PLANNING PROCESS GROUP Questions & Answers

QUESTION (1)
The engineering department wants the project objective to be a 10 percent improvement in
throughput. The information technology department wants no more than 5 percent of its
resources to be used on the project. Management, who is also your boss, wants the project team
to decrease tax liability. The best thing you can do is:

A.Include the engineering and information technology objectives, but hold further meetings
regarding management's objective.
B.Include only management's objective.
C.Have these people get together and agree on one objective.
D.Put a plan together that meets all the objectives

QUESTION (1000)
Two people are in the process of estimating probabilities for each of their identified risks. Which
step of risk management is this?

A.Monitor Risks
B.Plan Risk Responses
C.Perform Qualitative Risk Analysis
D.Identify Risks

QUESTION (1001)
The outputs of the Plan Risk Responses process include risk response plans, risk owners
assigned, and:

A.Residual risks
B.Probability of achieving cost objectives
C.Probability and impact matrix
D.Closed risks

QUESTION (1002)
You have identified several risks on your project for which purchasing insurance is a possibility.
The insurance company your firm uses has quoted reasonable rates, and your analysis shows that
purchasing insurance makes sense as a contingency plan in these cases. Your organization has a
low threshold for risk but wants to keep costs in line as the profit margin on the product of this
project is low. Once you have insured against these risks, you will not have to worry about them.
The strategy of purchasing insurance is best considered an example of risk:

A.Avoidance
B.Acceptance
C.Transfer
D.Escalation

QUESTION (1003)
The risk information on the project must be analyzed to determine how accurate and well
understood it is, and whether more research is needed before a qualitative assessment can be
done. It is most important to complete which of the following?

A.Data quality assessment

B.Trigger data analysis
C.Analysis of trends in qualitative risk analysis
D.A risk rating matrix

QUESTION (1004)
A project manager has been instructed to use the project charter to help identify risks on the
project. This does not make sense to him. If you were asked to explain the reason the project
charter is used in this way, what is the best explanation?

A.The project charter is issued by the sponsor.

B.Reviewing what is said and not said in the project charter will help determine risks.
C.Reviewing the project charter will help determine a description of the product of the project.
D.The project charter describes the business needs of the project.

QUESTION (1005)
A project manager has assembled the project team. They have identified 56 risks on the project,
determined what would trigger the risks, rated them on a risk rating matrix, tested their
assumptions, and assessed the quality of the data used. The team is continuing to move through
the risk management process. What has the project manager forgotten to do?
A.Perform risk mitigation
B.Conduct a simulation
C.Involve other stakeholders
D.Determine overall risk ranking for the project

QUESTION (1006)
Your project team has identified a major project risk. After talking to the project management
office, they determine that a reserve on the project is not necessary. What is the next step?

A.Develop risk transference strategies.

B.Ignore the risk until it happens.
C.Create a risk response plan that includes the risk.
D.List the time or cost overrun expected on the project in your project management plan.

QUESTION (1007)
Your team has discovered a high probability that the equipment you are developing will not
perform under the pressure it needs to in the workplace. In order to handle this risk, you have
chosen to prototype the equipment. This is an example of risk:

A.Avoidance
B.Acceptance
C.Transference
D.Mitigation

QUESTION (1008)
During the identification of risks on your project, you have determined there is a very high
probability of conflict among the team during project executing over one aspect of the final
design of the project.
Which of the following is an example of mitigating the impact of the risk to the project?

A.Provide the team with training on conflict resolution techniques.

B.Obtain an insurance policy for the anticipated cost of the impact.
C.Eliminate that part of the project.
D.Outsource that part of the project to another company.

QUESTION (1009)
During the Plan Risk Responses process, the team is discussing ways to deal with a risk. They
have come up with the following options: a) outsource the work, b) provide more training to the
team members, c) wait to see if the risk actually happens, d) ignore the risk and e) do the risky
activity sooner in the project. Which of the following is a risk response strategy that was
forgotten in the above situation?

A.Purchase insurance to cover the anticipated cost.

B.Assign the activity to a more experienced person to handle.
C.Remove the activity causing the risk from the project.
D.Prototype the product.

QUESTION (1010)
You have finished the Plan Risk Responses process for a highway safety project that includes
incorporating an accident reduction site area into a busy local highway. You are left with residual
risks. You will soon attend a project status meeting that includes several city officials. What
should you do with the residual risks?

A.Include them as part of the contingency plans.

B.Deal with them as they arise during project executing.
C.Document them in the risk register and revisit them later.
D.Perform a sensitivity analysis on them.

QUESTION (1011)
A project manager analyzed a US $800,000 project that involves 30 team members and has three
customers. Why is there a need for an analysis of secondary risks on this project?

A.It helps determine and address new risks created as a result of the risk response strategies
chosen.
B.It helps create a prioritized list of risks.
C.It provides a way to effectively decrease the amount of contracting on the project.
D.It provides a vehicle for efficient stakeholder involvement.
QUESTION (1012)
The project manager and the team have developed response plans for the identified risks. A
senior manager has asked for the amount of risk reserves needed for the project. What is the first
thing the project manager should do?

A.Create the overall risk rating for the project.

B.Create the risk reserves.
C.Analyze secondary risks.
D.Prioritize the list of risks.

QUESTION (1013)
You are a project manager for the construction of a major new manufacturing plant that is unlike
any that has been done before. The project cost is estimated at US $30,000,000, and the project
will make use of three sellers. Once begun, the project cannot be cancelled, as there will be a
large expenditure on plant and equipment. When managing a project, it is most important to
carefully:

A.Complete the project charter.

B.Examine the budget reserves.
C.Review all cost proposals from the sellers.
D.Perform an identification of risks.

QUESTION (1014)
You are creating a risk management plan for a systems integration project resulting from the
merger of two companies. You have a completed ranking of risks and a list of risks for additional
analysis. This work was done during which risk management process?

A.Plan Risk Responses

B.Perform Quantitative Risk Analysis
C.Perform Qualitative Risk Analysis
D.Identify Risks
QUESTION (1015)
You and the team are working on risk management planning for a landscaping project that is part
of a larger building program. As a result of your work to date, you have a numeric analysis of the
project, including the probability of achieving the project budget and schedule as planned. You
completed these during which part of the risk management process?

A.Perform Qualitative Risk Analysis

B.Plan Risk Responses
C.Perform Quantitative Risk Analysis
D.Identify Risks

QUESTION (1016)
Which part of the risk management process receives input from risk owners?

A.Plan Risk Responses

B.Perform Qualitative Risk Analysis
C.Identify Risks
D.Perform Quantitative Risk Analysis

QUESTION (1020)
A project is facing the following risks: 20 percent chance a part is not available, creating an
additional fee of US $30,000; 10 percent chance the team requires additional training for a cost
of US $12,000; 25 percent chance the second planned quality test costing US $8,000 is
unnecessary. What is the expected monetary value of these risks?

A.$5,200
B.$50,000
C.$42,000
D.$7,200

QUESTION (1021)
There is a 50 percent chance of a weather delay causing an impact of US $100,000 and a 30
percent chance of a delay in the testing center with a US $20,000 impact. How much should the
cost reserve be for the project?
A.Less than $20,000
B.More than $120,000
C.More than $56,000
D.Less than $50,000

QUESTION (1022)
A project has the following risks: 20 percent probability of a 14-day delay in the receipt of
customer requirements; 10 percent probability of a 21-day delay in the procurement process; 50
percent probability the integration will take 14 days longer than planned. What is the expected
value of these events?

A.Seven days
B.35.8 days
C.11.9 days
D.49 days

QUESTION (177)
During project planning, one of the electrical engineers informs the project manager that the life
cycle cost of the new heating and air conditioning system is higher than the life cycle cost of
another heating and air conditioning system. What should the project manager do?

A.Select the product with the lowest maintenance cost to life cycle cost ratio.
B.Select the product with the lower life cycle cost.
C.Determine if there is room in the project budget for the additional costs.
D.Select the product with the best life cycle cost to earned value ratio.

QUESTION (181)
You have taken over a project during project planning and have discovered that six individuals
have signed the project charter. Which of the following should most concern you?

A.Getting a single project sponsor

B.Determining the reporting structure
C.Spending more time on configuration management
D.Who will be a member of the change control board

QUESTION (182)
The project charter for a project was approved, and you have just been assigned as project
manager. Realizing that project planning is an ongoing effort throughout the project, which
processes are you most likely to combine?

A.Estimate Activity Durations and Develop Schedule

B.Estimate Costs and Determine Budget
C.Plan Resource Management and Estimate Costs
D.Create WBS and Define Activities

QUESTION (184)
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 which of the following during planning to improve
your chances of success?

A.Stakeholder analysis
B.Historical information
C.Your intuition and training
D.Configuration management

QUESTION (185)
The sponsor has asked you to require that each piece of the project scope be planned, estimated,
and scheduled. The sponsor also wants to authorize each piece of the project management plan
after the documentation is assembled. What is the most appropriate response to these requests?

A.Ask the sponsor to authorize each piece before it is completed.

B.Tell the sponsor the chance for authorization will come after the pieces of the project
management plan are compiled.
C.Politely advise the sponsor to forego the authorization of work.
D.Provide the sponsor with a schedule of when the components will be ready for authorization.

QUESTION (188)
Which of the following processes involves creating a coherent, consistent document that can be
used to guide all the work in both project executing and project monitoring and controlling?

A.Develop Project Scope Statement

B.Develop Project Management Plan
C.Risk Management
D.Plan Quality Management

QUESTION (189)
All of the following are not parts of a project management plan except:
A.Baselines
B.Milestone list
C.Risk register
D.Lessons learned

QUESTION (191)
If a project manager is concerned with gathering, integrating, and disseminating the outputs of all
project management processes,
she should concentrate on improving the?

A.Communications management plan

B.Project management information system (PMIS)
C.Scope management plan
D.Work breakdown structure (WBS)

QUESTION (192)
Which of the following best describes a project management plan?

A.A formal, approved document used to control the project

B.The schedule, management plans, and budget
C.The project charter, WBS, and project scope statement
D.The project manager's plan for managing and controlling the work
QUESTION (193)
You are assigned as a project manager to lead a new quality improvement project. Management
is asking for a project management plan. Which of the following should you create first?

A.A risk management plan

B.A project scope statement
C.A quality management plan
D.A project management plan

QUESTION (194)
A project management plan should be realistic in order to be used to manage the project. Which
of the following is the best method to achieve a realistic project management plan?

A.The sponsor creates the project management plan based on input from the project manager.
B.The functional manager creates the project management plan based on input from the project
manager.
C.The project manager creates the project management plan based on input from the team.
D.The project manager creates the project management plan based on input from senior
management.

QUESTION (196)
The person(s) who should be in control of the project during project planning is (are) the:

A.Team members
B.Functional manager
C.Project manager
D.Sponsor

QUESTION (199)
Which of the following best describes a project management plan?
A.A bar chart
B.Scope, risk, resource, and other management plans
C.A printout from project management software
D.The project scope
=

QUESTION (1118)
The project manager, the procurement manager, and the project sponsor are discussing the
project costs and whether it is better to have their own company do some of the project work or
hire another company to do all the work. Generally, it would be better for the organization to do
the work internally if:

A.There is a lot of proprietary data.

B.Your company resources are limited.
C.You have the expertise, but you do not have the available manpower.
D.You do not need control over the work.

EXECUTING PROCESS GROUP

You are making another international trip and have been invited to a holiday celebration. During
the celebration, you discover that all of the subcontracted work for the project is going to be
given to the brother of one of the team members. What should you do?

A.Tell the team that such actions are not allowed.

B.Determine what the common practices are in that country.
C.Evaluate the cost of the subcontracted work.
D.Do nothing.

A project team is having difficulty communicating over long distances. There were 13 team
members from two countries, and then five people from India were added. This is of concern to
the project manager because:

A.Communication blockers grow linearly.

B.Conflict can be increased with an increase in project priorities.
C.Communication channels grow rapidly.
D.It will be harder to use reward power.

Knowledge management is a key responsibility of the project manager. This responsibility

includes managing two kinds of knowledge on a project: tacit and explicit. Which of the
following definitions are correct?

A.Lessons learned are an example of tacit knowledge

B.Tacit knowledge is fact-based and can be easily communicated through words and symbols.
C.Tacit knowledge may need explanation or context to provide value to recipients of this
information.
D.Tacit knowledge includes emotions, experience, and abilities.

The requirements documentation and contracts are:

A. Project documents
B. Historical records
C. Quality and procurement documents
D. Parts of the project management plan

Identifying ways to eliminate the causes of unsatisfactory performance would most likely lead
to:
A.Updates to the performance measurement baseline
B.Work performance information
C.Recommended corrective actions
D.Quality audits

You are the project manager for a new international project, and your project team includes
people from four 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.As the project manager, make sure you choose your words carefully whenever you
communicate.
B.Spend a little more time creating the work breakdown structure and making sure it is complete.
C.Keep project communications short and to the point.
D.Ask one person at each team meeting to describe something unique about their culture.
Which process group focuses on completing the requirements of the project?
A.Closing
B.Planning
C.Executing
D.Initiating

All the following are parts of the Direct and Manage Project Work process except:

A.Setting up a project control system

B.Using a work breakdown structure
C.Implementing corrective actions
D.Identifying changes

Information such as requirement identification number, source of the requirement, and other
requirements attributes may be included in the:

A.Requirements traceability matrix

B.Work breakdown structure
C.Context diagram
D.Scope baseline

Which of the following is not a level in Maslow's hierarchy of needs?

A.Physiological
B.Safety
C.Social
D.Responsibility

You are confident that the team has done a thorough job of identifying and analyzing potential
threats and opportunities on the project. You have been able to take advantage of several
opportunities that are expected to save the project thousands of dollars. Your team has also done
a great job of planning for threats, and contingency plans and fallback plans have been
documents Once a risk response is created, which of the following statements best describes your
role regarding risks while the project work is being completed?
A.Implement planned workarounds.
B.Look for unexpected impacts of implemented risk responses.
C.Make sure that risk owners are assigned to identify risks.
D.Take actions when identified risks occur.

Two people are arguing about what needs to be done to complete a work package. In addition to
the words being spoken, if the project manager wants to know what is going on, she should pay
most attention to:

A.Physical mannerisms and when during the schedule this discussion is taking place
B.What is being said and when
C.The pitch and tone of their voices, along with their gestures
D.What is being said, who is saying it, and the time of day

A new project manager has just been assigned a project that is currently two weeks behind
schedule. Critical team members needed to complete deliverables are about to be distributed to
another project based on original schedule estimates provided by the functional manager What is
the first step the project manager should take?

A.She should contact the sponsor and begin with a new team.
B.She should first revise the bar chart with new timelines.
C.She should check the project management plan for contingencies concerning resources and
talk to the functional manager.
D.She should first show empathy to the current team and consider offering an incentive to the
team.

Outputs of the Direct and Manage Project Work process include all of the following except:

A.Project management plan updates

B.Cost-benefit analysis
C.Work performance data
D.Change requests
The project team is assessing the responses of prospective sellers who have submitted proposals.
One team member argues for a certain seller, while another team member wants the project to be
awarded to a different seller. What part of the procurement process is the team in?

A.Negotiate Contracts
B.Plan Procurement Management
C.Conduct Procurements
D.Control Procurements

Which of the following takes place during executing in the project management process?

A.Control Procurements
B.Conduct Procurements
C.Facilitate Procurements
D.Plan Procurement Management