PMP Answer Set 3

Answers to PMP Question Set – 3 Page 1 of 38
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PMI-PMP® QUESTION SET – 3
Sujoy Dutta, PMP http://www.sujoydutta.in 1

Answers and explanations of 133 questions.

a) Answers are highlighted.
b) Explanations are given where necessary. Wherever an answer is self-explanatory, it is not
elaborated.
Answers
1. A project team member is complaining to another team member that so many people are
asking him to do things. If he works in a functional organization, who has power to direct
the team members?
A) Project manager
B) Functional manager
C) Team
D) Tight matrix
2. Who has most power in a projectized organization?

A) Project manager
B) Functional manager
C) Team
D) They all share power
3. All the following relate to stakeholder management except:

A) Giving stakeholder extras
B) Identifying stakeholders
C) Determining their needs
D) Managing stakeholders’ expectations
4. A project manager is managing his second project. It started one month after the first and
both are ongoing. Although his first project is small, but the second one is growing in size
every day. As each day passes, the project manager is beginning to feel more and more
need for help. He has recently heard that there was another project in the company similar
to his second project. What should he do?
A) Contact the other project manager and ask for assistance
B) Obtain historical records and guidance from PMO
C) Wait to see if the project is impacted by the growth in scope
D) Make sure the scope for the project is agreed to by all the stakeholders
Explanation: Since you have heard there had been a project similar to your second
project, which is in trouble, you should see how it was done. Your first project is going
on all right.
5. Stakeholders should be identified in which project management process groups?

A) Initiating, planning, executing, monitoring and controlling, and closing
B) Initiating
C) Planning and monitoring and controlling
D) Monitoring and controlling and closing

Explanation: Stakeholders should be identified right in the beginning of the project.

That is the reason why a new process has been added in PMBOK-2008, Fourth Edition.
Name of the process: “Identify Stakeholders”. This process comes under Initiation
Process Group. As soon as a project manager has been given charter, his/her duty is to
identify stakeholders, and make stakeholder register and stakeholder management
strategy.
6. You are a project manager and asked to make presentation on the subject of changes. On
which of the following items you will place maximum attention?
A) Making changes
B) Tracking and recording changes
C) Informing the sponsor of changes
D) Preventing unnecessary changes
Explanation: Does the question say changes are occurring? No! Then, why should you
choose anyone of A, B, or C as answer. You are delivering a lecture or talk on the topic
of changes. What will you emphasize in your talk? Definitely you will emphasize that we
should try to avoid unnecessary changes. Unnecessary changes happen because of bad
planning! Missed some requirement at the time of collecting the requirements.
Whenever you discover it later on, it would lead to unnecessary changes. Failed to
define an activity of a work package. Whenever you discover it later on, it will lead to
unnecessary changes. Please read the questions carefully.
7. A project is plagued by changes to the project charter. Who has the authority to decide if
these changes are necessary:
A) Project manager
B) Project team
C) Sponsor
D) Stakeholders
Explanation: The only person authorized in the case of charter is sponsor!
8. You have identified stakeholders, collected their requirements. What is the next thing to
do?
A. Develop activity list
B. Create WBS
C. Create Scope statement
D. Manage stakeholder expectations
Explanation: it’s a good question and you will get at least 5-6 such questions in the exam.
You should know in what sequence processes occur, and it not difficult. See the sequence:
Develop Project Charter, Identify Stakeholders, Collect requirements, Define Scope, Create
WBS, Define Activities. Another way of looking at sequence is according to what do we
make in each process.
Process Output
Develop Project Project Charter
Charter
Identify Stakeholders Stakeholder register, stakeholder
management strategy
Collect Requirements Requirements documentation,
requirements traceability matrix
Define Scope Scope statement
Create WBS WBS, WBS dictionary, Scope baseline
Define Activities Activity list, activity attributes
Please remember above chart for sure question.
9. All the following statements are true about the project manager assignment and
involvement EXCEPT:
A. Identified and assigned as early in the project as feasible
B. Preferably while the charter is being developed
C. Should participate in the development of the project charter
D. Preferably after the charter is fully developed to provide him opportunity to
understand all expectations
Explanation: Generally, project manager is identified and assigned at the time of formation
of the charter so that he/she can give inputs in the development of the charter. Note the
word, preferably. It is preferable to identify and assign the project manager during
formation of charter not after it is made because then it will miss contribution of the
project manager in the charter development. Project manager should be identified and
assigned as early as possible.
10. While developing project charter you need to determine whether or not the project is
worth investment. The business need and the cost-benefit analysis are provided from the
business case document. The business case is created as a result of one or more of the
following EXCEPT:
A. Organizational need
B. Historical need
C. Legal need
D. Technological need
Explanation: First understand Business Case. Business Case defines attractiveness of the
project and for which need it is being undertaken. Projects are taken up to meet the need.
The needs are:
Market demand, customer request, business need or organizational need, technological
advance, legal requirement, ecological need, social need. There is nothing called historical
need.
11. A particular stakeholder has a reputation for making many changes on projects. What is
the best approach a project manager can take at the beginning of the project to manage
this situation:
A) Say ‘No’ to the stakeholder a few times to dissuade him from submitting more
changes
B) Get the stakeholder involved in the project as early as possible
C) Talk to the stakeholder’s boss to find ways to direct the stakeholder’s activities to
another project
D) Ask that the stakeholder not be included in the stakeholder listing

Explanation: it is a good question! The approach here is to involve the stakeholder as

early as possible, understand all his/her needs and expectations, so that it does not
lead to the situation described in the question.
12. You are a new project manager who has never managed a project before. You have been
asked to plan a new project. It would be best in this situation to rely on____during
planning in order to improve your chance of success:
A) Your intuition and training
B) Stakeholder analysis
C) Historical information
D) Configuration management
Explanation: If you had done something earlier you can learn from historical
information on how such projects were managed in the past.
13. This project is charted to determine new ways to extend the product life cycle of one of the
company’s medium-producing products. The product manager comes from the engineering
department and the team comes from product management and marketing departments.
The project scope statement and project planning are completed when the product
manager notifies the team member that there is a better way to complete one of the work
packages. They even supply a technical review letter from the department proving that the
new way to complete the work package will be faster than the old way. The project
manager has had similar experiences with this department on the other projects, and was
expecting this to happen on this project. What is the first thing the project manager should
do?
A) Contact the department and complain again about their missing the deadline for
submission of scope
B) Look for how this schedule change will impact the cost to complete the work
package and the quality of the product of the work package
C) See if there is a way to change from a matrix environment to functional
organization so as to eliminate all interfaces from other departments
D) Ask the department if they have any other changes
Explanation: The first thing is impact analysis! Evaluate the impact on other
components of triple constraint. Try to find real question from bulky language.
Sometimes, bulky language is only to tire you and you lose track of where question
begins or what the actual question is! If your fundamentals are clear, you cant be
carried away.
14. A project manager is trying to convince management to use project management and has
decided to start improving the company’s project management by obtaining a project
charter. Which of the following best describes why the project charter would help the
project manager?
A) It describes the details of what needs to be done
B) It lists the names of all team members
C) It gives the project manager authority
D) It describes the project’s history

Explanation: Clearly the answer is C. The project charter authorizes the project
manager to use resources for completing the project successfully. Charter does not
describe details of what needs to be done. It only describes high-level schedule,
budget, and high-level product description. Details are fleshed out during planning.
Charter also does not contain names of team members. During planning, you estimate
resources and acquire them from resource pool of the company. Then only you know
the names of team members.
15. It takes lot of time and energy to identify the stakeholders, understand their interests and
influence on the project. In which process group stakeholder register and stakeholder
management strategy are formulated?
A) Initiating and planning
B) Initiating, planning, and executing
C) Initiating
D) Initiating, planning, executing, monitoring and controlling, and closing
Explanation: Initiating Process Group consists of two processes: 1) Develop Project

Charter, 2) Identify Stakeholders. Stakeholder register and stakeholder management
strategy are outputs of Identify Stakeholders process. Please note, you definitely get
questions on Identify Stakeholders process and Collect Requirements process, as they
have been included for the first time in PMBOK- Fourth Edition.
16. It is critical for project success to identify the stakeholders and understand all their
requirements. Stakeholder analysis would result into formulation of a stakeholder register.
All the following would be mentioned in the stakeholder register EXCEPT:
A) Stakeholder requirements
B) Stakeholder identification number
C) Stakeholder assessment information
D) Stakeholder classification information
Explanation: During the process called Identify Stakeholders, we find stakeholders,

their interest and influence on the project and we write all this information in
stakeholder register. The details written in stakeholder register:
 Identification information
 Assessment information
 Stakeholder classification
After identifying the stakeholders, we conduct a process called Collect Requirements.
Here,
we interview them, brainstorm with them and use many interaction techniques to
understand
their requirements. So, stakeholder requirements are fleshed out during Collect
Requirements
process.
17. A work breakdown structure numbering system allows project staff to:
A. Systematically estimate costs of WBS elements
B. Provide project justification
C. Identify the level at which individual elements are found
D. Use it in project management software
Explanation: Answer is obvious enough. WBS numbering system helps us to know the level
at which a work element is located on WBS. Remember it.
18. The WBS can best be thought of as an effective aid for_____communications with the:
A) Team
B) Project manager
C) Customer
D) Stakeholders
Explanation: WBS contains detailing of all the work that is to be done for completing
the project and meeting all requirements. Work not shown in WBS is outside the
project. It is very important that you show your detailing of work (WBS) to all
stakeholders so that no stakeholder’s needs and expectations are missing. You also
have to take their formal consent of WBS. Hence, WBS needs to be communicated to
all stakeholders whether internal or external. Once your WBS is approved, it leads to
formation of Scope Baseline. If you don’t do so, then your detailing of work is open-
ended and may change at any time, leading to time and cost overruns, quality
problems and new risks. After your WBS is seen, consented and approved, then any
addition of work has to come as a change request and the work can be added only
though change control procedure.
19. During project executing, a team member comes to the project manager because he is not
sure of what work he needs to accomplish on the project. Which of the following
documents contain detailed descriptions of work packages?
A) WBS dictionary
B) Activity list
C) Project scope statement
D) Project scope management plan
Explanation: Answer is obvious enough. Remember it. It is important.
20. A new project manager is being mentored by a more experienced PMP. The new project
manager is finding it difficult to enough find time to manage the project because the
product scope and project scope are being progressively elaborated. The PMP mentions
that the basic tools for project management, such as a WBS, can be used during project
executing to assist the project. For which of the following a WBS is used?
A) Communicating with the customer
B) Showing calendar dates for each work package
C) Showing functional manager for each team member
D) Showing the business need for the project
Explanation: Business need is written in the charter, not WBS. WBS does not show
functional manager for each team member. It is the job of HR Planning. Calendar dates
are written on the schedule not WBS. By elimination, answer is A. Even otherwise; you
will communicate your WBS to the customer and take his/her approval before
proceeding. Why? Because WBS is the foundation of all planning, execution and
monitoring and controlling, and closing. During planning, you estimate time and cost
for the work detailed out in WBS. During execution, you do work as mentioned in WBS.
During monitoring and controlling, scope performance is judged against what was
planned in WBS. During closing, all the completed scope is verified from WBS.
21. During a project team meeting, a team member suggests an enhancement to the scope
that is beyond the scope of the charter. The project manager points out that the team
needs to concentrate on completing all the work and only the work required. This is an
example of:
A) Change management process
B) Scope management
C) Quality analysis
D) Scope decomposition
Explanation: The definition of scope management. Scope management includes

processes required to ensure that the project includes all the work required, and only
the work required, to complete the project successfully. Managing the project scope is
concerned with defining and controlling WHAT IS AND IS NOT INCLUDED in the project.
If you are being told to concentrate on completing all the work and ONLY THE WORK
REQUIRED, you are working in the area of scope management. You are requested to
note down in a separate notebook the first sentence given in PMBOK-fourth edition
about definition of each process, and all the processes of that knowledge area. It will
help you a lot if do it bit more. Take print of introductory pages of all the knowledge
areas and read them very well. Many questions will come testing that knowledge. The
question has nothing to do with change management process as concentrating on all
the work required and only the work required is not change control. What is meaning
of change control? The meaning is checking performance and managing changes. Here,
no changes are happening and performance will be checked only after you do the work.
It has nothing to do with quality analysis either. Scope decomposition is not any term
used in entire PMBOK. Yes, major deliverables are decomposed into smaller ones when
developing WBS. In that sense, you can take it. But concentrating on all the work
required and only the work required means WBS is already made.
22. You have just joined the project management office after five years of working on projects.
One of the things you want to introduce to your company is the need to do WBSs. Some of
the project managers are angry that you are asking them to do extra work. Which of the
following would be best thing you could tell the project managers to convince them to use
WBSs?
A) Tell them it will prevent work from slipping through the cracks
B) Tell them it is not needed
C) Tell them it is required if the project involves contracts
D) Tell them it is the only way to identify risks
Explanation: Use of WBS is popular because you are able to capture all the work that
needs to be done to complete the project. When you do you so, you don’t miss out any
work. Hence there is no gap in detailing of work. If there any gap and you realize it later
on, the work will slip through that gap (this will happen when you do not make WBS). .
The advantage of WBS is that it is hierarchy of work in a pictorial form and there are no
chances that detailing of work will be incomplete. Further, WBS is made by team and so
many experts, performer level people (who keep on doing such projects), put their
efforts to make it. Choice B is useless because WBS is a must. Choice C is also useless
because contract or no contract WBS is needed in all the cases. Why D cannot be the
answer? Think! If you want to identify risk related to scope, you need to review WBS. If
you want to understand risk related to schedule, you need to review detailed schedule.
if you want to know risk related to cost, you should review detailed costing. And if you
want to know risk related to quality, please review your detailed quality planning. So
WBS is one of the ways, not the only way, to identify risks. Hence, it is not the answer.
But please don not think that WBS is not needed to identify risks. it helps you
understand risks related to scope, but not schedule risks or cost risks or quality risks.
23. To manage a project effectively, work should be broken down into small pieces. Which of
the following does not describe how far to decompose the work?
A) Until it has a meaningful conclusion
B) Until it cannot be logically subdivided further
C) Until it can be done by one person
D) Until it can be realistically estimated
Explanation: Remember two principles of making WBS? When we make WBS, we

decompose phases or major deliverables into smaller pieces till it reaches meaningful
conclusion. What is this meaningful conclusion? The meaningful conclusion is that the
work has becomes assignable size and it can be estimates accurately. So, we will
decompose till it reaches meaningful conclusion, till cannot be logically subdivided, it
can be estimates realistically (choices A, B, and D). Choice C does not describe how far
to decompose. WBS is never decomposed to a level that the work packages are done
by one person. The thumb rule is work package should not be smaller than 8 hours and
not bigger than 80 hours. It is called 8/80 rule. Remember it.
24. A project manager has just been assigned to a new project and has been given the
requirements documentation, requirements traceability matrix and project charter. The
first thing the project manager must do is:
A) Create a project scope statement
B) Confirm that all the stakeholders have had input to the work accomplished so far
C) Analyze project risk
D) Begin work on project management plan
Explanation: What is the key point in this question? The key point is that you have been
newly assigned to a project where some work had already been done. What is your
duty as a new project manager? Naturally to take next step (next step after
requirements is making scope statement). But since you are newly assigned, you
would sure introduce yourself with the stakeholders saying: “I have taken over the
project now as new project manager. So much work has already been done and my
next step is so and so. And I hope you all have been duly involved in the work done so
far, your inputs have already been taken’. OR you would go straight, without
introducing yourself and asking their involvement in the work done so far, and just take
next step? It is a good practical question! Remember at whatever stage you take over a
project where some work has already been done, your first duty is to introduce
yourself and cross-check with stakeholders.
25. All of the following are part of the scope baseline except:
A) Project scope management plan

B) Project scope statement
C) WBS
D) WBS dictionary
Explanation: Answer is too obvious. Remember what all inside scope baseline.
26. The WBS and WBS dictionary are completed. The sponsor contacts the project manager,
requesting that schedule and responsibility assignment matrix be issued. The project has a
budget of USD 900,000 and is taking place in three countries using 21 human resources.
There is little risk expected on the project and the project manager has managed many
similar projects. What is the next thing to do?
A. Understand the experience of sponsor on similar projects.
B. Create an activity list.
C. Make sure the project scope is well defined.
D. Complete risk management and issue responsibility assignment matrix.
Explanation: Again a good question! Can you find question out of all the description? The
question is asking what the next after WBS, WBS dictionary is made. Again it is testing your
knowledge of sequence of processes. After you create WBS, immediate next step is to
define activities for each work package that would give you activity list, a list of activities to
be done on the project. Refer explanation at question number 8.
27. To control schedule, a project manager is reanalyzing the project to predict project
duration. He does this by analyzing the sequence of activities having no scheduling
flexibility. What technique he is using:
A. Critical path method
B. Flow chart
C. Precedence diagramming
D. WBS
Explanation: In Critical Path technique, you find duration of the project by calculating time to
be taken by critical path activities which have no scheduling flexibility. Remember that critical
path activities have no scheduling flexibility, or no float/slack!
28. A dependency requiring that design be completed before manufacturing can start is an
example of:
A) Discretionary dependency
B) External dependency
C) Mandatory dependency
D) Scope dependency
Explanation: Answer is too obvious. It is mandatory dependency.
29. Which of the following are generally illustrated better by bar charts than network
diagrams:
A) Logical relationships
B) Critical paths
C) Resource trade-offs
D) Progress or status
Explanation: We use network diagram when we need to show logical relationships

between activities. We use bar chart or Gannt Chart when we need to report status or
progress. We use milestone chart when we need to report to management.
30. If optimistic estimate for an activity is 12 days, and pessimistic is 18 days, what is the
standard deviation of this activity:
A) 1
B) 1.3
C) 6
D) 3
Explanation: Standard deviation = P – O / 6.
31. Lag means:

A) Amount of time an activity can be delayed without delaying project completion
date
B) Amount of time an activity can be delayed without delaying early start date of its
successor
C) Waiting time
D) Product of a forward pass and backward pass
Explanation: Lag means waiting time between two activities.
32. What is the duration of a milestone:

A) Shorter than the duration of the longest activity
B) Shorter than the activity it represents
C) There is no duration
D) Same length as the activity it represents
Explanation: You must be remembering it that duration of milestone is zero. It is a point

in time.
33. Which of the following best describes the relationship between standard deviation and
risk:
A) Tells you if the estimate is accurate
B) Tells you how unsure the estimate is
C) Tells you if the estimate includes a pad
D) Tells nothing
Explanation: Standard deviation tells you how much it is unsure, to the extent of
deviation.
34. Monte Carlo analysis is used to:

A) Get an indication of risk involved in the project
B) Estimate an activity’s length
C) Simulate the order in which activities occur

D) Prove to management that extra staff is needed
Explanation: Monte Carlo software is not used to estimate an activity’s length. Length
means duration. You have to provide three type of duration of each activity as input to
Monte Carlo. Optimistic duration, pessimistic duration and most likely duration. Monte
carlo is also not used to make network diagram (that is simulate the order in which
activities would occur). Rather, you have to give PDM network diagram as input to
Monte Carlo. Monte carlo is also not used for proving to management that extra staff is
needed. Monte Carlo gives an idea of risk involved in the project. What are the changes
of achieving project schedule in the given adverse conditions? It helps to decide
contingency.
35. When would a milestone chart be used instead of a bar chart:

A) Project planning
B) Reporting to team members
C) Reporting to management
D) Risk analysis
Explanation: It has already been explained.
36. A project manager is trying to coordinate all the activities on the project and has
determined the following: Activity 1 can start immediately and has an estimated duration
of one week. Activity 2 can start after activity 1 is completed and has an estimated
duration of four weeks. Activity 3 can start after activity 2 is completed and has an
estimated duration of five weeks. Activity 4 can start after activity 1 is completed and has
an estimated duration of eight weeks. Both activities 3 and 4 must be completed before
the end of the project. What is the duration of the critical path fro this project:
A) 10
B) 11
C) 14
D) 8
Explanation: It is a simple diagram. Make it and check answer.
37. Based on the data in question above, if activity 4 takes 10 weeks, what is the duration of
the critical path:
A) 10
B) 11
C) 14
D) 8
Explanation: It is a simple diagram. Make it and check answer.
38. You are a project manager on a Rs. 80,000,000 software development project. While
working with your project team to develop a network diagram, you notice a series of
activities that can be worked in parallel but must finish in a sequence. What type of activity
sequencing method is required for these activities:
A) Precedence diagramming method

B) Fishbone diagramming method
C) Critical path method
D) Operational diagramming method
Explanation: If two activities are being done in parallel and the condition is that they
must finish in a sequence, then the only possible sequence is Finish-to-Finish. Since this
sequence comes under Precedence Diagramming Method, therefore we require it.
Other choices are distracters.
39. A project manager has received activity duration estimates and network diagram from his
team. Which of the following does he need in order to complete schedule development:
A. Activity list
B. Schedule change control system
C. Recommended corrective actions
D. Reserves
Explanation: Only after making activity list, you make network diagram of activities and
estimate durations for these activities. So activity list had already been made. Change
control system and corrective actions come in picture during monitoring and controlling
whereas you in planning only, developing schedule. so choices B and C are also not
relevant. What is left now is choice d. yes, of course you would add reserve of time in the
schedule for dealing with risks. time contingency or time reserve will always be part of your
schedule.
40. The main focus of life cycle costing is to:

A) Estimate installation costs
B) Estimate the cost of operations and maintenance
C) Consider installation costs when planning the project costs
D) Consider operations and maintenance costs in making project decisions
Explanation: All good companies follow Life cycle costing. When they take up a project
they do consider how they can reduce cost of operation and maintenance when the
product made by project is used. They do consider this aspect and take some decisions
at project stage, such as conducting more design reviews. So that when the product
delivered by project is used. It consumes less operating and maintenance cost.
41. How close to actual costs should a definitive budget estimate be?
A) –75 percent to +25 percent
B) –10 percent to +15 percent
C) +10 percent to – 25 percent
D) -5 percent to +10 percent
Explanation: Definitive estimate is +10% to –15%.
42. Value analysis is performed to get:

A. More value from the cost analysis
B. Management to buy into the project
C. Team to buy into the project

D. A less costly way of doing the same work
Explanation: Value analysis means finding out less costly way of doing same work.
43. The seller tells you that your activities have resulted in an increase in their cost. You
should:
A. Recommend a change to the project costs
B. Have a meeting with the management to find out what to do
C. Ask the seller for supporting information
D. Deny any wrongdoing
Explanation: It is a common sense question. Needs no explanation.
44. All the following are forms of powers derived from project manager’s position except:
A. Formal
B. Reward
C. Penalty
D. Expert
Explanation: Position powers are: Formal, Reward and Penalty. Expert and referent powers
are not position powers.
45. The highest point of Maslow’s hierarchy of needs is:

A) Physiological satisfaction
B) Attainment of survival
C) Need for association
D) Esteem
Explanation: Highest among the given is esteem. Don’t confuse attainment of survival
with self-actualization. Attainment of survival is very low level where you are struggling
for survival.
46. A team is using a fishbone diagram to help determine what quality standards will be used
on the project. What part of quality management process are they in?
A) Perform quality control
B) Perform quality assurance
C) Quality planning
D) Variable analysis
Explanation: it is too obvious. During quality planning, you decide which standards are
to be used for the project.
47. A manager notices that a project manager is holding a meeting with some of the team
members and some stakeholders to discuss the quality of the project. The project schedule
has been compressed and the CPI is 1.1. They have worked hard on the project, the team
has been rewarded according to the reward system the project manager put in place and
there is a strong sense of team. The manager suggests that the project manager does have
enough time to hold meeting about quality when the schedule is so compressed. Which of
the following describes why the manager is wrong?
A) Improved quality leads to increased productivity, increased cost effectiveness, and
increased cost risk
B) Improved quality leads to increased productivity, decreased cost effectiveness and
increased cost risk
C) Improved quality leads to increased productivity, increased cost effectiveness and
decreased cost risk
D) Improved quality leads to increased productivity, decreased cost effectiveness and
decreased cost risk
Explanation: The only correct statement is C. Others have something wrong.
48. All of the following are examples of the cost of nonconformance except:
A) Rework
B) Quality training
C) Scrap
D) Warranty costs
Explanation: Quality training is cost of conformance. Others are cost of non-

conformance.
49. A control chart shows seven data points in a row on one side of the mean. What should be
done?
A) Perform a design of experiments
B) Adjust the chart to reflect the new mean
C) Find an assignable cause
D) Nothing. This is the rule of seven and can be ignored.
Explanation: it is rule of seven situation. It means that the process is out of control and
we must find assignable cause.
50. You are managing a project in a just in time environment. This will require more attention
because the amount of inventory in such an environment is generally:
A) 45%
B) 10%
C) 12%
D) 0%
Explanation: In just-in-time scenario inventory is zero. Materials arrive just as they are
required for production.
51. A project manager is using a cause and effect diagram with the team to determine how
various factors might be linked to potential problems. In what part of the quality
management process is the project manager involved?
A) Quality analysis
B) Performa quality assurance
C) Perform quality control
D) Quality planning
Explanation: You are wanting to know reasons for what all may cause future (potential)
quality problems so that you plan your quality in such a way that these problems do
not happen. You are in quality planning.
52. A project manager and team from a firm that designs railroad equipment are tasked to
design a machine to load stone onto railroad cars. The design allows 2% spillage,
amounting to over two tons of spilled rock per day. In which of the following does the
project manager document quality control, quality assurance and quality improvements for
this project?
A) Quality management plan
B) Quality policy
C) Control charts
D) Project management plan
Explanation: Quality management plan describes how quality assurance, control, and
improvement should be done. Remember, you will get one question on quality
management plan.
53. During a team meeting, the team adds a specific area of extra work to the project because
they determined it would benefit the customer. What is wrong in this situation?
A) The team is gold plating
B) These efforts should not be done in meetings
C) Nothing. This is how to meet or exceed customer expectations
D) Nothing. The project manager is in control of the situation.
Explanation: Nothing extra should be added. If anything extra is demanded, it would

come as a change request. Impact analysis would be done and it would be formally
approved. If any extra thing is formally approved for implementation, it becomes part
of requirements and then it is not called extra. You must not allow anything to be
added from your side. It is called gold-platting and prohibited.
54. You are a project manager for a major information technology systems project when
someone from the quality department comes to see you about beginning a quality audit of
your project. The team, already under pressure to complete the project as soon as
possible, objects to the audit. You should explain to the team that the purpose of a quality
audit is:
A) Part of an ISO 9000 investigation
B) To check if the customer is following its quality process
C) To identify inefficient and ineffective policies
D) To check the accuracy of costs submitted by the team
Explanation: The answer is too obvious. Read quality audit.
55. The project has been challenging to manage. Everyone has been on edge to complete the
project on time. Unfortunately, the tension has grown to the point where team meetings
have become shouting matches and little work is accomplished during the meetings. One
team member asks to be excused from future team meetings, as all the shouting upsets
him. Meanwhile, the project sponsor has asked to attend team meetings in order to better
understand how the project is going on and the issues involved in completing the project.
In this situation, it would be best for the project manager to:
A. Ask the sponsor if information needed could be sent in a report rather than have him
attend the meeting
B. Inform the team member who asked to be excused from the meetings of the value of
communication in such meetings
C. Create new ground rules for the meetings and introduce them to the team
D. Hold a team building exercise that involves all team members
Explanation: The meeting is happening in a disorganized manner. You must make new rules
and conduct meetings properly. It is not a question of team building. Even best teams can
fight and create havoc if meeting are conducted properly.
56. Conflict resolution techniques that may be used on a project include confronting,
smoothing, forcing and:
A. Withdrawing
B. Directing
C. Organizing
D. Controlling
Explanation: he answer is too obvious. Revise various conflict resolution techniques.
57. Work on a project is going on when the project manager overhears two workers arguing
over what a set of instructions mean. The project manager investigates and discovers that
the instructions for the construction of concrete footings currently being poured were
poorly translated between different languages in use on the project. Which of the
following is the best thing for the project manager to do first?
A. Get the instructions translated by a more experienced party
B. Look for quality impact of the poor translation of instructions for the footings
C. Distribute this information to all stakeholders as everyone needs to know problems
D. Inform sponsor of the problem in the next project report
Explanation: Sure your first reaction would be where else it has caused damage. Definitely
you would get correct translation done, distribute the information, inform sponsor. But
first you would like to know the damage yourself and then take corrective action to get it
correctly translated.
58. A project manager is trying to settle a dispute between two team members. One says the
system should be integrated before testing, and the other maintains each system should
be tested before integration. The project involves over 50 people and 16 systems need to
be integrated. The sponsor is demanding that integration happen on time. What is the best
statement the project manager can make to resolve the conflict?
A. Do it my way
B. Let’s calm down and get the job done
C. Let’s deal with this again next week after we all calm down
D. Let’s do examine both options and facilitate workable solution

Explanation: The best method of conflict resolution is problem solving method or

confrontation where each point of view is objectively examined and analyzed and a correct
workable solution is arrived at.
59. The project is just starting out and consists of people from 16 different departments. The
project charter was signed by one person and contains over 32 major requirements that
must be met on the project. The sponsor has informed the project manager that the SPI
must be kept between 0.96 and 1.2. A few minutes of investigation resulted in
identification of 38 stakeholders, and the schedule objectives on the project are
constrained. A project manager has just been hired. Which of the following project
management power will best help the project manager gain the cooperation of others?
A. Formal
B. Referent
C. Penalty
D. Expert
Explanation: The key point here is that the project manager has just been hired. The only
power he/she can use if formal power. You will not immediately penalize or reward. It will
take time to impress people with your expertise. It will take time to develop relations with
senior management to have referent power.
60. The new project is exciting to both the project manager and the team. This is the project
manager’s first assignment as project manager. The team has the feeling that they will be
able to complete the work that has never been tried before. There are 26 people
contributing to the product description and the team consists of eleven highly experienced
experts in their field. Part of the way through planning, three highly technical team
members are disagreeing about the scope of two deliverables. One is pointing to the draft
WBS and saying that two additional work packages should be added. Another is saying that
a particular work package should not be done. The third team member agrees with both of
them. How should the project manager best del with the conflict?
A. He should listen to the differences of opinion, determine the best choice himself, and
implement the choice
B. He should postpone further discussions, meet with each individual, and determine the
best approach
C. He should listen to the differences of opinions, encourage logical discussions, and
facilitate agreement
D. He should help the team focus on agreeable aspects of their opinions and build unity by
using relaxation techniques and common focus team building
Explanation: Answer is obvious. The best method is C.
61. A project manager has just found out that a major subcontractor for her project is
consistently late delivering work. The project team member responsible for this part of the
project does not get along with the subcontractor. To resolve the problem, the project
manager says, “you both will have to give up something to solve this problem.” What
conflict resolution method is being used?
A. Confrontation
B. Compromise
C. Smoothing
D. Communicating
Explanation: Compromise is lose-lose technique.
62. A project manager must publish a project schedule. Activities, start/end times and
resources are identified. What should the project manager do next?
A. Distribute project schedule according to the communications management plan
B. Confirm the availability of resources
C. Refine the project management plan to reflect more accurate cost information
D. Publish a bar chart illustrating the timeline
Explanation: Schedule continues to be preliminary until availability of resources is

confirmed.
63. What does a resource histogram show that a RAM does not?
A. Time
B. Activity
C. Interrelationships
D. The person in charge of each activity
Explanation: RAM shows roles and responsibilities but not time when these roles will be
done. Time is shown by resource histogram because resource histogram is timetable of
using people on the project.
64. The most common causes of conflict on a project are schedules, project priorities, and:
A. Personalities
B. Resources
C. Cost
D. Management
Explanation: Most common conflict issues: SPRT. Refer notes.
65. An obstacle to team building in matrix organization is that the:

A. Team is technically focused
B. Team members are borrowed resources and can be hard to motivate
C. Teams are too centralized
D. Teams are too large and therefore very hard to handle
Explanation: In matrix organization (read balanced matrix if no indication of weak or

strong), the problem is that resources come from various functional departments and they
have their belongingness to their respective departments. Therefore, it is difficult for the
project manager to motivate them.
66. The “halo effect” refers to the tendency to:

A. Promote from within
B. Hire the best

C. Move people into project management because they are good in their technical field
D. Move people into project management because they have had project management
training
Explanation: Halo effect is a natural tendency to believe that if someone has done well in
one area will do well in any other area.
67. A project manager had a complex problem to solve and made a decision about what
needed to be done. A few months later, the problem resurfaced. What did the project
manager most likely not do?
A. Analyze the problem
B. Confirm that the solution solved the problem
C. Find solution
D. Implement solution
Explanation: Problem solving steps are 1) Define problem, 2) Find solutions, 3) Implement
solution; 4) Cross-check that solution has solved the problem. If you had done 4th step, the
problem would not have come again because in crosschecking deficiency at any of 1 st, 2nd,
or 3rd step would have been detected. Please remember there are engineering manuals for
crosschecking that solution has solved the problem.
68. The project CPI is 1.03, the benefit cost ratio is 1.8 and the latest round of performance
reviews identified few needed adjustments. The project team was co-located into a new
building when the project started. Everyone commented on how excited they were to have
all new facilities. The sponsor is providing adequate support for the project and few
unidentified risks have occurred. In an attempt to improve performance, the project
manager spends part of the project budget on new chairs for team members and adds the
term “senior” to each team member’s job title. Which of the following is the most correct
thing that can be said of this project or the project manager?
A. The project manager has misunderstood Herzberg’s theory
B. The project is slowly spending more money than it should. The project manager should
begin to watch costs more carefully.
C. The performance review should be handled better to find more adjustments
D. The project manager should use good judgment to determine which variances are
important
Explanation: Have you read all motivational theories given in the paper? What is the issue
here? Project is going great. Project manager thinks just adding “senior” before the title of
team members would motivate them. He has misunderstood Herzberg’s theory because
working conditions, title, pay increase, etc are maintenance factors not motivating factors.
What motivates is challenging and interesting work, professional appreciation and
advancement not simply, without changing anything, just putting senior would motivate.
69. WBS can be an effective aid for communication in which situation:

A) Internal within project team
B) Internal within organization
C) External with customer
D) Internal and external to the project

Explanation: WBS must be communicated to all stakeholders whether internal or

external.
70. Communications are often enhanced when the sender_______the receiver:

A. Speaks up to
B. Uses more physical movements when talking to
C. Talks slowly to
D. Shows concern for the perspective of
Explanation: what did you think to be the best answer? Communication happens best
when you show/appreciate perspective of the receiver. Perspective of any receiver is made
up of his/her concerns/worries, education, culture, background, likes and dislikes.
71. A project manager has a problem with the team member’s performance. What is the best
form of communication for addressing this problem if this is the first time?
A. Formal written
B. Formal verbal
C. Informal written
D. Informal verbal
Explanation: Obviously informal verbal.
72. Communication is the key to the success of a project. As the project manager, you have
three stakeholders with whom you need to communicate. As such, you have six channels
of communication. A new stakeholder has been added that you also need to communicate
with. How many communication channels you have now?
A. 7
B. 10
C. 12
D. 16
Explanation: In the communication loop, we have one project and three stakeholders. One
more has increased. How many we have now. Five. Using communication channels
formula. Communication channels = N (N-1) / 2 will give us 10.
73. The project team meeting is not going well. Everyone is talking at the same time, there are
people who are not participating and many topics are being discussed at random. Which of
the following rules for effective meetings is not being adhered to?
A. Demonstrate courtesy and consideration of each other, control who is allowed to speak
B. Schedule meetings in advance
C. Have a purpose for the meeting, with the right people in attendance
D. Create and publish an agenda and a set of rules for controlling the meeting
Explanation: Answer is obvious. Meeting is not happening in an organized manner. So you

must organize it well.

74. A project manager overhears a conversation between two stakeholders about how
unhappy they are with the impacts of the project on their own departments. Stakeholder A
asks if the project is on time and stakeholder B replies that the SPI is 1.06 (project is ahead
of schedule). Stakeholder A asks if the project manager for the project knows of
stakeholder B’s concern. Stakeholder B responds that he is not sure. What is the best thing
for the project manager to do?
A. Make sure the stakeholders see that the project manager overheard and then ask them
to direct any questions to the project manager in writing
B. Make presentation to all the stakeholders about the status of the project
C. Send both stakeholders a copy of the issue log and ask for additional comments
D. Arrange a meeting with both the stakeholders to allow them to voice any concern
they may have
Explanation: What is the problem here? Two stakeholders are unhappy because your
project is making their departmental work suffer because resources from these
departments are drawn from their departments. Your project is doing very well. SPI is 1.06
means project is ahead of schedule. SPI 1 means on schedule, more than 1 means ahead of
schedule, less than 1 means behind schedule. One stakeholder are also asking the other
whether the project manager knows about their departmental work is suffering and he say
he is not sure. What should the project manager do? The project manager must meet them
and understand their issues and assure how issues can be resolved. None of the other
choice address the problem.
75. All the following are factors in assessment of project risk except:
A. Risk event
B. Risk probability
C. Amount at stake
D. Insurance premium
Explanation: Risk assessment means finding out probability and impact of the risk. Impact
is also called amount at stake. Insurance is risk response strategy, which is decided after
risk is assessed.
76. If a project has 60% chance of a Rs. 2,00,000 profit and a 40% chance of a Rs. 2,00,000 loss,
the expected monetary value for the project is:
A. Rs. 2,00,000 profit
B. Rs. 120,000 loss
C. Rs. 40,000 profit
D. Rs. 80,000 loss
Explanation: Expected monetary value = P x I + P x I. Here EMV = 60% x Rs.2,00,000 + (-

40% x Rs.2,00,000) = Rs.1,20,000 + (- Rs.80,000) = Rs.40,000. Minus sign is put because 40%
is loss. Gain is positive, loss is negative.
77. Assuming that the ends of a range are +/- 3 sigma from the mean, which of the following
range estimates involves least risk:
A. 30 days, plus or minus 5 days
B. 22-30 days

C. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days

D. Mean of 28 days
Explanation: Less is the gap between date range in an estimate less is the risk. Choice A,
the gap is 30 plus or minus 5 days, means 25 to 35 = gap of 10 days. Choice B, the gap is 22-
30 = 8 days. Choice C, the gap needs to be calculated. Standard deviation or sigma = P – O /
6 = 33-26/6 = 7/6 = 1.1. 3 Standard deviation or 3 sigma = 1.1 x 3 = 3.3. Standard deviation
or sigma is always written as +/-, so it will be written as =/- 3.3. That means 3.3 above the
mean and 3.3 below the mean. Total gap 3.3 + 3.3 = 6.6 days. This has least gap, hence
least risk. Choice D gives useless data and nothing can be calculated from this data.
78. What should be done with risks on the watchlist?

A. Document them for historical use on other projects
B. Document them and revisit during project execution
C. Document them and set aside as they are already covered in your contingency plans
D. Document them and give them to customer
Explanation: Low risks are written under Watchlist and they are monitored (revisited)
during execution. Revise outputs of qualitative risk analysis.
79. All of the following are always input to the risk management processes except:
A. Historical information
B. Lessons learned
C. WBS
D. Status reports
Explanation: You need historical information and lessons learned for risk management to
understand what risks happened and how they were handled in earlier projects, what went
wrong, what went right. You need WBS for risk management to understand risk related to
scope. You need status reports also to understand whether identified risks are happening,
whether your response plans are successful in dealing with them or whether a new risk is
happening. The question is asking which one not always an input. Status reports are not
available at the time of planning, they are available only at the time of execution. So at the
time of planning status reports cannot be taken as input. Other items are always available
80. Purchasing insurance is best considered an example of risk response action:

A. Mitigate
B. Transfer
C. Accept
D. Avoid
Explanation: Clearly insurance is an example of transferring the risk.
81. An output of plan risk responses is:

A. Residual risks
B. Risks identified
C. Prioritized list of risks
D. Impacts identified

Explanation: Remember outputs of Plan Risk Responses process? It was emphasized to

remember that residual risks are one of the outputs! At the time of planning responses for
dealing with the identified risks, we might be able to plan responses for majority of them
and there can be few left over (residual risks) whose response we might not be able to
plan. These would be called residual risks. We keep some lump sum contingency of time
and cost for them.
82. During risk management planning, your team has come up with 563 risks and 18 major
causes of those risks. The project is the last of a series of projects, which the team has
worked together. The sponsor is very supportive and a lot of time was invested in making
sure the project charter was complete and signed off by all key stakeholders. During
project planning, the team cannot come up with an effective way to mitigate or insure
against a risk. It is not the work that can be outsourced, nor can it be deleted. What would
be the best to do?
A. Accept the risk
B. Continue to look for ways to mitigate the risk
C. Look for ways to avoid the risk
D. Look for ways to transfer the risk
Explanation: The answer is given in the question itself. The question itself says that all
other means have been exhausted. Then the only answer is accepting the risk.
83. A project had some problems, but now seems under control. In the last few months almost
all the reserve has been used up and most of the negative impacts of events had been
predicted have occurred. There are only four activities left and two of them are on critical
path. Management now informs the project manager that it would be in the performing
organization’s best interest to finish the project two weeks earlier than scheduled in order
to earn profit. In response, the project manager sends out a request for proposal for some
work that the team was going to do, in the hope that another company might be able to do
the work faster. The project manager can best be said to be attempting to work with:
A. Reserve
B. Opportunities
C. Scope verification
D. Threats
Explanation: The project manager is in trouble and he/she is looking for an opportunity for
getting the work done faster.
84. The management tells a project manager for the seller that the project should do whatever
possible to be awarded incentive money. The primary objective of incentive clauses in a
contract is to:
A. Reduce costs for the buyer
B. Help the seller control costs
C. Synchronize objectives
D. Reduce the risk for the seller by shifting it to the buyer
Explanation: The buyer provides Incentives to the seller so that the objectives of buyer also
become objectives of the seller that is to synchronize the objectives.

85. All the following statements about bid documentation are incorrect except:
A. Well-designed bid documents can simplify comparison of responses
B. Bid documents should be rigorous enough with no flexibility to allow consideration of
seller suggestions
C. In general, bid documents should not include evaluation criteria
D. Well-designed bid documents do not include a contract statement of work
Explanation: Find three incorrect statements in such questions. Look at D. All bid
documents must have statement of work, otherwise for what you have made these
documents. Therefore D is incorrect. Look at C. it is also wrong because evaluation criteria
must be written in bid documents. Three items are written in Bid Documents: 1) SOW, 2)
Terms and conditions, and 3) Evaluation criteria. What is bid document? It is the document
you send to vendors to invite their bids/quotations/proposal/offer. Look at B. Sellers are
experts in their fields and they keep on innovating, you must allow their suggestions.
Therefore B also gives incorrect statement. Choice a provides only correct statement. If you
designed your bid documents properly, then you can comfortably make comparison.
86. Bidder conferences are part of:

A. Plan procurements
B. Administer procurements
C. Conduct procurements
D. Close procurements
Explanation: Bidder conferences occur during Conduct Procurements process. During

Conduct Procurements process, you invite bids from sellers and then you select the most
suitable seller and award contract. After you send your bid documents or invitation fro
proposal to sellers, it is your duty to hold Bidder Conference so that you can clarify
questions of prospective sellers before they submit their bids or proposals. The purpose of
Bidder conference is clarify understating of your equally in the minds of all sellers before
they submit their offers.
87. Which of the activities happen during plan procurements?

A. Make-or-buy analysis
B. Answering seller’s questions about bid documents
C. Comparing proposals received by ranking on weighting system
D. Negotiating terms of the contract
Explanation: When you plan procurements, you conduct make-or-buy analysis.
88. In which type of contract the seller is most worried about project scope?
A. Fixed price
B. Cost plus fixed fee
C. Time and material
D. Purchase order
Explanation: Obviously, fixed price.
89. A project manager is in the middle of creating a request for proposal (RFP). What part of
procurement process is he in?
A. Plan procurements
B. Conduct procurements
C. Administer procurements
D. Close procurements
Explanation: In the Plan Procurements process, you decide what you would procure from
outside and develop request for proposal for inviting quotations from sellers.
90. You are in the middle of executing a major modification to an existing product when you
learn that the resources promised at the beginning of the project are not available. The
best thing to do is to:
A) Show how the resources were originally promised
B) Re-plan the project without resources
C) Explain the impact if the promised resources are not made available
D) Crash the project
Explanation: Always conduct impact analysis and share it with the concerned party.
91. You are assigned as the project manager in the middle of the project. The project is within
the baselines, but the customer is not happy with the performance of the project. What is
the first thing you should do?
A) Discuss with the project team
B) Recalculate the baselines
C) Renegotiate the contract
D) Meet with the customer
Explanation: it is a common sense question and answer is quite obvious.
92. A project manager is in the middle of the executing process of a very large construction
project when he discovers that the time needed to complete the project is longer than the
time available. What is the best thing to do:
A) Cut product scope
B) Meet with the management and tell them that the required date cannot be met
C) Work overtime
D) Determine options for schedule compression and present management with your
recommended options
Explanation: Answer is pretty obvious. There are two ways of compressing the
schedule: Crashing or fast tracking. You share both with the management and
whichever one is formally approved, follow it.
93. The project is calculated to be completed four days after the desired completion date. You
do not have access to additional resources. The project is low risk, the benefit cost ratio
(BCR) is expected to be 1.8, and the critical path dependencies are preferential. Under
these circumstances, what would be the best thing to do:
A. Cut resources from an activity
B. Make critical path activities concurrent
C. Move resources from the preferential dependencies to the external dependencies
D. Remove an activity from the project
Explanation: There are two ways of compressing the schedule: Crashing or fast tracking.
Crashing means adding resources on critical path activities for doing them faster. You do
not have additional resources, so crashing is overruled. Now you are left with only fast
tracking which means doing activities in parallel (concurrent). You are worried that fast
tracking increases risks. the question is telling you that it low risk and dependencies are
preferential not mandatory.
94. The new software installation project is in progress. The project manager is working with
the quality assurance department to improve everyone’s confidence that the project will
satisfy the quality standards. Which of the following must they have before they start this
process?
A) Quality problems
B) Quality improvements
C) Quality control measurements
D) Rework
Explanation: You need QC Measurement to perform quality assurance. Revise inputs of

Perform Quality Assurance process.
95. A project has several teams. Team C has repeatedly missed deadlines in the past. This has
caused team D to have to crash the critical path several times. As the team leader for team
D, you receive word that the next deadline may be missed. You should meet with the:
A. Manager of team D
B. Project manager alone
C. Project manager and management
D. Project manager and the leader of team C
Explanation: Answer is obvious. Meet the team leader of the team that is creating problem
but take the project manager into confidence.
96. The most likely result of communication blockers is that:

A. Project is delayed
B. Trust level is increased
C. Conflict occurs
D. Senior management is displeased
Explanation: Whenever communication is blocked, conflict will occur.
97. When a project manager is engaged in negotiation, nonverbal communication skills are of:
A. Little importance
B. Major importance
C. Important only when cost and schedule objectives are involved
D. Important only to ensure you win the negotiation
Explanation: 55% of communication is non-verbal (body language). Therefore it is of major

importance.

98. Your program manager has come to you for help with a bid for his new project. You want
to protect your company from financial risk. You have limited scope definition. What is the
best type of contract to choose?
A. Fixed price (FP)
B. Cost plus percentage of cost (CPPC)
C. Time and material (T&M)
D. Cost plus fixed fee (CPFF)
Explanation: When scope is not fully defined, then it has to be cost reimbursable contract
(CRFF).
99. Have following performance information: EV= 350, AC= 400, PV= 325, what is cost
variance:
A) 350
B) –75
C) 400
D) –50
Explanation: Cost variance = EV – AC.
100. A cost performance index (CPI) of 0.89 means:

A) At this time, we expect the total project to cost 89 percent more than planned
B) When the project is complete we will have spent 89 percent more than planned
C) The project is only progressing at 89 percent of that planned
D) The project is only getting 89 cents out of every dollar invested
Explanation: Answer is too obvious.
101. A schedule performance index (SPI) of 0.76 means:

A) You are over budget
B) You are ahead of schedule
C) You are only progressing at 76 percent of the rate originally planned
D) You are only progressing at 24 percent of the rate originally planned
Explanation: Answer is too obvious.
102. Pareto charts help the project manager:

A) Focus on most critical issues to improve quality
B) Focus on stimulating thinking
C) Explore a desired future outcome
D) Determine if the process is out of control
Explanation: Pareto chart is based on Pareto Law. Pareto Law says 80% problem is due
to 20% causes. These causes are called Critical Few or Vital Few Causes or Issues. If you
are
using Pareto chart, you are trying to focus on these critical few or vital few causes or
issues.

103. A control chart helps the project manager:

A) Focus on most critical issues to improve quality
B) Focus on stimulating thinking
C) Explore a desired future outcome
D) Determine if the process is functioning within set limits
Explanation: Control chart is used to set control limits of a process, check whether the
process is working within control limits.
104. Testing the entire population will:

A) Take too long
B) Provide more information than wanted
C) Be mutually exclusive
D) Show many defects
Explanation: Testing entire production or population takes too long and it may be too
expensive to test each and every item. Therefore we conduct statistical sampling or
sample testing.
105. The project manager has just received a change from the customer that does not
affect the project schedule and is not easy to complete. What should the project manager
do first?
A) Make the change happen as soon as possible
B) Contact the project sponsor for permission
C) Go to the change control board
D) Evaluate the components of triple constraint
Explanation: Whenever there is a change request, always evaluate impact on all the
components of triple constraint.
106. You are assigned as the project manager in the middle of the project. The project is
within the baselines, but the lessons learned are not being documented. What is the
possible reason for this?
A) The project team is fighting against an aggressive schedule and finding it difficult to
achieve time targets
B) Quality problems are leading to rework and more time overrun is occurring
C) Due to cost overruns, the project team finds it waste of resource hours for
documenting lessons learned, rather team can concentrate efforts on recovering
schedule delays
D) Responsibility assignment matrix did not fix the responsibility for lessons learned
Explanation: None of the choices tell us the possible reason except choice number D.
107. The client demands changes to the product specification that will add only two
weeks to the critical path. Which of the following is the best thing for the project manager
to do?
A) Compress the schedule to recover two weeks
B) Cut scope to recover two weeks

C) Consult with sponsor before taking any action

D) Advise the client of impact of change
Explanation: Whenever there is a change request, the first thing is impact analysis and
advising requesting party the impact of change. after the change is duly and formally
approved through the change control procedure, then implement it.
108. The project was going well when all of a sudden there are changes coming to the
project coming from multiple stakeholders. After all the changes were determined, the
project manager spent time with all the stakeholders to find out why there were changes
and to discover any more. The project work has quieted down when a team member
casually mentions to the project manager that the team member added functionality to a
product of the project. Do not worry they say, “I did not impact time, cost or quality!” what
should a project manager do first?
A) Ask the team member how the functionality was added
B) Hold a meeting to review the team member’s completed work
C) Look for added functionality
D) Ask the team member how he knows there is no time, cost or quality impact
Explanation: Adding any extra specification or functionality by any team member is

gold-platting. It is not permitted. It would have consumed extra time, cost, and quality
issues or might lead to a new risk. And on top of all why should the team member do it
own his/her own. The team member needs to be punished but before punishing give
him/her an opportunity to prove that there is no impact of time, cost, cost, quality, etc.
the team member will not be able to prove and then you take action.
109. You have been working on a very large software development project that has
made use of over 360 people. Finally, all the scope is completed. It would be best to:
A) Throw a party to the team members
B) Make sure the project is integrated with other projects
C) Begin to focus on your other projects
D) Analyze success or failure
Explanation: The most important thing is to analyze success or failure.
110. The construction phase of a new software product is near completion. The next
phase is testing and implementation. The project is two weeks ahead of schedule. What
should the project manager be most concerned with before moving on to the final phase?
A) Scope verification
B) Quality control
C) Performance reports
D) Cost control
Explanation: One you complete a phase and want to move to the next one, what you
need is formal acceptance of the deliverable of the phase completed by you, before
you move to the next one. The purpose of scope verification is to get the deliverables
made by you during a phase and getting formal acceptance of these deliverables.

111. You are managing a six-month project and have held bi-weekly meetings with your
project stakeholders. After five and half months of work, the project is on schedule and
budget, but the stakeholders are not satisfied with the deliverables. This situation will
delay the project completion by one month. The most important process which could have
prevented this situation is:
A) Monitor and Control Risks
B) Control Schedule
C) Collect requirements
D) Control Scope
Explanation: What would have prevented this situation? Why it happened? It happened
because you missed some requirements of these stakeholders. If at the time of
collecting requirements, you had understood all the needs and expectations of these
stakeholders, this would not have happened. So the process called Collect
Requirements could have prevented this situation if you would have done it properly
and not missed any need or expectation of the stakeholders.
112. One of the stakeholders on the project contacts the project manager to discuss
some additional scope they would like to add to the project. The project manager asks for
details in writing and then works through the scope control process. What should the
project manager do next when evaluation of the requested scope is completed?
A) Ask the stakeholder if there are any more changes expected
B) Complete integrated change control
C) Make sure the impact of change is understood by the stakeholder
D) Find out root cause why the scope was not discovered during project planning
Explanation: Up to what stage you have completed the work in this question? You have
completed the work up to scope control. That means you have conducted local
evaluation of change request for additional scope and calculated additional time, cost
needed. Now you would recommend it to ICC for approval. Therefore, if you have
completed work up to scope control, the next step is to complete integrated change
control. After it is approved by ICC, give it execution for implementation, write
approved changes in the project management plan, and inform the concerned
stakeholders.
113. A project has three critical paths. How it affects the project:
A) Makes it easier to manage
B) Increases project risk
C) Requires more people
D) Makes it more expensive
Explanation: More critical paths, more risk because you have to be worried about all of
them. If any activity on anyone of them gets delayed, the whole project would be
delayed. Suppose your project had only one critical path, then you would ensure that
all activities are done on time so that project finishes on time. Now if you have say
three critical paths. If you are able to manage two very well, things are happening on
time, but one activity on third critical path gets delayed by one hour, your entire
project will be delayed by one hour even if you are doing very well in other two critical
paths. To complete the project on time activities on all three have to finish on time.
114. You have just discovered an error in the implementation plan that will prevent you
from meeting a milestone date. The BEST thing you can do is:
Develop options to meet the milestone date
Change the milestone date
Remove any discussion about due dates in the project status report
Educate the team about the need to meet the milestone dates
Explanation: The answer is obvious. Only choice A solves the problem. You cannot
change the milestone date. Not discussing it does not provide any solution and also
even if you do not tell in status report, it can be hidden. Educating the team members
on the importance of achieving milestones is passive and does not lead to solution to
present problem.
115. Management has promised you a part of the incentive fee from the customer if you
complete the project early. While finalizing a major deliverables your team informs you
that the deliverable meets the requirements in the contract but will not provide the
functionality the customer needs. If the deliverable is late, the project will not be
completed early. What action should you take?
Provide the deliverable as it is
Inform the customer of the situation and work out a mutually agreeable solution
Start compile a list of delays caused by the customer to prepare for negotiations
Cut other activities in a way that will be unnoticed to provide more time to fix the
deliverables
Explanation: This is professional responsibility question and we hope you agree with
the answer.
116. A project manager for a small construction company has a project that was
budgeted for Rs. 260,000 over a six-week period. According to his schedule, the project
should cost Rs. 120,000 to date. However, it has cost Rs. 180,000 to date. The project is
also behind schedule, because the original estimates were not accurate. Who has the
primary responsibility to solve this problem:
A. Project manager
B. Senior management
C. Project sponsor
D. Manager of the project management office
Explanation: Project manager is responsible for the achievement of all the project targets:
Scope, time, cost, and quality.
117. There have been many work packages completed successfully on the project and
the sponsor had made some recommendations for improvements. The project is on
schedule to meet an aggressive deadline when the successor activity to a critical path
activity suffers a major setback. The activity has 15 days of float and is being completed by
five people. There are three other team members with the skill set to help the troubled
activity, if required. The project manager receives a call that four other team members are
trying to be removed from the project, as they don’t feel the project can be successful.
When the project manager pursues this, he discovers that those team members have

issues that have not been addressed. Which of the following is the best thing to do to
improve this project?
A. Have the team members immediately assist the troubled activity
B. Investigate why the project schedule is aggressive
C. See who can replace the four team members
D. Create an issue log
Explanation: What is the main problem here. Some team members who are experts for an
activity are dissatisfied because there is no mechanism by which there issue could be heard
or addressed. And therefore they want to be removed from the project. What is the
remedy? Remove them? Or have a mechanism by which problems of pole could be
addressed? If you do not have this mechanism, some other team members also may ask to
be removed later on. The mechanism which problems of people can be listed and
addressed is called “Issue Log”. So the remedy is to have it. Why not choice A? For two
reasons. First it does not address the real problem. Second there is no urgency because the
activity has a float of 15 days. It is not on critical path. You must read the question carefully
and find out real problem and find out the answer that resolves real problem.
118. Workarounds are determined during which risk management process?

A. Identify Risk s
B. Perform quantitative risk analysis
C. Plan Risk responses
D. Monitor and Control Risks
Explanation: The purpose of risk monitoring and controlling is to check whether our
response plans are successful in dealing with identified risks or more corrective action is
needed. Whether a new risk is occurring? If yes, then analyze it, design action and
implement it. Your action for a new risk is called workaround.
119. During project executing, a team member identifies a risk that is not in the risk
register. What should you do?
A. Get further information on how the team member identified the risk, as you already
performed a detailed analysis and did not identify this risk
B. Disregard the risk, because the risks were identified during project planning
C. Inform the customer about the risk
D. Analyze the risk
Explanation: There is a possibility that you may not identify all the risks during risk
identification. There may be some new risks that may occur over and above what you
could find out. Whenever a new risk occurs, immediate analyze it and design your action
and implement the action. Your action for a new risk is called workaround.
120. All the following statements about change control are incorrect except:
A. A fixed price contract will minimize the need for change control
B. Changes seldom provide real benefits to the project
C. Contracts should include procedures to accommodate changes
D. More detailed specifications eliminate the causes of changes

Explanation: Please note that in such questions, you need to find three incorrect
statements. Let us begin from D. The causes of changes can not be eliminated by writing
more detailed specifications because causes of changes might be something more is
desired, some government regulation has changed, some corrective action or preventive
action or change request may lead to change. look at A. Whether fixed price or any other
type of contract, a change control has to be there and therefore it is incorrect statement.
Look at B. There can be beneficial changes and therefore it is incorrect statement. Look at
C. Yes, contracts must include procedure for handling changes and this the only correct
statement.
121. You have just begun administering a contract when management decides to
terminate the contract. What should you do first?
A. Go back to conduct procurements
B. Go back to plan procurements
C. Finish administering procurements
D. Go to close procurements
Explanation: Mid-way termination of the contract is a special case of contract closure.

Verify what is done, pay for it, collect all design, data, documents and close procurement.
122. During project closure, a stakeholder complains that the project did not increase
the department’s knowledge of Java programming and therefore the project is not
complete. The customer has accepted the project. The project manager determines that all
the stated requirements and deliverables have been met. He does not find evidence that
Java programming was a requirement. A review of project correspondence shows no
mention of the deliverable. The project manager should:
A. Begin project closure
B. Re-plan the project to include the new objective
C. Meet with the team to discuss the issue and find a solution
D. Get the project stakeholder involved to help resolve the issue
Explanation: Did you read it? “The customer has accepted the project. All stated
requirements and deliverables have been met. There in no mention of Java programming
either in the contract or any correspondence.” If you have met all the requirements and
customer has accepted the project, begin closure! Do not do such questions wrong in the
exam!
123. All the following are outputs of closure except:

A. Lessons learned
B. Formal acceptance
C. Reduced resource spending
D. Benefit cost analysis
Explanation: As a result of closure, we collect lessons learned, we get formal acceptance,

and resource spending is also reduced. Benefit-cost analysis is an item to be considered at
the time of choosing the project.
124. A project manager has finished the project. He knows that the project scope has
been completed and is within cost and time objectives. Management, however, says that
the project is a failure, because the original schedule was 28 weeks and the project was
completed in 34 weeks. If the project baseline was 34 weeks, the project is a success
because:
A. It had only six weeks of changes
B. It was completed within the baseline
C. There were so few changes
D. There was good communication control
Explanation: It is just play of language. Obviously answer is B only.
125. Lessons learned are best completed by the involvement of:

A. Project manager
B. Team
C. Sponsor
D. Stakeholders
Explanation: Lessons learned are best compiled by the participation of all stakeholders.
Each one may be able to give some valuable suggestion.
126. A large construction project in a foreign country requires coordination to move the
required equipment through crowded streets. To ensure the equipment is transported
successfully, your contact in the country informs you that you will have to pay the local
police a fee for coordinating traffic. What should you do?
A. Do not pay the fee because it is bribe
B. Eliminate the work
C. Pay the fee
D. Do not pay the fee if it is not part of project estimate
Explanation: Fee is legal payment. Fee is not bribe in any English Language Dictionary.
127. You are halfway through a major network rollout. There are 500 locations in North
Region with another 150 in South Region. A software seller has just released a major
software upgrade for some equipment being installed. The upgrade would provide
customer with functionality they requested that was not available at the time the project
began. What is the best course of action under these circumstances?
A. Continue as planned, your customer has not requested a change
B. Inform the customer of upgrade and impacts to the project’s timeline and
functionality
C. Implement the change and adjust the schedule as necessary because this supports
customer’s original request
D. Implement the change to the remaining sites and continue with the schedule
Explanation: The customer had wished for functionality not available at that time. But now
you know it is available. It is your professional responsibility to inform the customer that
now it is available but if it is to be included now so much time, cost would be needed. If
customer agrees for the impacts, do it.

128. Your company puts a new product into the marketplace without any reports of
problems. However, your internal research indicates that there is a possibility of serious
injuries that would cost U.S $ 20,000,000 to fix. What should you do?
Make the modifications necessary in the products in production
Recall all existing products
Wait until an injury to verify the impact
Obtain insurance to cover the anticipated damages
Explanation: Obviously answer is B. Remember Dell had recalled!
129. A manager has responsibility for a project that has the support of a senior manager.
From the beginning, you have disagreed with the manager as to how the project should
proceed and what the deliverables should be. You and she have disagreed over many
issues in the past. Your department has been tasked with providing some key work
packages for the project. What should you do?
Provide the manager with what she needs
Inform your manager of your concern to get her support
Sit down with the manager at the beginning of the project attempt to describe why you
object to the project and discover a way to solve the problem
Ask to be removed from the project
Explanation: Who are you here in this question? You are a functional manager of a
function that is required to contribute on various projects. That is why your function
exists. Who is she? She is a project manager. Your function has to provide technical
contribution on her project. Your function has been tasked to provide some key work
packages. Whatever had been your differences, you cannot stop your departmental
contribution to a project, for which your department exists. Can you do choice C? Can
you go back in the past and sit down with her today from the beginning? Read the
language. Suppose you differed with her from July 2008 and today it is April 2009. Can
you go back to July 2008 and sit with her from the beginning today in April 2009?
130. You have been working on a nine-month project for six months. The project is
ahead of schedule when one of the Functional Managers tells you that the resources
committed to the project are no longer available. After checking further you discover that
the company has just started another project and is using the resources committed to your
project. You believe that a new project is not critical but the Project Manager is the son of
a board member. What is the BEST course of action in this situation?
Determine when resources will become available
Ask the PMO to formally prioritize the projects
Use the reserve to hire contractors to complete the work
Negotiate a new schedule with the other project manager
Explanation: Revise duties of PMO. PMO prioritizes projects. If PMO says your project
has lesser priority than the project being handled by the son of a board member, do
not worry. But if you feel that project is not critical and your project has higher priority,
then ask PMO to intervene and prioritize the projects.

131. You are a project manager for a new international project and your team includes
people from six countries. Most of the team members have not worked on similar projects
before, but the project has strong support from senior management. What is the best thing
to do to ensure that cultural differences do not interfere with the project?
A. Spend a little more time creating WBS and make sure it is complete
B. As the project manager make sure you choose your words carefully whenever you
communicate
C. Ask one person each at team meetings to describe something unique about their
culture
D. Carefully encode all of the project manager’s communication
Explanation: What is the question here? Is the question about project manager being
careful in his/her language? The question is project has team members from six countries
and they had not worked together earlier. The issue is about their knowing each other,
their gelling as a team. Which choice comes close to solving this issue? Choice B and D only
make project manager being safe and non-offending before people from different cultures,
but that is not the issue, so B and D are not correct answers. Making WBS by the team will
not resolve their cultural differences. Choice C is the only one that respects people from
different countries, where people are allowed to talk about their cultures, themselves. It
would sure increase understanding and team members knowing each other, coming close
to each other.
132. Your customer has asked for a 3,000-call capacity for the new call center project.
However, one of your company’s technical experts believes a 4,000-call capacity can be
reached. Another thinks that based on the technical needs of the customer, the capacity
needs to be only 2,500 calls. What is the best thing to do?
A. Meet with the customer to better understand the reasons behind the 3,000-call capacity.
B. Set the objective at 4,000 calls.
C. Meet with the technical experts, and help them to agree on an objective.
D. Set the objective at 2,500 calls.
Explanation: You cannot decide yourself. You should do what customer has asked you to do. If
you have any better idea, show it customer. Only when customer agrees with your idea and
formally agrees, and then only you can move with that idea. Customer must be having reason
behind why 3,000-call capacity is required, you must first understand that. Customer too
would have known during feasibility study that it could go up to 4,000-call capacity. On
customer’s side also experts are sitting. Due to business reasons, they want 3000-call capacity;
otherwise they would have requested 4000-call capacity.
133. The first phase of your project has come to an end. What should you ensure is done
before beginning the next phase?
A. Verify that the resources are available for the next phase
B. Check the project’s progress to its baselines
C. Confirm the phase has reached its objectives, and formally accept its deliverables
D. Recommend corrective action to bring the project results in line with the project
expectations

Explanation: As soon as you complete one phase, there has to be a phase-end review.
Phase-end review means confirming whether the phase has achieved all the objectives and
then the outcome of the phase has to be formally accepted, before moving to the next
phase.

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Answers to PMP Question Set – 3 Page 1 of 38

Sujoy Dutta, PMP http://www.sujoydutta.in 1

Answers and explanations of 133 questions.

2. Who has most power in a projectized organization?

3. All the following relate to stakeholder management except:

5. Stakeholders should be identified in which project management process groups?

Sujoy Dutta, PMP http://www.sujoydutta.in 2

Explanation: Stakeholders should be identified right in the beginning of the project.

Explanation: The only person authorized in the case of charter is sponsor!

Sujoy Dutta, PMP http://www.sujoydutta.in 4

Explanation: it is a good question! The approach here is to involve the stakeholder as

Sujoy Dutta, PMP http://www.sujoydutta.in 5

Explanation: Initiating Process Group consists of two processes: 1) Develop Project

Explanation: During the process called Identify Stakeholders, we find stakeholders,

Explanation: Answer is obvious enough. Remember it. It is important.

Explanation: The definition of scope management. Scope management includes

Explanation: Remember two principles of making WBS? When we make WBS, we

A) Project scope management plan

Explanation: Answer is too obvious. It is mandatory dependency.

Explanation: We use network diagram when we need to show logical relationships

Explanation: Standard deviation = P – O / 6.

31. Lag means:

Explanation: Lag means waiting time between two activities.

32. What is the duration of a milestone:

Explanation: You must be remembering it that duration of milestone is zero. It is a point

34. Monte Carlo analysis is used to:

C) Simulate the order in which activities occur

35. When would a milestone chart be used instead of a bar chart:

Explanation: It has already been explained.

Explanation: It is a simple diagram. Make it and check answer.

Explanation: It is a simple diagram. Make it and check answer.

A) Precedence diagramming method

40. The main focus of life cycle costing is to:

Explanation: Definitive estimate is +10% to –15%.

42. Value analysis is performed to get:

C. Team to buy into the project

Explanation: It is a common sense question. Needs no explanation.

45. The highest point of Maslow’s hierarchy of needs is:

Explanation: The only correct statement is C. Others have something wrong.

Explanation: Quality training is cost of conformance. Others are cost of non-

Explanation: Nothing extra should be added. If anything extra is demanded, it would

Explanation: The answer is too obvious. Read quality audit.

Explanation: he answer is too obvious. Revise various conflict resolution techniques.

Sujoy Dutta, PMP http://www.sujoydutta.in 17

Explanation: The best method of conflict resolution is problem solving method or

Explanation: Answer is obvious. The best method is C.

Explanation: Compromise is lose-lose technique.

Explanation: Schedule continues to be preliminary until availability of resources is

Explanation: Most common conflict issues: SPRT. Refer notes.

65. An obstacle to team building in matrix organization is that the:

Explanation: In matrix organization (read balanced matrix if no indication of weak or

66. The “halo effect” refers to the tendency to:

Sujoy Dutta, PMP http://www.sujoydutta.in 19

69. WBS can be an effective aid for communication in which situation:

Sujoy Dutta, PMP http://www.sujoydutta.in 20

Explanation: WBS must be communicated to all stakeholders whether internal or

70. Communications are often enhanced when the sender_______the receiver:

Explanation: Obviously informal verbal.

Explanation: Answer is obvious. Meeting is not happening in an organized manner. So you