifies the control limits of the process
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Question: 35

The most common cause of conflict within a project is:


(a) Schedule
(b) Personnel
(c) Procedures
(d) Resources

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Question: 36

In which process you close the contract?


(a) Close project
(b) Control procurements
(c) Perform integrated change control
(d) Validate scope

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Question: 37

Whenever you receive a change request, what will be your next step?
(a) Process for approval
(b) Investigate it
(c) Reject it
(d) Ignore it

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Question: 38

If the optimistic estimate is 10 days, and the pessimistic estimate is 22 days, what is the standard
deviation for this activity?
(a) 1
(b) 2
(c) 3
(d) 4

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Question: 39

What does the Cost Performance Index (CPI) say about the project?
(a) It says whether you are ahead of or behind schedule
(b) It says whether you are overspending or under-spending
(c) It says whether your process is under control or not
(d) Specifies the control limits of the process

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Question: 40

A contract cannot be a legal document until:


(a) Signed by the project manager
(b) Signed by the buyer
(c) Signed by the seller
(d) Signed by all parties

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Question: 41

A project has more than one critical path. What does this mean to you?
(a) Risk increases
(b) Risk decreases
(c) The duration of the project reduces
(d) The project may cost less

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Question: 42

If an un-identified risk occurs:


(a) You will use the management reserve to manage it
(b) You will use the contingency reserve to manage it
(c) You will not take any action
(d) You will log it into the risk registers

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Question: 43

Who contributes, develops and updates the Lessons Learned document?


(a) Client
(b) Project Management Team
(c) Functional Manager
(d) Management

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Question: 44

You are developing the project management plan for your project. What will be your main emphasis
during this process?
(a) Hide it from team members until it is completed
(b) To take input from team members
(c) Not to inform management until it is ready
(d) Hide it from everyone

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Question: 45

You have added a few extra features to the product with the intention to make the client happy. This
activity is known as:
(a) Buffer
(b) Scope Creep
(c) Gold Plating
(d) None of the above

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Question: 46

Which one is an example of Crashing?


(a) Starting a few activities simultaneously
(b) Adding more resources
(c) Reducing resources
(d) Increasing the duration of project

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Question: 47

TCPI = 1.5, what does it mean?


(a) You are doing well
(b) You are in bad condition
(c) You are going as planned
(d) None of the above

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Question: 48

Which statement is true?


(a) Low Grade may not be a problem
(b) Low Quality is not a problem
(c) Low Grade is never acceptable
(d) None of the above

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Question: 49
Which one of the following is not true about the change request?
(a) It happens usually in the execution phase of the project
(b) Usually requested by the client
(c) Usually requested by the project management team
(d) It is always an informal verbal request

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Question: 50

Due to a miscommunication with the client, some features are added to the product. This process is
known as:
(a) Gold Plating
(b) Scope Creep
(c) Scope Management
(d) Buffer

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Question: 51

When should you update lessons learned?


(a) At the beginning of the project
(b) At the middle of the project
(c) Throughout the project
(d) At the end of the project

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Question: 52

What is the goal of Quality Management?


(a) Customer Satisfaction
(b) Low cost product
(c) High grade product
(d) Low quality and high grade product

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Question: 53

You have identified a large number of risks during your risk identification process. What will be your
next step?
(a) You will prioritize them using the Qualitative Risk Analysis process
(b) Go for the Quantitative Risk Analysis
(c) Assign the risk owner to each risk
(d) Calculate the contingency reserve

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Question: 54

Which of the following represents the correct order of project management phases?
(a) Initiating, Planning, Executing, Monitoring & Controlling, Closing
(b) Initiating, Executing, Planning, Monitoring & Controlling, Closing
(c) Initiating, Planning, Monitoring & Controlling, Executing, Closing
(d) Planning, Initiating, Executing, Monitoring & Controlling, Closing

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Question: 55

The role of the Develop Project Management Plan process is to:


(a) Create a Schedule for the Project
(b) Monitor Schedule
(c) Integrate all Subsidiary Plans
(d) Develop Cost Baseline

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Question: 56

In risk management, you have many strategies to manage risks. Which strategy will you not use with
the negative risks?
(a) Mitigate
(b) Exploit
(c) Transfer
(d) Avoid

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Question: 57

Which document is created by breaking the project scope into smaller and manageable elements?
(a) Scope Baseline
(b) WBS
(c) OBS
(d) None of the above

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Question: 58

Rearranging resources to optimize their utilization is known as:


(a) Crashing
(b) Fast Tracking
(c) Resource Leveling
(d) Schedule Compression
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Question: 59

Which of the following statements is true about the Point of Total Assumption?
(a) Above PTA, seller bears the cost
(b) Above PTA, buyer bears the cost
(c) Below PTA, buyer bears the full cost
(d) Below PTA, seller bears the 50% of cost

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Question: 60

Pareto Chart helps you find:


(a) Minor sources creating the majority of problems
(b) Majority of causes creating the minority of problems
(c) Cause of variation
(d) Cause of deviation

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Question: 61

What is a Workaround?
(a) A response to unplanned threat
(b) A response to identified threat
(c) A response to low-priority risk
(d) None of the above

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Question: 62

While inspecting, you find a defective component and you repaired it. This act is known as:
(a) Preventive Action
(b) Corrective Action
(c) Defect Repair
(d) None of Above

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Question: 63

You are managing a project with a budget of 500,000 USD, and 250,000 USD has been spent. Upon
review, you observe that only 40% of the work has been completed; though, your schedule says that
you should have completed 50% of the work. What is the Actual Cost?
(a) 500,000 USD
(b) 200,000 USD
(c) 300,000 USD
(d) 250,000 USD

Go to the Answer

Question: 64

You are reviewing the control chart and observe that there are seven points in a row that are below
the mean. What does it mean?
(a) The mean should be re-adjusted
(b) Investigate the cause of it
(c) Re-draw in control limit
(d) It is common, nothing to worry about

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Question: 65

The client inspects the deliverables with you, and finds that it meets the acceptance criteria. He signed
off and formally approves the deliverables. Which process is this?
(a) Control Quality
(b) Control Scope
(c) Validate Scope
(d) Close Project

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Question: 66

Which is an example of Triple Constraint?


(a) Scope, Human Resource, Time
(b) Quality, Scope, Human Resource
(c) Cost, Human Resource, Time
(d) Scope, Cost, Time

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Question: 67

In which phase will the risks be at the lowest level?


(a) Initiating
(b) Planning
(c) Execution
(d) Closing

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Question: 68
Which Conflict Resolution Technique leads to consensus and commitment?
(a) Withdraw
(b) Accommodate
(c) Compromise
(d) Collaborative

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Question: 69

What is a prototype?
(a) A working model of expected actual product
(b) A blueprint of the product
(c) A 3D model of the actual product
(d) None of the above

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Question: 70

Which of the following is the most accurate cost estimate method?


(a) Rough Order
(b) Three Point
(c) Parametric
(d) Bottom up

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Question: 71

Fishbone diagram is also known as:


(a) Gantt Diagram
(b) Pareto Diagram
(c) Run Chart
(d) Ishikawa Diagram

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Question: 72

What is a Project Scope?


(a) The work performed to deliver a product
(b) It is the features and functions that characterize a product
(c) Both A & B
(d) None of the above

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Question: 73
Which of the following is not an output of a project?
(a) Developing a new car
(b) The production of cars
(c) An enhancement to the car
(d) Completing research on car

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Question: 74

In your project you identify a risk that, due to the possibility of the entrance of a new supplier, may
provide some components at a cheaper price. What kind of risk is this?
(a) Negative Risk
(b) Opportunity
(c) Known Risk
(d) Secondary Risk

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Question: 75

Which one is not a stakeholder of your project?


(a) Your competitor
(b) Team member
(c) Client
(d) Management

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Question: 76

In Six Sigma what percentage of accuracy is desired?


(a) 99.977
(b) 99.38
(c) 99.99966
(d) 93.3

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Question: 77

Which estimate is given more weight in the PERT estimate formula?


(a) Optimistic
(b) Pessimistic
(c) Most Likely
(d) None of the above

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Question: 78

What does the Variance at Completion show?


(a) How much you are ahead of schedule
(b) Amount of budget surplus or deficit
(c) How fast you need to go to complete the project
(d) None of the above

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Question: 79

In which procurement contract does the buyer have the minimum risk?
(a) Firm Fixed Price
(b) Time and Material
(c) Cost Plus Incentive Fee
(d) Cost Plus Fixed Fee

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Question: 80

During which phase of the project will risks be the highest?


(a) Initiating
(b) Planning
(c) Execution
(d) Closing

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Question: 81

For your project, you have identified your project stakeholders, developed strategy and now you are in
the execution phase. In which project phases do you identify the project stakeholders?
(a) Initiating and Planning and Execution
(b) Initiating and Planning
(c) Initiating, Planning, and Monitoring & Controlling
(d) All phases

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Question: 82

You are developing the project charter, with management, for a new project. You are going to be the
project manager. Who will sign the project charter?
(a) Project Manager
(b) Operational Manager
(c) Functional Manager
(d) Someone from top management
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Question: 83

What may happen if your project has more than one critical path?
(a) It will cost more
(b) The project completion date may be extended
(c) The quality may be reduced
(d) Risks will increase

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Question: 84

Which of the following diagram looks like a fish skeleton?


(a) Ishikawa Diagram
(b) Tornado Diagram
(c) Decision Tree
(d) None of the above

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Question: 85

For all your needs you have to go to the functional manager; moreover, you do not have control over
the budget. In what kind of organization are you working?
(a) Projectized
(b) Weak Matrix
(c) Strong Matrix
(d) Balanced Matrix

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Question: 86

Your management has asked you to provide them with the rough order estimate for a project on an
urgent basis. In this case, which of the following techniques will you use?
(a) Parametric
(b) Bottom Up
(c) Rough order
(d) Analogous

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Question: 87

Which is not an example of organizational process assets?


(a) Processes
(b) Procedures
(c) Lessons learned
(d) Political conditions

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Question: 88

Your project is late and to bring it back on track you are adding extra resources to some activities and
giving overtime to your team members. This is an example of:
(a) Critical Chain
(b) Fast Tracking
(c) Crashing
(d) Resource Leveling

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Question: 89

In a balanced matrix organization, who has authority over the budget?


(a) Project Manager
(b) Functional Manager
(c) Both
(d) None of the Above

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Question: 90

Which document authorizes the existence of the project?


(a) Scope Statement
(b) Project Plan
(c) Project Charter
(d) Stakeholder’s Register

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Question: 91

The successor activity cannot be finished until the predecessor activity starts. This is an example of
which kind of relationship:
(a) Finish to Start (FS)
(b) Finish to Finish (FF)
(c) Start To Start (SS)
(d) Start to Finish (SF)

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Question: 92
Which of the following graphs shows the major of problems due to a minority of causes?
(a) Scatter Diagram
(b) GANTT Chart
(c) Pareto Diagram
(d) Bar Chart

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Question: 93

Regarding the project expeditor and the project coordinator, which of the following statements is
correct?
(a) The coordinator has more power than the expeditor
(b) The expeditor has more power than the coordinator
(c) Both have equal power
(d) None of the above

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Question: 94

Your project is delayed by 45 days and the client has threatened that he will impose a heavy penalty if
you do not complete the project on time. Therefore, to bring the project back on schedule you hire
some equipment and bring more team members to work with you. This is an example of:
(a) Resource Leveling
(b) Resource Optimization
(c) Crashing
(d) Fast Tracking

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Question: 95

Which of the following risks remain even after applying the risk response of an identified risk?
(a) Primary Risk
(b) Secondary Risk
(c) Remaining Risk
(d) Residual Risk

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Question: 96

You have been given a task to accurately calculate the cost of a project. Which of the following
techniques will you use to get the most accurate cost of the project?
(a) Parametric
(b) Analogous
(c) Bottom Up
(d) Top Down
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Question: 97

Tom is a low-power stakeholder in your project, He is very interested and enthusiastic about your
project. He wants you to complete the project successfully. How will you manage him?
(a) Keep informed
(b) Monitor
(c) Keep satisfied
(d) Manage closely

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Question: 98

Who should be involved in identifying the project risks?


(a) Project team members
(b) Sponsors and upper management
(c) All relevant project stakeholders
(d) Project manager and top management

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Question: 99

There is a risk which has a 7% chance of happening, and if it occurs it will cost you 2,500 USD. What
is the EMV of this event?
(a) -175 USD
(b) 2,325 USD
(c) 2,675 USD
(d) 175 USD

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Question: 100

During the procurement phase, you are analyzing whether you should outsource a particular task or
do it on your own with your team. Which process are you currently in?
(a) Plan Procurement Management
(b) Conduct Procurement
(c) Control Procurement
(d) Decide Procurement

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Answer-1: d
Explanation: As per the definition, a project is unique, non-repetitive, and gives some output.
Therefore, options a, b, & c are definitely the characteristics of a project. Car manufacturing is
repetitive production process; hence, it is not a characteristic of a project.

Option “d” is an example of production operation.

Reference: The PMBOK Guide, 6th Edition, Page: 4

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Answer-2: a

Explanation: The Product Scope is the features or functions of a product. It is all about the product;
e.g. what it will look like, how it will perform, etc.

Reference: The PMBOK Guide, 6th Edition, Page: 131

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Answer-3: a

Explanation: In rolling wave planning, near term work is planned in more detail, while the distant work
is planned broadly.

Reference: The PMBOK Guide, 6th Edition, Page: 160

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Answer-4: c

Explanation: Earned Value, Planned Value, and Actual Cost are three basic elements of Earn Value
Management.

Reference: The PMBOK Guide, 6th Edition, Page: 261

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Answer-5: d
Explanation: The RACI chart is an example of Responsibility Assignment Matrix (RAM), which shows
the relationship between activities and the team members.

Reference: The PMBOK Guide, 6th Edition, Page: 317

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Answer-6: b

Explanation: Low-priority risks are kept in the Watch List. These risks have low probability and low
impact. These risks are kept in the Watch List for future monitoring to determine if they may become a
high probability or a large impact risk.

Reference: The PMBOK Guide, 6th Edition, Page: 423

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Answer-7: c

Explanation: A Time and Material contract is mostly used for temporary hiring, or hiring experts in
cases where you cannot define the exact scope of work quickly.

Reference: The PMBOK Guide, 6h Edition, Page: 472

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Answer-8: d

Explanation: This is the definition of the stakeholders.

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Answer-9: d

Reference: PMI Code of Ethics and Professional Conduct, Point: 1.2, Page No: 1

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Answer-10: a

Explanation: As per the definition, a program is a group of related projects; therefore option ‘a’ is the
correct answer.

Reference: The PMBOK Guide, 6th Edition, Page: 13

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Answer-11: a

Explanation: A milestone is an event which has zero duration.

Reference: The PMBOK Guide, 6th Edition, Page: 186

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Answer-12: b

Explanation: Actual Cost is the amount of money that has been spent during the specific time period.

Reference: The PMBOK Guide, 6th Edition, Page: 261

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Answer-13: b

Explanation: Maslow Hierarchy Theory is also known as the Theory of Needs; it states that when our
lower order needs are met and satisfied, we tend to be concerned with the higher order of needs.

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Answer-14: a

Explanation: Exploit is the strategy where you do everything to realize the opportunity. This type of
strategy cannot be used with negative risks.

Reference: The PMBOK Guide, 6th Edition, Page: 444


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Answer-15: b

Explanation: A Fixed priced contract is the most risky contract for the seller because once the seller
signs the contract he is legally bound to complete it within the agreed amount.

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Answer-16: b

Explanation: There is a conflict of interest in this situation. You must inform you bosses about this
relationship.

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Answer-17: d

Explanation: In Weak Matrix organization, the Functional Manager manages the budget. In Strong
Matrix and Projectized organization, the Project Manager Controls the budget, while in Balanced
Matrix organization, both managers control it. In this case, option ‘d’ is the correct answer.

Reference: The PMBOK Guide, 6th Edition, Page: 47

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Answer-18: a

Explanation: This is the Point of Total Assumption (PTA). PTA is a point above which total cost
overrun is borne by the seller.

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Answer-19: a

Explanation: A Project Charter is a document which formally authorizes the project and gives the
project manager authority to run the project.
Reference: The PMBOK Guide, 6th Edition, Page: 81

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Answer-20: b

Explanation: BAC is the total budget assigned to your project.

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Answer-21: c

Explanation:

Communication lines = N*(N–1)/2

Where, N is the total number of member.

Here N = 7 (six team members plus you)

Hence, Communication lines = 7*(7–1)/2

=21

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Answer-22: b

Explanation: A secondary risk is caused by applying the strategy to minimize the effect of the primary
risk. For example, you dig a trench to stop people crossing it, but there is also a chance that someone
may fall into it.

Reference: The PMBOK Guide, 6th Edition, Page: 439

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Answer-23: c
Explanation: While negotiating, your goal must be to arrive on a fair deal. If you squeeze the seller for
a lower price, it might affect the quality or other project objectives.

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Answer-24: a

Explanation: You will deal with stakeholders as follows: high power and low interest category
stakeholders will be kept satisfied, high power and high interest category stakeholders will be
managed closely, low power and low interest category stakeholders will only be monitored and high
interest and low power category stakeholders will be kept informed.

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Answer-25: c

Explanation: Enterprise Environmental Factors are conditions that influence the project. These
factors are not within the control of the project team and they have to work within it. Enterprise
Environmental Factors are not always helpful to the project team; sometimes they may harm you as
well.

Rules & Regulations, Organization Culture, and Market Conditions are examples of Enterprise
Environmental Factors.

Procedure is an example of Organizational Process Assets.

Reference: The PMBOK Guide, 6th Edition, Page: 39-41

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Answer-26: d

Explanation: Risk Register is not a part of the Scope Baseline.

Reference: The PMBOK Guide, 6th Edition, Page: 161, 162

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Answer-27: c
Explanation: The Actual Cost is the amount of money that has been spent on the project to date.

Reference: The PMBOK Guide, 6th Edition, Page: 261

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Answer-28: a

Explanation: Contingency reserve is used to manage known risks.

Reference: The PMBOK Guide, 6th Edition, Page: 202

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Answer-29: c

Explanation: Organizational Process Assets are assets possessed by an organization to help you to
run the project efficiently and smoothly; e.g. policies, procedures, lessons learned, etc.

Reference: The PMBOK Guide, 6th Edition, Page: 39-41

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Answer-30: a

Explanation: The Planned Value is the authorized budget assigned to scheduled work.

Reference: The PMBOK Guide, 6th Edition, Page: 261

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Answer-31: b

Explanation: You cannot simply cancel the contract just because contractor is delaying something.
You also should not go to management with incomplete information. You must meet with the
contractor to find the cause.

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Answer-32: c

Explanation: In the execution phase, most of your budget will be spent, because here is where the
actual work is performed.

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Answer-33: d

Explanation: The Project Charter gives the project manager authority to run the project. It must be
signed by someone external to the project and who has the authority to do so.

Reference: The PMBOK Guide, 6th Edition, Page: 81

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Answer-34: a

Explanation: Schedule Performance Index tells us that whether we are ahead of or behind schedule.

Reference: The PMBOK Guide, 6th Edition, Page: 263

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Answer-35: a

Explanation: Schedule priorities are the most common cause of conflict within projects.

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Answer-36: b

Explanation: In Control Procurement process you close the procurement contract for the phase or
project.

Reference: The PMBOK Guide, 6th Edition, Page: 499


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Answer-37: b

Explanation: You will not simply approve, reject or ignore any change request. Every change request
must be investigated according to the process specified in the Change Control and Configuration
Control systems.

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Answer-38: b

Explanation:

Standard Deviation = (Pessimistic Estimate – Optimistic Estimate)/6

Standard Deviation = (22 – 10) / 6

=2

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Answer-39: b

Explanation: Cost Performance Index tells us whether we are under-spending or overspending.

Reference: The PMBOK Guide, 6th Edition, Page: 263

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Answer-40: d

Explanation: A document cannot be legally binding unless it is signed by all parties involved.

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Answer-41: a
Explanation: If you have more than one critical path, the risk to your project will increase because
now you have more than one path to manage closely.

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Answer-42: a

Explanation: Management Reserve is used to manage un-identified risks.

Reference: The PMBOK Guide, 6th Edition, Page: 202

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Answer-43: b

Explanation: The whole project management team, including the project manager, contributes to and
helps maintain the lessons learned document.

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Answer-44: b

Explanation: While developing the Project Management Plan, your emphasis should be on involving
the team members. Without their input, you will not be able to develop a solid Project Management
Plan.

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Answer-45: c

Explanation: Gold Plating is a phenomenon where you add some extra features to the product in
order to make the client happy. Gold Plating may increase the cost and risks.

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Answer-46: b
Explanation: Adding extra resources to activities in order to finish them earlier is known as Crashing.

Reference: The PMBOK Guide, 6th Edition, Page: 215

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Answer-47: b

Explanation: If the TCPI is more than one, it means you need to work with better cost performance.

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Answer-48: a

Explanation: Low grade products may not be a problem if the quality is high. However, low quality is
always a problem and never accepted.

Reference: The PMBOK Guide, 6th Edition, Page: 274

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Answer-49: d

Explanation: Change request must always be a formal request. You cannot process a change request
based on any informal request.

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Answer-50: b

Explanation: The uncontrolled addition to the scope is known as Scope Creep. Scope Creep
indicates that you do not have adequate control over your project.

Reference: The PMBOK Guide, 6th Edition, Page: 168

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Answer-51: c

You should update the lessons learned document throughout the project. If you do not, many
important lessons might be missed, or may be documented incorrectly in later stages.

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Answer-52: a

Explanation: The goal of Quality Management is meeting or exceeding the customers’ satisfaction.

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Answer-53: a

Explanation: After identifying the risk, you will prioritize the risk using the Qualitative Risk Analysis
process.

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Answer-54: a

Explanation: The correct sequence of project management phases is as follows: Initiating, Planning,
Executing, Monitoring & Controlling, and Closing.

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Answer-55: c

Explanation: The role of Develop Project Management Plan process is to integrate all subsidiary
plans; e.g. scope management plan, schedule management plan, cost management plan, etc.

Reference: The PMBOK Guide, 6th Edition, Page: 87

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Answer-56: b
Explanation: Exploit risk response strategy is used with positive risks.

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Answer-57: b

Explanation: In Work Breakdown Structure (WBS), you break the work into smaller and more
manageable elements.

Reference: The PMBOK Guide, 6th Edition, Page: 156

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Answer-58: c

Explanation: In Resource leveling you arrange resources to maximize their utility.

Reference: The PMBOK Guide, 6th Edition, Page: 211

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Answer-59: a

Explanation: Under the FPIF, you set a ceiling price; once this ceiling price is passed, the seller bears
all the cost. This point is known as Point of Total Assumption.

Reference: The PMBOK Guide, 6th Edition, Page: 471

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Answer-60: a

Explanation: Pareto Chart helps you identify the minor number of sources causing most of the
troubles.

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Answer-61: a

Explanation: When an unidentified risk occurs, you will take prompt action to handle it. This activity is
called a workaround.

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Answer-62: c

Explanation: Defect Repair is a process where you correct a defective component. Preventive Action
is an action that is taken to avoid any anticipated future defects that may appear in the component.
Corrective Action is a future response to the defect repair process or the correction, so that the cause
of error or non-conformity will not occur again.

Reference: The PMBOK Guide, 6th Edition, Page: 96

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Answer-63: d

Explanation: Actual Cost is the amount of money that has been spent on the project to date.

Reference: The PMBOK Guide, 6th Edition, Page: 261

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Answer-64: b

Explanation: A process is considered to be out of control if seven consecutive plot points are either
above or below the mean.

Reference: The PMBOK Guide, 6th Edition, Page: 304

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Answer-65: c

Explanation: Accepted Deliverables is the output of the Validate Scope process.


Reference: The PMBOK Guide, 6th Edition, Page: 166

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Answer-66: d

Explanation: Scope, Cost and Time are considered Triple Constraints.

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Answer-67: d

Explanation: Risk will be at its highest point at the Initiating Process group and at the minimum at the
Closing Process group.

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Answer-68: d

Explanation: Collaborative approach incorporates viewpoints of all parties involved in the conflict.

Reference: The PMBOK Guide, 6th Edition, Page: 349

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Answer-69: a

Explanation: Prototype is a working model of an actual product which helps you get feedback from
users.

Reference: The PMBOK Guide, 6th Edition, Page: 147

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Answer-70: d
Explanation: In bottom up estimating, you estimate the cost of activities to the greatest detail, add
them together, and round up to the higher level. This is the most accurate method of determining the
project budget.

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Answer-71: d

Explanation: Fishbone diagram is also known as cause-and-effect and Ishikawa diagram.

Reference: The PMBOK Guide, 6th Edition, Page: 293

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Answer-72: c

Explanation: As per the PMBOK Guide, the project scope is the work performed to deliver a product,
service, or result with the specified features and functions. The term project scope is sometimes
viewed as including product scope.

Reference: The PMBOK Guide, 6th Edition, Page: 23, 154

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Answer-73: b

Explanation: The production of cars is an ongoing operation. This is not an output of the project. The
output of the project should be unique.

Reference: The PMBOK Guide 6th Edition, Page: 4-7

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Answer-74: b

Explanation: In Positive Risk, there is a chance that you may gain some benefits, called
Opportunities. A Positive Risk brings a positive impact on the project objective.

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Answer-75: a

Explanation: Your competitor is not your stakeholder because you do not have to manage him or
fulfill his requirements, although he may be affected by your project.

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Answer-76: c

Explanation: In Six Sigma 99.99966% accuracy is desired, and in Fifth Sigma 99.977%, Four Sigma
99.38%, and in Three Sigma 93.3% accuracy are desired.

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Answer-77: c

Explanation: In the PERT estimate formula, the Most Likely estimate is given more weight. The
PERT estimate formula is = (Optimistic + 4*Most-Likely + Pessimistic)/6

Reference: The PMBOK Guide 6th Edition, Page: 245

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Answer-78: b

Explanation: Variance at Completion (VAC) is the difference between the Budget at Completion
(BAC) and Estimate at Completion (EAC), which shows how much of the budget is surplus or deficit.

Reference: The PMBOK Guide 6th Edition, Page: 262

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Answer-79: a

Explanation: In a Firm Fixed Price contract the buyer has a minimum risk because the seller has to
complete the project within the agreed amount.
Reference: The PMBOK Guide 6th Edition, Page: 471

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Answer-80: a

Explanation: During the Initiating phase the risks are highest and they decrease as the project
progresses.

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Answer-81: d

Explanation: Stakeholder identification is an iterative process. You will identify stakeholders


throughout the project.

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Answer-82: d

Explanation: Although the project manager can help in developing the project charter, he cannot sign
or approve it. The project charter must be approved by someone from top management who has the
authority to do so.

Reference: The PMBOK Guide 6th Edition, Page: 75

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Answer-83: d

Explanation: If the project has more than one critical path, you will have to manage more than one
path and this means more risks.

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Answer-84: a
Explanation: The Ishikawa Diagram is also known as a Fishbone Diagram or Fishikawa Diagram
because it looks like a fish skeleton.

Reference: The PMBOK Guide 6th Edition, Page: 293

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Answer-85: b

Explanation: In a Weak Matrix organization, the project manager has no authority over the project
budget and resources. He needs permission from the functional manager to use the resources.

Reference: The PMBOK Guide 6th Edition, Page: 47

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Answer-86: d

Explanation: Rough order estimate is the lump-sum of the cost of the project; therefore, you will use
the analogous technique.

Please note that rough order estimate is an estimate, it is not a technique.

Reference: The PMBOK Guide 6th Edition, Page: 200

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Answer-87: d

Explanation: Political conditions are an example of enterprise environmental factors.

Reference: The PMBOK Guide 6th Edition, Page: 37

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Answer-88: c

Explanation: You are adding extra resources to your activities, which is an example of Crashing.
Reference: The PMBOK Guide 6th Edition, Page: 215

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Answer-89: c

Explanation: In a balanced matrix organization structure, both managers have equal authority over
the budget.

Reference: The PMBOK Guide 6th Edition, Page: 47

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Answer-90: c

Explanation: The Project Charter is the document which authorizes the existence of the project.

Reference: The PMBOK Guide 6th Edition, Page: 75

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Answer-91: d

Explanation: In other words, you can say that when the first activity starts, the second activity
finishes; i.e. Start to Finish (SF)

Reference: The PMBOK Guide 6th Edition, Page: 190

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Answer-92: c

Explanation: This is a Pareto Diagram, based on the principle “that 80% of problems are due to 20%
of causes”. This law is also known as the 80-20 principle.

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Answer-93: a

Explanation: In a weak matrix organization, the project manager can work as either a project
coordinator or an expeditor. The expeditor has no authority or power to make any decision while the
coordinator has a little power to make decisions.

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Answer-94: c

Explanation: Here, you have brought some extra resources to bring the project on track, so this is an
example of Crashing.

Reference: The PMBOK Guide 6th Edition, Page: 215

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Answer-95: d

Explanation: Residual Risk is the risk that still remains even after applying the risk response of an
identified risk.

Reference: The PMBOK Guide 6th Edition, Page: 448

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Answer-96: c

Explanation: Bottom Up estimate techniques gives you the most accurate cost of the project.

Reference: The PMBOK Guide 6th Edition, Page: 244

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Answer-97: a

Explanation: Tom comes under the “low power – high interest” category. According to the
Power/Interest Grid model, stakeholders from this category should be kept informed.
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Answer-98: c

Explanation: For the risk identification purpose, all project stakeholders should be involved in the
identifying risk process.

Reference: The PMBOK Guide 6th Edition, Page: 411

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Answer-99: a

Explanation:

EMV = Impact * Probability

= (-2,500)*.07

= -175

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Answer-100: a

Explanation: This is make or buy analysis which you do in the Plan Procurement Management.

Reference: The PMBOK Guide 6th Edition, Page: 473

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