PMP® 2018 Simulation Test Paper-02 (Answers) PDF

PMP simulation test 2 – Answers & Explanation – PMBOK 6th Edition
1You are the project manager for a project, and your team members
have a dual reporting structure. In addition to reporting to you, they
also report to their functional manager. The team members are also
expected to do the project work along with their department work. In
which form of organization are you working?
A. Functional
B. Projectized
C. Tight Matrix
D. Matrix
Correct Option: D
EXPLANATION
In a matrix organization, team members have a dual reporting structure and the
team works in their respective functional areas, along with project work. Option
(c) tight matrix has nothing to do with organization structure. It simply denotes
that the project team is kept in the same vicinity. Please refer to Influences of
Organizational Structures on Projects, page 47, PMBOK® Guide Sixth Edition.
2Which of the following statements is true? Pick the best answer.

A. The customer approves the project charter
B. The project manager develops the project charter
C. Both sponsor and customer approvals are required for the project charter
D. Obtain sponsor approval
Correct Option: D
EXPLANATION
According to the new examination content outline, approval from the customer
is removed. Only the sponsor's approval is required. Option (a), (b), and (c) are
not correct.
3A project manager, James is working in a weak matrix organization

and plays the role of communication coordinator with some power to
make decisions. He reports to a higher-level manager. Which of the
following roles is he probably in?
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A. Project coordinator
B. Project expeditor
C. Project lead
D. Lead coordinator
Correct Option: A
EXPLANATION
A project coordinator's role is similar to a project expeditor's role, and they act
primarily as staff assistants and communication coordinators. However, unlike
project expeditors, project coordinators have some power to make decisions
and report to high-level managers.
4Which of the following statements is NOT true about a product

lifecycle?
A. It lasts from conception of a new product to its withdrawal
B. A product can spawn a single project in its life
C. The five stages of each product lifecycle are product development,
introduction, growth, maturity, and decline
D. It focuses on managing properties of product from company's business point
of view
Correct Option: B
EXPLANATION
Product Lifecycle Management (PLM) is the process of managing the entire

lifecycle of a product from its conception, through design and manufacture, to
service and disposal. PLM integrates people, data, processes, and business
systems to provide a product information backbone for companies. The five
stages of each product lifecycle are product development, introduction, growth,
maturity, and decline. A product can spawn or require many projects over its life.
For example, in an automobile industry, a project in conception could be to
analyze the market competition and customer requirements during maturity to
upgrade the model.
5An organization aims to increase performance by aligning goals and

subordinate objectives on all the projects running throughout the
organization. For this purpose, the project manager gets strong inputs
to identify their project objectives, time lines for completion, and so
on. The organization then periodically evaluates the project with

respect to these objectives and takes corrective actions when

necessary. What is this management philosophy called?
A. Total Quality Management
B. Management by Objective
C. OPM3
D. Capability maturity Model
Correct Option: B
EXPLANATION
The term Management by Objective was made popular by Peter Drucker in his
1954 book The Practice of Management." Management by Objective is a
systematic and organized approach that allows the management to focus on
achievable goals and to attain the best possible results from available resources.
The principle behind Management by Objectives (MBO) is to make sure that
everybody within the organization has a clear understanding of the aims
6A firm providing outsourced product development facilities wants to

implement a new business process which aims to improve customer
satisfaction and retention. It has identified a task team with an
objective to introduce and train the employees on the new process
and improvise until the customer satisfaction index increases by 15%.
What can this entire exercise be best classified as?
A. Project
B. Operation
C. Program
D. Portfolios
Correct Option: A
EXPLANATION
This is a project as this initiative fulfills all the characteristics of a project. A project
is a temporary endeavor undertaken to create a unique product, service, or
result. The temporary nature of a project indicates a definite beginning and end.
The end is achieved when project objectives are achieved (here an increase in
customer satisfaction index by 15%). Please refer to Introduction to Understand
the Difference in Approach of a Project, Program, or a Portfolio, PMBOK® Guide -
Sixth Edition, Glossary, page 542.

7Which of the following statements is NOT true about a Project

Management Office (PMO)?
A. PMO is an organizational body responsible for centralized and coordinated
management of projects
B. PMO conducts periodic project audits to monitor compliance with project
management standards
C. PMO can also be responsible for the direct management of projects
D. To be managed together, the projects supported by a PMO should be related
Correct Option: D
EXPLANATION
The projects supported by a PMO may not be related other than being
managed together. The specific form and structure of a PMO would purely
depend upon the needs of the organization it supports. For more information on
PMOs please refer to Introduction, page 48, PMBOK® Guide Sixth Edition.
8A manager is managing a collection of projects that are grouped

together to facilitate effective management to meet strategic
business objectives. The manager is called a:
A. Program manager
B. Portfolio manager
C. Project manager
D. Stakeholder
Correct Option: B
EXPLANATION
A portfolio refers to a collection of projects or programs grouped together to

facilitate effective management to meet strategic business objectives. The
person managing it is called a portfolio manager. Portfolio management
describes methods for analyzing and collectively managing a group of current or
proposed projects based on numerous key characteristics such as business
objectives and technical strategy.
9A project manager is mainly responsible for the coordination of

activities, resources, equipment, and information on the project. His
authority is limited, and he has to negotiate with the functional

manager to get suitable resources for his project. In which

organization is the project manager probably working?
A. Weak Matrix
B. Balanced Matrix
C. Strong Matrix
D. Composite Matrix
Correct Option: A
EXPLANATION
This role is a description of a project expeditor or a project coordinator, where the

project manager's role is more of a communicator or staff assistant with limited
authority and no control over project budget. He negotiates with the functional
manager to gets resources for his project.
10A project manager is participating in studying the project contract

and going through the narrative description of products and services
to be supplied under the contract. He is also meeting key
stakeholders and subject matter experts to evaluate if the project is
worth the required investment. Which of the following documents
would be created as an output in this process?
A. Project statement of work
B. Project charter
C. Project management plan
D. Organizational process assets
Correct Option: B
EXPLANATION
The project manager is participating in the development of project charter using

the statement of work to understand the product requirements and descriptions.
The output of this process is a project charter. Once approved, it formally initiates
the project. A project charter documents the high-level project description and
business needs of the project, along with the current understanding of the
customer's needs, risks, and the name of the sponsor.
11A key responsibility of the project manager is to ensure proper

assimilation of the project management processes and coordinate
the process phases through the project management cycle. This

ensures that all areas of the project come together to deliver the
project to a successful conclusion. This involves balancing the basic
aspects of scope, cost, and schedule, in addition to managing
quality, communication, and customer satisfaction. The role of a
project manager can be best described as:
A. Integrator
B. Leader
C. Communicator
D. Differentiator
Correct Option: A
EXPLANATION
The role of a project manager is to combine all the above options. However, the
one that is most critical to project success is that of an integrator. A project
manager is expected to integrate the project management processes and
coordinate the process phases through the project management cycle to ensure
that all areas of the project come together to deliver a successful conclusion.
Integration involves not only pulling up all aspects of project management like
scope, cost, schedule, quality, and communication for your project needs, but
also working with other departments like legal, human resources, training,
contract administration, and information technology which are impacted by your
project.
12A project manager has invited key stakeholders and team

members to the first meeting of the project. The agenda of the
meeting is to outline the project goals and objectives, as well as
project success criteria. The project manager also plans to discuss the
individual roles and responsibilities, along with the commitments of the
stakeholders. What is this activity known as?
A. Project sign- off meeting
B. Charter closure meeting
C. Project launch meeting
D. Project kick-off meeting
Correct Option: D
EXPLANATION
The kick-off meeting is done in the beginning of the project and then again
before starting each new project phase. It has four main objectives: a) Publicly
state the beginning of the project; b) Outline the project goals, as well as the
individual roles and responsibilities of team members; c) Clarify the expectations

of all parties; and (d) Get a commitment from all those who influence the
project's outcome.
13You are a project manager in the early phase of estimating the cost
of the project. You use the analogous method of estimating and have
come up with a rough order of magnitude. While presenting it to your
sponsor and stakeholders, one of the stakeholders asks if you have
also done life cycle costing of the project. What is your BEST response
as a credible Project Manager?
A. Project cost estimating is primarily concerned with the cost of resources
needed to complete the project and need not consider any other costs
B. Since it is the initial stage of the project, cost details required for Life Cycle
costing of the project are not available and hence it is not relevant
C. Lifecycle costing provides the lowest long-term cost of ownership and should
be used as a management decision tool
D. Lifecycle costing should be done by the project sponsor as it impacts long-
term business decisions
Correct Option: C
EXPLANATION
Life cycle costing provides the lowest long term cost of ownership and should be
used as a management decision tool. Project cost management is primarily
concerned with the cost of resources needed to complete the project. (Option
[a] is partly true.) Project cost management should also consider the effect of
project decisions on the subsequent recurring cost of using, maintaining, and
supporting the project. The lifecycle costing analysis can be used to assist
management in the decision-making process where there is a choice of options.
Lifecycle costing is looking at the cost of the whole life of the product, not just the
cost of the project.
14You are managing a complex project which requires some highly

skilled resources on embedded design. You obtain these resources
from the organization pool. You specify the duration for which they
would be required. Once your project activity is complete, you need
to free these resources for reassignment. You are working in which
kind of organization structure?
A. Functional
B. Projectized
C. Matrix

D. Tight Matrix
Correct Option: C
EXPLANATION
This is a characteristic of a matrix organization. In the matrix structure, the

personnel and other resources that a project manager requires are not
permanently assigned to the project but are obtained from a pool controlled
and monitored by a functional manager. Personnel required to perform specific
functions on a particular project are detailed for the period necessary. They are
then returned to the control of the functional manager for reassignment.
Example: An engineer assigned for a specific period to design a subsystem of a
project is responsible to the functional manager for completing the task as
scheduled and to the Project Manager for providing an acceptable design. This
structure is characterized by two bosses.
15A project manager is visualizing, analyzing, and solving the

complexity of a problem to make the decision of selecting a project.
Which of the following techniques is he using?
A. Interpersonal skill
B. Analytical skill
C. Business acumen
D. Benefit realization
Correct Option: B
EXPLANATION
This is an analytical skill. Benefit realization is a set of processes defined to ensure

project deliverables are in alignment with organizational strategies and are
creating value. Business acumen is the quickness and keenness of a person to
understand the business situation and make decisions accordingly. Interpersonal
skill is the ability to establish and maintain relationships with other people. These
techniques are newly added in the examination content outline.
16A hospital is installing a new hospital management system to

enable IT hospital functioning. For this purpose, representatives from
several departments are selected to create a task force assigned to
implement the project. What is this organization structure called?
A. Functional Organization
B. Projectized Organization

C. Composite Organization
D. Balanced Matrix Organization
Correct Option: C
EXPLANATION
Many times, even a fundamentally functional organization may create a special

project team to handle a critical project. This may have many characteristics of a
project team in a projectized organization. The team may include full-time staff
from different functional departments, develop its own set of operating
procedures, and operate outside the standard, formalized reporting structure.
17You are a project manager on a highly visible and critical project in

your company. This project was initiated with much fanfare, and you
have some of the best technical experts as a part of the project
team. You are in the planning process and detailing the scope of the
project when you hear that the project is being terminated. What
could be the MOST likely cause for this step?
A. Senior management didn't approve the project charter
B. The project team did not have the required technical expertise
C. The project sponsor failed to support the project
D. The project contract was not signed off by the customer
Correct Option: C
EXPLANATION
The answer to this question can be reached by the process of elimination. Since
the project is already initiated and is in the planning stage, option (a) and (d)
can't be true. There is no evidence to believe option (b). The most probable
explanation could be failure to support the project by the sponsor. The term
sponsor, by definition, suggests financial responsibility. This sponsor is thought to
own the project and is considered responsible for ensuring its success. He is also
typically the one who proposes the project in the first place and whose business
unit reaps its benefits.
18A pharmaceutical company wants to launch a new over-the-

counter medication for flu in the U.S. market. The project manager is
identifying project communication constraints. Which of the following
is NOT a valid constraint?

A. Getting an FDA approval before producing or selling the medicine

B. The key person responsible for communicating the information on the project
may not be available through the entire project
C. The milestone meeting should be attended by all the major key stakeholders
D. The project has teams working in different geographical locations and time
shifts
Correct Option: B
EXPLANATION
A communication constraint is usually derived from specific legislation or

regulation (option a), organizational policies (option c), or a project constraint
(option d) which limits the project's options during communication management.
However, option (b) is an uncertain event or risk in the project which needs to be
addressed through risk management.
19You are a project manager who is assigned to take over a project

from another project manager who is leaving the company. The old
project manager tells you that he had to constantly push the team to
perform so that the project is on schedule. What is your first step as the
new project manager?
A. Tell the team your objectives
B. Check risk status
C. Determine a management strategy
D. Check cost performance
Correct Option: C
EXPLANATION
This would be the best course of action to start with. There seems to have been
some issues with the management style and priorities of the previous project
manager. You need to determine the management strategy which will provide
the balance between activity and people. The other options may follow once
you have thought through the management strategy.
20The previous project manager managed your project without much

project organization. There is a lack of management control and
there are clearly no defined project deliverables. Which of the
following would be the best choice for getting your project better
organized?

A. Develop specific work plans for each phase of the project

B. Adopt a project lifecycle approach to the project
C. Develop lessons learned for each phase
D. Develop a description of the product of the project
Correct Option: B
EXPLANATION
Project Life Cycle (PLC) is the foundation of project management control. It

would be the first thing set before embarking upon the actions given in the other
options.
21John has participated in developing a project charter for his

project. However, he is unable to get senior management to approve
the charter. The senior management does not mind starting off the
project without a charter. What should John do in such a situation?
A. Begin work on the critical path activities of the project
B. Wait for another project
C. Add "unapproved charter" as a risk to the risk register
D. Convey to the senior management the impact of proceeding without project
approval
Correct Option: D
EXPLANATION
There can be serious repercussions if the project charter isn't approved. It is best
to convey such repercussions and educate the management.
22A new project manager has just been assigned to a project that is
in progress. The project is two weeks behind schedule and the
members are about to be distributed to another project. Based on
original time estimates that are provided by the functional manager,
what is the initial step the project manager should take?
A. The project manager should first revise the Gantt chart with new timelines
B. The project manager should check the project plan for contingencies
concerning resources and talk to the functional manager
C. The project manager should initially contact the steering committee and work
with a new team
D. The project manager should first show sympathy with the current team and
delay decision making for another week

Correct Option: B
EXPLANATION
All the other options may further delay the project which is already late.
Therefore, (b) is the best option.
23You have never managed a project before. Recently, you are

asked to plan a new project. During the planning, which of the
following would you rely on to improve your chances of success?
A. Your management skills
B. Historical records
C. Your previous training
D. Responsibility charts
Correct Option: B
EXPLANATION
Your management skills are not yet proven. It is not clear what you have been
trained on. Responsibility charts may tell you your responsibility, but nothing
beyond that. It is best to rely on historical records to find out how similar projects
were done earlier.
24A project manager and his team have finished creating the Work
Breakdown Structure (WBS) and the Work Breakdown Structure
dictionary. The project manager then prepares a detailed and
itemized documentation of all the schedule activities that are part of
a particular project. What should the Project Manager do NEXT?
A. Create a network diagram for the project
B. Determine quality standards, processes, and metrics
C. Determine high-level project assumptions and constraints
D. Conduct a project progress meeting
Correct Option: A
EXPLANATION
The project manager has created a WBS, a WBS dictionary, and an activity list in
the planning stage. The next step would be to create a network diagram for the
project. Quality standards and metrics can be identified once the project
schedule and budget are determined. Option (c) is done as part of project
initiation and is completed much earlier. Option (d) is done when the project
plan is executed.

25A project manager is using an S-curve to reflect the various

expenditures of resources over the projected time of the project. This
S-curve indicates that:
A. Bulk of the project cost is spent during the middle of the project
B. The project follows linear expenditure over all the phases
C. The project resource cost would be directly proportional to the size of the
project
D. The project has high risk of attrition during the middle of the project.
Correct Option: A
EXPLANATION
The S-curve is used in project management as a means of representing the

various expenditures of resources over the projected time of the project or as a
means of charting the real-time expenditure of resources. This is important to
project management as it can be used to monitor the project as it progresses.
Also, it can be compared to the projected S-curve to determine if the project is
being completed within the time and budget limitations. The shape of the curve
indicates maximum cost and staffing levels during the middle of the project.
26Quality management plan and quality standards are defined

based on:
A. Project scope
B. Project scope and requirements
C. Project scope, requirements, and risk
D. Project scope and risk
Correct Option: C
EXPLANATION
According to the new examination content outline, risk parameters are also
added to quality management plan and quality standards.
27A project team has just been provided a charter and has identified
the stakeholders for a project. It is about to start planning. Which
process is the most logical starting point for the planning activities?
A. Defining activities
B. Estimating costs
C. Determining budget
D. Planning scope management
Correct Option: D

EXPLANATION
Scope is usually the starting point for planning. Without knowing what is needed,
it is hard to start with the other planning processes. So, the most logical starting
point is the scope management planning process.
28A project manager is in the process of developing a detailed

description of a project by identifying project deliverables and work
required to create those deliverables. Which of the following will NOT
be an input to this process?
A. Enterprise environmental factors
B. Project charter
C. Requirements documentation
D. Organizational process assets
Correct Option: C
EXPLANATION
The project manager is in the process of defining scope and all the above are
inputs to the process except requirements documentation. For more information,
refer to Project Scope Management, page 150, PMBOK® Guide Sixth Edition.
29A project manager is creating a project Work Breakdown Structure

(WBS) with the project team. One of the senior members suggests that
he wouldn't be able to create a detailed WBS for one of the
deliverables which is planned after system testing. What should be the
response of the project manager?
A. Provide an overview on creating WBS as the team member is not clear with
the process
B. Explain in detail the overall project management plan and project objectives
to the team member
C. Treat it as an indication that the senior team member lacks ownership and
avoids work
D. Ask the team member to decompose the deliverable as much as possible.
Correct Option: D
EXPLANATION
In many projects a detailed description of a deliverable may not be available at

the planning stage of the project. In this case, the best alternative is to wait until
the deliverable is clarified, so that a detailed WBS (Work Breakdown Structure)
can be created. This technique is called rolling wave planning.

30A project manager is in the process of analyzing activity sequences,

durations, resource requirements, and schedule constraints to create
an approved project schedule. What should the project manager do
NEXT?
A. Determine resource requirement for each activity in the project
B. Use techniques like Critical Path method and What-if Analysis to calculate
optimum duration of the project
C. Use the approved schedule duration as a baseline and start tracking the
project
D. Create a network diagram of the project using one of the diagramming
methods
Correct Option: C
EXPLANATION
The project manager is in the "develop schedule" process and has already
derived an approved project schedule. This implies option (a), (b), and (d) are
already completed as part of the processes estimate activity resources, develop
schedule, and sequence activities. The next step would be to treat this estimate
as a schedule baseline and start tracking the project as part of the control
schedule process.
31As a project manager, you are estimating the duration of your

project activities using PERT (Program Evaluation and Review
Technique). For a particular project activity, your optimistic estimate is
41 days, pessimistic estimate is 89 days, and most likely estimate is 60
days. What would be the expected duration and range of the
estimate for this activity?
A. 61.67 +/- 8.00
B. 31.27 +/-8.00
C. 61.67 +/-3.00
D. 31.27 +/-3.00
Correct Option: A
EXPLANATION
PERT allows the estimator to include three estimates: optimistic, pessimistic, and
most likely, given by the equation: Expected Duration = [P + 4(ML) + O]/6. Range
is +/- standard deviation = (P-O)/6, where P is the pessimistic estimate, ML is the
most likely estimate, and O is the optimistic estimate. Using this method, the
duration is 61.67 days and the range (+/-Standard Deviation) is 8.00.

32As a project manager, you are determining the resource

requirements for a project including human, equipment, and tool
resources. Which of the following activities would NOT be a part of this
process?
A. Reviewing resource pool availability to check availability of critical resources
B. Creating a resource breakdown structure to classify the identified resources
by resource category and type
C. Reviewing organizational policies on resource use
D. Creating a company calendar identifying working and non-working days
Correct Option: D
EXPLANATION
The project manager is currently in the estimate activity resources process and
the options (a), (b), and (c) would have an impact on the process. However,
option (d) is not in the purview of the project manager and would not be part of
the activities in the estimate activity resources process.
33A project activity has values for the earliest and latest it can start,
along with the earliest and latest it can be completed. Activity A has
a Late Start (LS) of 5 days and a Late Finish (LF) of 10 days. It also has
an Early Start (ES) of 3 days and an Early Finish (EF) of 8 days. What is
the float of activity A?
0 days
4 days
2 days
-3 days
Correct Option: C
EXPLANATION
Float for an activity can be calculated using one of the two formulas LS-ES and LF
- EF. In this case, float = 5-3 or 10- 8 or 2 days. Remember, float (or slack) is the
amount of time a task on a project can be delayed without causing a delay to
subsequent tasks (free float) or the project completion date (total float).
34A project team is working on defining and sequencing activities of

a project. They have identified the predecessors and successors for all
the major milestone activities. The team has also documented the
detailed scope of work for each activity, so that there is no ambiguity.
They are now applying lead, lag, and mandatory dependencies to

obtain a realistic project schedule, so they can start tracking. What

could be a major problem on this schedule?
The project team should use one of the schedule compression techniques to optimize
project schedule further
The project team should have used a standardized network template to expedite the
process of preparing project schedule network
The project team need not include detailed scope of work at activity level as it can
be changed later
The project team should have identified predecessors and successors for each
activity instead of just for the major milestone activities
Correct Option: D
EXPLANATION
It is important that every activity and milestone on the project be connected to

at least one predecessor and one successor. If all these activities are not linked, it
would be impossible to know the impact of a delayed activity on the subsequent
linked activities, as well as the overall project schedule. Option (a) schedule
compression techniques are only required when the project schedule needs to
be further reduced without compromising on project scope or objectives. Option
(b) could be useful, but it is not mandatory. Option (c) is incorrect.
35A project team has created a comprehensive list of schedule

activities that are required on the project, along with other details like
activity codes and activity descriptions. They have also sequenced
them using logical relationships, leads, lags, and constraints. What
should the project team do NEXT?
A. Estimate the type and quantities of resources required to perform each
activity
B. Estimate the duration of each activity using one of the estimation techniques
C. Create a project schedule which is acceptable and can serve as a baseline
to track project progress
D. Decompose these project work packages into more manageable
components
Correct Option: A
EXPLANATION
The project team has completed activities of the define activities and sequence
activities processes. The next activity would be to estimate the types and
quantities of resources required to perform each activity as part of the estimate
activity resources process. For more information, please refer to Estimate Activity
Resources, PMBOK® Sixth Edition, page 320.

36A project manager is working with stakeholders to develop an

acceptable schedule and uses an iterative approach along with the
critical path method to derive the optimum schedule which would be
used as a baseline to track and control the project schedule. Identify
the part of the process groups the project manager is in.
Planning Process Group
Executing process group
Initiating process group
Monitor and control process group
Correct Option: A
EXPLANATION
The Project Manager is in the schedule development process which is part of the
planning process group. For more information, please refer to Planning Process
Group, PMBOK® Guide Sixth Edition, page 565.
37Which of the following statements is INCORRECT about the critical

path method?
A. It helps a project manager determine where it is best to focus his project
management efforts
B. It considers resource limitations to derive a more realistic schedule
C. It helps to determine which activities have float and can be delayed without
delaying the project
D. It calculates and determines the shortest time to complete the project
Correct Option: B
EXPLANATION
The critical path method calculates theoretical early start and finish dates along
with late start and finish dates for all activities without regard to any resource
limitations. In fact, the critical path method is a schedule network analysis
technique which modifies the project schedule to account for limited resources.
38A project team is in the process of creating the Work Breakdown

Structure (WBS) for the project deliverables as well as defining
activities to be performed to produce the deliverables. What is a
common technique it can use for this purpose?
Rolling wave planning
Decomposition
Precedence diagramming method (PDM)
Alternative analysis

Correct Option: B
EXPLANATION
Decomposition is a common technique used to create WBS and define activities

processes. The activity list (an output of the define activities process) can be
developed either sequentially or concurrently with the WBS and the WBS
dictionary (an output of the create WBS process) as the basis for the
development of the final activity list. Option (a) rolling wave planning is used
exclusively for the define activities process and options (c) and (d) are tools for
other processes in project Schedule Management. For more information, refer to
Create WBS, page 158, PMBOK® Guide Sixth edition
39Your new project for constructing a dam is in the early planning

stages. Customers ask you to give a high-level estimate of the total
duration of the project as soon as possible. Which estimation
technique would be most suitable?
Parametric estimation
Bottom-up estimation
Three-point estimation
Analogous estimation
Correct Option: D
EXPLANATION
Analogous estimation is used when there is a limited amount of detailed

information available on the project. This process is less costly and time
consuming than other techniques, but it is also less accurate. Analogous
estimation is a form of expert judgment that is most reliable when information is
available on previous similar projects.
40You are managing a project which will provide e-learning solutions

to your customer. The requirements of this project are not clearly
defined in the beginning and there will be modifications based on
customer feedback as the project evolves. You plan as much as you
can and work based on that. You continue the planning as you learn
more about the project. Which techniques will be most helpful to
define activities on the project?
Rolling wave planning
Templates
Extreme programming
Just in time

Correct Option: A
EXPLANATION
Rolling wave planning is a form of progressive elaboration where work to be

accomplished in the near term is planned in detail and future work is planned at
a higher level of the WBS. Therefore, work can exist at various levels of detail,
depending on where it is in the project life cycle. As more information is known
about upcoming events, the near-term higher-level work packages can be
decomposed further. Option (b) templates are usually standardized, so they
would not be very helpful tools for evolving requirements. Option (c) and (d) are
not recognized tools and techniques of project Schedule Management.
41You are creating a network diagram for your project. Activity A (6

days) and Activity B (4 days) can start immediately. Activity C (5 days)
can start after Activity B is complete. Activity D (4 days) and Activity F
(2 days) can start after Activity A is complete. Activity E (4 days) can
start after Activity C and Activity D are complete. Activity G (5 days)
can start after Activity D and Activity F are complete. When Activity E
and Activity G are completed, the project is done. What is the slack
of Activity E?
Two days
Zero
Four days
One day
Correct Option: D
EXPLANATION
There are four possible paths on this network diagram. ADG (duration of 15 days)
is the critical path with the longest duration. The other three are AFG (duration of
13 days), ADE (duration of 14 days), and BCE (duration of 13 days). Subtracting
the length of ADE from the critical path (15-14) shows a difference of one day.
This is the slack of Activity E.
42A project manager wants to determine the variance for an activity

estimate using the three-point estimate with the following data:
Pessimistic=14, Optimistic=2, and Realistic=5. What is the variance?
Five
Two
Four
Not enough information

Correct Option: C
EXPLANATION
The formula for variance = [( Pessimistic-Optimistic)/6] squared. The answer is 4.
43A project team is working on the network diagram of a project and

wants to determine the float of the project activity. Which of the
following is the correct formula?
Late finish-early finish (LF-EF)
Late finish-early finish (LF-EF) or Late start - Early start (LS-ES)
Early start - Late finish (ES-LF)
Late finish-late start (LF-LS)
Correct Option: B
EXPLANATION
Float is calculated by subtracting either the early finish (EF) from the late finish (LF)
or the early start (ES) from the late start (LS). That is, Float for an activity = LS-ES or
LF-EF.
44As a project manager, you are working with your team to explore
alternatives to decrease the cost of a project without compromising
on performance or the scope of the project. Which technique are
you most probably using?
Benchmarking
Reverse engineering
Process analysis
Value analysis
Correct Option: D
EXPLANATION
Value analysis is also referred to as "value management" or "value methodology"

(VM). It requires a systematic approach to identify project functions and assigns
values to those functions to get the functions at the lowest overall cost without
experiencing a loss of performance.
45You are in the final stages of determining your cost baseline for the
project and funding requirements. Which process are you in?

Cost planning
Cost estimating
Cost budgeting
Cost control
Correct Option: C
EXPLANATION
Cost baseline and project funding requirements are outputs of determining

budget. They are done as part of cost budgeting for the project. Please refer to
Project Cost Management, PMBOK® Guide Sixth Edition, page 248.
46You are in the initial stages of a project and your sponsor asks for a
cost estimate. You find a similar project was done in the past by the
organization and compare it with your current project. You also get
the opinions of experts to derive the estimate. Which method was
used to derive the estimates?
Expert judgment
Analogous estimate
Parametric estimate
Bottom-Up estimate
Correct Option: B
EXPLANATION
Analogous estimates are usually done in the initial stages of the project when
limited information is known. They use historical information and expert judgment.
Analogous cost estimating is generally less costly and time-consuming compared
to other methods, but it is also less accurate.
47Which of the following are the MOST important inputs to derive the
total funding requirements and periodic funding requirements of a
project?
Management Reserve and Contingency Reserve
Cost Baseline and Management Reserve
Funding Limit Reconciliation
Project Budget and Contingency Reserve
Correct Option: B
EXPLANATION
The total funds required for the project are included in the cost baseline, along
with any management reserve. The cost baseline includes contingency reserves,

projected expenditures, and anticipated liabilities. Refer to PMBOK® Guide Sixth

Edition, Project Cost Management, page 254.
48Which of the following statements regarding analogous estimation

is INCORRECT?
Activities need not be identified
It is less expensive than other estimations
It is the most accurate technique for estimation
It requires considerable experience to do well
Correct Option: C
EXPLANATION
It is the most accurate technique for estimation. Bottom-up estimates give more
accurate estimates because they are done at a later phase of the project when
sufficient information is available. Analogous estimation is done in the initial
stages of the project. Since it works with limited available information, option (a)
also holds true. Also, analogous estimation is a form of expert judgment that relies
on past data, so it requires considerable experience to do well (option d).
Analogous estimation is quicker and requires less effort and cost.
49A project manager has derived quality metrics, along with

tolerance limits for his project. Which process is the project manager
in?
Plan Quality Management
Perform Quality Assurance
Control Quality
Define Scope
Correct Option: A
EXPLANATION
Quality metrics are determined as an output to the plan quality process along
with tolerance limits for each of them. A metric would give the actual value or
the measurement of a project or product attribute, whereas a tolerance defines
the allowable variations in the metrics. The selection of the metrics on a project
would heavily depend on the type of project and the objective of collecting the
metrics.
50A project manager wants to capture the details of the activities he

will be doing to enhance the value of the process. This includes
process objectives, inputs, outputs, interfaces with other processes,

and process metrics. Which of the following documents would be

MOST helpful?
Project Management Plan
Quality Management Plan
Process Improvement Plan
Product Management Plan
Correct Option: C
EXPLANATION
While option (b) describes how the project management team will implement
the quality policy of its organization, a process improvement plan is more focused
on enhancing the value of the process on a project. It includes determining
process boundaries, process metrics, and targets for improved performances.
Refer to Project Quality Management, page 271, PMBOK® Guide Sixth Edition for
more details.
51Which of the following statements is correct?

Develop risk management plan by considering uncertainty
Develop risk management plan by considering opportunity
Develop risk management plan by considering project manager's wish
Develop risk management plan by considering uncertainty and opportunity
Correct Option: D
EXPLANATION
As per the new examination content outline, risk management plan should
consider opportunities as well.
52A project manager wants to determine the number and types of

tests for a project. He is using a statistical method to identify the
factors that may influence specific variables of the project, so he can
select applicable test scenarios. Which technique is the project
manager using ?
Brainstorming
Benchmarking
Statistical sampling
Design of Experiments
Correct Option: D
EXPLANATION

Design of Experiments (DOE) is a systematic approach to investigate a system or

process. A series of structured tests are designed in which planned changes are
made to the input variables of a process or system. The effects of these changes
on a predefined output are then assessed. Design of experiments is a discipline
that has very broad application across all the natural and social sciences, as well
as various other sectors like automotive, software, defense, and healthcare.
53The method of examining work or a product to determine whether

it conforms to documented standards is known as:
Inspection
Statistical Sampling
Audit
Verification
Correct Option: A
EXPLANATION
Inspection is the examination of work or a product to determine whether it

conforms to documented standards. It is also called peer reviews, review audits,
or walkthroughs. Inspection can be done at any level in the project and can also
be used to validate defect repairs.
54A project manager is in the project planning phase. He is creating a

plan to describe how human resource requirement on the project
would be met and using a bar chart tool called resource histogram
for charting this requirement. However, he notices that some of the
individual bars on the resource histogram extend beyond the
maximum allowed hours. What should the project manager do to
correct this?
Reduce Scope
Extend Working Hours
Do Resource Leveling
Schedule Compression
Correct Option: C
EXPLANATION
Resource leveling is required whenever individual bars on the resource histogram

extend beyond the maximum allowed hours. Resource leveling can be done by
either adding more resources or modifying the schedule. Option (a) reducing
scope or (b) extending working hours would be detrimental to the project's
success and is not recommended. Option (d) schedule compression, which can
be done through either crashing or fast tracking, would not necessarily be helpful

in the current situation. Specific bars are showing an overflow. This can be best
tackled using resource leveling.
55A project manager in a warehousing company is mapping

resources required for a project, along with the number of hours that
will be required during the project. Which tool would be most suitable
for this purpose?
Gantt or Bar Chart
Responsibility Assignment Matrix
Resource Histogram
Resource Breakdown Structure
Correct Option: C
EXPLANATION
A resource histogram can be used to show the usage of resources individually or

by groups over time. Option (a) Gantt or Bar Chart illustrates a project schedule
by capturing start and finish dates, as well as the expected duration of a project.
Option (b) Responsibility Assignment Matrix maps specific resources against work
packages from the WBS and would not indicate timelines. Option (d) Resource
Breakdown Structure (RBS) is a standardized list of personnel resources related by
function and arranged in a hierarchical structure and would not be helpful.
56You are managing a project with project teams in different

geographical locations. There are approximately 25 team members in
3 different locations each being led by a team lead. In addition, there
are 3 members from supporting groups working part-time on the
project. How many communication channels are possible?
496
992
424
32
Correct Option: A
EXPLANATION
This is directly based on the formula n*(n-1 )/2. If n is the number of stakeholders in
the project, the total possible communication channels = n*(n-1)/2. The project
has 25 team members, 3 team leads, 3 support team members, and the project
manager (you). That makes 32 people and 496 possible communication
channels.

57As part of a joint venture, a project manager working with another

company needs to share some confidential information related to
intellectual property rights. She wants to know the person responsible
for authorizing the release of this confidential information. Which
project document should she refer?
Organizational Breakdown Structure
Project Charter
Project Communication Management Plan
Stakeholder Management Plan
Correct Option: C
EXPLANATION
A project communication management plan captures the details of the person

responsible for authorizing the release of the confidential information on the
project. Option (a) Organizational Breakdown Structure (OBS) is a hierarchical
structure which provides an organizational perspective of the project. The OBS
typically reflects the management structure of an organization, from top-level
personnel down through the various levels constituting the business. Option (b)
Project Charter is prepared in the initial stages of the project and would not
contain detailed information. Option (c) Project Communication Management
Plan would specifically capture the required information.
58A project manager on an e-learning project is using free

downloadable tutorials via the Internet to reach out to large
audiences. What is this communication method called?
Interactive Communication
Pull Communication
Push Communication
Personal communication
Correct Option: B
EXPLANATION
This is an example of a pull communication method which is used for large

volumes of information or for large audiences and requires recipients to access
the communication content at their own discretion. To make it easier to
remember, think of pull communication as the receiver pulling information at his
discretion. For more information, please refer to Communication Methods, page
374, PMBOK® Guide Sixth Edition.
59You are a project manager with a financial firm that has

multinational dealings. You feel the financial meltdown in one of the

client countries could affect your project adversely, so you want to

hedge your risks. Although, the probability of occurrence of the event
is low, you are advised to play it safe. In terms of risk attitude, your
organization could BEST be described as:
Risk Seeker
Risk Averse
Risk Neutral
Risk Mitigator
Correct Option: B
EXPLANATION
Someone who does not want to take risk is called risk averse and the project
manager seems to be part of such an organization. Option (c) risk neutral
describes a person or an organization which is indifferent to the risk. Option (a) risk
seeker suggests an aptitude to take risks with an opportunity for higher returns.
Option (d) risk mitigation is a risk response strategy and is an invalid choice. These
behaviors are best described by the utility function U(x), where x represents the
value that might be received in money or goods.
60You are a project manager currently finding all of the risks on a

project. As a part of this activity, you would like to know the risk
attitude and organization policies and procedures for risk
management. Which of the following should you refer for this
purpose?
Enterprise environmental factors
Stakeholder register
Risk management plan
Project documents
Correct Option: A
EXPLANATION
The project manager is in the identify risks process. Enterprise and environmental
factors can greatly influence the process. It will determine the organization
attitude towards risks, as well as policies and procedures for risk management.
Option (b) Stakeholder register contains information on the stakeholders which
would be helpful to get their inputs on risk identification. Option (c) and (d) are
specific to the project and would not have required information on organization
policies and procedures. Please refer to Project Risk Management, page 395,
PMBOK® Guide Sixth Edition for more details.

61Which of the following is a tool to perform qualitative risk analysis

process?
Monte Carlo Simulation
SWOT (Strength, Weakness, Opportunities and Threat
Probability-Impact Matrix
Root cause identification
Correct Option: C
EXPLANATION
Probability-Impact matrix is used in analyzing the probability and impact of the

identified risks.
62A project manager is in the process of evaluating and prioritizing

risks on the project by calculating the Risk Priority Number (RPN) for
the risks. Which of the following factors will a Risk Priority Number
consider?
Probability, Impact, and timeframe
Probability, impact, and owner
Probability, impact, and cost
Probability, impact, and schedule
Correct Option: A
EXPLANATION
To calculate the Risk Priority Number (RPN) for the risks, probability, impact, and
timeframe are used. The formula for risk is Probability * Impact * Timeframe (P*I*T).
These three elements determine each risk's Risk Priority Number (RPN) by
multiplying attribute ratings for probability, impact, and timeframe. The timeframe
allows the project to readily assess prioritization. Prioritizing the risks relative to one
another assists the team in deciding how to allocate resources for mitigation,
especially when there are a large number of identified risks.
63You are a Project Manager who manages a large software project.

It has a month-long design phase in which the team would be
preparing the design documents for independent project modules.
The activity review for these modules can begin 15 days after starting
the design phase. The 15 days' difference between the start of the
design phase and the start of the review activity shows _____ between
the two activities.
Lead
Lag

External dependency
Mandatory dependency
Correct Option: B
EXPLANATION
There is a lag of 15 days between the activities. If the second activity starts, when
the first activity is running, this situation is called Lead. After the first activity
completes, if there is a delay or wait period before the second activity starts, it is
called a lag.
64The estimating technique that uses the statistical relationship

between the historical data and other variables to calculate an
estimate for an activity is called:
Analogous estimating
Parametric estimating
Three-point estimating
Monte Carlo technique
Correct Option: B
EXPLANATION
Parametric estimating primarily refers to an estimation technique which utilizes

the statistical relationship that exists between a series of historical data and a
delineated list of other variables. Some examples of these variables include
square footage on a construction project and the number of lines of code that
exist in a software application. This information is then implemented to calculate
and demonstrate an estimate for the entity's activity parameters.
65Which of the following is NOT an advantage of a fixed price

contract?
The buyer has less work to manage
The seller has a strong incentive to control costs
The buyer knows the total price at project start
Final cost may be more than a cost reimbursable contract because contractors must
add to the price to cover their risk
Correct Option: D
EXPLANATION
Since the risk of increase in cost lies with the seller on a fixed priced project, the
final cost of the contract could be more than a cost reimbursable contract.

66A project manager is trying to successfully complete a project, but

his role in the organization is limited and the project manager has no
control over the project's budget. Although he has some power to
authorize decisions, he needs to seek approval on most of the major
decisions. Also, his team members work only part-time on the project.
The functional manager is interested to carry out functional activities
than project activities. In which kind of organization does the project
manager work?
Functional
Projectized
Composite
Matrix
Correct Option: A
EXPLANATION
The functional manager is interested to carry functional activities than project

activities. The Project Manager has limited authority and no control over the
project's budget. Also, his team members are not allocated full-time on project
work. Hence, the Project Manager is working in a functional organization
structure.
67You are in the process of implementing approved changes,

corrective actions, preventive actions, and defect repairs on a
project. Which process group are you in?
Initiation
Planning
Executing
Monitor and Control
Correct Option: C
EXPLANATION
The executing process group involves coordinating people and resources, as well
as integrating and performing the activities of the project in accordance to the
project management plan.
68A key stakeholder from the quality department wants to know more
on how the process tailoring was done on the project by the project
team. Additionally, he would like to know the rationale for selecting
the process, its implementation-level details, and how it will be used to

manage the interdependencies. Which document should the Project

Manager suggest him to refer?
Project Statement of Work
Project Scope Statement
Work performance Information
Correct Option: C
EXPLANATION
The results of the process tailoring by project team are captured in the project
management plan, along with all the other required information.
69You are a project manager working in a weak matrix organization.

Your project is in the execution stage when the functional manager
informs you that he will be pulling out a few critical resources. How
should you respond to this situation?
A. Inform the senior management, bringing out the detrimental effects on the
project in a matrix environment
B. Refer to the resource histogram of the project to evaluate the impact on the
project
C. Renegotiate the terms and conditions with functional manager to allocate
the new resources
D. Create options and work around by reassigning the work packages to the
remaining team
Correct Option: B
EXPLANATION
The first step for any project manager in the event of change is to assess the
impact of the change. The resource histogram is used to show the usage of
resources individually or by groups over time to analyze the impact of change on
a project, especially the triple constraints. Option (a) is a reactive approach and
would do nothing to solve the problem. Option(c) should come much later after
exploring all the alternatives. Option(d) is not recommended as a good project
manager is expected to use resource leveling during project planning for the
optimal use of resources. Any arbitrary reassignment would overload the existing
team members resulting in poor quality and a further delay in the schedule.
70A project manager realizes that a lot of time and effort are spent by
their team capturing the data during product testing. What is the best
option to address the issue?
Stop capturing the data as it doesn't add any value to the project activity

Allocate a time at the end of the day to update all the data together
Ask for an additional resource to capture project data
Automate the data capturing process
Correct Option: D
EXPLANATION
The best alternative is the one which eliminates the root cause of the problem
and prevents subsequent changes. Here the main problem is the inefficient use
of team members' time in capturing the data. The best way to address this is to
automate the data capturing process, thus reducing both time and effort.
Option (b) could result in incorrect and incomplete data as it is not recorded at
the time of capture. Option (a) and (c) suggest the project manager evades her
responsibility to produce valid project data.
71A customer who is in the latter part of the project execution wants
to add scope to the project. The project manager discusses this
change with the customer and raises a written change request. He
then evaluates if this change can be addressed through project
reserves and explores alternatives. The project manager finds that this
addition would result in missing the next milestone delivery of the
project. What should the project manager do NEXT?
Evaluate the impact of the change on other factors of triple constraint-cost and time
Perform integrated change control
Get an approval from the Change Control Board
Update the project baseline and inform the customer
Correct Option: C
EXPLANATION
Since the project affects the milestone deliverable, it is best to gain approval
from the Change Control Board. The board will have the responsibility to review
change requests to determine if additional analysis is warranted. They can also
approve or reject project changes. The change control board can include the
project sponsor, customer, experts, and others besides the project manager.
72You are a project manager for a project in the execution stage. The
current Schedule Performance Index (SPI) and Cost Performance
Index (CPI) for the project are 1.2 and 1.1. The project performance is
well within the baseline. The defects found during the internal testing
for the last deliverable were well below organization limits. However,
the customer does not seem to be happy with the project's progress.
What should be the FIRST thing the Project Manager does?

A. Start managing the project as you gain more insight into day-to-day
responsibilities
B. Meet with the project team to understand open issues in the project
C. Conduct a meeting with the customer to understand his concern over the
project's progress
D. Improve the project schedule and cost control measure so that SPI and CPI
reaches above 1.5
Correct Option: C
EXPLANATION
It is important for the project manager to understand why the customer is

unhappy in spite of the project performance being well within the baseline.
Option (a) would not address the main problem and option (d) has no valid
justification. Option (b) could be a good option after talking to the customer to
address his concerns and other issues on the project.
73Which of the following subsidiary plans manages the flow of

information to keep stakeholders engaged and informed?
Stakeholder management plan
Communications management plan
Human resource management plan
Project management plan
Correct Option: B
EXPLANATION
This task has been added in the latest examination content outline. Manage the
flow of information by following the communications plan to keep stakeholders
engaged and informed.
74You are a project manager who takes over a project midway. The
project is in the execution phase. You would like to know more about
project deliverables, the work required to complete those
deliverables, project constraints, and assumptions. Which of the
following documents would be MOST useful?
Work Breakdown Structure (WBS)
Requirements Documentation
Activity List
Project Scope Statement
Correct Option: D
EXPLANATION

The project manager should refer to the project scope statement as it captures
all the details related to the project scope including the product acceptance
criteria, scope description, project deliverables, constraints, and assumptions.
Option (a) and option (c) define project scope at smaller work packages and
activity levels. Option (b) Requirements Documentation is an incorrect choice
because it captures the requirements of the project related to quality, functional
and non-functional requirements, and support requirements to name a few.
75A project manager is working on a critical deadline. He wants to

ensure that there is no scope creep during the project work. Which of
the following would be most helpful?
Work Breakdown Structure dictionary
Observations
Decomposition
Inspection
Correct Option: A
EXPLANATION
A WBS dictionary provides detailed descriptions of the work to be done for each
work package including acceptance criteria and quality requirements. It helps to
ensure the resulting work better matches with what is needed. Therefore, the
project manager can effectively use this tool to prevent scope creep.
76A project manager has some new members join in her team. She
wants to help them see their roles and provide the project team with
an understanding of where their work packages fit in the project
management plan. Which of the following would be the most suitable
document?
Requirements documentation
Requirements traceability matrix
Responsibility assignment matrix
Work breakdown structure
Correct Option: D
EXPLANATION
The work breakdown structure is the foundation of project planning and a

powerful tool for expressing the scope or extent of a project in simple graphic
terms. It represents the project in terms of the hierarchy of deliverables and
services it will produce. Hence, it would be an effective tool in providing the new
members an understanding of where their work packages fit into the overall
project management plan and gives them an indication of the impact of their
work on the project. Option (c) Responsibility Assignment Matrix would give clarity

with respect to individual roles on the project. Option (a) Requirements

Documentation focuses more on how individual requirements would fulfill
business needs for the project.
77You are managing a large and changing project team which is

joined by some new members. You would like to take the entire team
through the project schedule and where the project currently stands
with respect to the original plan. Which of the following charts would
be most helpful?
Gantt Chart
Milestone Chart
Work Breakdown structure
Schedule Baseline
Correct Option: A
EXPLANATION
A Gantt chart is a bar chart that shows the activities of a project, when each
activity must take place and how long each will take. As the project progresses,
bars are shaded to show the activities have been completed. People assigned to
each task can also be represented. This is the most effective tool to show the
people assigned to the project where they are with respect to the original plan.
Option (b) Milestone Chart is a high-level summary of the project schedule and
more suitable for senior management. Option (c) the work breakdown structure
(WBS) is used to show the work that is in the project. Option (d) schedule baseline
denotes the standard by which project performance is measured.
78You are a project manager evaluating a decision to buy a licensed

software tool. This tool has a 50% chance of being successfully
implemented in your company and would cost $50,000. However,
there is a 40% chance that your company would be able to save
$150,000 due to improved productivity. What is the expected
monetary value of this decision?
$35,000
-$35, 000
$21,000
-$21, 000
Correct Option: A
EXPLANATION

The expected monetary value for a project is calculated by subtracting expenses

from savings. In this case, Savings = 0.4 * $150,000 = $60,000 and Expenses = 0.5*
$50,000 = $25,000. So, EMV = $60,000- $25,000 = + $35,000.
79As a project manager of a research project which is in the middle

of the execution, you realize that your original estimates were flawed
and are no longer valid. Which formula would help you develop a
forecasted Estimate to Completion (EAC)? Here, AC is Actual Cost, EV
is Earned Value, ETC is Estimate to Complete, CPI is Cost Performance
Index, and BAC is Budget at Completion.
EAC = AC + Bottom-up ETC
EAC = AC + (BAC-EV
EAC = BAC/CPI
EAC = AC + (EV- BAC
Correct Option: A
EXPLANATION
In this scenario, the new forecasts for Estimate to Complete (EAC) would be
based on new estimates to complete the remaining work or ETC. The most
common EAC forecasting approach is a manual, bottom-up summation by the
project team. Please refer to page 264, PMBOK® Guide Sixth edition for more
details.
0As a manager, you would like to get the status on funds for the
remaining work. Which of the following measurements will give you
this information?
To-Complete Performance Index
Earned Value Technique Performance
Variance Analysis
Trend Analysis
Correct Option: A
EXPLANATION
To-Complete Performance Index (TCPI) is the calculated projection of cost

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

81You are a project manager in a manufacturing company. You

want to analyze the output of a production line which manufactures
piston rings. You also want to determine whether the variations in the
jobs are inherent to the process or if the process needs adjustment.
Which tool would be MOST useful?
Statistical sampling
Control charts
Pareto charts
Trend Analysis
Correct Option: B
EXPLANATION
Control charts are graphical displays of the results over time of a process. They
are used to determine if the process is "in control" or needs adjustment. Option (a)
Statistical sampling is the process of selecting elements of a population for either
descriptive or inferential purposes and is not a tool.
82You are a project manager and your team is preparing for the
internal quality audit cycle. You feel that the team is a little
apprehensive about the audit process, so you decide to give them an
overview of the process. Which of the following is INCORRECT about
quality audits?
A. Quality audits are used to identify all the best practices implemented in a
project
B. Quality audits help to share best practices in a project with other projects in
the organization
C. Quality audits aim to assess project team effectiveness and suggest
improvements
D. Quality audits help to improve process implementation
Correct Option: C
EXPLANATION
Quality audits aim to assess project team effectiveness and suggest

improvements. While all the other statements are true about quality audit, option
(c) is not the scope of quality audits. Quality audits are structured, independent
reviews purely aimed at determining whether project activities comply with
organizational and project policies, as well as processes. Project team
performance evaluation is done as part of the team performance assessment in
the process develop project team under human resource management. For
more information on the quality audit process, refer to, page 294, PMBOK® Guide
Sixth Edition.

83Your project is going through an audit cycle when one of the senior
auditors points out the target value for the Schedule Performance
Index (SPI) is set too low and should be increased by at least five
percent. You try to tell him that the target value follows the
organization baseline and cannot be changed. Which of the
following is a CORRECT statement in this case?
A. The auditor is right; the project has a critical deadline to meet and hence
target SPI should be increased.
B. The auditor is right; the target value for SPI that is a benchmark for the project
should be kept high and thus increased.
C. The project manager is right; the schedule is not critical in the project and
hence target SPI value needn't be kept too high.
D. The project manager is right; target SPI is based on the organization baseline
derived from the process maturity level and should be followed by the
project.
Correct Option: D
EXPLANATION
Most of the organizations set up organization level baselines called Process

Capability Baselines. A Process Capability Baseline (PCB) specifies what results to
expect when processes are followed. By using a PCB, a project can predict at a
gross level, the effort required at various stages, defect densities, overall quality,
and productivity. In this case, the project manager is right to set the target values
of his project metrics.
84You are a firm believer in process, and you want to follow the best
practices on your project right from the beginning. You understand
the importance of having a formal kick-off meeting to launch the
project with all your key stakeholders (including the customer).
However, you are worried about the behavior of some of your team
members. In the last internal meeting, there was utter chaos with the
speaker shouting to be heard while others kept talking amongst
themselves ignoring the speaker. What is the BEST strategy to use to
avoid this situation in the kick-off meeting?
A. Set objectives of the kick off meeting clearly, so that all the attendees are
aware of the meeting agenda
B. Ensure that only key stakeholders are invited to avoid inviting disinterested
people who wouldn't listen to the speaker
C. Communicate ground rules and ensure they are followed in all the meetings
D. Meet the troublemakers in the team and communicate to them the
importance of meetings for project success. Warn them of disciplinary action
if they don't oblige.

Correct Option: C
EXPLANATION
Ground rules are a set of rules governing how the team interact, make decisions,
and handle issues that must be resolved. They are the best option for a project
manager as they enable him to remove himself from the issue and address the
conflict or situation without unnecessary or harmful emotion. In essence, the
project manager becomes the facilitator of the ground rules document. This
would also help resolve conflicts inevitable in any project. Ground rules should be
established at the very start of the project, preferably at the kick-off meeting.
Options (a) and (b) are important for effective meetings, but they do not solve
the main problem of unruly behavior by a few team members. Option (d) may
solve the problem partly with some troublemakers from the last meeting. Option
(c) is best as it helps the project manager prevent future conflicts without any
harmful emotion to the team.
85Which of the following subsidiary plans maintains stakeholder

relationships to receive continued support and manage
expectations?
Stakeholder management plan
Communications management plan
Human resource management plan
Project management plan
Correct Option: A
EXPLANATION
This task has been added in the latest examination content outline. Maintain
stakeholder relationships by following the stakeholder management plan to
receive continued support and manage expectations.
86As a project manager, you decide to create an issue log which

captures the issue description, owner, and target date for issue
closure. All of the following are common examples of issues on the
project EXCEPT:
Differences in opinion
Probable delay in the next delivery
Pending Root Cause Analysis
Delay in receiving feedback from the customer
Correct Option: B
EXPLANATION

Probable delay in the next delivery represents a project risk and not an issue as
the event is uncertain and may or may not happen in future.
87As a project manager in a matrix project environment, you have

limited control over team member selection. Which tools and
techniques would NOT be helpful for the selection?
Pre-assignment
Acquisition
Virtual Teams
Interpersonal skills
Correct Option: D
EXPLANATION
Interpersonal skills cannot be used in a matrix project environment, where the

project manager has limited control over team member selection.
88A project manager likes to involve his team in all the decision-
making processes. Whenever there are issues which require an urgent
decision, he calls the team to work out a solution together. This
approach of the project manager is:
A. Correct, as it helps to get team buy- in as well as their commitment to the
change
B. Correct, as brainstorming technique helps to bring out creative ideas to solve
the problem
C. Incorrect, as lot of time and effort will be expended by the project team on
decisions which could be singularly made by the project manager
D. Incorrect, as all the solutions from a brainstorming session cannot be
implemented resulting in disappointment in the team
Correct Option: C
EXPLANATION
The key words here are involve his team on all of the decision-making processes."
It is important for the project manager to involve his project team to work out
solutions to critical project issues; however
89A project manager working in a matrix project environment feels

there is some discontent in the team members related to their dual
reporting and the role of the project manager on the project. The

project manager wants to communicate with the team to clarify their

doubts. What is the BEST form of communication for addressing this
problem?
Formal written mail
Informal chat with the team
Face-to-face meeting
Informal written mail
Correct Option: C
EXPLANATION
A face-to-face meeting is ideal for project communication. It would give the

project manager an avenue to understand the reasons for discontent in the
team members and clarify their doubts. Face-to-face meetings have an added
advantage of being accompanied with non-verbal (body movements and
physical mannerisms) and paralingual (pitch and tone of voice) elements which
are important for effective communication.
90A project manager assigned to an Information Technology project

has a long and thorough discussion on a complex algorithm with a
new team member. The project manager asks the person if he
understood the algorithm and can put it in the document. The team
member implies that he has understood. However, when the project
manager goes through the document, he realizes that the member
hasn't understood the algorithm and has resulted in an inefficient use
of time. Who is responsible for this loss of time and how could it have
been avoided?
The project manager
The team member
The project manager
The project manager; he should have ensured his message is clear and concise,
along with confirming that team members truly understand the message
Correct Option: D
EXPLANATION
In the communication model, it's the sender's responsibility to make sure the
message is clear and concise, so the recipient can receive it. The sender must
also confirm that the recipient truly understands the message. In this scenario, the
project manager is at fault. For more information, refer to Communications
Model, page 371, PMBOK® Guide Sixth Edition.

91A multinational project team of 10 is in the late planning stage. Five

people join the team from another geographical location to provide
R and D support on the project. What do you think would be the
BIGGEST challenge the project manager faces ?
A. Team Building, as the teams are from different cultures and different ethnic
backgrounds. Further, they work in virtual environment devoid of face-to-face,
and personal interaction
B. Risk Management, as the new team brings along additional risk since they join
the project midway
C. Schedule management, as the team works in different locations with different
time zones and work hours
D. Communication management, as communication becomes more complex
with a significant increase in the number of potential communication
channels
Correct Option: D
EXPLANATION
There are a number of possible channels of communication that increase by a

direct multiple factor of team members based on the formula n*(n-1)/2. If n is the
number of stakeholders in the project, the total possible communication channels
= n*(n-1)/2. In this case, the number of potential channels increases from 45 to
105. A team member would need appropriate technology to communicate with
other team members located geographically apart. It involves the process of
encoding and decoding the message and feedback. Options (b) and (c) may
not always be true because these activities could be part of risk mitigation or a
schedule compression technique, and may not pose the biggest threat.
92A key stakeholder of the project when contacted for a

requirements document approval shows disinterest. The project
manager decides to have a friendly, informal discussion with him to
understand the reason for his attitude. During one of the
conversations, the stakeholder expresses his displeasure with the fact
that his two key suggestions were not addressed in the project. He
also felt his approval and feedback don't matter since his main
requirements were not being captured. What is the best option for the
project manager in this case?
A. Agree with the stakeholder and do not take his approval on requirements.
Remove his name from the list of stakeholders and avoid communicating with
him further on the project status.
B. Incorporate the requirements of the stakeholder and then take his approval.
C. Talk to your project sponsor about the issue and take his approval before
taking any further action.

D. Explain to the stakeholder that although his suggestions were appreciated, it is

not possible to address all of them in this release due to project constraints.
You would revisit them later.
Correct Option: D
EXPLANATION
This should be addressed as part of the manage stakeholder expectations

process. A project manager should proactively work with stakeholders to
manage their expectations, address concerns, and resolve issues. For more
information, refer to Manage Stakeholder Engagement, Page 523, PMBOK®
Guide Sixth Edition.
93A key stakeholder expresses his concern over the lack of project
visibility and progress. He says that he has seen the project status
reports, but most of the time they lack information relevant to his
department. How should the project manager respond?
Review the Project Communication Management Plan to determine the
stakeholder's needs
Relook at Manage Communication Process to identify the gaps
Raise a change request to address the stakeholder's feedback
Relook at Control Communications Process to understand the problem
Correct Option: A
EXPLANATION
The communication management plan determines the project stakeholder

information needs and defines the communication approach. Since the
stakeholder is receiving timely performance reports options (b) and (c) are not
correct.
94In one of the project status reports, two senior team members get
into an argument regarding the introduction of a new tool that
automates the process of filling out time sheets. What would provide
you maximum insight into the conversation from the following?
The content and timing of the conversation
The content and timing of the conversation and the communication technology
used
Body Language and the words in the conversation
Body language and voice modulation including pitch and tone
Correct Option: D
EXPLANATION

The option includes non-verbal and paralingual forms which are critical for
effective communication.
95A CEO from his Paris office wishes to communicate with the
technical officer in China. What would be the correct procedure?
The CEO will encode the message from French to Chinese, and the technical officer
will decode it from Chinese to French
The CEO will decode the message from French to Chinese, and the technical staff will
encode it from Chinese to French
The CEO will encode the message from Chinese to French, and the technical staff will
decode it from French to Chinese
The CEO will decode the message from French to Chinese, and the technical staff will
encode it from French to Chinese
Correct Option: A
EXPLANATION
The CEO will encode the message from French to Chinese, and the technical
officer will decode it from Chinese to French. Each message is encoded by the
sender and decoded by the receiver based on the receiver's education,
language, experience, and culture. For more information, refer to
Communication models, page 373, PMBOK® Guide - Sixth Edition.
96As a project manager, you are worried about the continuous bad
performance of one of the team members. You have spoken to him
over coffee, but there seems to be no improvement. What is the
MOST suitable way to communicate your dissatisfaction?
Formal verbal
Formal written
Informal written
Informal verbal
Correct Option: B
EXPLANATION
This is the second notice to the team member for poor performance, and it
should be given in a formal written manner.
97A buyer has distributed a document to buy cement for his

construction company and in response received several price

quotations. Which of the procurement documents has the buyer

used?
Request for proposal
Request for quotation
Invitation for bid
Proposal
Correct Option: B
EXPLANATION
A price quote is usually in response to a request for quote. A bid is usually in

response to an invitation for bid. A request for proposal is used for responding to
proposal documents.
98Which of the following is NOT an input to the process manage

stakeholder expectations?
Stakeholder Register
Issue Log
Negotiation Skills
Correct Option: D
EXPLANATION
Negotiation skills are part of management skills. This technique is not used in the
process to manage stakeholder expectations.
99A project manager knows that managing the expectations of

stakeholders helps to increase the probability of project success by
ensuring that stakeholders understand the project benefits and risks.
For this process, he could use all the following tools and techniques
EXCEPT:
Issue log
Communication skills
Observation/Conversation
Negotiation
Correct Option: A
EXPLANATION
An issue log is an input to the process manage stakeholder expectations. All

others are tools and techniques for the process. For more information, refer to
Project Communications Management, page 96, PMBOK® Guide Sixth Edition.

100Which of the following factors is NOT part of Maslow's Hierarchy of

Needs?
Physiological Needs
Social Needs
Security Needs
Material Needs
Correct Option: D
EXPLANATION
Per Maslow's Hierarchy of Needs, there are five different levels of human needs:
Physiological Needs, Security Needs, Social Needs, Esteem Needs, and Self-
actualizing Needs.
101Which of the following is a tool for the quality assurance process?

Quality Audits
Cost of Quality
Histogram
Quality Metrics
Correct Option: A
EXPLANATION
A Quality Audit is the systematic examination of a quality system carried out by

an auditor.
102You are a project manager working on a compliance project in a

banking firm. The project is scheduled to complete in six weeks from
now. Your sponsor tells you that if the project finishes sooner, the
company can get some monetary incentives offered by the
government. Therefore, you decide to fast track the project. This
decision would:
Increase the project risk
Not affect the project risk
Decrease the project risk
Cannot be determined
Correct Option: A
EXPLANATION

Fast tracking is the process of rescheduling tasks originally planned in a series to

be performed in parallel. Fast tracking always involves risk that could lead to
increased costs and rework.
103You are a project manager on a software development project.

You have outsourced a component of your product to a third-party
vendor which is due to be delivered next week. You found out that
the delivery of the component may be delayed due to political unrest
in the vendor's location. What is the BEST you can do in this situation?
Report to your senior manager about probable delay along with details on the
current political situation at vendor's place
Communicate to the vendor that any possible delay would attract a fine and affect
future payments
Revisit your project schedule and look at alternatives to reduce the impact of the
delay
Since there is no official communication from the vendor, use wait and watch policy
Correct Option: C
EXPLANATION
Revisit your project schedule and look at alternatives to reduce the impact of the
delay. This question can be tricky as it does not clearly state whether the project
manager received a formal communication of the delay from the vendor.
However, since a project manager should proactively look for any event that
may delay project schedule, option (c) is the best alternative. Option (b) is harsh,
especially in a situation which is beyond the vendor's control (political unrest in
the country).
104A project manager wants to award a contract to the same

supplier from his previous project without going through the entire
procurement process. Which of the following would NOT be a valid
justification?
A preferred supplier from a previous project is less risky
The project has severe constraints in terms of timeline
The supplier holds patent for the technology used in the project
The supplier's internal vendor rating is very high
Correct Option: A
EXPLANATION
Since this preferential supplier is not selected through the conduct procurement
process, you would lose the value of competition. Assuming all the other factors
remain same, aggregated risks would be higher from preferential suppliers than

from the ones selected through competitive bidding. The reason is this seller
would never be asked to prove his expertise over others for this project.
105You are a project manager in the process of purchasing coal

which is a standard commodity of a particular grade from the
international market. You are going through a formal evaluation
review process to select the most suitable vendor. Which of the
following should be the MOST important criterion for selection?
Lowest Cost
Technical ability
Financial Capacity
Process
Correct Option: A
EXPLANATION
The project manager is purchasing a commodity (coal) and the evaluation

criterion should be the lowest cost. The other factors are more applicable when
the buyer is buying something intangible like services.
106A project manager is conducting a bidder conference to select

the most suitable sellers. Which tool will NOT be helpful in the process?
Independent estimates
Analytical techniques
Procurement negotiations
Make-or-buy analysis
Correct Option: D
EXPLANATION
Make-or-buy analysis is done during Plan Procurement Management process, not

during Conduct Procurements, of which bidder conferences is a part.
107You are in the final stages of negotiation with a seller to provide a

medical device for your research lab. When the pricing is almost
finalized, you mention that it is mandatory that the device carry an
approval from the FDA USA (Food and Drug Administration). Which
technique in negotiation are you using?
Fair and reasonable
Fait accompli

Lying
Extreme demand
Correct Option: B
EXPLANATION
The project manager is using the technique called fait accompli. The phrase is
French for an accomplished fact and refers to a deed that is already done and is
therefore irreversible. You employ this tactic when you do something without first
negotiating it. Then, when asked, you respond with an apology for any ensuing
problem.
08After awarding a contract to one of the sellers, you realize you

have missed a clause for delay in the contract and want to modify it.
How should you proceed?
A. A contract is legally binding and cannot be changed once signed
B. The project manager should inform the seller about the change in next
meeting
C. The project manager should inform the seller about the change through a
formal written communication
D. The project manager should proceed with the contract change control
system on his end
Correct Option: D
EXPLANATION
The project manager should proceed with the contract change control system
on his end.
109You have recently joined a new construction company, and you

find out your employer is violating the construction permit issued by
the local city government. What should you do?
A. Inform the city authority of the violation
B. Talk to your employer to find out if they are aware they are breaking the law
C. Complain to the legal department of the company
D. Do nothing as you are new in the organization
Correct Option: B
EXPLANATION
The best option is to first talk to your employer to discuss your findings and know
their perspective. It would also help you verify your observation.

110As a project manager, you understand the importance of

effective communication with stakeholders. You want to present the
project progress report to the stakeholders in the next project
meeting. What should be your approach?
A. Make the report concise, restricted to specific technical details of the project
B. Prepare a verbose report, but filter the information to remove details
C. Focus on specific stakeholders with whom there is good personal relation
D. Research and understand the experience level and expectations of
stakeholders
Correct Option: D
EXPLANATION
Since a project's success is heavily dependent on stakeholders' favorable

acceptance of the project, it is important to have effective communication with
stakeholders, especially during project meetings. For this purpose, the project
manager should research and understand his stakeholders' expectations before
presenting project progress reports.
111You are managing a complex and critical project. There have

been a lot of efforts to train and make the team technically
competitive during the process. The project is in the final testing stage
when a senior resource comes to discuss his plans of continuing his
education and leaving this assignment. He would require a positive
recommendation from you to fulfill admission requirements. What
should you do?
A. Tell him that you wouldn't recommend him as he has broken your trust by
leaving the project before closure
B. Immediately ask the functional manager to remove him from the project and
give him a bad recommendation
C. Discuss and plan his smooth exit which would least affect the project schedule
D. Compliment him on his decision and suggest him to leave the project
whenever he likes as you would handle his additional responsibilities
Correct Option: C
EXPLANATION
A project manager should take steps to minimize the impact of any change on
the project, especially one that can affect the triple constraints. Option (d) is
wrong, and it sets a bad example and increases project risk.

112As a project manager of a construction project, you are inviting

requests for proposal from eligible vendors. While going through the
list, you find the name of your friend and ex-colleague from university.
He was a methodical and sharp student who excelled in his subjects.
What should you do?
A. Give him the contract as you are quite sure he would do a good job
B. Give him some inputs on how your organization awards the contract to
improve his chances
C. Steer yourself away from the bidding process and inform your sponsor
D. Keep silent and continue with the procurement process
Correct Option: C
EXPLANATION
This is a situation of conflict of interest. The best option for the project manager is
to discuss with his project sponsor and disassociate himself from the process.
113As a project manager, you have a large team reporting to you

with two members working on a particular technology for the first
time. You had apprehensions in the beginning of the project that they
would not be able to contribute as much due to the technical
complexity of the project. However, you spent time and gave them
the required training. During the assessment, you find some areas
which still require improvement. What should be your next plan?
A. Discuss this with the functional manager asking him to assign these resources
to some other project as you have already spent enough effort on them
B. Give them more challenging assignments so that they fail and you have
reasons to expel them from the team
C. Assess their current weak areas, and provide more focused training with
regular feedback
D. Call them in your chamber and give them a warning that this is their last
chance to perform in the project
Correct Option: C
EXPLANATION
The role of a project manager is also that of a leader. The question seems to
suggest improvement in the team's performance after training and that a more
focused approach gives much better results. Option (a) would be good if the
project manager suggests the members move to a project which matches their
skillset. Since this is not the case, the best option is (c).

114You are trying to partner with a firm in the Middle East. This is the
first time you will be doing a business partnership in the Middle East.
You want to know about the cultural aspects of the country and get
some guidelines on doing business as well. Which would be the best
document to refer to?
A. Project archives from earlier projects
B. Organization policies and procedures
C. Cultural overview from government website
D. PMI®
Correct Option: B
EXPLANATION
All the other documents would provide some insight; however, you are entering a
business liaison with a firm in a foreign country. It is important to first read and
understand your organizational policies on doing business in a foreign land. Many
organizations also have in-house departments that provide cultural training and
language support. Options (a) and (c) could also provide some useful
information, but they would be partial and unstructured. Option (d) provides
valuable guidelines to do ethical business, but it is generic information and not
specific to an organization.
115During project execution, the customer interprets a clause in the

contract differently and demands an elaborate design document as
part of the next deliverable. This was included on the deliverable list.
What is the best you can do to resolve the situation?
A. Change the contract and continue with your project work
B. Accept the customer's demand as he is the one responsible for the project's
success
C. Raise a complain to the project sponsor along with the implications of
accepting such a request on the schedule and cost of the project
D. Document the dispute and refer to the claims administration
Correct Option: D
EXPLANATION
In case of conflicting claims, it is best to refer them to the claims administration.

The claims administration resolves claims according to the contract's dispute
resolution procedures when the buyer and seller cannot resolve a claim on their
own. The claims administration documents, processes, monitors, and manages
claims during the life of the contract, usually according to the contract terms.

116You are managing a software project which is due for a design

document release next week. You are reviewing the document, when
an influential stakeholder asks you to add a feature to the existing
design. Earlier, this stakeholder tried to bother you with unreasonable
demands during the last days of the release. What is the best you can
do in this situation?
A. Report his behavior to the senior manager, suggesting why he should no
longer be associated to your project as a stakeholder
B. As this person is influential, you have no option but to listen to him and add
the functionality
C. Determine the impact of this change on your schedule and the constraints
before taking a decision
D. Ask him to raise a written change request form and then follow integrated
change control
Correct Option: D
EXPLANATION
It is important that a project manager consider written and well-documented

change requests for the project.
117You have signed a contract with a customer and started the

process of collecting requirements when the customer asks you to
add a feature which is not in the scope of the contract. What should
you do in this case?
A. Politely refuse the customer stating that you can no longer honor additional
changes as the contract is already signed
B. Add the feature in the project scope as the customer should be happy and
the project has anyways just started
C. Ask the customer to write a formal change request and follow the contract
change control system
D. Terminate the contract and prepare another one as it is just the beginning of
the project and you already find many information missing
Correct Option: C
EXPLANATION
After signing the contract, the only way to change it is by following the contract
change control system.
118You are working at a customer location in a foreign country where

it is customary to exchange gifts during their New Year celebrations.

Your company forbids you from accepting any form of gifts from your
customer, but you have a strong feeling that if you refuse to accept
and reciprocate the gesture, it can severely affect your relationship
with the customer. In this case, it is BEST to:
A. Politely refuse to accept any gifts explaining your company policy
B. Discuss this situation with your project sponsor or legal department
C. Accept the gift and keep it confidential so that there is no loss of face for your
organization
D. Take a break from the project work to go on a small vacation during local
New Year time
Correct Option: B
EXPLANATION
Since the company policy forbids the project manager from accepting any form
of gifts, he should consult his project sponsor and legal department.
119Which of the following is NOT a purpose of a configuration

management system?
A. Ensuring all the project team members have the latest version of the project
document
B. Ensuring all the relevant changes are communicated to the stakeholders
C. Maintaining consistency of the product's performance and its functional
attributes
D. Configuration identification, Configuration status accounting, and
Configuration verification and audit
Correct Option: B
EXPLANATION
This is a part of communication management. All the other options (a), (c), and
(d) are completed as part of Configuration Management System.
120Capture, analyze, and manage lessons learned using lessons

learned management techniques to enable continuous
improvement. To which process group does this task belong?
Planning
Closing
Executing
Monitoring and Controlling
Correct Option: D

EXPLANATION
As per the new examination content outline, this task has been added under
Monitoring and Controlling.
121A project manager is facing many serious issues on his project to

create an application for a hospital management system. The
project's final deliverable is scheduled two weeks from now. It needs
to be compliant with mandatory government health standards.
Additionally, there are some changes that are required to improve
performance. Also, a senior test engineer asks the project manager
for a long leave. Which is the most critical issue the project manager
needs to address FIRST?
A. Ensuring the product is compliant with government health standards
B. Finding a replacement for the senior tester and ensuring he completes
knowledge transfer before leaving
C. Completing change control process to incorporate changes to enhance
performance
D. Notifying the customer about probable delay in the final deliverable to avoid
surprise
Correct Option: A
EXPLANATION
This question exemplifies a typical scenario when a project manager needs to

integrate information and address the most critical issue first. Option (c) is gold
plating and is not required in the project. Option (b) can pose some trouble to
the project manager, but the question doesn't clearly establish whether the
resource is leaving before or after the final delivery. There is no data that shows
his absence would adversely affect the project delivery. In this situation, the most
important step is to focus on the compliance testing because it is a mandatory
requirement on the project.
122A project manager working on an iterative model of the product

development life cycle expects many changes during the course of
the project. He wants to establish a robust configuration
management and also make his team aware of the process. Which of
the following statements is NOT true about configuration
management?
A. The purpose of configuration management is to maintain integrity of work
product
B. Configuration management includes configuration audits, configuration
control, configuration status accounting, and configuration identification

C. Configuration management focuses on establishing and maintaining

consistency of a product's requirements
D. Configuration management involves measuring project performance with
baselines and taking corrective action when necessary
Correct Option: D
EXPLANATION
This is done as a part of the process monitor and control project work. All the
other statements describe the configuration management process.
123A Project Manager has made a major release in the project. The
customer tells you a week after the release that he is not entirely
satisfied with the deliverable. What should the project manager do
NEXT?
A. Continue with the next deliverable to finish the project on time
B. Discuss the customer concern and resolution with the senior manager
C. Ensure that next deliverables have enough features, which the customer
would like to have, to exceed his expectations
D. Do a scope verification of this deliverable to see if it satisfies project objectives
Correct Option: D
EXPLANATION
Verifying the project scope includes reviewing deliverables to ensure that each is
completed satisfactorily. If this is successful, it should provide customer
satisfaction. Option (c) is gold plating. Options (a) and (b) avoid addressing the
main problem directly.
124After an intermediate delivery was made, an important

stakeholder from the customer organization expressed dissatisfaction
with it. What should the project manager do?
A. Inform management about the potential dissatisfaction
B. Discuss with the team members about the best way to restore customer
confidence
C. Analyze the customer organization and determine if we can ignore this
stakeholder
D. Figure out why the stakeholder is dissatisfied
Correct Option: D
EXPLANATION

The first step should be to determine why there is a dissatisfaction. Then, the
measures to restore confidence or the choice to ignore them can be taken.
125Your project is in the final stages of testing, and the team is

interacting with the customer on a daily basis to update him on the
project status and incorporate his feedback. Which of the following is
the most critical process to be followed in this scenario?
Control Quality
Control Scope
Manage Communications
Control Risks
Correct Option: B
EXPLANATION
In this case, based on customer feedbacks, frequent changes are expected to

be made by the team. When a change is presented, a part of considering the
change involves additional planning. The project manager and the team must
examine how the change affects the project work and knowledge areas. Control
Scope ensures the project scope is protected from unnecessary changes and all
eligible changes are done using the scope change control system. Option (a)
Perform Quality Control is more focused on ensuring conformance to
documented standards and is not the correct choice.
126A customer approaches the project manager to slightly modify

the project scope to include an additional feature required by him.
The project is already in the execution stage. What should be the
response of the project manager?
A. It is difficult to incorporate this feature as the project is already moved out of
planning stage
B. Analyze the impact of the request on the other factors of triple constraints
namely cost and schedule
C. Bring the change request to Change Control Board to decide on its fate
D. Document the change request as per the project change management plan
Correct Option: D
EXPLANATION
The project manager should only consider documented change requests. He

should ensure that when the change is requested, the impact on the features
and functions of the product are documented with change requests before the
change is allowed to move through integrated change control. Options (b) and
(c) would come later as part of the integrated change control process.

127A project manager is proactively managing a change through the

scope control process. Which of the following should she be MOST
worried about?
Value Added Changes
Errors and Omissions
Risk Response
Verbal communication from key stakeholders
Correct Option: D
EXPLANATION
Undocumented changes should never be allowed by the project manager. He

should ensure that whenever a change is requested, the impact on the features
and functions of the product (including that on triple constraints) is documented
with a change request. Option (a) Value added changes describe changes in
the scope that would provide benefits in terms of cost reduction, etc. Option (b)
Errors and Omissions could be both in project scope and product scope. Option
(c) Risk Response involves changes in the scope required to mitigate an identified
risk. Of all the above events that would result in possible changes to the scope,
option (d) verbal undocumented changes pose the maximum potential threat to
a project.
128You are a project manager working on a critical project. You track

the project schedule closely. While reviewing the critical path, you
realize that the project is showing negative float. What should be your
BEST response to the situation?
Use a schedule compression technique
Reduce the number of resources in the project
Reduce the number of non- critical activities in the project
Revisit the risks and do a risk analysis of the project
Correct Option: A
EXPLANATION
The best option is to compress the project schedule because critical path
activities that are delayed can result in negative float on a project. In this case,
the project manager should use a schedule compression technique like fast
tracking or perform in parallel critical path tasks that were originally planned
sequentially. Crashing assigns additional resources to critical path tasks while
maintaining scope. For an interesting article on schedule compression techniques
visit http://www.projectsmart.co.uk/project-scheduling-and-resource-
levelling.html

129As a project manager and a member of the PMO (Project

Management Office) you want to present a snapshot of the status of
various projects taking place in the organization to the senior
management. Which of the following charts would be most suitable
for the purpose?
Milestone chart
Gantt chart
Precedence diagram
Control chart
Correct Option: A
EXPLANATION
A milestone chart depicts key events along a time scale. It is used for top-level
reporting, so management does not become bogged down in the minutia of the
projects. Milestones on a milestone chart can be shown in various colors or with
markings that indicate status. The chart can also contain other information
related to the projects.
130You are a project manager managing a construction project

which is midway through the execution phase. The project is
progressing well and is on time when one of the vendors informs you
that there will be a weeklong delay in his delivery due to a law and
order problem in his city. Which of the following documents would
best capture the impact of the delay on the project?
Network Diagram
Procurement Management Plan
Work Breakdown Structure
Risk Register
Correct Option: A
EXPLANATION
A project network diagram captures the project schedule and would be the best
document to reflect the impact of the delay of a deliverable on a project
schedule. A work breakdown structure shows what work is on the project but
does not focus on how long it should take. The risk register would show an
increase in project risk and would not help to determine the impact of delay on
the project schedule.
131You are managing an e-banking solution project when the vice-

president of the company calls you to discuss an opportunity to

manage a critical project which can boost your career and

professional experience. Your e-banking solution project is due to
complete in 3 weeks. What is your best response to the vice-
president?
A. You would surely like to manage both the projects together as the latter one is
a critical project for the company
B. You would use a compression technique to finish your current project faster
and then take up the new project
C. Since the new project is critical to the organization, you could take this project
immediately and your earlier project can be managed by someone else. It is
coming to a close anyway
D. The project should first get an approved project charter which would formally
initiate the project
Correct Option: D
EXPLANATION
An approved project charter formally initiates a project and authorizes a project

manager to apply resources to the project. A project without a project charter is
not a project. Considering this, a project sponsor should first develop a project
charter. All the other options (a), (b), and (c) are not suitable until the new
project is formally initiated.
132As a project manager, you have been asked by the customer to

give an overview of the project status using milestone charts. Which of
the following statements are INCORRECT about milestone charts?
Milestones have zero duration
Milestone charts are like bar charts but show only major events
Milestone charts can be used to capture the status of project schedule
Milestone charts are used to define a phase of a project
Correct Option: D
EXPLANATION
Milestone charts capture the major milestones on the project which represent the
beginning or completion of a deliverable, work package, phase, or project.
Milestones are zero duration activities and are commonly used to present project
status to the senior management or the customer.
133You are managing an infrastructure project which is nearing

completion when a major stakeholder points out a flaw in the design
which could make the entire structure weak. He suggests that you
construct two support pillars. You are worried that this change will

significantly impact the schedule and cost of the project. What is your
BEST response to the stakeholder?
A. Refuse him as the projects is already nearing completion and it is not possible
to make any changes at this stage
B. Do a root cause analysis with the team to determine how this design flaw
could have been missed and if there could be more potential problems with
the design
C. Proceed with the change and communicate the impact on the project
schedule and cost to the customer
D. Use a schedule compression technique as part of Integrated Change Control
to investigate and minimize the adverse impact of the change
Correct Option: D
EXPLANATION
Schedule compression technique is useful not only during project planning to see
if the desired completion date can be met but also during integrated change
control to look at the schedule impacts of changes to time, cost, scope, or risk.
Option (b) though seems to be in good faith, doesn't address the immediate
problem. Option(c) should be done once all the alternatives are explored to
minimize the adverse effect of the change on the project schedule and other
constraints.
134Project performance reviews using earned value management

would typically incorporate information from all of the following
EXCEPT:
Variance Analysis
Cost Benefit Analysis
Trend Analysis
Earned Value Technique
Correct Option: B
EXPLANATION
Cost benefit analysis is a technique that compares positive factors or benefits

with negative ones to determine the net result of doing the action. It is a popular
technique for project selection method but will not be useful during the project
performance review.
135As a Project Manager, you realize that the initial budget cost,
Budget at Completion (BAC), for your project is no longer viable. You
need to develop a new Estimate at Completion (EAC) forecast
assuming current variances will continue in the future. Which of the

following formulas should you use to calculate EAC? Here, AC is the

Actual Cost, EV is the Earned Value, and PV is the Planned value.
EAC = AC + ETC
EAC= AC+ (BAC - EV)
EAC = EV/PV
EAC = BAC/ cumulative CPI
Correct Option: D
EXPLANATION
This method assumes current variances are typical of the future. The remaining
work is assumed to be performed at the same cumulative cost performance
index (CPI) as that incurred by the project to date.
136A project manager wants to measure project performance

against the project baseline. Which technique would be MOST
helpful?
Variance Analysis
Work Performance Information
Reserve Analysis
Correct Option: B
EXPLANATION
The earned value technique helps to measure project performance against the
project baseline. It is a better method than simply comparing the plan with the
actual as it integrates cost, time, and work completed. The earned value
technique can also be used to forecast future project performance. Option (c)
Work Performance Information is an output of control costs and not a technique.
Option (a) Variance Analysis can be used to assess the magnitude of variation to
the original baseline for just a single parameter.
137A project team with CPI of 0.78 is looking for options to reduce
cost. Which should be the BEST option to choose in this scenario?
Reduce a test cycle in the System Testing phase
Reduce scope by cutting down non-essential features
Add more resources to expedite the schedule
Revisit estimates and eliminate risks
Correct Option: D
EXPLANATION

Option (c) would not reduce cost. Options (a) and (b) would always have a
negative effect as they compromise on quality or scope. Option (d) is the one
with the minimum negative effect.
138Your project has the following information based on Earned Value

Analysis. Its Earned Value (EV) is $1000, Actual Cost(AC) is $850, and
Planned Value(PV) is $1050. Which of the following is TRUE about your
project?
Your project is over budget and behind schedule
Your project is under budget and behind schedule
Your project is over budget and ahead of schedule
Your project is under budget and ahead of schedule
Correct Option: B
EXPLANATION
Cost Variance = EV-AC = $1000-$850 =$ 150 is positive and Schedule Variance =

EV-PV = $1000 - $1050 =-$50 is negative. The project is under budget and behind
schedule.
139You are a project manager in an IT company in the final phases of

project execution. Your project status is well within budget, and you
are almost a week ahead in your schedule. During the final testing
phase of the project, you realize that the performance of the product
can be increased by almost 20% of the expected value by doing
minor code changes in two modules. This change would require an
additional 2 days of work. What should you do NEXT?
A. Analyze the various alternatives and do a detailed impact analysis before
proceeding with the change
B. Update the change management form and send it to change control board
for consideration
C. Discuss the change and impact with the customer and seek his approval
D. Ignore the change as it is gold plating and should be avoided
Correct Option: D
EXPLANATION
This is an example of gold plating as this requirement is not actually part of the
contract. Some other forms of gold plating are adding extra functionality, higher
quality component, and extra scope. Such additions are usually based on the
perceived notion of what the customer would like rather than a specific
requirement from the customer. Gold plating is defined in simple terms as adding
more to the system than is specified in the requirements. Gold plating can

increase operation and maintenance costs and reduce quality. Since only 34
percent of all projects succeed (per the observations from 2004), a project
manager should focus on successful conformance to requirements. PMI® does
not advocate adding extra functionality without benefits or gold plating.
140A project manager is going through the defect report for the bugs
reported during the testing cycle of a software project. The report has
information on the severity of the bugs, origin of the bugs, and
possible resolution. Now the project manager wants to prioritize the
bug fixing activity by evaluating the most frequent reasons for the
defects. Which tools should be used for this purpose?
Control chart
Fishbone diagram
Scatter diagram
Pareto chart
Correct Option: D
EXPLANATION
A Pareto chart works on the Pareto principal that states 80% of problems usually
stem from 20% of the causes. Pareto charts can be used for defect analysis by
arranging defects data so that the few vital factors that are causing most of the
problems reveal themselves. Focusing on improvement efforts of these few vital
factors will have a greater impact and be more cost-effective than undirected
efforts.
141You are managing a critical project with frequent changes in

requirement. You are in the testing phase of the project, and the
customer has requested an addition of a new feature. You have
assessed the impact of the change on the triple constraints with your
team. What should be your NEXT step?
A. Raise a change request form and send it for approval to change control
board
B. Look for alternative options including schedule compression techniques like
crashing and fast tracking
C. Analyze the impact of the change on the project's quality objectives and
quality planning
D. Update the project management plans and other project documents
including project baselines
Correct Option: C
EXPLANATION

It is important to analyze the impact of change on not only the triple constraints,
but also on the quality. The Project Manager needs to determine whether the
quality objectives and quality planning needs to be modified to address the
changes. Option (b) is already addressed as part of assessing the impact on the
triple constraints.
142A software project is in the testing phase and the project manager
has found a high number of defects in one particular module. He
decides to determine the root cause of this problem by analyzing all
the potential causes and grouping them into different categories.
Which technique is he using?
Fish Bone diagram
Pareto chart
Control charts
Checklists
Correct Option: A
EXPLANATION
A fish bone diagram or cause and effect diagram is a popular technique to

determine the root cause of a problem by identifying potential factors causing
an overall effect. Causes are usually grouped into major categories to identify
the sources of variation. Some of the popular categories are people, method,
machines, materials, measurements, and environments.
143A project manager notices that a control chart has a group of

seven non-random data points in a series between his upper control
limit and mean. What does it indicate about the process stability of
the project?
A. This is a random cause of variation and can be ignored
B. The process is stable and in control as none of the data points are outside
control limits
C. The control limits for the process are well within specification limits
D. The process is out of statistical control and needs to be investigated
Correct Option: D
EXPLANATION
The rule of seven is a heuristic rule which refers to a group of seven non-random
data points in a series between the upper control limit and mean. It denotes the
presence of an assignable or special cause in the process and that the process is
out of a state of statistical control. Option (c) is true for a stable process, but it
does not relate to the question.

144After a major milestone release, some of the key stakeholders are

not happy and complain that their requirements are not met. To
ensure their approval for the release, the project manager should
have involved them in the process:
Project Management Plan Development
Identifying Constraints
Validate Scope
Schedule Management
Correct Option: C
EXPLANATION
Validate Scope is the process of formal acceptance of completed project scope

and deliverables by stakeholders through signature on paper or via an email that
specifically states project approval. Prior validation of scope would have avoided
dissatisfaction of stakeholders after the milestone release. Although involving
stakeholders from the development of project plan (option a) would have
eliminated the root cause of the problem, completing scope verification with the
stakeholder would have ensured their approval for the release.
145A project in a large construction company is in chaos. It has

already reached the execution phase. The project team is not clear
on who oversees the project. Who is the key person responsible for
giving clarity to the team?
Project manger
Functional manager
Customer
Project sponsor
Correct Option: D
EXPLANATION
A project sponsor is the one who designates the project manager in the project
charter and authorizes a project manager to use resources for the project.
Therefore, he is the one who needs to provide clarity to the team about the
project manager in case there is confusion.
146A project manager in an MNC corporation is in the process of

collecting, organizing, and disseminating information on how project
resources are being used to complete project objectives. In addition,

he is collecting information on cost, schedule, and level of quality. He

is also going through the influence of risks on project objectives.
Which process is the project manager in?
Direct and Manage Project Work
Manage Communications
Monitor and Control Project work
Correct Option: B
EXPLANATION
The Project Manager is in the process of monitor communications as a part of

communication management. It is the process of collecting and distributing
performance information including status reports, progress measurements, and
forecasts. For more information on the process, refer to Monitor Communications,
page 388, PMBOK® Guide Sixth Edition.
147A project manager wants to present a project performance report

to his management which captures project results over the last 3
years to see if the performance is improving or deteriorating. Which of
the following reports should he use?
Earned Value
Status Report
Forecasting Report
Trend Report
Correct Option: D
EXPLANATION
A trend report would capture this information. Option (a) Earned Value integrates
scope, cost, and schedule measures to assess current project performance.
Option (b) Status Reports describe where the project is currently based on the
performance measurement baseline. Option (c) Forecasting Report is used to
predict future project status and performance.
148As part of project stage review, you are presenting project

performance reports to the stakeholders. The reports show both cost
and schedule variances are positive for the project. What does it
indicate about the current project status?
The project is under budget and behind schedule
The project is over budget and behind schedule
The project is under budget and ahead of schedule
The project is over budget and ahead of schedule

Correct Option: C
EXPLANATION
Cost Variance = Earned Value (EV) - Actual Cost (AC). Positive cost variance
indicates the project is under budget. Since Schedule Variance = Earned Value
(EV) - Planned Value (PV), positive schedule variance indicates the project is
ahead of schedule.
149A project manager is discussing the project management triangle

and triple constraints with his team. What three constraints is he
referring to in project management terminology?
Cost, Schedule, Quality
Cost, Schedule, Scope
Cost, Scope, Customer Satisfaction
Cost, Scope, Product
Correct Option: B
EXPLANATION
It is a well-known fact that projects need to be performed and delivered under

certain constraints. Traditionally, these constraints have been listed as scope
150You are a project manager in a manufacturing company, and

you want to assess the current quality of your production process. You
also want to check if the process is stable over time or if there are any
special causes of variation. Which tools would be MOST suitable for
this purpose?
Control chart
Pareto Chart
Test of Normality
Inspection
Correct Option: A
EXPLANATION
A control chart is a statistical tool used to distinguish between variation in a

process resulting from common causes and variation resulting from special
causes. Some variation may be the result of causes which are not normally
present in the process. This could be a special cause of variation. Some variation
is simply the result of numerous, ever present differences in the process. This is a
common cause of variation. Control charts differentiate between these two
types of variation. It also presents a graphic display of process stability or
instability over time. Process stability is defined as a state in which a process has

displayed a certain degree of consistency in the past and is expected to

continue to do so in the future.
151A project manager shares project performance through status

reports via email to all the stakeholders of the project. Which of the
following techniques is the PM using?
Kick-off meeting
Pull Communication
Push Communication
Communication model
Correct Option: C
EXPLANATION
Push communication is sending information to specific recipients who need to

know the information. This ensures that the information is distributed but does not
actually certify that it reached or was understood by the intended audience.
Push communication examples include letters and press releases. For more
information, refer to Communication Methods, page 374, PMBOK® Guide Sixth
Edition.
152A project team is in the process of tracking risks and control. The
risk control actions defined by the mitigation and contingency plans is
being implemented in accordance with the details of those plans.
Who is responsible for implementing these actions?
Project manager
Project team
Risk owner
Risk manager
Correct Option: C
EXPLANATION
The risk owner for a particular risk is responsible for implementing the actions
defined by the mitigation and contingency plan in risk management. A risk owner
for a risk is identified during the planning stage of risk management, and he helps
to assess the risk, produce probability, and impact information. He also develops
risk mitigation and contingency plans, provides status data for respective risk
issues, and assists in evaluating risk control action effectiveness. The risk owner
also documents threshold criteria of high and medium risks and supports
identification of new risks.

153To which process group does the task "Control procurement

activities according to the procurement plan, verify compliance with
project objectives." belong to?
Planning
Closing
Executing
Correct Option: D
EXPLANATION
This is part of Monitoring and Controlling the procurements within a project. Refer
to PMBOK® Sixth Edition, page 629 for more information.
154You are managing a project with a total budget of $36,000 that

will be finished in 1 year. You are at the end of the 6th month, and
project is on schedule. However, the actual cost of the project is
$20,000. What is the cost variance in the project?
2000
-2000
16000
-6000
Correct Option: B
EXPLANATION
Cost variance = Earned Value (EV)- Actual Cost (AC). Here, Earned Value is
assumed to be uniformly spread over the entire project duration. So, earned
value at the 6th month = [(Total Cost)/ (Total Project months)] * Months
completed; i.e., ( $36,000/12)*6 = $18,000. Cost Variance = $18,000-$20,000 = -
$2,000.
155The difference between the maximum funding and the end of the
cost baseline is known as:
Funding Limit Reconciliation
Reserve Analysis
Project Budget
Management Reserve
Correct Option: D
EXPLANATION

The difference between the maximum funding and the end of the cost baseline
is called Management reserve.
156A project team, during the project execution, has identified new
risks as an action item from the risk audit findings. Which part of the risk
management process are they in?
Identify Risks Process
Perform Qualitative Risks Analysis
Plan Risk Response Process
Control Risks Process
Correct Option: D
EXPLANATION
New risks can be identified during the risk identification and monitor and control
risk processes. Since these new risks are the result of a risk audit, the project is
using the monitor and control process rather than the planning process.
157You are a project manager building a prototype board for an

embedded project. Since your organization lacks the required level of
fabrication expertise, you outsource the fabrication process for board
development to an external vendor. During the course of the project,
the vendor informs you of a probable delay by 3 days in the final
delivery of the fabricated board. This is an EXAMPLE of:
Secondary Risk
Residual risk
Risk Trigger
Risk Workaround
Correct Option: A
EXPLANATION
A secondary risk can be defined as a risk created by the response to another risk.
In other words, the secondary risk is a consequence of dealing with the original
risk. In the current scenario, the risk in the delay of the final deliverable by an
external vendor is a response to the existing risk of inadequate in-house expertise
for board fabrication. It is important to understand the difference between option
(a) secondary risk and option (b) residual risk. Secondary risks are those which are
caused by the treatment or response to the risk, whereas residual risk is the risk
which remains even after you have treated or responded to the risk.

158Your firm awarded a cost reimbursable contract to a

pharmaceutical company for some research-related activity. Over
time, many changes have taken place in the project, and it is difficult
to keep track of the status of the change requests. What is the BEST
alternative for the project manager in this case?
Terminate the existing contract and negotiate a new one with the seller
Capture all the change requests, along with their current status and follow the
contract change control system
Terminate the existing contract and sign a similar one based on the same terms and
conditions as the earlier one
Seek advice from the senior management of your organization
Correct Option: A
EXPLANATION
There are strong reasons for the project manager to terminate the existing
contract and renegotiate the terms and conditions. The earlier contract was cost
reimbursable and the project manager had limited information on the contract
scope of work. It may not be true now since some work has been done and the
project manager would be in a better position to negotiate. Since there are too
many change requests with no clarity on how many of them would be approved,
it is difficult for a project manager to continue work. Hence, the best option for a
project manager in this case is (a).
159A cost reimbursable contract has an estimated cost of $15,000. If

the seller beats the cost, the saving will be shared as follows:75% to
the buyer and 25% to the seller. If the actual costs come in at $12,000,
what is the final price?
12500
12750
12250
12000
Correct Option: B
EXPLANATION
Target price = $15,000, Actual cost = $12,000, and Sharing ratio = 75/25. Actual
cost to buyer = $12000 + ($15,0000-$12,000)*25% = $12,750.
160As a project manager, you are conducting a structured review of

the seller's progress to deliver the project within contract. Your
objective is to determine progress with respect to the procurement

statement of work. In which stage of the project will you be doing this
review?
Before contract closure
Before awarding the contract
As part of the project status review
In case of non-conformance by seller
Correct Option: C
EXPLANATION
You are doing procurement performance review as part of the process

administer procurements. It is a structured review of the seller's progress to deliver
project scope and quality, within cost and on schedule. For more information,
refer to Project Procurement Management, page 466, PMBOK® Guide Sixth
Edition.
161As a project manager, you understand the importance of

contract documents and correspondence for future references.
Which of the following can be used to manage and store contract
and procurement of documents and records?
Claims Administration
Audit Reports
Lessons Learned
Records Management System
Correct Option: D
EXPLANATION
The records management system consists of a specific set of processes, related

control functions, and automation tools that are consolidated and combined as
part of the project management information system. The system contains
retrievable archive of contract documents and correspondence.
162A project's deliverables were accepted by the customer and the

contract was closed with all payments successfully completed. The
team was released in a hurry as they were to be reassigned to
another high-priority project before they could discuss and document
the lessons learned. What action should the project manager perform
now?
Mark the project as closed as all sign-offs received
Document as many lessons learned as the PM can remember, and close the project
Request for a 1-hour closure meeting to create the lessons learned document
Escalate the matter to the PMO and request for directions

Correct Option: C
EXPLANATION
Creation of a cogent lessons learned documentation is an important part of the

closure process, and it should not be bypassed. The project manager should
make a reasonable request to the team members to accomplish this in letter and
spirit.
163A project manager has made the final delivery to the customer,
and the team is in the process of completing administrative and
contract closure. The team has also completed the final version of
lesson learned in the corporate database. Which of the following is a
critical activity that the project manager should complete before
formally closing the project?
Confirm that all the requirements in the project are met
Ensure that all project management processes are complete
Obtain formal sign-off for the project from the customer
Index and archive the project records
Correct Option: C
EXPLANATION
The most important part of project closure is getting formal sign-off from the
customer. As it indicates, the customer considers the project completed and
accepts the completed project. Formal sign-off in a contracting situation
constitutes legal acceptance.
164A project manager is in the final closure phase of the project.

Which of the following should the project manager do FIRST as part of
the project closure activity?
Get formal sign-off from the customer to confirm customer acceptance of final
deliverable
Measure customer satisfaction as a key performance indicator of the project's
success
Hand off completed project deliverables to operations and management
Measure project scope against the project management plan
Correct Option: D
EXPLANATION
As a part of the project closure activity, a project manager should first review all
prior information from the previous phase, closure, to ensure all work is completed
and the project has met its objectives. Since project scope is measured against

the project management plan, the project manager will review the document to
ensure completion before considering the project closed. Option (a) would
come next followed by option (b).
165A pharmaceutical company recently terminated a research

project as it no longer seems commercially viable for the company.
What is the FIRST step the Project Manager should take?
Release the team members
Document the lessons learned
Conduct Scope Verification
Discuss with the senior manager the reason for abrupt project termination
Correct Option: C
EXPLANATION
Conduct Scope Verification. In the event of project termination, the project

manager should do scope verification to determine the extent of completion of
the project. In this case, scope verification is measured against the deliverables
to the point of the project cancellation. Options (a) and (b) can be done later.
166Under which process group should documentation of lessons

learned occur?
Executing
Closing
Throughout the project
Correct Option: D
EXPLANATION
According to the new examination content outline, it should be done throughout

the project.
167You have just started administering a contract when management

decides to terminate the contract. What should you do first?
Go back to solicitation
Go back to solicitation planning
Finish contract administration
Go to contract closeout
Correct Option: D

EXPLANATION
You should look at closing the contract and seeking help from the legal and
contracts departments of the company. You should also let the management
know of the repercussions.
168The knowledge that the team and stakeholders gain by

performing the project is known as:
Team development
Best practices
Lessons learned
Cumulative intellectual property
Correct Option: C
EXPLANATION
The lessons learned may be converted to best practices by an authority outside

the project. Team development pertains less to knowledge and more to soft skills.
169You are a vendor and are discussing project closure with your
customer. All of the following would be outputs of closing a project
EXCEPT:
Correspondences
Contract changes
Enterprise environmental factor updates
Payment requests
Correct Option: C
EXPLANATION
Enterprise environmental factor updates is the least suitable option. You would
probably look at enterprise environmental factor updates within your
organization and not involve the customer.
170Which of the following must happen before a project is closed?

The customer must accept the project's product
Lessons learned must be documented
The project team must have a new project
Project Charter
Correct Option: A
EXPLANATION

Although lessons learned must be documented, the minimum expectation is that

the customer accepts the product.
171You are a program manager. Your project manager Lynda wants

to leave the project before it gets completed. What will you do?
Forbid this
Take all the closing tasks on yourself
Appoint another project manager, but ask Lynda to be available for any customer
meetings
Wait till she leaves
Correct Option: C
EXPLANATION
You should request Lynda to be available for customer meetings as she may
have a better relationship with the customer.
172On your current project, you have a good number of

subcontractors. You are eager to work with many of them. However,
one of them has consistently submitted expensive change orders
every week. Now, when you are closing the project what should you
do?
Use earned value analysis
Fire the subcontractor who has submitted too many change orders
Conduct procurement audit
Conduct subcontractor pattern match
Correct Option: C
EXPLANATION
Earned value analysis will help in monitoring and control, but not now. Firing the
subcontractor may not be correct. It is only procurement audit which will help
you show what has gone wrong. A procurement audit is a technique used to
close the contract and check the procurement process. Please refer to PMBOK®
Guide Sixth Edition, page 494 and 714.
173You have recently attended a talk at your local PMI® chapter on

project closure. One of your colleagues wants your counsel to figure
out the element that is not a closure activity. What would be your
answer?

Project archives
Project closure
Lessons learnt
Rework
Correct Option: D
EXPLANATION
Rework is the least likely answer. Rework would happen throughout the project
whenever a defect is detected. The rest of the options are associated with
project closure.
174You are good at reviewing and critiquing vendor contracts on

your projects. Before closing the project, your supervisor asks you to
develop a checklist of topics which need to be discussed with a
vendor. Your list may have all of the following EXCEPT:
Invoices and payment receipts
Risk log
Approved change requests
Inspection reports
Correct Option: B
EXPLANATION
A risk log is the least likely thing on the checklist. All of the other options are
directly concerned with contract closure. A risk log will be of use during project
execution, but when you are closing the project, risks probably have no
significance for the project except lessons learned.
175One of your colleagues is not clear about what should be looked

at during project closure. Which of the following would NOT be
relevant to look at?
A. Performance measurement documentation
B. Product documentation
C. Project archives
D. Project plans for the next project
Correct Option: D
EXPLANATION
Closure for the current project does not involve looking at subsequent projects. All
other aspects are relevant. Performance measurements will show if there is any
variance. Product documentation needs to be handed over to the customer.
Project archives will show up if any necessary documents or activities are missing.

176Your project has faced some unforeseen issues that have caused
a delay in your project. However, the project is very critical for the
company, and it has to meet the scheduled deadline. To meet the
deadline, your team would have to work over the weekends for next
two weeks. You know that many of the team members will have some
personal commitments and it will be very difficult for them to work for
seven consecutive days. What is the BEST option for you?
A. Hire additional resources and brief them about the project
B. Inform the customer that this deadline can't be met
C. Discuss the situation with the team and give them the choice to willingly work
overtime
D. Send an official mail making it compulsory for the team to come and work
over the weekends
Correct Option: C
EXPLANATION
The project manager should explore all the options to avoid delay in the project.
In this case, there might be some team members willing to work over the
weekends, and the manager can reschedule once their availability is confirmed
to minimize the schedule delay.
177Which of the following quality theorists advocated the popular

iterative four-step approach of Plan-Do-Check-Act?
A. Joseph Juran
B. W. Edwards Deming
C. Philips Crosby
D. Genichi Taguchi
Correct Option: B
EXPLANATION
PDCA (plan-do-check-act) is an iterative four-step problem-solving process

typically used in business process improvement. It is also known as the Deming
cycle, Shewhart cycle, Deming wheel, or plan-do-study-act. It was proposed by
W. Edwards Deming in the 1950's. He suggested that business processes should be
analyzed and measured to identify sources of variations that cause products to
deviate from customer requirements. He also recommended that business
processes should be placed in a continuous feedback loop. This help managers
to identify and change the parts of the process that need improvement.

178After working as a project manager for more than 25 years, you

want to share your learning and best practices to your industry. You
do this by writing articles in international journals and giving interviews
to share your experience. This act can be BEST described as:
A. Enhancement of professional skills by learning project management and
technical skills
B. Contribution to the project management knowledge base by virtue of vast
personal experience
C. Capturing professional stint in autobiography purely from retrospection
exercise
D. Informing others about project management principles and helping profession
grow
Correct Option: B
EXPLANATION
The project manager is sharing his lessons learned and best practices along with
contributing to the project management knowledge base.
179As a Project Manager, you have to recommend one among the

projects A, B, C, and D. Which one would be the BEST option? Here,
NPV is Net Present Value.
A. Project A: NPV $50,000 to be completed in 3 years
B. Project B: NPV $40,000 to be completed in 2 years
C. Project C: NPV $70,000 to be completed in 9 years
D. Project A: NPV $60,000 to be completed in 1 year
Correct Option: C
EXPLANATION
The project with the highest NPV should be selected. The information on the
number of years to complete the project is irrelevant because it has already
been considered while calculating NPV. NPV is defined as the difference
between the present value of cash inflows and the present value of cash
outflows. NPV is used in capital budgeting to analyze the profitability of an
investment or project.
180As a project manager, you need to estimate the regression testing

for your product. You would like to do 5 full testing cycles and each
cycle is estimated to be 4 days long. What should be your estimated
duration for the testing activity?
A. 25 days

B. 18 to 22 days
C. 18 days
D. 22 to 24 days
Correct Option: B
EXPLANATION
The estimated duration for 5 testing cycles of 4 days duration is 20 days, and the
correct estimation range is 18 to 22 days.
181Identify a statement about the Arrow Diagramming Method

(ADM) or Activity-on-Arrow (AOA) that is not true.
A. The nodes are used to represent activity and arrows show activity
dependency
B. It uses only Finish to Start relationship between activities
C. It may use dummy activities
D. It is a popular method of drawing network diagram
Correct Option: A
EXPLANATION
In the Arrow Diagramming Method (ADM), the arrows are used to represent
activities.
182Which contract types would entail the MOST cost risk for the
buyer?
A. Cost Plus Fixed Fee
B. Cost Plus Incentive Fee
C. Cost plus percentage of cost
D. Cost Plus Award Fee
Correct Option: C
EXPLANATION
Please refer to their definitions to understand what each of them mean. Cost plus
fixed fee contracts pay a predetermined fee that was agreed upon at the time
of contract formation. In a cost-plus-incentive fee contract, a larger fee is
awarded for contracts which meet or exceed performance targets including
cost savings. Cost plus award fee contracts pay a fee based upon the
contractor's work performance. In some contracts, the fee is determined
subjectively by an awards fee board, whereas in others, the fee is based upon
objective performance metrics. Cost plus percentage of cost contracts pay a
fee that rises as the contractor's costs rise. Since this contract type provides no

incentive for the contractor to control costs, it is rarely utilized and is most risky for
the buyer.
183The process of comparing actual or planned project practices of

a project with those of other projects to generate improvement ideas
and a basis for performance measurement is called:
A. Benchmarking
B. Design of Experiments
C. Prototyping
D. Quality Assurance
Correct Option: A
EXPLANATION
Benchmarking is the process of comparing one's business processes and

performance metrics including cost, cycle time, productivity, or quality with
another industry where similar processes exist. This benchmarking provides a
snapshot of the performance of your business and helps you understand where
you are in relation to a standard.
184You are a project manager managing a software project for your

firm. While acquiring the project team, you ask the resource manager
to assign the test engineers in the beginning of the project as it would
help them gain project insight critical for effective testing. Which kind
of project dependency is this an example of?
A. Mandatory Dependency
B. Discretionary dependency
C. External dependency
D. Customer dependency
Correct Option: B
EXPLANATION
Discretionary dependency is based on the discretion of the project manager and

team. In this case, the decision to include test engineers in the early stages of the
project would help them gain better project understanding and is an industry
best practice. This is not a mandatory dependency which is required and internal
to the project. Also, option (c) the external dependency is something outside the
organization's control, and is an incorrect choice.

185You are working on a project to build a hybrid car which would

run on both fuel as well as electricity. This car would have a 1000 cc
engine and work on a regenerative braking system. It should be able
to seat four passengers including a driver and comply with Euro 4
emission norms. These parameters are described as:
A. Product Scope
B. Project Scope
C. Scope baseline
D. Requirements Management Plan
Correct Option: A
EXPLANATION
Product scope includes the features and functions that characterize a product,
service, or result. It describes the service that will exist as a result of your project.
Product scope is different from project scope. Project scope is the work that
needs to be accomplished to deliver a product, service, or result with the
specified features and functions.
86You are a project manager managing a project with limited

resources. Which schedule network analysis technique would be most
useful to modify the project schedule for limited resources?
A. Critical Path Method
B. Fast Tracking
C. Critical Chain Method
D. Crashing
Correct Option: C
EXPLANATION
The critical chain method is a schedule network analysis technique that modifies
the project schedule to account for limited resources. In the critical chain
method, the project schedule network diagram is built initially using duration
estimates and dependencies. Since the resources are a constraint, the resource
availability is entered next and the resource limited schedule result is determined.
Hence, the critical chain method is a network analysis technique used when
project resources are constrained. For more information, refer to Schedule
Network Analysis, page 209, PMBOK® Guide Sixth Edition.
187A major stakeholder in a project wants to know his role and

responsibility in the scheduling process of the project. He also wants to
understand how the schedule baseline is established and which

scheduling methodologies are used. Which of the following best

provides the information?
A. Project Management Plan
B. Project Schedule Baseline
C. Stakeholder Register
D. Schedule Management Plan
Correct Option: D
EXPLANATION
The schedule management plan could be a subsidiary of the project

management plan or an independent document that establishes how schedule
management will be carried out in the project. It serves as guidance for the
scheduling process and defines the roles and responsibilities of stakeholders in the
process, along with scheduling methodologies and schedule and change control
procedures.
188You are managing a project to build a multi-storey complex in

your city. You are waiting for the clearance to start construction of the
building. Which kind of dependency is this an example of?
A. External Dependency
B. Mandatory Dependency
C. Discretionary Dependency
D. Internal Dependency
Correct Option: A
EXPLANATION
This is an example of external dependency that involves the relationship between

the project and non-project activities which are outside the control of the project
manager. For example, government clearance before the construction activity
can start at a site. Option (b) Mandatory Dependency is also called hard logic.
Mandatory dependencies are those which are contractually required or inherent
to the nature of the work. Option (c) Discretionary Dependency or soft logics are
dependencies that are at the discretion of the Project Manager. For more
information refer to Project Schedule Management, page 192, PMBOK® Guide
Sixth Edition.
189A project manager working on a construction project identifies a

risk of heavy storms in the coming months which might affect the
construction activity. However, he doesn't have any reliable
information on the weather forecast or the severity of the storm. In
this, case what is the BEST the Project Manager can do?

A. Capture the Risk in the Risk Register

B. Ignore the Risk as nothing can be done to avoid it
C. Actively accept the risk and allocate time and cost reserves in the
contingency fund
D. Proceed with Risk Response Strategy to counter the Risk
Correct Option: C
EXPLANATION
In this situation, the project manager has no information on the timing,

anticipated frequency, or impact of the expected rough weather. Hence, option
(d) will not give any valuable information. The best option is (c) to accept the risk,
but plan a contingency reserve in terms of cost and time in case the risk occurs.
Option (a) and (b) are passive approaches and are not recommended for a
good project manager who should always be proactive in his approach towards
risk management.
190A company recently launched a digital instrument in the market

which was completely unsuccessful. The company has incurred huge
costs in the development of the product including intellectual
property, research and development, and patents. All this cost would
be termed as _____.
A. Opportunity cost
B. Depreciation
C. Sunk Cost
D. Internal Rate of Return
Correct Option: C
EXPLANATION
Sunk costs are retrospective (past) costs that have already been incurred and
cannot be recovered. Examples of sunk costs are the cost of a seat on an
airplane to the airline. The cost of an airline seat is primarily fixed and sunk (as
long as one assumes the flight was going to take place regardless of whether the
seat was sold) with a small portion attributed to variable costs. It makes sense for
the airline to develop a pricing structure designed to maximize the revenue of the
aircraft during a flight.
191A popular Japanese technique which advocates continuous small

improvements involving everyone from top management to the
lowest level in the organization is called _____.
A. Ishikawa
B. Kaizen

C. Deming cycle
D. Total Quality Management
Correct Option: B
EXPLANATION
The term (which stands for improvement" in Japanese) refers to a philosophy or

practice focusing on continuous improvement in manufacturing activities and
business activities in general. When used in the business sense and applied to the
workplace
192You are a project manager planning to launch a new product in

the market. For this purpose, you are analyzing the existing products in
the market, preferably the best-in-class firms to understand their best
practices. You also compare industry standards for performance
metrics including cost, cycle time, productivity, and quality to come
up with your own product metrics. Which of the following activities are
you doing?
A. Cost Benefit Analysis
B. Value Engineering
C. Benchmarking
D. Process Analysis
Correct Option: C
EXPLANATION
Benchmarking is a management tool through which a plan for evaluation,

measurement, and improvement is implemented. It is the process of comparing
the business processes and performance metrics including cost, cycle time,
productivity, and/or quality with another industry where similar processes exist.
The objective of benchmarking is: (1) To determine what and where
improvements are called for, (2) How other firms achieve their high performance
levels, and (3) Use this information to improve the firm's performance. Option (d)
Process Analysis is a tool and technique of the quality assurance process which
involves following the steps in the quality improvement plan to identify needed
improvements. Please refer to Project Quality Management, page 281, PMBOK®
Guide Sixth Edition for more details.
193A Project Manager is working in a manufacturing company with

the centralized contracting department. Who would have the final
authority to change the contract in this case?
A. Project Manager
B. Contract Manager

C. Sponsor
D. Customer
Correct Option: B
EXPLANATION
In an organization with centralized contracting, there would usually be another

person who controls the contract, called a contract manager or contract
administrator. He is the only one with the authority to change the contract. He
also serves as the point of contact for customers on contractual matters. He acts
as a contractual middleman between company employees and customers to
ensure timely review, approval, and reconciliation of variations.
194When is the stakeholder's influence in the project MAXIMUM?

A. At the beginning
B. During the project execution
C. During the testing phase
D. At the project closure
Correct Option: A
EXPLANATION
The stakeholder's influences are highest at the beginning of the project, since the
ability to influence the final characteristics of the project without significantly
impacting the cost is highest.
195You are a project manager in a pharmaceutical company and

are managing a critical research project for your organization. This
project has a high number of stakeholders like the FDA, doctors, and
various participating NGOs. You understand that risk management is
critical for the success of the project and involve all the stakeholders
during the risk identification process. However, only 22 risks are
identified, and this is very low for your kind of project. What could be
the most plausible reason?
A. Some of the stakeholders are negative stakeholders and hence did not
participate fully in Risk Identification
B. The project manager should move to next stage as there would be more risks
found later in the project
C. The project manager did not use a standard list of risk categories to further
identify the risks
D. The project manager didn't use multiple risk identification techniques
Correct Option: C

EXPLANATION
Here the question suggests that the project manager has involved all the relevant
stakeholders in the project and still the number of risks identified are low. One of
the most plausible reasons could be that the project manager has missed entire
categories of risk which could have been avoided using risk checklists, which
contains common risk categories. Risk categories are lists of common areas or
sources of risk experienced by similar projects in the company. These are
important aids to the risk identification process, and ensure all the risk categories
are identified and analyzed for each project. Option (b) is not recommended as
the project manager is expected to proactively identify and analyze risks in the
planning stage of the project. There is no data to believe option (a) and (d) are
true.
196You are managing a multinational project with team members

across different countries and varying time zones. In this scenario, you
wish to choose a communication media which is most efficient to
project requirements. What should be the most appropriate way to
address this?
A. Explore communication tools available in the market, and ask for quotation
exclusively for your project instead of using existing tool in the organization
B. Use the most cost effective technique, and involve everyone to explain its
usage
C. Use a combination of communication technology as is done in your peer's
project
D. Discuss the communication requirements and the available options with
stakeholders to seek their inputs
Correct Option: D
EXPLANATION
It is important to have effective communication media in this project, especially

considering the team is in different geographical locations and communication
requirements are complex. It is best to take input from the stakeholders of the
project and understand their communication requirements before finalizing a
technique.
197You are a project manager working with a diverse team in

different locations. You have created work packages for your team
and have assigned them to team members as part of planning. You
are looking for a system which can be used to notify team members
that they may begin working on appropriate work packages in the
project. Which of the following tools can be helpful?
A. Resource Histogram

B. Configuration Management System

C. Change Control System
D. Work Authorization system
Correct Option: D
EXPLANATION
The work authorization system is used by the project manager to assign and
approve all project work during project execution. Most often this system for
authorizing work is a companywide system used on the project and not created
specifically for the project. The system is typically in the form of a list of formally
adopted and well-documented procedures. It details who may authorize work to
be completed and how those authorizations may be obtained.
198You have taken over as a project manager of a complex and

technically challenging project. Your team is from diverse cultures
and lacks bonding. You want the team to participate and take
ownership of the project activities from day one, as well as
understand the big picture of the project. Which of the following
activities would be most helpful?
A. Use colocation to help the team bond better, which in turn would maximize
productivity
B. Create Work Breakdown Structure (WBS)
C. Develop responsibility assignment matrix to describe roles and responsibilities
of every team member
D. Conduct knowledge sessions where each member appraise the team about
his culture
Correct Option: B
EXPLANATION
Create Work Breakdown Structure (WBS) and WBS dictionary with the team. As a
project manager, you want the team to take ownership, as well as understand
how their individual project activities affect the overall project deliverable (the
big picture). Also, you want the team to develop bonding. All these objectives
are met when the team gets involved in creating the WBS and the WBS
dictionary. Option (a) may not always be possible due to physical constraints on
the project. Option (d) has limited utility but option (b) is the best choice as it
fulfills multiple project objectives as described.
199What is the topmost source of conflict in a project?

A. Schedule
B. Project priorities

C. Administrative procedures
D. Personality
Correct Option: A
EXPLANATION
The top-ranking sources of conflict are schedules. Scheduling is probably one of

the toughest obligations of most project managers. Next on the list are project
priorities. Project Managers need to attend to the projects of the organization.
Sometimes when conflict arises, some projects are given more attention and
importance than others. Third on the list is a manpower resource. Lack of
individuals to work on a certain project may cause pressure. When people start to
feel the intensity of pressure, they also start cramming and become less
motivated to work on it. Technical conflict and administrative procedures come
next on the list. Finally, cost objectives and personality conflicts complete the list
of the seven sources of conflict.
200You are a project manager working on a strict deadline. You find

a work package on the critical path which is highly complex and
could delay the final delivery of your product. After consulting your
customer, you decide to drop this work package from the project.
Which risk response strategies do you use in this case?
A. Avoid
B. Reduction
C. Sharing
D. Retention
Correct Option: A
EXPLANATION
As a project manager, you use risk avoidance or elimination by not doing the
activity. Other approaches are reduction by mitigating the risk, sharing by
outsourcing, or insuring and retention by accepting and budgeting for project
risks.


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PMP simulation test 2 – Answers & Explanation – PMBOK 6th Edition

2Which of the following statements is true? Pick the best answer.

3A project manager, James is working in a weak matrix organization

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4Which of the following statements is NOT true about a product

Product Lifecycle Management (PLM) is the process of managing the entire

5An organization aims to increase performance by aligning goals and

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respect to these objectives and takes corrective actions when

6A firm providing outsourced product development facilities wants to

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7Which of the following statements is NOT true about a Project

8A manager is managing a collection of projects that are grouped

A portfolio refers to a collection of projects or programs grouped together to

9A project manager is mainly responsible for the coordination of

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manager to get suitable resources for his project. In which

This role is a description of a project expeditor or a project coordinator, where the

10A project manager is participating in studying the project contract

The project manager is participating in the development of project charter using

11A key responsibility of the project manager is to ensure proper

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12A project manager has invited key stakeholders and team

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14You are managing a complex project which requires some highly

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This is a characteristic of a matrix organization. In the matrix structure, the

15A project manager is visualizing, analyzing, and solving the

This is an analytical skill. Benefit realization is a set of processes defined to ensure

16A hospital is installing a new hospital management system to

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Many times, even a fundamentally functional organization may create a special

17You are a project manager on a highly visible and critical project in

18A pharmaceutical company wants to launch a new over-the-

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A. Getting an FDA approval before producing or selling the medicine

A communication constraint is usually derived from specific legislation or

19You are a project manager who is assigned to take over a project

20The previous project manager managed your project without much

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A. Develop specific work plans for each phase of the project

Project Life Cycle (PLC) is the foundation of project management control. It

21John has participated in developing a project charter for his

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23You have never managed a project before. Recently, you are

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25A project manager is using an S-curve to reflect the various

The S-curve is used in project management as a means of representing the

26Quality management plan and quality standards are defined

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28A project manager is in the process of developing a detailed

29A project manager is creating a project Work Breakdown Structure

In many projects a detailed description of a deliverable may not be available at

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30A project manager is in the process of analyzing activity sequences,

31As a project manager, you are estimating the duration of your

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32As a project manager, you are determining the resource

34A project team is working on defining and sequencing activities of

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obtain a realistic project schedule, so they can start tracking. What

It is important that every activity and milestone on the project be connected to

35A project team has created a comprehensive list of schedule