PMP question

1.A manager and the head of engineering discuss a change to a major work
package. After the meeting, the manager contacts you and tells you to complete
the paperwork to make the change. This is an example of:
A-) Management attention to scope management.
B-) Management planning.
C-) A project expediter position.
D-) A change control system.
 
Answer is C. In this situation, project manager acts as the secretary of the project
and does the paper work. So this is an example of project expediter position
where project manager does not have any authority and power. Project manager
does only paper work.
2. During a team meeting, a team member asks about the measurements that will
be used on the project to judge performance. The team member feels that some
of the measures related to activities assigned him are not valid measurements.
The project is BEST considered in what part of the project management process?
A-) Initiating
B-) Executing
C-) Monitoring & Controlling
D-) Closing
Answer is B. Executing. Questions states that team member feels some of the
measures on his activities are not valid. Therefore, he must be working during the
executing phase of the project where project deliverables are produced and
project members perform most of the work they should do.
3. Your company just won a major new project. It will begin in three months and
is valued at 2m USD. You are the project manager for an existing project. What is
the FIRST thing you should do once you hear of the new project?
A-) Ask management how the new project will use resources
B-) Resource level your project
C-) Crash your project
D-) Ask management how the new project will affect your project
Answer is D. Ask management how the new project will affect your project. Since
this is another project that your company is going to execute, you need to be sure
whether it will impact your project.
4. You are a new project manager who has never managed a project before. 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
Answer is C. Historical information. First thing to explore before starting a new
project is the historical information about similar projects in the organizational
process assets library of the organization.
5. 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-) Scope management plan
Answer is A. WBS Dictionary. Work packages in a Work Breakdown Structure
contain only nouns or a couple of words regarding a work or deliverable. Detailed
information on what needs to be done, responsible, prerequisites, successors,
due date etc. are included in the Work Breakdown Structure Dictionary.

6. During a meeting with some of the project stakeholders, the project manager is
asked to add work to the project scope. The project manager had access to
correspondence about the project before the project charter was signed and
remembers that the project sponsor specifically denied funding for the scope
mentioned by these stakeholders. The BEST thing for the project manager to do is
to:
A-) Let the sponsor know of the stakeholders’ request.
B-) Evaluate the impact of adding the scope.
C-) Tell the stakeholders the scope cannot be added.
D-) Add the work if there is time available in the project
schedule
Answer is C. Tell the stakeholders the scope cannot be added. After the scope of a
project is finalized and scope baseline is determined, it can be changed only with
the approved changed requests. If there is not an approved change request,
existing scope baseline must be valid and project team must work on to deliver
that scope only. In the scenario, scope is defined already but some stakeholders
ask to add new work to the scope. This cannot be done unless there is an
approved change request. Therefore, stakeholders must be informed that this
new work cannot be added.
7. Your project management plan results in a project schedule that is too long If
the project network diagram cannot change but you have extra personnel
resources, what is the BEST thing to do?
A-) Fast track the project.
B-) Level the resources.
C-) Crash the project.
D-) Monte Carlo analysis.
The answer is C, crash the project. Because, in first sentence, it is mentioned that
schedule is too long, therefore the aim is making a shorter schedule. And in the
second sentence it is mentioned that you have extra personnel resources. If you
have resources, you can put more resources in an activity to complete it in a
shorter time. And this is actually a description of crashing an activity or crashing
the project. If you look to the other options, fast tracking was performing
activities in parallel instead of series, therefore it is irrelevant. Leveling the
resources was for fixing the over-allocation of resources and distributing the tasks
to all your resources uniformly. And Monte Carlo analysis was another estimating
tool which is irrelevant choice as well. Therefore, here the best answer is C.
8. An activity has an early start (ES) of day 3, a late start (LS) of day 13, an early
finish (EF) of day 9, and a late finish (LF) of day 19. The activity:
A-) Is on the critical path.
B-) Has a lag.
C-) Is progressing well.
D-) Is not on the critical path.
Answer is D. is not on the critical path. Because if you look to the early start and
late start values of the activity, you can find the float or the slack of activity’s time
by subtracting early start, 3 days, from the late start, 13 days. And it gives 10 days
of float for this activity. You will find the same result if you go through subtracting
the early finish, 9 days, from the late finish, 19 days. Since the float of activity or
the slack of the activity is greater than zero, it’s not on the critical path.
Remember the critical path activities was having zero float, therefore the answer
is D.
9. Early in the life of your project, you are having a discussion with the sponsor
about what estimating techniques should be used. You want a form of expert
judgment, but the sponsor argues for analogous estimating. It would be BEST to:
A-) Agree to analogous estimating, as it is a form of expert judgment
B-) Suggest life cycle costing
C-) Determine why the sponsor wants such an accurate estimate
D-) Try to convince the sponsor to allow expert judgment because it is typically
more accurate.
Answer is A. Agree to analogous estimating, as it is a form of expert judgment.
Since analogous estimating is a type of expert judgment you can accept it. This is a
tricky question.
10. A schedule performance index, SPI, of 0.75 means:
A-) Project is over budget.
B-) Project is ahead of schedule.
C-) Project is progressing at 75% of the rate originally planned
D-) Project is progressing at 25% of the rate originally planned
Answer is C, project is progressing at 75% of the rate originally planned. A, is
irrelevant because SPI is a schedule performance index. We cannot derive any
conclusion about budget performance of the project with this index. B, is not
correct because SPI is less than one, therefore, the project is behind schedule.
And D, says that you have completed 25% of the work that you have originally
planned, so it’s not correct. The correct answer here is C, because SPI 0.75 means,
you have completed 75% of your work that you have originally planned.
11. You are the program level manager with several project activities underway.
In the executing process group, you begin to become concerned about the
accuracy of progress reports from the projects. What would BEST support your
opinion that there is a problem?
A-) Quality Audits
B-) Risk Quantification Reports
C-) Regression Analysis
D-) Monte Carlo Analysis
Answer is A. quality audits. If you read the second sentence again, it says that you
are concerned about the accuracy of progress reports from the project. In order
to check whether the standards of your organization have been applied in the
projects that you are responsible of, you can conduct a quality audit and find out
whether there is really a problem. Therefore, here the best answer is A, Quality
Audits.
12. You are a project manager for a major information systems project. 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
How would you explain it to your team if you were in this case? The best answer
is C, to identify inefficient and ineffective policies. B and D are irrelevant options
because quality audit is done in order to check whether you are meeting the
quality standards, whether you are following the quality procedures of your
company. Therefore, it’s not related whether the customer is following its quality
processes. Or it is not related about accuracy of costs submitted by the team.
13. During every project team meeting, the project manager asks each team
member to describe the work he or she is doing, and the project manager assigns
new activities to team members. The length of these meetings has increased
because there are many different activities to assign. This could be happening for
all the following reasons EXCEPT:
A-) Lack of a WBS
B-) Lack of a responsibility assignment matrix
C-) Lack of resource leveling
D-) Lack of team involvement in project planning
Answer is C, lack of resource leveling. If you read the clauses again, here the
problem is the activities or the tasks that need to be performed in the project are
not clear. So, the reasons of these ambiguities, or these unclear points about the
tasks that will be performed can be lack of a WBS. If you could not decompose
your project activities and creation of WBS, then this might be causing the
ambiguities in your project tasks. Also, if you do not have a clear and concise
responsibility assignment matrix, then the resources of your project will have
unclarity about who will do what in the project. Also, if the team was not involved
in project planning, maybe you could not have identified the required steps,
required tasks, activities that need to be performed in the project. So, options A,
B, and D are the possible reasons for this case mentioned in the question.
However, lack of resource leveling might be causing a scheduling problem.
Resource leveling is a technique used in schedule management knowledge area,
which was enabling the uniform distribution of tasks and activities in a project.
14. Conflict resolution techniques that may be used on a project include
confronting, smoothing, forcing, and:
A-) Withdrawing
B-) Directing
C-) Organizing
D-) Controlling
Which of the options is a conflict resolution technique? Answer is A,
Withdrawing, or in other words, avoiding. The other three are directing,
organizing, and controlling, are not types of conflict resolution techniques.
Therefore, the answer is A.
15. All of the following about communication models is true EXCEPT:
A-) Sender encodes his thoughts and sends to receiver.
B-) Information is sent by the sender to receiver with the assistance of medium.
C-) Receiver acknowledges if he agrees with the information he received.
D-) Message is decoded by the receiver into thoughts.
Which one is not correct about communication models? The answer is C, Receiver
acknowledges if he agrees with the information he received. If you remember,
acknowledgement was saying that the receiver got the message, but it does not
mean that he or she agrees with the received message. Acknowledgement means
only that the message sent by the other party has been received. Therefore, it
does not mean an agreement, and here the best answer is C.
16. A project manager is quantifying risk for her project. She needs expert opinion
in this process and related experts are spread over to different geographical
locations. How can she continue?
Using Monte Carlo analysis online
Applying the critical path method
Determine options for recommended corrective action
Applying the Delphi Technique
Answer is D, applying the Delphi Technique. If you remember from our previous
lectures, that technique was asking the experts opinion on a topic or on a
problem and collecting their feedback anonymously and then sending back the
results back to the experts again, and recollecting their responses again. And
reiterating this process until a consensus is reached by all participants, by all
experts. Therefore, since expert opinion is important for this case and experts are
spread over different geographical locations, we can use Delphi Technique.
17. During risk management activities, 236 risks have been identified which are
caused by 13 root causes. You could eliminate the 234 risks by your risk
management activities. For remaining 2 risks, you, together with your team, could
not find a way to mitigate or insure the risks. Also these 2 risks cannot be
outsourced or removed from project scope. What is the best solution?
A-) Accept the risk
B-) Mitigate the risk
C-) Avoid the risk
D-) Transfer the risk
Answer is A, accepting the risk. When you read the case, the project manager
tried first to eliminate the risk, then tried to mitigate or insure the risk. But all
these options did not work. And the last step is the risk should be accepted by the
project team and continuous reserves should be allocated in order to
accommodate risks or in order to overcome the bad impacts of these risks when
they occur. Therefore, the best answer here is accepting the risk and also
planning contingency reserves.
18. The project team is arguing about the 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. The BEST thing the
project manager should remind the team to focus on in order to make a selection
is the:
A-) Procurement documents
B-) Procurement audits
C-) Evaluation criteria
D-) Procurement management plan
Answer is C, evaluation criteria. The source selection criteria, or evaluation
criteria defined in plan procurement management process actually defines, in an
objective way, how quantitatively, the potential sellers will be evaluated in
conduct procurements process. Therefore, if you have applied specific metrics,
specific categories to evaluate, or assess a potential seller in conduct
procurement process, then you have to use that metrics, use that categories to
evaluate each seller one by one. And the sellers, which got the highest scores
should be awarded with contract. Therefore, the team members should not go in
argument about the selection of the sellers. Because you have already a
quantitative metric to evaluate which seller is best matching to your source
selection criteria.
19. A project manager is in the middle of creating a request for proposal (RFP).
What part of the procurement process is she in?
A-) Conduct procurements
B-) Plan Procurements
C-) Control Procurements
D-) Close Procurements
Answer is B, she is in plan procurements process. Because procurement
statement of work, procurement documents are prepared in plan procurements
management process. And RFP is a procurement document as well. Therefore, it
is prepared in plan procurements process. RFP was defining what the buyer is
requiring from the seller.
20. You want to group your project stakeholders based on their authority and
involvement in the project. Which of the following is appropriate model for this?
A-) Power/Interest Grid
B-) Power/Influence Grid
C-) Influence/Impact Grid
D-) Salience Model
Answer is B. Power/Influence Grid. Authority of a stakeholder represents power
of the stakeholder and involvement of a stakeholder represents the influence
level of the stakeholder. Therefore, answer is B. Power/Influence Grid.
21. Which of the following is NOT true for a project?
A-) Projects are constrained by limited resources
B-)Projects are planned, executed, and controlled
C-) Projects create a unique product or service
D-) Projects are ongoing and repetitive
Answer is D. A project is a temporary endeavor undertaken to create a unique
product, service, or result. The temporary nature of projects indicates a definite
beginning and ending.
22. In the context of a desirable model of communication between a sender and a
receiver, all the following statements are correct EXCEPT:
A-) Noise should be at minimum level.
B-) Receiver must reply the message after decoding the message.
C-) Receiver should acknowledge first and then agree with the message sent by
the sender.
D-) Receiver should send a feedback message to the sender.
Answer is C. As part of the communications process, the sender is responsible for
the transmission of the message, ensuring the information being communicated is
clear and complete, and confirming the communication is correctly understood.
The receiver is responsible for ensuring that the information is received in its
entirety, understood correctly, and acknowledged or responded to appropriately.
However, receiver may not agree on received message
23. ohn is a project manager of a complicated project. When he started creating a
work breakdown structure for his project, he realized that it is too complex to
complete work breakdown structure on a single sheet. You, as a colleague of
John, recommend using a work breakdown structure numbering system to John
to:
A-) Determine the complexity of the project
B-) Help in automating the WBS using appropriate software
C-) Provide a hierarchical structure for each WBS element
D-) Present risks of the project
Answer is C. The WBS is finalized by assigning each work package to a control
account and establishing a unique identifier for that work package from a code of
accounts. These identifiers provide a structure for hierarchical summation of
costs, schedule, and resource information.
24. You are trying to establish a cost performance baseline for your project in
Determine Budget Process. You can use the following tool and techniques
EXCEPT:
A-) Cost aggregation
B-) Bottom-up estimating
C-) Expert judgment
D-) Historical relationships
Answer is B. Tools and techniques used in Determine Budget Process are:

 Cost aggregation
 Reserve analysis
 Expert judgment
 Historical relationships
 Funding limit reconciliation

Bottom-up estimating is used in Estimate Costs Process.

25. Which of the following techniques includes measuring, examining and
validating whether work and deliverables meet requirements and product
acceptance criteria?
A-)Workshops
B-)Surveys
C-)Expert Judgment
D-)Inspection
Answer is D. Inspection includes activities such as measuring, examining, and
validating to determine whether work and deliverables meet requirements and
product acceptance criteria.
26. You are a project manager in a bicycle manufacturing company. Rubber for
brake mechanism for your bicycles supplied by RuBrake Inc could not reach due
to flood affected the transportation routes. This was a risk you thought it could
happen since it happens each year on same season. So, as per your risk response
plan, you started to use rubbers delivered one year ago. However, this response
brought another risk –old rubbers have higher breaking risk during
implementation to the brake system.This new risk can also be called:
A-)Secondary risk
B-)Residual risk
C-)Contingency plan
D-)Unmanageable risks
Answer is A. Secondary risks are risks that arise as a direct result of implementing
a risk response
27. All of the following are hygiene factors according to Herzberg’s Theory
EXCEPT:
A-)Salary
B-)Professional Growth
C-)Security
D-)Relationships at work
Answer is B. According to Herzberg’s Theory, there are hygiene factors and
motivating agents. Inadequate Hygiene factors may destroy motivation but
sufficient hygiene factors itself are not enough to motivate people. Hygiene
factors are:

 Working card
 Salary
 Personal Life
 Relationships at work
 Security
 Status

Professional growth is a motivating agent based on Herzberg’s Theory.

28. You are expected to manage stakeholders’ expectations as a project manager.
All of the following are interpersonal skills that you should apply EXCEPT:
A-)Building trust
B-)Resolving conflict
C-)Risk taking
D-)Active listening
Answer is C. The project manager applies interpersonal skills to manage
stakeholder’s expectations. For example:

 Building trust
 Resolving conflict
 Active listening
 Overcoming resistance to change

29. There has been several changes in your project and this affected your cost and
schedule estimates. This has invalidated the original estimating assumptions.
What is the estimate at completion (EAC) for your project based on following
parameters?

 BAC = $ 360,000
 AC = $ 120,000
 EV = $ 180,000
 CPI = 1.2
 ETC = $ 145,000

A-)$ 300.000
B-)$ 265.000
C-)$ 325.000
D-)$ 360.000
Answer is B. EAC = AC + ETC = $ 120.000 + $ 145.000 = $ 265.000
30. Portfolio managers are responsible of managing:
A-)Dependency of different projects
B-)Operational projects only
C-)Projects, programs and operations
D-)Functional work and projects
Answer is C. The relationship among portfolios, programs, and projects is such
that a portfolio refers to a collection of projects, programs, sub-portfolios, and
operations managed as a group to achieve strategic objectives
31. Your Company has entered into a joint venture with Service Company to
develop a software program. Which of the following should be cooperatively
prepared by both the buyer and the seller during teaming agreement process?
A-)Contract
B-)Contract, Procurement statement of work
C-)Request for proposal
D-)Human Resource Plan
Answer is B. In some cases, the seller may already be working under a contract
funded by the buyer or jointly by both parties. The effort of the buyer and seller in
this process is to collectively prepare a procurement statement of work that will
satisfy the requirements of the project. The parties will then negotiate a final
contract for award.
32. There are three projects that are possible to be executed in your company:

 Project A: Payback period= 6 years & NPV =$ 3,000,000

 Project B: Payback period=4 years & NPV =$ 2,000,000
 Project C: Payback period=2 years &NPV =$ 1,000,000

Based on Net Present Value (NPV) criterion, which project should be selected?
A-)Project A
B-)Project B
C-)Project C
D-)None of them, they all have equal value
Answer is A. Project A has highest NPV of $ 300,000. Time value of money is
already taken into account when calculating NPV of a project. Since Project A has
the highest NPV, it should be selected.
33. You are trying to gather ideas related to project and product requirements.
Which technique is appropriate for this?
A-)Brainstorming
B-)Nominal Group Technique
C-)Affinity Diagram
D-)Multi-criteria Decision Analysis
Answer is A. A technique used to generate and collect multiple ideas related to
project and product requirements.
34. Your colleague Wayne, a project manager, completed a mp3 player
development project. While he was telling his experiences from his project, he
mentioned that they delivered “adjustable screen timeout duration” feature,
without a deviation from the plan, although the customer did not require and was
not in scope of the project. He added that customer was very surprised and happy
when they saw this additional feature at the end of the project. Which of the
following is correct about this story?
A-)Gold plating was done in the project
B-)Customer satisfaction increased with an additional feature which they did not
expect
C-)Change request has been delivered successfully
D-)Unnecessary risk has been taken by adding a new feature to product.
Answer is A. Gold plating refers to continuing to work on a project or task well
past the point where the extra effort is worth the value it adds (if any). After
having met the requirements, the assignee works on further enhancing the
product, thinking the customer would be delighted to see additional or more
polished features, rather than what was asked for or expected.
35. You have documented all possible risks that can affect your project with
appropriate risk responses when they occur in your risk management plan. All
other remaining risks are called as:
A-)Risk Triggers
B-)Unmanageable Risks
C-)Residual Risks
D-)Accepted Risks
Answer is C. Residual risks that are expected to remain after planned responses
have been taken, as well as those that have been deliberately accepted.
36. You are working as a project manager in a company. You have the highest
degree of authority, you are working full-time for your project and you manage
the budget of the project. What is the organization structure in your company?
A-)Strong Matrix
B-)Projectized
C-)Functional
D-)Balanced Matrix
Answer is B. In a projectized organization structure, project manager has the
highest level of authority, works full-time and manages the budget of the project.
37. You are the project manager of a software project team consisting of 2
analysts, 4 software developers and 3 test engineers. One new test engineer will
join the team in two weeks. What will be the number of communication channels
after new test engineer joins the team?
A-)55
B-)50
C-)45
D-)36
Answer is A. The total number of potential communication channels is n(n-1)/2,
where n represents the number of stakeholders.
Your team has 10 team members already (2 analysts, 4 software developers, 3
test engineers, and you as a project manager). After new test engineer joins,
there will be 11 team members.
Number of communication channels = 11*(11-1)/2=11*10/2 = 55
38. All of the following are tools and techniques that can be used in Identify
Stakeholders process EXCEPT:
A-)Expert Judgment
B-)Stakeholder Register
C-)Meetings
D-)Stakeholder Analysis
Answer B. Stakeholder analysis, Expert Judgment and Meetings are tools and
techniques that can be used in Identify Stakeholders process. Stakeholder
Register is an output of Identify Stakeholders process.
39. The seller`s project is undertaken on contract and you are an employee of the
seller. Since you earlier worked with XYZ Factory, the buyer, you happen to be
aware of the evaluation criteria used in XYZ Factory to select sellers. You
understand that this could be a potential conflict of interest situation. How do you
propose to act?
A-)Do nothing and continue to work as before
B-)Take appropriate person in XYZ Factory into confidence and discuss this issue
with her
C-)Disclose the evaluation criteria to your (seller) organization and help their
business growth
D-)Remove yourself from the project
Answer is B. Since the evaluation criteria are proprietary information of XYZ
Factory, it is important for you to discuss the matter directly with the appropriate
person in the XYZ Factory.
40. During project planning phase, which of the following steps come latest
compared to others?
A-)Hold kick-off meeting
B-)Gain formal approval of the plan
C-)Develop Budget
D-)Develop Schedule
Answer is A. Following is the order of steps in planning phase:

 Develop schedule
 Develop budget
 Gain formal approval of the plan
 Hold kick-off meeting
  Kick-off meeting is the last step of planning phase.

41. The primary purpose of Project Management Plan development is to

—
a. Create a document to guide project execution and control
b. Document project assumptions and constraints
c. Promote communication among stakeholders
d. Define key project reports

42.Jan started her project in February with a project staff of 15 people,

besides herself, three of whom also served as project management team
members. By June, four more people had begun working on the project. How
many more people and communication channels were on her team in June?
a. There were three more people on her team and 190 additional
communication channels.
b. There were four more people and 120 additional communication channels.
c. There were three more people on her team and 70 additional
communication channels.
d. There were four additional people on the team and 70 more
communication channels.
Answer option d. The answer to this question is based on the
Communication Channel calculation, which is: n(n – 1)/2, where n = the
number of stakeholders, team members, etc. Answering this question
correctly requires that you work through three steps: Step 1, calculate the
number of channels Jan previously had on her team In January: 16(15)/2
=120; Step 2, calculate the number of channels after 4 more people were
added to the team: 20(19)/2 = 190; and finally Step 3, subtract the previous
number of channels (120) from the current number of channels (190): 190 –
120 = 70. In other words, “There were four additional people [in February, a
total of 20 people] on the team and 70 more communication channels [the 190
channels currently on the team minus the 120 channels existing in February]
43. A 12 month project has a budget at complete of $100,000. At month eight,
actual costs were $104,000. What is the project status?
a. In trouble, since more was spent than was budgeted
b. Doing okay so far, since less was spent than was budgeted
c. There is not enough information to determine the status
d. Over budget and behind schedule
Answer a. “In trouble, since more money was spent than was budgeted.”
BAC = 100,000; eight months into the (1 year) project you’ve spent $104,000
eliminates b as an answer. While the project may or may not be complete at 8
months, there is not enough information given to determine if we are or are
not behind schedule. C is eliminated as we do have an understanding as to
our cost budget.
44. Force Majeure is a term derived from insurance law meaning .
a. Superior or irresistible force, such as lightning, earthquakes, storms,
or floods.
b. Any party to a contract can redress alleged illegalities through any U.S.
District Court.
c. The buyer can seek damages from the seller due to major contract
breaches.
d. The seller neglected to exercise due care in performance and is thus
subject to a breach of contract action.
Answer option a. As stated in the Slide Presentation: Force Majeure is “An
act of God. An event that could not reasonably have been guarded against.”
Answer option a., “Superior or irresistible force, such as lightning,
earthquakes, storms, or floods,” is the option that best describes Force
Majeure.
45. While reviewing the estimates from the functional managers assigned to
your project you discover that one cost estimate is clearly higher than those
submitted for previous projects. You should—
a. Reject the estimate and remove the functional manager from the project
b. Request the supporting details for the estimate to ensure it has been
properly prepared.
c. Accept the estimate and plan to use the additional funding as a reserve.
d. Question each functional manager for information about this estimate.
Answer option b. To “Reject the estimate and remove the functional
manager from the project” (answer option a.) would be disrespectful of the
manager, as would questioning “each functional manager for information
about this estimate” (option d.). If you were to “Accept the estimate and plan
to use the additional funding as a reserve” (option c.), you would be
irresponsible. The only reasonable answer is “Request the supporting details
for the estimate to ensure it has been properly prepared,” option b.
46. The 80/20 rule, also known as the Pareto Principle, is best described by
which one of the following statements?
a. 80% of the problems in quality can be ascribed to management and 20% to
the employees.
b. 80% of the cost of a product or service is in 20 % of the materials or labor
required.
c. Eighty percent of all causes lead to 20% of all problems.
d. Many problems, perhaps as high as 80% of all problems, are
generated by or result in a comparatively small number of causes,
perhaps 20%.
Answer option d. The Pareto Principle (also known as the 80/20 Rule) is not
mentioned in the PMBOK but has been a perennial favorite on the PMP
Exam. The correct answer here is wordy but correct. In fewer words, the
principle – that most (possibly 80%) of all problems are due to a few (as few
as 20%) causes – is clearly stated in the Slide Presentation in the Plan Quality
section. None of the other options come close to an accurate description of
the principle.
47. Herzberg’s theory of motivation holds that if motivators such as
achievement, recognition, and responsibility are not present, employees will _.
a. Become disillusioned and look for other employment.
b. Lack motivation but still work well.
c. Lack motivation and become dissatisfied with their work.
d. Use the workplace as a means to extend their social life.
Answer option c. Herzberg’s theory of motivation, which consists of Hygiene
Factors and Motivators, says that employees need to be motivated by
recognition, work content, and the opportunity for growth. The organization’s
Hygiene Factors – such as policy administration, salary, supervision, working
conditions (or lack thereof) – are important, they do not in themselves
motivate employees

48. If a risk event has a 90 percent chance of occurring and the impact will
be $10,000, what does $9,000 represent?
a. Risk value
b. Expected value
c. Real value
d. Contingency budget
Answer option b. This question requires that you calculate the Expected
Monetary Value (EMV), which is: EMV = Probability x Impact. In the problem,
“90 percent chance of occurring “is the Probability, while “impact will be
$10,000” is obviously the impact. Therefore: EMV = 0.9 x $10,000
= $9,000, which is answer option b., the “Expected value.”

49. PERT is an estimating tool that—

a. Takes into consideration risk as an element of the estimate
b. Can only be used for estimating level of effort
c. Can only be used in the precedence diagram method.
d. Uses only historical estimates to calculate standard deviations
Answer option a. PERT “is a technique for estimating…when there is
uncertainty with the individual activity estimates” – “uncertainty” meaning, of
course, risk
50. A WBS is a product-oriented “family tree” of project components. Each
item in the WBS is generally assigned a unique identifier. These identifiers are
known collectively as the .
a. Chart of Accounts.
b. Code of Accounts.
c. Work Package control numbers.
d. WBS ID numbers.
Answer option b. “The WBS is finalized by assigning each Work Package to
a Control Account and establishing a unique identifier for that Work Package
from a Code of Accounts.

51. There are five levels of stakeholder engagement. What are they?
a. Unaware, Resistant, Neutral, Supportive, Influencing
b. Aware, Resistant, Neutral, Supportive, Leading
c. Unaware, Resistant, Neutral, Supportive, Leading
d. Aware, Resistant, Interested, Supportive, Leadinga
Answer option c. is the correct answer, as highlighted on the PMBOK
52. Which of the following is not true?
(a) Every project is unique
(b) A project gives some output
(c) Projects are not repetitive
(d) Car manufacturing is an example of project
Explanation: As per the definition, a project is unique, non-repetitive,
and gives some output. Therefore, options a, b, & c are definitely the
characteristics of a project. Car manufacturing is repetitive production
process; hence, it is not a characteristic of a project.

53. What is a Product Scope?

(a) Features and functions that characterize a product
(b) The work done to deliver the product
(c) Both A & B
(d) None of above
Explanation: The Product Scope is the features or functions of a product. It is
all about the product; e.g. what it will look like, how it will perform, etc
54. In Rolling Wave Planning:
(a) Near term work is planned in more detail
(b) All planning is completed before starting the actual work
(c) 50% of planning is completed before starting the actual work
(d) None of the above
Explanation: In rolling wave planning, near term work is planned in more
detail, while the distant work is planned broadly.
55. Which of the following is not a basic element of Earn Value Management
(EVM)?
(a) Earned Value
(b) Planned Value
(c) TCPI
(d) Actual Cost
Explanation: Earned Value, Planned Value, and Actual Cost are three basic
elements of Earn Value Management.
56. What is meant by RACI?
(a) Responsible, Accountable, Confirm, Inform
(b) Recommended, Accountable, Consulted, Inform
(c) Responsible, Accountant, Consulted, Inform
(d) Responsible, Accountable, Consulted, Inform
Explanation: The RACI chart is an example of Responsibility Assignment Matrix
(RAM), which shows the relationship between activities and the team members.

57. Risks included in the Watch List are known as:

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

58. You hired a programmer for $25/hour for two months. What kind of
contract is this?
(a) CPIF
(b) Fixed Price
(c) Time & Material
(d) CPAF
Explanation: A Time and Material contract is mostly used for temporary hiring, or hiring experts
in cases where you cannot define the exact scope of work quickly.

59. A person who is directly or indirectly involved with your project, or affected
by your project or its outcome, is known as:
(a) Customer
(b) Manager
(c) Team Member
(d) Stakeholder
Explanation: This is the definition of the stakeholders

60. Code of Ethics and Professional Conduct applies to:

(a) PMI members
(b) PMP holders
(c) PMI volunteer
(d) All of the above
61. Which of the following statement is true about a Program?
(a) A Program is a group of related projects
(b) A Program is group of unrelated projects
(c) A Program is a part of a big project
(d) None of the above
Explanation: As per the definition, a program is a group of related projects; therefore option ‘a’
is the correct answer.

62. What is the duration of the Milestone?

(a) Zero
(b) One
(c) Duration of the project
(d) None of the above
63. Money spent during a specific time period is known as:
(a) Budgeted Cost
(b) Actual Cost
(c) Earned Value
(d) Planned Value
64. Which of the following is part of the Maslow theory?
(a) Hygiene Theory
(b) Hierarchy Theory
(c) Expectancy Theory
(d) Theory X & Y
Explanation: Maslow Hierarchy Theory is also known as the Theory of Needs; it states that
when our lower order needs are met and satisfied, we tend to be concerned with the higher
order of needs.

65. Which of the following strategies is not used for negative risks?
(a) Exploit
(b) Transfer
(c) Avoid
(d) Mitigate
Explanation: Exploit is the strategy where you do everything to realize the opportunity. This
type of strategy cannot be used with negative risks.

66. Which contract is considered most risky for the bidders?

(a) Time & Material
(b) Fixed Price
(c) Cost Reimbursable
(d) CPAF
Explanation: A Fixed priced contract is the most risky contract for the seller
because once the seller signs the contract he is legally bound to complete it
within the agreed amount.
67. During a bidder conference you see that one bidder is your close friend.
What should your next step be?
(a) You will pass some confidential info to him
(b) You will disclose this relationship to your management
(c) You will resign immediately from the bidding process
(d) You will try not to give the contract to him to prove your integrity
68. In which type of organization does the Functional Manager manage the
project budget?
(a) Projectized
(b) Strong Matrix
(c) Balanced Matrix
(d) Weak Matrix
Explanation: In Weak Matrix organization, the Functional Manager manages the budget. In
Strong Matrix and Projectized organization, the Project Manager Controls the budget, while in
Balanced Matrix organization, both managers control it. In this case, option ‘d’ is the correct
answer.

69. For your project you need to outsource some work, so you sign a fixed
price contract with a contractor. In this contract, the price above which the
seller bears all costs of cost overrun is known as:
(a) Point of Total Assumption
(b) Cost Overrun 
(c) Target Cost
(d) Target Price
Explanation: This is the Point of Total Assumption (PTA). PTA is a point
above which total cost overrun is borne by the seller.
70. Which of the following statement is true about the Project Charter?
(a) It authorizes the existence of a project
(b) It is a bidding document
(c) It is used to rank the risks
(d) All of the above
71. You have been given 100,000 USD to complete the project. 60,000 USD
has been spent, though as per the schedule, 55,000 USD should have been
spent to complete the same work. What is the Budget at Completion (BAC)?
(a) 55,000 USD
(b) 100,000 USD
(c) 60,000 USD
(d) 105,000 USD
72. You have six team members working under you. How many lines of
communication will you have in your communication plan?
(a) 16
(b) 15
(c) 21
(d) 30
Explanation:
Communication lines = N*(N–1)/2

Where, N is the total number of member.

Here N = 7 (six team members plus you)

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

=21

73. A Risk that is caused by the response of another risk, is known as:
(a) Primary Risk
(b) Secondary Risk
(c) Residual Risk
(d) Negative Risk
Explanation: A secondary risk is caused by applying the strategy to minimize
the effect of the primary risk. For example, you dig a trench to stop people
crossing it, but there is also a chance that someone may fall into it.
74. What should be your goal while negotiating with the seller?
(a) Press for lower price
(b) Press for early completion
(c) To arrive at a fair deal
(d) Give him extra benefits
75. How will you deal with the stakeholders with High Interest but Low Power?
(a) Keep them informed
(b) Monitor them
(c) Manage them closely
(d) Try to satisfy them
Explanation: You will deal with stakeholders as follows: high power and low
interest category stakeholders will be kept satisfied, high power and high
interest category stakeholders will be managed closely, low power and low
interest category stakeholders will only be monitored and high interest and low
power category stakeholders will be kept informed.
76. Which of the following is not an example of Enterprise Environmental
Factor?
(a) Rules and Regulations
(b) Organization Culture
(c) Procedures
(d) Market condition
Explanation: Enterprise Environmental Factors are conditions that influence
the project. These factors are not within the control of the project team and
they have to work within it. Enterprise Environmental Factors are not always
helpful to the project team; sometimes they may harm you as well.
Rules & Regulations, Organization Culture, and Market Conditions are
examples of Enterprise Environmental Factors.
Procedure is an example of Organizational Process Assets.

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

(a) Project Scope Statement
(b) WBS
(c) WBS Dictionary
(d) Risk Register
Explanation: Risk Register is not a part of the Scope Baseline.
78. You have been given 100,000 USD to complete the project. 60,000 USD
has been spent, though as per the schedule, 55,000 USD should have been
spent to complete the same work. What is the Actual Cost (AC)?
(a) 55,000 USD
(b) 100,000 USD
(c) 60,000 USD
(d) 105,000 USD
79. Which of the following risks will be managed with the Contingency
Reserve?
(a) Known Risks
(b) Unknown Risks
(c) Low Priority Risks
(d) High Priority Risks
Explanation: Contingency reserve is used to manage known risks
80. Which of the following is not an example of Organizational Process
Assets?
(a) Policies
(b) Procedures
(c) Government Regulation
(d) Lessons learned
Explanation: Organizational Process Assets are assets possessed by an
organization to help you to run the project efficiently and smoothly; e.g.
policies, procedures, lessons learned, etc.
81. You have been given 100,000 USD to complete the project. 60,000 USD
has been spent, though as per the schedule, 55,000 USD should have been
spent to complete the same work. What is the Planned Value (PV)?
(a) 55,000 USD
(b) 100,000 USD
(c) 60,000 USD
(d) 105,000 USD
82. A subcontractor is delaying the delivery of the deliverables. Which of the
following should you do?
(a) Cancel the contract
(b) Schedule a meeting with contractor
(c) Inform management
(d) Delay the payment
Explanation: You cannot simply cancel the contract just because contractor
is delaying something. You also should not go to management with
incomplete information. You must meet with the contractor to find the cause.
83. In which of the following phases of the project will most of the money be
spent?
(a) Initiating
(b) Planning
(c) Executing
(d) Closing
84. Which of the following statements is not true about the Project Charter?
(a) It may contain the names of important stakeholders
(b) It gives authority to the project manager
(c) It is signed by the project sponsor
(d) It should be approved by the project manager
85. What does the Schedule Performance Index (SPI) say about the project?
(a) It says whether you are ahead of or behind schedule
(b) It says whether you are overspending or under-spending
(c) It says whether your process is under control or not
(d) Specifies the control limits of the process
86. The most common cause of conflict within a project is:
(a) Schedule
(b) Personnel
(c) Procedures
(d) Resource
Explanation: Schedule priorities are the most common cause of conflict
within projects.
87. In which process you close the contract?
(a) Close project
(b) Control procurements
(c) Perform integrated change control
(d) Validate scope
Explanation: In Control Procurement process you close the procurement
contract for the phase or project.
88. Whenever you receive a change request, what will be your next step?
(a) Process for approval
(b) Investigate it
(c) Reject it
(d) Ignore it
Explanation: You will not simply approve, reject or ignore any change
request. Every change request must be investigated according to the process
specified in the Change Control and Configuration Control systems

89. If the optimistic estimate is 10 days, and the pessimistic estimate is 22

days, what is the standard deviation for this activity?
(a) 1
(b) 2
(c) 3
(d) 4
standard Deviation = (Pessimistic Estimate – Optimistic Estimate)/6
Standard Deviation = (22 – 10) / 6
=2

90. What does the Cost Performance Index (CPI) say about the project?
(a) It says whether you are ahead of or behind schedule
(b) It says whether you are overspending or under-spending
(c) It says whether your process is under control or not
(d) Specifies the control limits of the process
91. A contract cannot be a legal document until:
(a) Signed by the project manager
(b) Signed by the buyer
(c) Signed by the seller
(d) Signed by all parties

92. A project has more than one critical path. What does this mean to you?
(a) Risk increases – more path, more to monitor
(b) Risk decreases
(c) The duration of the project reduces
(d) The project may cost less
93. If an un-identified risk occurs:
(a) You will use the management reserve to manage it
(b) You will use the contingency reserve to manage it
(c) You will not take any action
(d) You will log it into the risk registers
Explanation: Management Reserve is used to manage un-identified risks.
94. Who contributes, develops and updates the Lessons Learned document?
(a) Client
(b) Project Management Team
(c) Functional Manager
(d) Management
Explanation: The whole project management team, including the project manager, contributes
to and helps maintain the lessons learned document.

95. You are developing the project management plan for your project. What
will be your main emphasis during this process?
(a) Hide it from team members until it is completed
(b) To take input from team members
(c) Not to inform management until it is ready
(d) Hide it from everyone
96. You have added a few extra features to the product with the intention to
make the client happy. This activity is known as:
(a) Buffer
(b) Scope Creep
(c) Gold Plating
(d) None of the above
Explanation: Gold Plating is a phenomenon where you add some extra
features to the product in order to make the client happy. Gold Plating may
increase the cost and risks.
97. Which one is an example of Crashing?
(a) Starting a few activities simultaneously
(b) Adding more resources
(c) Reducing resources
(d) Increasing the duration of project
98. TCPI = 1.5, what does it mean?
(a) You are doing well
(b) You are in bad condition
(c) You are going as planned
(d) None of the above
Explanation: If the TCPI is more than one, it means you need to work with better cost
performance.

99. Which statement is true?

(a) Low Grade may not be a problem
(b) Low Quality is not a problem
(c) Low Grade is never acceptable
(d) None of the above
Explanation: Low grade products may not be a problem if the quality is high. However, low
quality is always a problem and never accepted.

100. Which one of the following is not true about the change request?
(a) It happens usually in the execution phase of the project
(b) Usually requested by the client
(c) Usually requested by the project management team
(d) It is always an informal verbal request
Explanation: Change request must always be a formal request. You cannot process a change
request based on any informal request.

101. Due to a miscommunication with the client, some features are added to
the product. This process is known as:
(a) Gold Plating
(b) Scope Creep
(c) Scope Management
(d) Buffer
Explanation: The uncontrolled addition to the scope is known as Scope Creep. Scope Creep
indicates that you do not have adequate control over your project.

102. When should you update lessons learned?

(a) At the beginning of the project
(b) At the middle of the project
(c) Throughout the project
(d) At the end of the project
103. What is the goal of Quality Management?
(a) Customer Satisfaction
(b) Low cost product
(c) High grade product
Explanation: The goal of Quality Management is meeting or exceeding the customers’
satisfaction (d) Low quality and high grade product

104. You have identified a large number of risks during your risk identification
process. What will be your next step?
(a) You will prioritize them using the Qualitative Risk Analysis process
(b) Go for the Quantitative Risk Analysis
(c) Assign the risk owner to each risk
(d) Calculate the contingency reserve
105. Which of the following represents the correct order of project
management phases?
(a) Initiating, Planning, Executing, Monitoring & Controlling, Closing
(b) Initiating, Executing, Planning, Monitoring & Controlling, Closing
(c) Initiating, Planning, Monitoring & Controlling, Executing, Closing
(d) Planning, Initiating, Executing, Monitoring & Controlling, Closing
106. The role of the Develop Project Management Plan process is to:
(a) Create a Schedule for the Project
(b) Monitor Schedule
(c) Integrate all Subsidiary Plans
(d) Develop Cost Baseline
Explanation: The role of Develop Project Management Plan process is to
integrate all subsidiary plans; e.g. scope management plan, schedule
management plan, cost management plan, etc.
107. In risk management, you have many strategies to manage risks. Which
strategy will you not use with the negative risks?
(a) Mitigate
(b) Exploit
(c) Transfer
(d) Avoid
Explanation: Exploit risk response strategy is used with positive risks.
108. Which document is created by breaking the project scope into smaller
and manageable elements?
(a) Scope Baseline
(b) WBS
(c) OBS
(d) None of the above
109. Rearranging resources to optimize their utilization is known as:
(a) Crashing
(b) Fast Tracking
(c) Resource Leveling
(d) Schedule Compression
110. Which of the following statements is true about the Point of Total
Assumption?
(a) Above PTA, seller bears the cost
(b) Above PTA, buyer bears the cost
(c) Below PTA, buyer bears the full cost
(d) Below PTA, seller bears the 50% of cost
Explanation: Under the FPIF, you set a ceiling price; once this ceiling price is
passed, the seller bears all the cost. This point is known as Point of Total
Assumption.
111. Pareto Chart helps you find:
(a) Minor sources creating the majority of problems
(b) Majority of causes creating the minority of problems
(c) Cause of variation
(d) Cause of deviation
Explanation: Pareto Chart helps you identify the minor number of sources
causing most of the troubles
112. What is a Workaround?
(a) A response to unplanned threat
(b) A response to identified threat
(c) A response to low-priority risk
(d) None of the above
Explanation: When an unidentified risk occurs, you will take prompt action to
handle it. This activity is called a workaround.
113. While inspecting, you find a defective component and you repaired it.
This act is known as:
(a) Preventive Action
(b) Corrective Action
(c) Defect Repair
(d) None of Above
Explanation: Defect Repair is a process where you correct a defective
component. Preventive Action is an action that is taken to avoid any
anticipated future defects that may appear in the component. Corrective
Action is a future response to the defect repair process or the correction, so
that the cause of error or non-conformity will not occur again.

114. You are managing a project with a budget of 500,000 USD, and 250,000
USD has been spent. Upon review, you observe that only 40% of the work
has been completed; though, your schedule says that you should have
completed 50% of the work. What is the Actual Cost?
(a) 500,000 USD
(b) 200,000 USD
(c) 300,000 USD
(d) 250,000 USD
115. You are reviewing the control chart and observe that there are seven
points in a row that are below the mean. What does it mean?
(a) The mean should be re-adjusted
(b) Investigate the cause of it
(c) Re-draw in control limit
(d) It is common, nothing to worry about
Explanation: A process is considered to be out of control if seven
consecutive plot points are either above or below the mean.

116. The client inspects the deliverables with you, and finds that it meets the
acceptance criteria. He signed off and formally approves the deliverables.
Which process is this?
(a) Control Quality
(b) Control Scope
(c) Validate Scope
(d) Close Project
Explanation: Accepted Deliverables is the output of the Validate Scope
process.
117. Which is an example of Triple Constraint?
(a) Scope, Human Resource, Time
(b) Quality, Scope, Human Resource
(c) Cost, Human Resource, Time
(d) Scope, Cost, Time
Explanation: Scope, Cost and Time are considered Triple Constraints.
118. In which phase will the risks be at the lowest level?
(a) Initiating
(b) Planning
(c) Execution
(d) Closing
Explanation: Risk will be at its highest point at the Initiating Process group
and at the minimum at the Closing Process group.
119. Which Conflict Resolution Technique leads to consensus and
commitment?
(a) Withdraw
(b) Accommodate
(c) Compromise
(d) Collaborative
Explanation: Collaborative approach incorporates viewpoints of all parties involved in the
conflict.

120. What is a prototype?

(a) A working model of expected actual product
(b) A blueprint of the product
(c) A 3D model of the actual product
(d) None of the above
Explanation: Prototype is a working model of an actual product which helps
you get feedback from users.
121. Which of the following is the most accurate cost estimate method?
(a) Rough Order
(b) Three Point
(c) Parametric
(d) Bottom up
Explanation: In bottom up estimating, you estimate the cost of activities to the greatest detail,
add them together, and round up to the higher level. This is the most accurate method of
determining the project budge

122. Fishbone diagram is also known as:

(a) Gantt Diagram
(b) Pareto Diagram
(c) Run Chart
(d) Ishikawa Diagram
123. What is a Project Scope?
(a) The work performed to deliver a product
(b) It is the features and functions that characterize a product
(c) Both A & B
(d) None of the above
Explanation: As per the PMBOK Guide, the project scope is the work
performed to deliver a product, service, or result with the specified features
and functions. The term project scope is sometimes viewed as including
product scope.
124. Which of the following is not an output of a project?
(a) Developing a new car
(b) The production of cars
(c) An enhancement to the car
(d) Completing research on car
125. In your project you identify a risk that, due to the possibility of the
entrance of a new supplier, may provide some components at a cheaper
price. What kind of risk is this?
(a) Negative Risk
(b) Opportunity
(c) Known Risk
(d) Secondary Risk
126. Which one is not a stakeholder of your project?
(a) Your competitor
(b) Team member
(c) Client
(d) Management
Explanation: Your competitor is not your stakeholder because you do not have to manage him
or fulfill his requirements, although he may be affected by your project

127. In Six Sigma what percentage of accuracy is desired?

(a) 99.977
(b) 99.38
(c) 99.99966
(d) 93.3
Explanation: In Six Sigma 99.99966% accuracy is desired, and in Fifth Sigma 99.977%, Four
Sigma 99.38%, and in Three Sigma 93.3% accuracy are desired.
128. Which estimate is given more weight in the PERT estimate formula?
(a) Optimistic
(b) Pessimistic
(c) Most Likely
(d) None of the above
Explanation: In the PERT estimate formula, the Most Likely estimate is given more weight. The
PERT estimate formula is = (Optimistic + 4*Most-Likely + Pessimistic)/6

129. What does the Variance at Completion show?

(a) How much you are ahead of schedule
(b) Amount of budget surplus or deficit
(c) How fast you need to go to complete the project
(d) None of the above
130. In which procurement contract does the buyer have the minimum risk?
(a) Firm Fixed Price
(b) Time and Material
(c) Cost Plus Incentive Fee
(d) Cost Plus Fixed Fee
Explanation: In a Firm Fixed Price contract the buyer has a minimum risk because the seller
has to complete the project within the agreed amount.

131. During which phase of the project will risks be the highest?
(a) Initiating
(b) Planning
(c) Execution
(d) Closing
Explanation: During the Initiating phase the risks are highest and they decrease as the project
progresses

132. For your project, you have identified your project stakeholders,
developed strategy and now you are in the execution phase. In which project
phases do you identify the project stakeholders?
(a) Initiating and Planning and Execution
(b) Initiating and Planning
(c) Initiating, Planning, and Monitoring & Controlling
(d) All phases
Explanation: Stakeholder identification is an iterative process. You will identify stakeholders
throughout the project.
133. You are developing the project charter, with management, for a new
project. You are going to be the project manager. Who will sign the project
charter?
(a) Project Manager
(b) Operational Manager
(c) Functional Manager
(d) Someone from top management
134. What may happen if your project has more than one critical path?
(a) It will cost more
(b) The project completion date may be extended
(c) The quality may be reduced
(d) Risks will increase
135. Which of the following diagram looks like a fish skeleton?
(a) Ishikawa Diagram
(b) Tornado Diagram
(c) Decision Tree
(d) None of the above
136. For all your needs you have to go to the functional manager; moreover,
you do not have control over the budget. In what kind of organization are you
working?
(a) Projectized
(b) Weak Matrix
(c) Strong Matrix
(d) Balanced Matrix
137. Your management has asked you to provide them with the rough order
estimate for a project on an urgent basis. In this case, which of the following
techniques will you use?
(a) Parametric
(b) Bottom Up
(c) Rough order
(d) Analogous
138. Which is not an example of organizational process assets?
(a) Processes
(b) Procedures
(c) Lessons learned
(d) Political conditions
139. Your project is late and to bring it back on track you are adding extra
resources to some activities and giving overtime to your team members. This
is an example of:
(a) Critical Chain
(b) Fast Tracking
(c) Crashing
(d) Resource Leveling
140. In a balanced matrix organization, who has authority over the budget?
(a) Project Manager
(b) Functional Manager
(c) Both
(d) None of the Above
141. Which document authorizes the existence of the project?
(a) Scope Statement
(b) Project Plan
(c) Project Charter
(d) Stakeholder’s Register
142. he successor activity cannot be finished until the predecessor activity
starts. This is an example of which kind of relationship:
(a) Finish to Start (FS)
(b) Finish to Finish (FF)
(c) Start To Start (SS)
(d) Start to Finish (SF)
143. Which of the following graphs shows the major of problems due to a
minority of causes?
(a) Scatter Diagram
(b) GANTT Chart
(c) Pareto Diagram
(d) Bar Chart
144. Regarding the project expeditor and the project coordinator, which of the
following statements is correct?
(a) The coordinator has more power than the expeditor
(b) The expeditor has more power than the coordinator
(c) Both have equal power
(d) None of the above
Explanation: In a weak matrix organization, the project manager can work as either a
project coordinator or an expeditor. The expeditor has no authority or power to make
any decision while the coordinator has a little power to make decisions.
145. Your project is delayed by 45 days and the client has threatened that he
will impose a heavy penalty if you do not complete the project on time.
Therefore, to bring the project back on schedule you hire some equipment
and bring more team members to work with you. This is an example of:
(a) Resource Leveling
(b) Resource Optimization
(c) Crashing
(d) Fast Tracking
146. Which of the following risks remain even after applying the risk response
of an identified risk?
(a) Primary Risk
(b) Secondary Risk
(c) Remaining Risk
(d) Residual Risk
147. You have been given a task to accurately calculate the cost of a project.
Which of the following techniques will you use to get the most accurate cost of
the project?
(a) Parametric
(b) Analogous
(c) Bottom Up
(d) Top Down
148. Tom is a low-power stakeholder in your project, He is very interested and
enthusiastic about your project. He wants you to complete the project
successfully. How will you manage him?
(a) Keep informed
(b) Monitor
(c) Keep satisfied
(d) Manage closely
149. Who should be involved in identifying the project risks?
(a) Project team members
(b) Sponsors and upper management
(c) All relevant project stakeholders
(d) Project manager and top management
150. There is a risk which has a 7% chance of happening, and if it occurs it
will cost you 2,500 USD. What is the EMV of this event?
(a) -175 USD
(b) 2,325 USD
(c) 2,675 USD
(d) 175 USD
EMV = Impact * Probability

= (-2,500)*.07

= -175

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

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

Management.

152. A company has to make a choice between two projects, because the
available resources in money and kind are not sufficient to run both at the same
time. Each project would take 9 months and would cost $250,000.

The first project is a process optimization which would result in a cost reduction
of $120,000 per year. This benefit would be achieved immediately after the end
of the project.

The second project would be the development of a new product which could
produce the following net profits after the end of the project:

1. year: $ 15,000

2. year: $ 125,000

3. year: $ 220,000
Assumed is a discount rate of 5% per year. Looking at the present values of the
benefits of these projects in the first 3 years, what is true for their monetary
attractiveness?

a.Both projects are equally attractive.

b.One cannot say based on the numbers.

c.The second project is more attractive.

d.The first project is more attractive.

3. A production process has been defined as part of an industrial equipment

manufacturing project. The process is intended to produce steel bolts with a
length of 20 cm. The control limits are 19.955cm and 20.045cm.

The measurements made at the end of the process yielded the following results:

20.033cm, 19.982cm, 19,995cm, 20.056cm, 19.970cm, 19.968cm, 19.963cm,

19.958cm, 19.962cm, 19.979cm, 19.929cm.

What should be done?

a.The process is under control. It should not be adjusted.

b.The process should be improved.

c.The control limits should be adjusted.

d.The measuring equipment should be recalibrated.

4. Your project management team includes two external consultants each

from a different company. You found that repeated conflicts between the two
consultants already slow down project progress and jeopardize achievement of
objectives.

Which stage of team development can be difficult to overcome in such a

situation?

a.Storming from Forming, Storming, Norming, Performing

b.Panic from Enthusiasm, Panic, Hope, Solution

c.Kickoff from Assignment, Kickoff, Training, Communicating

d.Frustration from Direction, Frustration, Cooperation, Collaboration

5. During a project, earned value analysis is performed, resulting in the

following numbers:

EV: 523,000; PV: 623,000; AC: 643,000.

Which results are correct?

a.CV: +120,000; SV: +100,000

b.CV: +100,000; SV: +120,000

c.CV: -100,000; SV: -120,000

d.CV: -120,000; SV: -100,000

6. A project manager spent some days to create a multi-page document,

which he called project charter. The document should have been issued by the
project sponsor. The sponsor found the document outsized and asked for a
condensed document.

Which of the following is usually not an element of the project charter and can
therefore removed from the document?

a.The authority level of the project manager

b.Detailed control account and work package descriptions

 c.The business need that the project was undertaken to address

d.High-level risks

7. A document called ____________ is created by decomposing the project

scope into smaller, more manageable elements.

a.Scope Statement

b.Network Logic Diagram

c. Work breakdown Structure

d.Requested Change

8.

A project management team decided to develop a risk management plan. What

would be an appropriate occasion to create it?

a.A specific planning meeting

b.During a documentation review

c.When data precision is ranked

d.After selection of diagramming techniques

9. In order to speed up a project, you made a decision to fast-track a phase

currently performed with five team members, and another one which was
planned to begin in four weeks time with another five team members.

Which of the following activities should you do first?

a. Make sure that all exit criteria of the consecutive phase have been met to
ensure the flow of communications in a team situation which is more complex by
a factor of 2.
b. Make sure that all entry criteria of the previous phase have been met by
planning and performing a phase gate meeting to assess technical aptness.

c. Make sure that all exit criteria of the previous phase have been met by
planning and performing a phase gate meeting to assess technical performance.

d.Restructure your team and delegate tasks in order to ensure the

effective flow of communications in a combined team that requires increased
coordination efforts.

10. A project manager has been asked to support an internal project request by
developing a business case.

What kind of information is the person expected to provide in the document?

a.The detailed information from a business standpoint to determine whether

bidding for the customer project will be successful.

b.The detailed information from a project management standpoint to

determine whether the project will be successful.

c.The detailed information from a technical standpoint to determine

whether the project will be successful.

d.The necessary information from a business standpoint to determine

whether the project is worth the investment.

11.

You found the following earned value analysis information for a project that was
recently closed-out:

SPI = 0.7, CPI = 1.0

a.The project has been cancelled while it was executed. At that time the
project was behind schedule and on budget.
 b.The project's deliverables have all been finished. The project came in
behind schedule but on budget.

c.The project's deliverables have all been finished. The project came in
ahead of schedule but on budget.

d.The project's deliverables have all been finished. The project came in on
schedule but over budget.

12.

Which should be included in a requirements management plan?

a.The document should trace requirements to project scope / WBS deliverables.

b.It should describe how requirements activities will be planned, tracked,

and reported.

c.It should trace high-level requirements to more detailed requirements.

d.It should trace requirements to business needs, opportunities, goals, and

objectives.

13. In a traditionally drawn decision tree, a circle represents ___________.

a.a chance to which no expected monetary value can be assigned so that a

likely pay-off of a number of options can not be shown.

b.a decision to which no expected monetary value can be assigned so that

the pay-off can be shown ignoring uncertainties.

c.a chance to which an expected monetary value may be assigned to

calculate the average pay-off of two or more options.

d.a decision to which an expected monetary value may be assigned to

calculate the most likely pay-off of consequential uncertainties.
14. A project management team has subcontracted work to a service company.
Which of the following tools is the best choice to assure that the contractor will
adhere to the customer's policies, processes and procedures and will be able to
meet the quality requirements of the project?

a.Quality audit

b.Deliverable inspection

c.Fixed price contract

d.Service level agreement

15. With your team you are using judgment from subject matter experts early
during initiation to discuss perceived project risks. There is a number of experts
from different disciplines available. You want to create a conversational setting to
allow them to discuss their different views on the project and its risks.

Which of the following techniques can ensure best that the different perceptions
and opinions are contributing to the expert discussion?

a.Peer review

b.SWOT analysis

c.Focus group

d.Monetary value calculation

16. You are managing a project for a customer based on a cost-reimbursable

target cost contract with the following terms:

Target costs: $ 1,000,000

Fixed fee: $ 100,000

Benefit/cost sharing: 80% / 20%

Price ceiling:$ 1,200,000

Which is the PTA (= point of total assumption, break point) of the project?

a.$1,300,000

b.$1,500,000

c.$80,000

d.$1,125,000

17. During execution of a project which is performed for a customer on a T&M

(time and material) contract base, a new project manager is taking over the
assignment.

She discovers that two members assigned to the project have charged time
without performing any work for the project customer. Upon further
investigation, she determines that this occurred because there have been no
other project assignments open for these employees and that her company
wanted to keep their time billed to a customer. The customer is unaware of these
facts.

What should the project manager do?

a.Try to find some productive work for these staff members in the project
and leave them on the team.

b.The best thing is to do nothing. The customer will not realize the problem
anyway.

c.Try to find a responsible person for the over-assignment who can be

made accountable.

d.Take the two people off the team immediately and arrange for the
refund of the excess charges to the customer.

18. Start dates in the following network logic diagram are defined as early
morning, finish dates are evening.

If tasks are scheduled to begin at early start date, what is true?

 a.Activity B has a free float of 10 d.

b.Activity B has a total float of 10 d.

c.Activity A has a free float of 10 d.

d.Activity A has a total float of 10 d.

19. Your project is executed with a globally spread virtual team. The project
progress has been found to be too slow. Which measure is most likely to
immediately help team members act as a team and speed up the project?

a.Technical training for all team members

b.Daily phone conferences and detailed reporting

c.A team meeting at a location convenient to all team members

d.Collocation of team members at a suitable place

20. A project management team wants to procure customized products which

can be specified easily and are available in identical grade and quality from
several vendors.

The procurement documents will probably have to support what main intention?
 a.Describing the needs of the project in sufficient detail to enable vendors
to make suitable proposals based on each one's specific strengths

b.Specifying attributes of the requested deliverables in detail to get identical

bids from vendors and allow selection using the "Least cost method".

c.Helping to clarify the approved project scope statement and giving guidelines to
break it down into the WBS and the WBS dictionary of the project

d.Developing the risk management plan and the risk reports from those risk
management reviews which have been made so far eith the vendors

21. Which of the following becomes increasingly important in a virtual team

environment?

a.Requirements engineering

b.Communication planning

c.Formal procurements closure

d.Network diagramming

22. You are assigned as the project manager to a project which is executed for
a customer under FP contract. Your customer informed you this morning that
they insist on certain "refinements" of the project scope. They consider them
clearly part of the contractual price and require implementation without extra
costs or delays.

You agree that the requested actions will be beneficial to the project, but believe
that they constitute a major change increasing the project scope. What should
you do next?

a.Accept the request of the customer. Diligently document the additional

costs and working hours spent by yourself and the team on the implementation
of the change and invoice these to the customer at appropriate rates.

b.Perform earned value analysis to assess the current status of the project
and get all the numbers you need to communicate the case to the change control
board which then will have to make the best decision regarding the customer
request.

c.Check the contract, the project charter, the scope statement and other
documents related to the project and the legal relationship. Implement ADR
(alternative dispute resolution) procedures if the conflict cannot be resolved
otherwise.

d.Talk to the project sales department and find a joint solution with them
how to best reject the request considering the commercial and strategic value of
the customer to the organization you are working for.

23. A prime contractor in a customer project under CPFF contract has run into
unexpected technical problems through no fault of their own. Fixing these
problems will require a lot of additional work to be done.

The company made a decision to book more staff and equipment from their
subcontractors in order to increase productivity and adhere to the agreed
timeline. The overhead work for the project is reimbursed by the customer with
the fixed fee and will remain unchanged. The customer agreed to this decision.

What will most likely happen?

a.The contractor‘s indirect costs will increase and the customer‘s payment
for them will increase, too.

b.The contractor‘s indirect costs will increase, but the customer‘s payment
for them will not increase.

c.The contractor‘s indirect costs will not increase, but the customer‘s
payment for them will.

d.Both the contractor's indirect costs and the customer‘s payment for
them will not increase.

24. A project management team is evaluating the causes that might contribute
to unsatisfactory performance and quality. They are discussing the influence of
common causes (also called random causes) and special causes.
Which of the following statements should they use as a guidance to identify the
types of causes of the problems found?

a.Special causes are generally easier to predict and cope with than common
causes.

b.Normal process variation is attributable to common causes that are part

of the system.

c.Common causes are unusual, fleeting events, which are difficult to

foresee and often produce outliers.

d.Processes can not be optimized to limit the bandwidth of variations due

to common causes.

25. The Project Management Office (PMO) of your company is performing a

project management audit in your company and find that most of the various
plans in the project are neither consistent nor up-to-date.

Which of the following statements is true?

a.Projects should never be executed without a valid, updated and working project
management plan.

b.The consistency of the various plans is secondary because it is only the results
that matter.

c.The alternatives to systematic planning are reactive management, crisis

management, conflict management, and fire fighting..

d.Poor planning and insufficient updating of project management plans are rather
uncommon as reasons for cost and time overruns.

26. Together with your project management team in a project to build a state-
of-the-art power station, you want to perform active risk acceptance in your
project.

What should you do?

a.Create contingency reserves in resources, money and time.

 b.Develop a plan to minimize impact in case that an identified risk occurs.

c.Develop a plan to minimize the probability of occurrence for identified

risks.

d.Make additional resources available to speed up the project.

27. A project manager made 3-point estimates on a critical path along a

sequence of activities A through E and found the following results:

Assuming ±3 sigma precision level for each estimate, what is the calculated
standard deviation of the allover path?

a.App. 4.2 days

b.App. 5.2 days

c.App. 6.2 days

d.You can not derive the path standard deviation from the information
given.

28. When do bidder conferences normally take place?

a.After the contract has been awarded to keep alternatives open.

b.After submission of bid or proposal, but before contract award.

c.Prior to the submission of a bid or proposal by the bidder.

d.After technical meetings with bidders to discuss contract requirements.

29. What is defined by control limits?

 a.A measuring instrument solely used to describe process capability. The
process is found capable if the ±3 sigma range is exceeded by not more than 0.3%
of a tested sample lot.

b.The limits of the six sigma area on either side of a control chart to plot
measured values; data found outside the area are out of specification and can
lead to rejection of an entire batch.

c.The area on either side of a mean value of a control chart to plot

measured values found in statistical quality control. Plots outside the area signal
possible process instability.

d.The area consisting of typically three standard deviations on either side of a

mean value of a control chart to plot measured values found in quality assurance

30. The scope baseline is used to ídentify variance on the scope during the
project. It consists of what?

a.Scope statement, WBS with work packages and planning packages, WBS
dictionary

b.Cost baseline, quality baseline and schedule baseline

c.Configuration management plan and configuration identification

document

d.Procurement statement of work and project scope statement

31. Activity 1 has a duration of 20 days, activity 2 of 10 days, activity 3 of 5 days

and activity 4 of 6 days.

What is the minimum total duration between the milestones A and B?

a.36 days

b.37 days

c.39 days

d.42 day
32. Which tools and techniques are used in the processes Create WBS and
Define activities?

a.Nominal group technique

b.Human resource assignment

c.Brainstorming

d.Expert judgement and decomposition

33.What kind of behavior do project managers refrain from?

a.Theft, embezzlement

b.Fraud

c.Corruption

d.Bribery

a.a

b.a, b, c, d

c.b, c, d

d.b, c

References Marked for review

34. Which of the following statements is not true?

a.Attribute sampling is the process of assessing whether results conform to

specifications or not.

b.Prevention means keeping errors out of the process by applying actions

before the process starts changing its input.

c.Variables sampling means that the result is classified into one of the 3
categories:

"acceptable" - "acceptable after rework" - "rejected".

d.Inspection is often mainly done to keep errors out of the hands of the
customer as an activity of process control.

35. Which statement describes best why you should document assumptions?

a.Assumptions might prove to be wrong. Knowing which assumptions were

incorrect allows baseline adjustments in case of project crisis.

b.Assumptions recorded in the assumptions log may help identify

individual project risks during risk identification.

c.Assumptions limit the project management team's options for decision

making because they can not be controlled by the team.

d.In case of schedule or budget overruns, the documentation of

assumptions supports a clear assignment of responsibility.

36. Which is normally not regarded as an element of cost of quality?

a.Prevention costs

b.Maintenance cost

c.Appraisal costs

d.Failure costs
37. You have recently been assigned as a project manager to a new B-O-T
(build, operate, transfer) capital project. Your company will invest in public
infrastructure today, then make profit from operating the infrastructure over 30
years, after which it is handed over to the government.

Reviewing the initial documentation you found out that the business case has
been calculated with a very small margin during operations of the infrastructure.
What should you do?

a.As you are not responsible for lifecycle costing, you don't have to worry
about operation profits. Focus on project costs from initiation through handover.

b.Ensure maximum profits by buying the best and cheapest items,

components and modules―potentially from a big number of different
suppliers―and integrating them, while ignoring their effect on operation costs.

c.Create a realistic plan broken down to a sufficient level of detail.

Perform all risk management processes. Ensure real-time communications with
all relevant stakeholders.

d.Develop a plan to immediately leave the company, when the first signs
occur that it may not survive the questionnable business case and go insolvent.

38. A project is managed by departments of an organization and expedited by a

project coordinator. Which of the following statements is most likely to be true?

a.The performing organization is a weak matrix.

b.The performing organization is doing "management by projects".

c.The performing organization is a strong matrix.

d.The performing organization is projectized.

39. You are project manager in a global project with a team consisting of
people from various countries. What can you try to prevent misunderstandings
due to cross-cultural differences?
 a.Use all communication methods available that are suitable for the team
and follow up in writing when communicating verbally. Remember that cultural
and individual diversity may help project teams solving unforeseen problems
during the course of the project.

b.When you are about to form a team for your project, keep in mind that
some cultures are developed, others are more primitive. Some have values, some
not. You should consequently avoid choosing members from countries with
cultures that are not similar to your own.

c.Cultural dilemmas can prevent any project from being successful. They
should therefore be smoothed or suppressed so as to make sure that they cannot
disrupt project work. Your effort should concentrate on communication that can
help reach that goal.

d.As norms regarding communication habits differ significantly across

various cultures, communicating between people from different countries should
only be done using written or verbal language. The nonverbal dimension simply
bears too many risks.

40. Which statement on conflicts is true?

a.Conflict resolution should focus on people, not issues.

b.A project manager should resolve conflicts in a timely and constructive

manner.

c.Conflict should always be resolved in private and not in the team.

d.Too much openness to stakeholders is a common cause of conflict.

41. A change request in a project has been rejected some weeks ago.
Yesterday, the project manager found out that it nevertheless has been
implemented by team members, who had originally requested the change and
therefore knew of it, but not of the rejection.

In order to avoid such a situation, rejected change requests should be consistently

communicated to stakeholders through which process?
 a.Report performance

b.Verify scope

c.Perform integrated change control

d.Monitor and control risks

42. What is a trigger in project risk management?

a.An expected situation causing an unidentified risk to occur

b.A warning sign that a previously identified risk might be occurring or has
occurred

c.An unexpected situation causing an identified risk to occur

d.An unexpected situation causing an unidentified risk to occur

References Marked for review

43. According to the project plan, a contractor is scheduled to deliver some

software components today afternoon. A regular monthly payment is due to be
made to this contractor tomorrow.

You and your project team received a note this morning informing you that the
software delivery will be delayed by 2 weeks.

What should you do right now?

a.You should delay the payment also for 2 weeks.

b.You must immediately find and change to a different contractor.

c.You should consult with the contractor to understand and possibly

resolve the delivery issues. This may influence further payments.
 d.You should make the payment and reschedule the project incorporating
the delay.

44. In a software company a large number of simultaneously performed

projects utilize the same groups of human and other resources from a corporate
resource directory.

What is the term commonly used for the resources inside the directory?

a.Unassigned staff

b.Project team

c.Resource pool

d.Program team

45. What does the acronym RACI commonly stand for in project management?

a.Responsible, Accountable, to be Consulted, to be Informed

b.Remote, Attached, Connected, Integrated

c.Risk Analysis and Caution Initiative

d.Randomly Accessible Cashflow Information

46. You have used estimates made by your team members and applied the
critical path method to compute a network logic diagram for your project. Then
you found out that it cannot be sufficiently optimized for scarce resources and
fast progress towards a given deadline. What should you do next?

a.Apply resource leveling and smoothing heuristics to uncritical activities

only.

b.Reduce estimates on duration and work efforts by an adequate

percentage.

c.Search for opportunities to compress the schedule without jeopardizing

the project.

d.Remove physical ánd legal constraints and replace hard logic with soft
logic.

47. Liquidated damages (LDs) are contractually agreed payments in order to...

a....give the contractor an incentive to meet an aggressive schedule or

challenging quality objectives.

b....penalize the contractor for late completion of a project or failure to

meet specifications.

c...cover the customer's costs caused by late completion or failure to

meet specifications by the contractor.

d...make a bid or proposal binding for the offerer while the customer has
time to select among various bidders.
48. Together with your team, you are writing a risk management plan. In the
team, discussions are occurring what should be covered by the plan and what not.

Finally, the team found out that _______ should NOT be covered by a risk
management plan?

a.Roles and responsibilities for managing project risks

b.Timing of project risk management processes and activities

c.The methodological approach used for risk management

d.Individual risks and potential responses to them

49. You are assigned as the project manager to a project which had a one-time
cost variance in the past caused by unexpected rework which has meanwhile
been finished. You expect future costs of the project as was originally planned

You perform earned value analysis and get the following results:

EV: 250,000; PV: 200,000; AC 275,000

BAC is 500,000.

What is right?

a.EAC = 550,000

b.EAC = 525,000

c.EAC = 500,000

d.EAC = 425,000

50. An estimation has been made for a construction project that the
construction of a residential home will cost a certain amount per square foot of
living area.

This is an example of what type of estimating?

 a.Analogous estimating

b.Bottom-up estimating

c.Top-down estimating

d.Parametric estimating

51. What is true for prototypes?

a.Prototyping causes significant costs and should be avoided wherever

possible.

b.They are tangible and allow for early feedback on requirements by

stakeholders.

c.Prototypes are mostly developed toward the end of a design or build

phase.

d.Prototypes increase the risk of misunderstandings between developers

and users.

52. Constructive changes are a common source for conflicts between

customers and contractors in projects under contract. What is a constructive
change?

a.A change request that helps improving the project and its product,
service, or result and could be generally discussed in a friendly style.

b.A direction by the buyer or an action taken by the seller that either
party may post hoc consider an undocumented change.

c.A field change or ad-hoc change mandated by the project customer in a

public construction project.
 d.A change request which will lead to the re-construction of an older
version of the project performance baseline by the contractor.

53. Which of the following is generally not regarded to be a motivator

according to Frederick Herzberg?

a.Working conditions and interpersonal relations

b.Responsibility for enlarged task

c.Interest in the task

d.Recognition for achievement

54. What is true for modern project management? Project managers need...

a.... to have a strict standing in negotiating

b.... to show experience in tricking business partners

c.... to be team players and facilitators instead of "bosses"

d... to be strongly linked to local traditions

55. You are the project manager in an engineering project and have recently
signed a contract with a software vendor for the development of a complicated
control solution as a contractor of your project.

The software will be used to control machinery equipment which your project
team is currently developing. The contract is a lump-sum contract. The contractor
has a cost target based on estimates, which seem rather low to you. Which of the
following statements is NOT true for this situation?

a.It is the contractor's risk in this type of contract that their profit may
vanish if costs have been underestimated.

b.This form of contract should only be chosen when all requirements on the
contractor's product are well-understood by all parties involved.
 c.In a fixed-price contract, change requests can require adaptations to
price, schedule and other contractual items for the changes to be applied.

d.It is likely that your organization may have to assume any unexpected
additional costs for the software development that occur.

56. A review to determine, whether the intended execution of project activities

will comply with organizational and project policies, processes, and procedures is
commonly called

a.Quality audit

b.Inspection

c.Quality testing

d.Reject screening

57. Which of the following is true regarding the code of accounts?

a.It allows a project manager to easily identify the breakdown level of the
item in the resource structure.

b.It describes the coding structure used by the performing organization to

report financial information in its general ledger.

c.It is the collection of unique identifiers generally assigned to WBS items.

d.It defines ethical behavior in the project and the responsibilities to the
customer and the profession.

58. You are the manager of your company's project management office. The
company is running many concurrent projects; most of them share a resource
pool of technical staff. Understanding how resources are utilized across projects
has been found essential to overall project performance, including cost
effectiveness and profitability.

This morning you received a message that the resource pool members will be
unable to perform as planned for the next months because the overall work load
has grown too high and while delays are adding up, the morale of the staff is
going down.

What should you do next?

a.Ensure that quantitative information for all projects is made available in

a uniform and reliable fashion and verify that the project management
methodology is adhered to. Then consolidate the information to get an
understanding of the problems and communicate them to management.

b.Implement an enterprise project management software solution which is

able to level the human resources across the various projects and which has the
capability to model resource assignment on a percentage level thus optimizing
resource utilization for the overall organization.

c.Do nothing related to the described problem unless you are explicitly
requested by the organizations upper management. Supporting decision making
on the level on which project portfolio management is done, is not the project
management office's business.

d.Evaluate project management software which supports planning and

scheduling across enterprise-wide project portfolios. Avoid managing the
availability of shared enterprise resources for the projects run by an organization
because this is not the business of a project management office.

59. You have been criticized that certain specifications in your scope statement
do not pass the test for SMART objectives. What are SMART objectives?

a.Objectives specified in far more detail than necessary for a execution of a

successful project.

b.Easily achievable objectives which help you reducing the pressure on

yourself and the team.

c.Objectives that should be achieved in order to attain formal recognition

by both the customer and the project sponsor.

d.Objectives that are described using specific, measurable, assignable,

realistic and time-related specifications.
60. You have been assigned as a project manager to a software project. While
you and your team are working on a WBS (work breakdown structure), estimates
for activity durations are already made. These are based on a preliminary activity
list and vary significantly, obviously as the team members have different concepts
of the work that needs to be done.

Which additional documents may help you clarify work requirements in this
situation?

a.Final project schedule.

b.Project schedule network diagrams and human resource plan.

c.Activity cost estimates and scope baseline.

d.Activity attributes and project scope statement.

References Marked for review

61. You are performing earned value technique on your project.

After budget approval, an additional and unexpected cost item has been
identified, which made the project more expensive some weeks ago. The item has
meanwhile been paid by the project, and it is expected that for the remaining
duration of the project, costs will be as budgeted.

In this case, which is the best formula to calculate EaC (Estimate at Completion)?

a.EaC = BaC - CV

b.EaC = BaC / CPI

c.EaC = AC + BtC / CV

d.You can not compute the EaC.

62. During a company event, you had the opportunity to talk to a colleague
project manager. He told you that in his current project actual costs are 15%
under cumulated costs budgeted for today.
What do you think?

a.The information given to you by the colleague is not sufficient to assess

project performance.

b.The project will probably be completed with total costs remaining under
budget until the end.

c.A significant cost increase during the further course of the project will
probably bring the costs back to baseline level.

d.Original cost forecasting and budgeting for the project must have been
poor to allow this variance.

63. What is the meaning of Jerry B. Harvey's concept called the "Journey to
Abilene"?

a.Project managers should visit their customers far more often than what is
usual in order to avoid misunderstandings and bad emotions.

b.International projects may have an increased need for traveling which

can lead to additional costs and troubles with time zones.

c.Group decisions can have the paradox outcome, that a decision is jointly
made or approved that is not desired by any of the group members.

d.A project is a temporary endeavor undertaken to create a unique

product, service or result. Repeating it would be similar to making the same
journey twice.

64. Which of the following statements describes best the relationship between
project phases and the project life cycle?

a.The project life cycle includes the time when the project is performed and
the expected product lifespan after that.

b.In project management, a sequence of project phases and phase gates is

often referred to as project life cycle.
 c.The project life cycle is regarded as a sequence of project activities while
phases are defined to control overlapping activities.

d.The project life cycle describes how iterations of project management

processes are used when a project schedule is developed.

65. Which is an appropriate order in most project situations for the

development of scope-related documents?

1. Project SOW (statement of work),

2. Project charter,

3. Project scope management plan,

4. Project scope statement,

5. WBS (work breakdown structure) and WBS dictionary.

1. Work breakdown structure,

2. Scope statement,

3. Project charter,

4. CSOW (contractual statement of work),

5. Contractual work breakdown structure

1. Feasibility study

3. Contract,

4. CWBS (contractual work breakdown structure),

5. Scope of work descriptions,

6. PID (project initiation document).

1. BOM (Bill of materials),

2. CAP (control account plan),

3. Project charter

4. Change management plan,

5. Scope baseline.

66. What is the S-curve in project management?

a.A graph that is generated if a normal curve is integrated.

b.A graph that is to be integrated to generate a normal curve.

c.A metaphoric description of the short term uncertainties that are present
in every project.

d.The graph that describes the typical growth of earned value during the
course of the project.

67. An output of the process Estimate activity resources is the documentation

of "resource requirements". It identifies the types and quantities of resources...

a....while the term resources is limited to equipment and materials.

b....required to perform each activity or work package.

c....while the term resources is limited to human resources.

d...to be obtained solely from inside the performing organization.

68. What is not the purpose of configuration control when configuration

management is applied in a project?

a.Verification that the configuration identification for a configuration item

is accurate, complete, and will meet specified program needs.

b.Ensuring that proposed and approved changes to configuration items are fully
analyzed.
 c.Ensuring that proposed and approved changes to configuration items are
fully documented.

d.Managing and controlling the frequently requested changes to a project

by applying agreed upon rules.

69. Which statement describes best the meaning of the term cost baseline?

a.A cost baseline is always created by translating time-phased cost

information into cost data on activity or work-package level.

b.A cost baseline is an approved time-phased budget that will be used to

measure and monitor cost performance on the project.

c.Data to draw a cost baseline can be easily generated and updated as

necessary from information related to actual project cost.

d.A cost baseline is usually displayed in the form of an inverse S-curve

drawn from the beginning of the project until data date.

70. Which is NOT true in regard of RoI (return on investment) calculation for a
project?

a.It defines the cumulated net income from an investment at a given point
in time or during a defined period.

b.It includes investment, direct and indirect costs and may include
allowances for capital cost, depreciation, risk of loss, and/or inflation.

c.It is most commonly stated as a percentage of the investment or as a

dimensionless index figure.

d.It is the time when cumulated net income is equal to the investment.

71. A project sponsor requested reports on two concurrent software projects

from the project managers. Both projects are regarded as equally important and
strategically beneficial and have been finished by over 80%.

The sponsor considers to shift some resources from the first project to the second
to accelerate the second project, which is currently behind schedule.
What is the most likely outcome of such a measure?

a.Changing team assignments during late course of a project typically increases

cost efficiency

b.Changing team assignments during late course of a project typically

increases time efficiency.

c.Project A will become slower. According to Brooks's law, Project B will also lose
pace.

d.According to the law of diminishing returns, the consolidated cost variance of

the two projects will increase.

72. Which of the following statements describes best the relationship of quality
and grade?

a.Low grade is always a problem; low quality may be overcome by a good

rework and repair process.

b.Grade is a category or rank given to entities having different functional

requirements but the same need for quality.

c.Both quality and grade can often be improved through intelligent

measuring, testing and examining.

d.Low quality is always a problem as it bears on the ability of an item to

meet requirements; low grade may sometimes be acceptable.

73. A project management team intends to develop a lifecycle for its new
software development project on a continuum between the extremes of highly
agile and highly predictive methods. What is a typical signal that the lifecycle
chosen is located between the two extremes?

a.Requirements are elaborated repeatedly.

b.Requirements are developed upfront and kept static.

 c.Requirements are developed during the course of the project.

d.Change is constrained as much as possible.

74. You have been asked to calculate the internal rate of return (IRR) of a
project? What will you assess?

a.The time period needed to pay back the investment from a project when
future income is discounted.

b.The inherent discount rate or investment yield rate produced by the

project's deliverables over a pre-defined period of time.

c.The rate of negative risk that can be accepted for a project without
turning the expected net present value negative.

d.The expected benefit from a project’s deliverable calculated as a

percentage of the original investment over a specified time period.

References Marked for review

75. You have just created the following network logic diagram to describe the
planned flow of activities for your project which will start tomorrow:

PMP sample question 75 Network diagram

Which potential inconsistency in the diagram should you solve right now to
ensure that the activities and the milestones "Start" and "A-F finished" are
correctly linked?

a.Activity E is open ended (a "dangle") in relation to the finish milestone

path convergence.
 b.Activity F is open ended in relation to the path divergence after the start
milestone.

c.You cannot calculate a critical path when lags and/or leads are calculated
in percent.

d.Activities E to F need another task drawn as a hammock to calculate level

of effort.

76. A project management team identified negative risks (threats) that cannot
be responded to by avoidance or mitigation. An alternative risk response would
be active acceptance. What would the team do to implement that?

a.Plan more risk management.

b.Monitor risks.

c.Allocate contingency reserves.

d.Identify further risks.

77. A project manager travels to a country whose culture is unknown to her.

She realizes that her direct way of communicating creates discomfort for some
people she interacts with. What could she consider improving?

a.The communications management plan

b.Her cultural awareness and cultural sensitivity

c.Her predisposition to culture shocks

d.The stakeholder responsibility matrix

References Marked for review

78. A project manager is approached by a team of software programmers who

work for her project.
The team requests a certain person to be released from other work to enhance
the team with specific technical skills and enhance its productivity. The team also
offers to introduce the person to the progress of development achieved so far
and to the tasks that the person should take over in order to get the project work
done.

Which management principle is applied by the project manager and the team?

a.Self-organizing teams

b.Norming teams

c.Micro-managed teams

d.Competing teams

79. A project manager ensures that a team of development engineers is freed

from operational tasks, so that the team members can focus on self-organization
and on getting the project work done. The person listens to the team’s concerns
and removes obstacles and impediments whenever they occur. What is the best
description for the leadership style of the project manager?

a.Autocratic leadership

b.Benevolent leadership

c.Responsible leadership

d.Servant leadership

80. A company’s management is discussing a project request created by one of

its managers. but its mangers are uncertain, whether the project is worth the
investment. A project manager has been assigned to develop a document to
describe the potential benefits in monetary and other aspects. After acceptance
of the project request, this document will to be used to track the realization of
those benefits.
Which title will the project manager probably give to the document?

a.Project business case

b.Benefits management plan

c.Project charter

d.Project statement of work

81. A project manager is performing a project with contract partners in

different countries. What should the person be aware of?

a.It is the seller’s responsibility to ensure that the procurement meets the
specific needs of the project.

b.All differences in local laws can be overcome with clear contract

language.

c.Local culture and laws may have influence upon the enforceability of a
contract.

d.The use of contracts with appendices and annexes should generally

be avoided for projects.

82. A project management team consolidates a number of planning documents

to a collection called “project management plan” and ensures that these
documents are consistent among each other.

What documents could become part of the project management plan?

a.Resource calendars and project schedule

b.Management plans and baselines

c.Lessons learned register and quality report.

 d.Resource management plan

83. When does a project manager perform the integrated change control
process to make sure the effects of change requests are under control?

a.During the course of the project

b.When baselines need to be altered

c.While the cost baseline is being created

d.When the configuration management plan is developed

84. During execution of a construction project to build a new bridge, it turns

out that severe weather conditions are threatening adherence to the project
schedule and overall project success. What kind of risk is this?

a.Complexity risk

b.Ambiguity risk

c.Variability risk

d.Event-related risk

85. A project was planned to take 5 months. The team is currently 3 months
into it and has completed half of the work.

Applying Earned schedule technique, what are the performance data of the
project?

a.SV: -0.5 months, SPI: 0.83

b.SV: 1.5 months, SPI: 1.5

c.SV: -2,5 months, SPI: 0.83

d.SV: 0.5 months, SPI: 1.83

86. A software development team works with a product owner, who routes
influence by stakeholders on the software product. The product owner keeps a
list of the work to be done in order to build the desired product.

What is this list referred to?

a.Activity attributes

b.Increment

c.Iteration

d.Product backlog

87. A project management team identified the need to remove over-allocations

of resources and optimize their usage. They are discussing whether to apply
resource leveling or resource smoothing.

Which of the following statements is correct?

a.Resource leveling does not change the project schedule

b.Resource smoothing commonly changes the critical path

c.Resource smoothing may delay the completion date

d.Resource smoothing may not optimize all resources

88. A project management team has identified a large number of risks during
its risk identification sessions. It noticed that it would not have the time and
resources to quantitatively analyze all of them. The team also agreed that not all
of these risks would justify the effort necessary to digg deeply into them.

What should the team do next?

a.Implement agreed upon risk response plans.

 b.Perform qualitative risk analysis to prioritize the risks.

c.Perform quantitative risk analysis to numerically analyze risks.

89. A project management team has identified, analyzed and prioritized a great
number of individual project risks and also some overall risks. The team discusses
strategies to respond to them.

What is true for strategies that can be used for individual risks?

a.They differ fundamentally from those used for overall risk.

b.They can also be used to respond to overall risk.

c.Only responses for threats can also be used for overall risk.

dOnly responses for opportunities can also be used for overall risk.

90. A project management team has identified, analyzed, prioritized risks and
developed risk responses.

What should the team members take care of next?

a.Action should be taken to actually respond to the risks after their

occurrence.

b.Action should be taken to respond to individual risks only. Overall risk can
be escalated.

c.Documentation should be avoided to not wake up “sleeping dogs”.

d.Action should be taken to actually respond to the risks in a proactive

fashion.

91. A project has been given into the hands of a contractor and will be
performed against payments by the customer.
During contract development, it has been agreed that the buyer’s procurement
statement of work (SOW) would become an appendix to the contract (CSOW),
turning it into a part of the agreement.

From the contractor’s perspective, which should be among the next steps to
initiate and plan the customer project?

a.The contractor can mostly disregard the SOW, because the language in
the contract’s main document is the binding one for the project.

b.The contractor should ensure that the project management team

understands how the CSOW becomes a key input to many of the seller’s
processes.

c.The contractor should regard the requirements laid down in the CSOW as
the only binding ones and focus solely on meeting them during the project.

d.The contractor-side’s project team can do the project without

knowledge of the contract and the SOW just by clarifying requirements directly
with the customer.

92. A project management team prepares contract development for a project

that has major parts of the work outsourced to a number of contractors.

A question turns up, which risks should be assumed by contractors and which
should remain the responsibility of the customer.

What would be good decision?

a.All risks should be agreed upon to be managed by the contractor, who

after all gets paid for managing them.

b.Risks should generally remain with the customer to reduce the costs of
outsourcing for the project.
 c.Each risk should be accurately allocated to the respective party that is
most capable of managing it.

d.The allocation of a risk should not be decided during contract

development, but after it has occurred.

93. A project management team has identified a large number of sellers who
seem capable to be taken as contractors into the project supply network and
allocated to work items.

What should be the next step for the team?

a.Invite the sellers to contract negotiations.

b.Develop a short list of qualified sellers.

c.Conduct a technical evaluation of proposals.

d.Sign contracts with the sellers.

94. A project management team in a major infrastructure project is facing

growing resistance from people living nearby. These people believe that they are
stakeholders. They perceive that they will be affected by the execution of a
project and/or by its results.

Should a project management team consider these people as actual

stakeholders?

a.If they can influence the project, yes. The team should engage them as
stakeholders.

b.No. Only people with vested interests should be regarded as

stakeholders.
 c.No. It is the decision of the team, who is regarded as a stakeholder and
who is not.

d.No. Stakeholders are limited to people that provide tangible input

to the project.

95. A project management team has decided to use an assumptions log for
lower-level tasks and activities in a project to refurbish and modernize an old
business building that should be rented out for upmarket customers.

The actual project work will mostly be done by contractors, and the task of the
project team will be mainly contract development and management and the
coordination of the contractors regarding technical and schedule matters.

In addition to assumptions, what other content may the team capture in the
assumptions log?

a.Project contractors

b.Summary risks

c.Technical risks

d.Constraints

96. A project manager and the project management team have identified a
number of stakeholders for a project to develop and implement a new software
solution that would come with far-reaching changes inside the organization. They
listed them up in a stakeholder register.

What is an appropriate next step?

a.Develop ground rules for meetings.

b.Monitor the engagement of stakeholders.

c.Actively engage stakeholders.

 d.Plan how to engage stakeholders.

97. A project manager is discussing with the project management office the
implementation of risk audits in the project.

What should be the purpose of a risk audit?

a.A risk audit gives the opportunity to verify the completeness of the risk
register and risk report.

b.A risk audit gives the opportunity to validate the existence of a risk
management plan.

c.A risk audit gives the opportunity to consider the effectiveness of the risk
management response strategy.

d.A risk audit gives the opportunity to consider the effectiveness of the
entire risk management process.

98. A project is performed by a company for another organization. The latter

organization pays the first for the work performed and deliverables provided.

What kind of agreement is used between the two companies?

a.Project contract

b.Internal agreement

c.Memorandum of understanding

d.Gentlemen agreement

99. A company is writing a job advert to look for a project manager to lead and
direct an urban development project. The mission of the project is to implement a
bold architectural vision. It will be the project manager’s task to ensure that
project work is accomplished through the project’s team members and other
stakeholders.

What skills should the advertisement focus on?

a.Legal skills.

b.Technical skills.

c.Interpersonal skills.

d.Engineering skills.

100. An organizational change project is accompanied by a set of business

documents, including a business case and a benefits management plan.

When a project manager has been assigned to the project, what should be the
first step to get chartered for the project?

a.Collect requirements on the project to prepare the development of the

project scope statement and the work breakdown structure.

b.Review the business documents to understand the project’s objectives

and how it is expected to contribute to the business goals.

c.Develop a backlog of product components, features, functions, and

develop a bill of materials from them for the project.
d.Develop a human resource plan to capture team members assigned and
their availability for the project.
1.If an investment in a project returns 15 percent annually, how much
should you invest to get $5 million by the end of the fifth year?
A - Present Value = Future Value / (1 + interest rate)^(Period) =
5,000,000 / (1 + 15%)^5 = 2,485,884
2.