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1. A typical title for a Project Manager in a weak matrix structure is:
Project Coordinator
Project Manager
Project Leader
Program Manager
Explanations:In a weak matrix organization, a Project Manager typically performs the coordination
role.
2. Which of the following statements is NOT true about a product lifecycle?
It starts with conception of a new product and ends with its withdrawal
A product can spawn a single project in its life

The five stages of each product lifecycle are product development, introduction, growth,
maturity, and decline
It focuses on managing the properties of a product from a company's business point of

view
Explanations:A product can spawn a single project in its life. Product lifecycle management (PLM) is
the process of managing the entire lifecycle of a product from its conception, through design and
manufacture, to service and disposal. PLM integrates people, data, processes, and business
systems to provide a product information backbone for companies. The five stages of each product
lifecycle are product development, introduction, growth, maturity, and decline. A product can spawn
or require many projects over its life.
3. A Project Sponsor appointed a Project Manager to a new project and asked him to
get started immediately, even before the charter got approved. What should the Project
Manager do?
Push to create and approve the charter
Start with the team ramp-up and planning
Ask some other Project Manager to take over the project
Start the critical activities

Explanations:The charter is important because it formally authorizes a project. The Project Manager
must do whatever possible to get the charter issued.
4. Which of the following is the MOST appropriate statement to describe a Project
Management Office?
It is the center of excellence for project management in an organization
It is a group of people working on project management activities for a project
PMO provides administrative support to Project Managers in an organization
It is a council that includes all the Project Managers in an organization

Explanations:A PMO is supposed to be the center of excellence for project management in an
organization.
5. A manager who manages a collection of projects grouped together to facilitate
effective management to meet strategic business objectives is called a:
Program Manager
Portfolio Manager
Project Manager
Stakeholder
Explanations:Portfolio refers to a collection of projects or programs grouped together to facilitate
effective management to meet strategic business objectives, and the person managing it is called a
Portfolio Manager. Portfolio management describes methods for analyzing and collectively
managing a group of current or proposed projects based on numerous key characteristics like
business objectives, technical strategy, goals, etc.
6. A project sponsor is studying the project contract and going through the narrative
description of products and services to be supplied under contract. The project sponsor
is also meeting key stakeholders and subject matter experts to evaluate whether the
project is worth the required investment. Which of the following documents would be
created as an output in the process?
Project Statement of Work
Project Charter
Project Management Plan
Organizational Process Assets

Explanations:The Project sponsor is in the develop project charter process in the project integration
management and is using the statement of work to understand the product requirements and
descriptions. The output of this process is a project charter, which initiates the project once approved
formally. A project charter documents high-level project descriptions and business needs of the
project, along with a current understanding of the customer's needs, risks, name of the sponsor, and
so on.
7. As a Project Manager for a pharmaceutical project, you are in the process of
stakeholder analysis. You have identified both internal and external stakeholders. Which
of the following will be least useful for determining how to engage them?
Using the Influence/Impact matrix
Correctly identifying the internal and external stakeholders
Determining and agreeing on the responsibilities of the internal and external

stakeholders
Giving the stakeholders extra incentives to win them over to your side
Explanations:Giving extra incentives to stakeholders to win them over amounts to gold plating or
(even worse) unethical practices, so it is not recommended.
8. Which of the following is NOT true about the initiating process group?
Large projects may divide the projects into phases
The project team members are committed
Initial scope and financial resources are committed
Internal and external stakeholders are identified

Explanations:The entire project team is usually not available during initiation.
9. A project team is working on initiating a project. Which of the following options is NOT
true about this situation?
The Sponsor is developing the project charter
The Project Manager is developing the project charter
The Project manager is participating in the development of the project charter
The Sponsor and the Project Manager together are developing the project charter
Explanations:As per the new examination content outline, the Project Manager will not develop the
project charter and will only participate in developing the project charter.
10. Harry has been assigned the flyover construction project, and he is in the process of
initiating the project. In order to meet the customer's project expectations based on the
business and compliance requirements, which of the following should Harry define
FIRST?
Key deliverables
Project schedule
Product Statement of Work

Explanations:According to PMI's classification, the Project Manager should define the key
deliverables of the project based on the business and compliance requirements to meet the
customer's project expectations.
11. Jenny is the Project Manager and is currently in the initiating process group. She
understands that it is critical for project success to identify stakeholders early in the
project. Therefore, she is in the process “identify stakeholders.“ Of the
following, which INPUT may not be required?
Procurement documents
Project Charter
Expert Judgment
Enterprise environmental factors

Explanations:Expert judgment is a tool and technique for the "identify stakeholders" process and is
not an input.
12. One phase is planned at any given time, and the planning for the next is carried out
as work progresses on the current phase and deliverables. Which of the following
correctly defines the above text?
Overlapping relationship
Sequential relationship
Multi-phase relationship
Iterative relationship
Explanations:An iterative relationship is where one phase is planned at any given time and the
planning for the next is carried out as work progresses on the current phase or deliverable.
13. Which of the following statements is TRUE regarding the initiating process group?
Risk is lowest during the Initiating process group
The project has the highest probability of project success during the Initiating process
group
The Project Manager and team are always identified as part of the Initiating process
group
Initiating process group includes the develop project charter and identify stakeholders
process
Explanations:Initiating process group includes the develop project charter and identify stakeholders
process. Option (a) specifies the risk involvement, and option (b) specifies probability of success.
14. Which of the following is NOT true about the project charter?
It provides the Project Manager the authority to assign organization resources
It formally authorizes the project
It details the business justification of the project
It states what the project is, what the project will deliver, and how all the processes will
be managed
Explanations:Project Charter provides the high-level project description and product characteristics.
It authorizes the project and provides the Project Manager the authority to assign organization
resources.
15. You work as a Project Manager at the mobile phone chipset manufacturer. As
predicted by Moore's law, each year your company introduces new models of mobile
phone chipsets which are faster and more powerful than their predecessors. Mobile
phone chipsets that are obsolete or do not sell are quickly retired from production. The
chipsets' lifecycle begins in R and D, extends to manufacturing, and finally ends with
phase out. This cycle is often referred to as:
Product lifecycle
Project lifecycle
Feedback loop
Product development
Explanations:A product lifecycle consists of generally sequential, non-overlapping product phases
determined by the manufacturing and control need of the organization. For more details on product
lifecycle, refer to PMBOK® Guide - Fifth Edition PN 38.
16. Project management is the application of knowledge, skills, tools, and techniques to
manage activities to meet the project requirements. Which of the following is NOT true
about managing a project?
It involves identifying requirements
It involves addressing the various needs, concerns, and expectations of the

stakeholders as the project is planned and carried out
It involves balancing the competing project constraints such as scope, quality, schedule,
budget, resources, and risk
The specific project will not influence the constraints on which the Project Manager
needs to focus
Explanations:The question has a negative connotation. Refer PN 5 of PMBOK® Guide - Fifth
Edition.
17. A Project Manager has defined the key deliverables of the project based on the
business and compliance requirements and is now identifying and documenting high-
level risks, assumptions, and constraints based on current environment, historical data,
and/or expert judgment to identify project limitations and propose an implementation
approach. Which process group is the Project Manager in?
Initiating
Planning
Executing
Closing
Explanations:It is during the initiating process group that you identify and document high-level risks,
assumptions, and constraints to identify project limitations and thereafter propose an implementation
approach.
18. All of the following are functions of the project management office EXCEPT:
Monitoring compliance with project management standards policies, procedures, and
templates via project audits
Coaching, mentoring, training, and oversight
Managing shared resources across all projects administered by PMO
Identifying and developing the organization's methodology, administrative practices, and

rules
Explanations:The PMO's role is to identify and develop the project management methodology, best
practices, and standards.
19. Which of the following statements is true?
Cost and staffing levels are high at the start
The ability to influence the final characteristics of the product without impacting the cost
is highest at the start
Uncertainty is the least at the start of the project
Stakeholder influences increase over the life of the project

Explanations:The ability to influence the final characteristics of the product without impacting the
cost is highest at the start. Cost and staffing levels are low at the start. Uncertainty is greatest at the
start of the project. Stakeholder influences are greatest at the start of the project and decrease over
the life of the project.
20. Your development team is waiting for the design team to finish its work. As a Project
Manager, you have decided to use this approach to reduce uncertainty in the project.
Which of the following relationship does this describe?
Iterative relationship
Sequential relationship
Overlapping relationship
Common relationship
Explanations:A sequential relationship is the stage where a phase can only start once the previous
phase is complete. The step-by-step nature of the approach reduces uncertainty but may eliminate
options for reducing the schedule.
21. Which of the following is NOT TRUE for stakeholders?
Stakeholders can be customers, sponsors, and the performing organization
Stakeholders cannot exert influence over the project, its deliverables, or team members
Stakeholder identification is a continuous process
A project can be perceived as having both positive and negative results by the
stakeholders
Explanations:This statement is wrong as stakeholders can exert influence over the project, its
deliverables, and team members.
22. You are developing the project charter for the new project assigned to you. Which of
the following is NOT a part of the enterprise environmental factors?
Lessons learned from previous projects
Work authorization system
Government and industry standards that affect your project
Knowledge of which departments in your company typically work on projects

Explanations:Lessons learned are part of the organizational process assets.
23. You are being hired to manage a highway construction project for a contractor
working for XYZ. The sponsor is a project officer who works for the XYZ municipal
government. You have three separate teams working all three shifts with a separate
manager for each team. Each team has members from two different unions, and each
union has its own representative. Who is the BEST person to approve the project
charter?
Project Manager
Union representatives
Project Officer who works for XYZ
Team Managers
Explanations:Since the Project Officer who works for XYZ is the sponsor, he is responsible for
approving and signing the charter.
24. Two members of a team are disagreeing about the right electric parameters for
testing a newly designed chipset. Who is in the best position to help resolve this issue?
Project Manager
Project Sponsor
Functional Manager
Customer
Explanations:The issue requires functional expertise and hence the Functional Managers are best
able to assist in this matter.
25. A Project Manager is identifying relevant enterprise and environmental factors in a
project. Which of the following is NOT a valid example?
Organizational culture and processes
Stakeholder risk tolerances

Employee performance review records
Historical lessons learned knowledge base

Explanations:These are parts of the corporate knowledge base in organizational process assets.
The others are examples of enterprise and environmental factors and refer to both internal and
external environmental factors that surround or influence project success either positively or
negatively. To go through a list of examples for enterprise and environmental factors, refer to
PMBOK® Guide - Fifth Edition Introduction PN 28.
26. A hospital is installing a new management system to computerize the hospital
functions. For this purpose, representatives from several departments are selected to
create a task force assigned to implement the project. This organization structure is
called:
Functional Organization
Projectized Organization
Composite Organization
Balanced Matrix Organization

Explanations:Many times, even a fundamentally functional organization may create a special project
team to handle a critical project. This may have many characteristics of a project team in a
projectized organization. The team may include full-time staff from different functional departments,
may develop its own set of operating procedures, and may operate outside the standard, formalized
reporting structure.
27. As a Project Manager, you are in the process of establishing the total scope of the
effort in the project to define project objectives. For this purpose, you include relevant
stakeholders and explore all the aspects of scope, cost, time, risk quality, etc. Which
process group of the project are you currently in?
Initiation
Planning
Execution
Monitor and Control
Explanations:The planning process group consists of processes performed to establish the total
scope of the effort, define the objectives, and develop the course of action required to attain those
objectives. For this purpose, a Project Manager should include relevant stakeholders and explore all
the aspects of scope, cost, time, risk, quality, etc. The result of this planning process group is the
project management plan.
28. Project Manager John and his team have finished creating the Work Breakdown
Structure (WBS) and Work Breakdown Structure dictionary. Then, he prepares a
detailed and itemized documentation of all of the schedule activities that are part of the
project. What should he do NEXT?
Create Network Diagram for the project
Determine quality standards, processes, and metrics
Determine high-level project assumptions and constraints
Conduct project progress meeting

Explanations:The Project Manager has created a WBS, a WBS dictionary, and an activity list in the
planning stage. The next step would be to create a network diagram for the project. Quality
standards and metrics can be identified once project schedule and budget are determined. Option C
is done as part of project initiation and is completed much earlier. Option D is done in the executing
stage of the project.
29. A Project Manager is working on planning a project that requires review and
oversight for a number of technically complex tasks. Who should identify the specific
resources for performing the reviews?
The Project Manager
The Project Sponsor
Functional Managers
Customer
Explanations:Since nothing is given about the organization structure, we have to assume that it is a
matrix or functional organization where the resources are owned by the functional managers and
they would provide and identify these resources.
30. A key responsibility of the Project Manager is to ensure the proper assimilation of
the project management processes and coordinate the process phases through the
project management cycle. The Project Manager also has to ensure that all areas of the
project come together to successfully deliver the project. This involves balancing the
basic aspects of scope, cost, and schedule in addition to managing quality,
communication, customer satisfaction, etc. The role of the Project Manager can be best
described as:
Integrator
Leader
Communicator
Differentiator
Explanations:The role of a Project Manager is the combination of all the options, but the one that is
most critical to the project's success is that of an Integrator. As described in the question, a Project
Manager is expected to integrate the project management processes and coordinate the process
phases through the project management cycle to ensure that all areas of the project come together
to successfully deliver the project. Integration involves pulling together all aspects of project
management including scope, cost, schedule, quality, and communication in addition to working with
other departments such as Legal, Human Resources, Training, Contract Administration, and
Information Technology.
31. A key stakeholder from the quality department wants to know more on how the
process tailoring was done by the project team. Additionally, the stakeholder would like
to know the rationale for selecting processes, their implementation level details, and
how they will be used to manage the interdependencies. Which document should the
Project Manager refer the stakeholder to?
Project Scope Statement
Work performance Information

Explanations:The results of the process tailoring by the project team are captured in the project
management plan, along with all the other information required by the stakeholder.
32. A Project Manager has invited key stakeholders and team members for the first
meeting of the project. The agenda of the meeting is to announce the start of the
project, outline the project goals and objectives, as well as communicate the project
success criteria. The Project Manager also plans to discuss the individual roles and
responsibilities, along with the commitment of the stakeholders. What is this activity
called?
Project sign- off meeting
Charter closure meeting
Project launch meeting
Project kick-off meeting

Explanations:The kick-off meeting which is done in the beginning of the project and then before
starting each new project phase has four main objectives: a) publicly state the beginning of the
project, b) outline the project goals as well as the individual roles and responsibilities of team
members, c) clarify the expectations of all parties, and d) create a commitment by all those who
influence the project's outcome.
33. You are a Project Manager of a highly visible and critical project in your company.
This project was initiated with much fanfare, and you have some of the best technical
experts as a part of the project team. You are in the process planning and detailing the
scope of the project when you hear the project is being terminated. What could be the
MOST likely cause?
The senior management didn't approve the project charter
The project team didn't have required technical expertise
The project sponsor failed to support the project
The project contract was not signed off by the customer

Explanations:The answer to this question can be reached by the process of elimination. Since the
project is already initiated and is in the planning stage options A, and D can't be true. There is no
evidence to believe option B, and the most probable explanation could be the failure to support the
project by the sponsor. The term sponsor, by definition, suggests a financial responsibility. This
sponsor is thought to "own" the project and is considered responsible for ensuring its success. The
sponsor is also typically the one who proposes the project in the first place, whose business unit
reaps its benefits.
34. You are working on a project to build a hybrid car which would run on both diesel
and electricity. This car would have a 1000 cc engine and work on a regenerative
braking system. It should be able to seat four passengers including a driver and comply
with Euro 4 emission norms. In which of the following documents should this information
be captured?
Product Scope
Project Scope
Scope baseline
Requirements Management Plan

Explanations:If you got confused with project scope, remember that the above statements describe
the features, functions, and requirements which are part of defining product scope. To differentiate
project scope from product scope read through the definition of each. Product scope: the features
and functions that characterize a product, service, or result. Project scope: the work that needs to be
accomplished to deliver a product, service, or result with the specified features and functions. The
product scope describes the function or service that will exist as a result of your project. The project
scope, on the other hand, describes all the work to create the product scope. It includes only the
required work to complete the project deliverable. Note: The completion of project scope is
measured against the project management plan, the project scope statement and its associated
Work Breakdown Structure (WBS), WBS dictionary, and scope baseline. Completion of product
scope is measured against product features or requirements.
35. A Project Manager is in the process of documenting and defining a stakeholder's
needs to meet project objectives. What is the output of this process?
Stakeholder Register
Stakeholder Management Strategy
Requirements Documentation
Issue Log
Explanations:The Project Manager is in the process of "collect requirements" which has the output
requirements documentation. This document describes how individual requirements meet the
business need for the project. It is important that the requirements documented are unambiguous
(measurable and testable), traceable, and acceptable to key stakeholders. Option A, stakeholder
register is only a list of stakeholders in the project, whereas option B stakeholder management
strategy describes the strategy to manage stakeholder expectations. Option D issue log is a
document to capture project issues.
36. You have taken over as a Project Manager of a complex and technically challenging
project. To add to the problems, your team is from diverse cultures and lacks bonding.
You want the team to participate and take ownership of the project activities, as well as
understand the “big picture of the project.” Which of the following
activities would be most helpful?
Use colocation to help team bond better which in turn would maximize productivity
Create Work Breakdown Structure (WBS)
Develop Responsibility Assignment Matrix to describe roles and responsibilities of every

team member
Conduct knowledge sessions where each member appraise the team about his culture
Explanations:The Project Manager wants the team to take ownership as well as understand how its
individual project activities affect the overall project deliverable (the big picture). The Project
Manager also wants the team to develop bonding. All these objectives are met when the team gets
involved in creating the Work Breakdown Structure (WBS) and WBS dictionary. Option A may not be
always possible due to physical constraints in the project. Option D has limited utility, but Option B is
the best choice as it fulfills multiple project objectives.
37. You are a Project Manager working on a critical project. You track the project
schedule closely. While going through the critical path, you realize that the project is
showing negative float. What is your BEST response to the situation?
Use a schedule compression technique
Reduce the number of resources from the project
Reduce the number of noncritical activities in the project
Revisit the risks and do a risk analysis of the project

Explanations:The best option is to compress the project schedule because the critical path activities
can be delayed thus resulting in a negative float. In this case, the Project Manager should use a
schedule compression technique such as fast tracking or crashing.
38. A Project Manager is in the process of analyzing activity sequences, durations,
resources requirements, and schedule constraints to create an approved project
schedule. What should the Project Manager do NEXT?
Determine Resource Requirement for each activity in the project
Use techniques like Critical Path method and What-if Analysis to calculate optimum
duration of the project
Use this approved schedule duration as a baseline and start tracking the project
Create a Network diagram of the project using one of the diagramming methods
Explanations:The Project Manager is in the process develop schedule. Since the project schedule
has already been approved, it implies Option A, B, and D are already completed as part of the
processes estimate activity resources, develop schedule, and sequence activities. The next step
would be to treat this estimate as a schedule baseline and start tracking the project as part of the
process control schedule.
39. As a Project Manager you are estimating the duration of your project activities using
PERT technique (Program Evaluation and Review technique). For a particular project
activity, your optimistic estimate is 41 days, pessimistic estimate is 89 days, and most
Likely estimate is 60 days. What would be the expected duration and range of the
estimate for this activity?
61.67 +/- 8.00
31.27 +/-8.00
61.67 +/-3.00
31.27 +/-3.00
Explanations:PERT allows the estimator to include three estimates: optimistic, pessimistic, and most
likely, given by the equation Expected Duration = [P + 4(ML) + O]/6. Range is +/- standard deviation
= (P-O)/6, where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic
estimate. Using this method, the correct answers comes out to be 61.67 days and range (+/-
Standard Deviation) is 8.00.
40. A project activity has the following values for the earliest and latest it can start and
the earliest and latest it can be completed. An activity's Late Start (LS) is 5/day and Late
Finish is (LF) 10/day. Similarly Early Start (ES) is 3/day and Early finish (EF) is 8/day.
What is the float of this activity?
0 days
4 days
2 days
-3 days
Explanations:Float for an activity can be calculated using any of the two formula (i.e. Float = LS-ES
or LF-EF). In this case, float = 5-3 or 10- 8 or 2 days. Remember, float or slack is the amount of time
a task in a project network can be delayed without causing a delay to subsequent tasks (free float) or
the project completion date (total float).
41. An activity cannot be started until the predecessor also starts. This is an example of:
Finish-to-Start
Finish-to-Finish
Start-to-Start
Start-to-Finish
Explanations:This is an example of a start-to-start dependency. It means that B can't start before A
starts, or in other words Activity B can start after Activity A has started.
42. A Project Manager understands the information needs of important stakeholders
and documents how they would be met. Which document is being prepared?
Stakeholder register
Stakeholder management plan
Human resources management plan

Communications management plan
Explanations:Communications management plan contains details of how the communication needs
of the project's stakeholders will be met.
43. You are managing a project which would provide e-learning solutions to your
customer. The requirements of this project are not clearly defined in the beginning, and
there would be modifications based on customer feedback as the project evolves. You
decide to plan as much as you can and begin to create work while continuing the
planning. Which of the following techniques would be the most helpful while defining
activities for the project?
Rolling Wave Planning
Templates
Extreme Programming
Just in Time
Explanations:Rolling wave planning is a form of progressive elaboration where work to be
accomplished in the near term is planned in detail and future work is planned at a higher level of the
Work Breakdown Structure. Therefore, work can exist at various levels of detail depending on where
it is in the project lifecycle. As more information is known about upcoming events, the higher-level
work packages can be decomposed further. Option B templates, which are usually standardized,
would not be a very helpful tool for evolving requirements. Option (c) and (d) are not recognized
tools and techniques of project time management.
44. The optimistic time estimate for an activity is 11 days, pessimistic is 25 days, and
most likely is 15 days. What is the expected time for this activity?
16 days
15 days
21 days
18 days
Explanations:Expected time = (O + 4M + P)/6 = 16
45. A Project Manager wants to determine the variance for an activity estimate using a
three-point estimate with the following data. Pessimistic=14, Optimistic=2, and
Realistic=5. What is the variance?
5
Not enough information

Explanations:The formula for variance = [( Pessimistic-Optimistic)/6]squared. The answer is 4.
46. Which of the following statements about critical path is TRUE?
It is the shortest path from start to finish
All the activities on the critical path do not have any float
A project will have only one critical path
A critical path takes into consideration logical as well as resource dependencies

Explanations:Critical path activities do not have any float. If any activity on the critical path is
delayed, the completion of the project will be delayed by an equal amount. To determine the critical
path, you have to add the amount of time estimated for the duration of each activity to the previous
activity.
47. You are a Project Manager in the early phase of estimating the cost of the project.
You use the analogous method of estimating and have come up with the rough order of
magnitude. While presenting it to your sponsor and stakeholders, one of the
stakeholders asks if you have also done lifecycle costing for the project. What is your
BEST response?
Project Cost estimating is primarily concerned with cost of the resources needed to
complete the project and needn't consider any other costs
Since it is the initial stage of the project, cost details required for lifecycle costing of the
project are not available and hence it is not relevant
Lifecycle costing provides the lowest long-term cost of ownership and should be used
as a management decision tool, in case of alternatives
Lifecycle costing should be done by the Project Sponsor as it impacts long-term

business decisions
Explanations:Lifecycle costing provides the lowest long-term cost of ownership and should be used
as a management decision tool. Although project cost management is primarily concerned with the
cost of the resources needed to complete the project (Option A, partly true), it should also consider
the effect of project decisions on the subsequent recurring cost of using, maintaining, and supporting
the project. Hence, lifecycle cost analysis can be used to assist management in the decision-making
process. Lifecycle costing looks at the entire cost of the product, not just the cost of project.
48. As a Project Manager, you are working with your team to explore alternatives to
decrease project cost without compromising on performance or scope of the project.
Which of the following techniques are you most probably using?
Benchmarking
Reverse Engineering
Process Analysis
Value Analysis
Explanations:Value analysis is also referred to as value management or value methodology (VM). It
requires the systematic approach to identify project functions and assign values to those functions to
get the functions at lowest overall cost without loss of performance.
49. Which of the following is a tool and technique for the Determine budget process?
Monte Carlo analysis
Delphi technique
Funding Limit Reconciliation
Parametric estimation
Explanations:Funding limit reconciliation is one of the techniques used in the Determine budget
process. See Page 208 of the PMBOK® Guide - Fifth Edition.
50. Which of the following are the MOST important to derive the total funding
requirements and periodic funding requirements of the project?
Management Reserve and Contingency Reserve
Cost Baseline and Management Reserve
Funding Limit Reconciliation
Project Budget and Contingency Reserve

Explanations:The total funds required in the project are those included in cost baseline, plus
management reserve if any. Remember, the cost baseline includes contingency reserves because
the cost baseline will include projected expenditures plus anticipated liabilities. Please refer to
PMBOK® Guide - Fifth Edition Project Cost Management PN 206 for more details.
51. As a Project Manager for the project in the planning stage, you have derived the
cost estimate by estimating the cost of individual work packages. It is summarized to
higher levels for reporting and tracking. What would be the range of estimate from the
actual?
-50 percent to +100 percent

Explanations:This is the definitive range derived during the latter part of the project when project
information is available in sufficient detail. The estimate could become more refined to a range of -5
percent to +10 percent from the actual. This estimate is usually derived using the bottoms up
estimation technique.
52. You are a Project Manager planning to launch a new product in the market. For this
purpose, you are analyzing the existing products in the market to understand their best
practices. You also compare industry standards for performance metrics including cost,
cycle time, productivity, and quality to come up with your own product metrics. Which of
the following activities are you doing?
Cost Benefit Analysis
Value Engineering
Benchmarking
Process Analysis
Explanations:Benchmarking is a management tool through which a plan for evaluation,
measurement, and improvement is implemented. It is the process of comparing the business
processes and performance metrics including cost, cycle time, productivity, and/or quality to another
that is widely considered to be an industry standard benchmark or best practice. The objective of
Benchmarking is to determine (1) what and where improvements are called for, (2) how other firms
achieve their high performance levels, and (3) how to use this information to improve the firm's
performance. Option D process analysis is a tool and technique of the quality assurance process
which involves following steps in the quality improvement plan to identify needed improvements.
Please refer PMBOK® Guide - Fifth Edition Project Quality Management PN 239 for more details.
53. A Project Manager has derived quality metrics along with tolerance limits for his
project. Which part of the quality management knowledge area is the Project Manager
in?
Plan Quality Management
Perform Quality Assurance
Perform Quality Control
Define Scope
Explanations:Quality metrics are determined as an output to the process plan quality, along with
tolerance limits for each of them. A metric would give the actual value or the measurement of a
project or product attribute, whereas a tolerance defines the allowable variations on the metrics. The
selection of these metrics in a project would heavily depend on the type of the project and the
objective of collecting the metrics.
54. Project Manager John wants to capture the details of activities he would be doing to
enhance the value of the process, including their inputs, outputs, and interfaces with
other processes. Which of the following documents would be MOST helpful?
Quality Management Plan

Process Improvement Plan
Product Management Plan

Explanations:While Option B describes how the project management team will implement the quality
policy of their organization, the process improvement plan is more focused on enhancing the value
of the process in a project. It includes determining process boundaries, process metrics, targets for
improved performances, etc. Please refer PMBOK® Guide - Fifth Edition, Project Quality
Management, PN 241 for more details.
55. In order to determine the target fuel efficiency for a hybrid car being designed, a
Project Manager is looking at published statistics for similar models in the industry. The
technique being used is called:
Brainstorming
Benchmarking
Statistical sampling
Design of Experiments
Explanations:What the Project Manager is trying to do is essentially look at the industry benchmark
and make sure that the product is in line with it. This is the benchmarking technique.
56. Which of the following would NOT be part of cost of conformance?
Prevention cost
Appraisal cost
Internal failure cost
Cost of training
Explanations:Internal failure cost (including failure found by the project internally like rework and
scrap) is not part of the cost of conformance. All the failure costs (including external failure costs) are
referred to as the cost of poor quality. The cost of conformance denotes the money spent during the
project to avoid failures. Please refer to PMBOK® Guide - Fifth Edition, Project Quality Management,
PN 235 for more details.
57. A Project Manager is planning a project, and he is creating a plan to describe how
human resource requirements in the project would be met. He is using a bar chart tool
called a Resource Histogram for charting this requirement. However, he notices that
some of the individual bars in the Resource Histogram extend beyond the maximum
allowed hours. What should the Project Manager do to correct it?
Reduce Scope
Extend Working Hours
Resource Leveling
Schedule Compression
Explanations:Resource leveling is required whenever individual bars in the Resource Histogram
extend beyond the maximum allowed hours. Resource leveling can be done by either adding more
resources or modifying the schedule. Option (a) reducing scope or (b) extending working hours
would be detrimental to the project's success and is not recommended here. Option D schedule
compression which can be done through either crashing or fast tracking wouldn't necessarily be
helpful. Since specific bars are showing an overflow, it can be best tackled using resource leveling.
58. According to Maslow's Hierarchy of needs, what comes HIGHEST on the pyramid?
Social
Safety
Physiological
Hygiene Factors
Explanations:According to Maslow, there are five levels of human needs from bottom to top. They
are: physiological, safety, social, esteem, and self-actualization. Option D Hygiene factors are part of
Herzberg's theory.
59. A pharmaceutical company wants to launch a new over-the-counter medication for
flu in the U.S. The Project Manager is identifying project communication constraints.
Which of the following is NOT a valid constraint?
The company should get an FDA approval before producing or selling the medicine
The key person responsible for communicating the information on the project may not
be available through the entire project
The milestone meeting should be attended by all the major key stakeholders
The project has teams working in different geographical locations and time shifts
Explanations:The key person responsible for communicating information on the project may not be
available through the entire project. A communication constraint is usually derived from specific
legislation or regulation (Option A), organizational policies (Option C), or a project constraint (Option
D) which limits the project's options during communication management. However, (Option B) is an
uncertain event or risk in the project which needs to be addressed through risk management.
60. You are a Project Manager in a financial firm with multinational dealings. You feel
the financial meltdown in one of the client's countries could affect your project
adversely, and you want to hedge your risks. Although the probability of occurrence of
the event is low, you are advised to play it safe. In terms of risk attitude, your
organization could BEST be described as:
Risk Seeker
Risk Averse
Risk Neutral
Risk Mitigator
Explanations:Someone who doesn't want to take risks is called risk averse and the Project Manager
seems to be part of such an organization. Option C risk neutral describes a person/or an
organization which is indifferent to the risk, and Option A risk seeker suggests an aptitude to take
risks with an opportunity for higher returns. Option D risk mitigation is a risk response strategy and is
an invalid choice.
61. Which of the following is NOT a tool used in the perform qualitative risk analysis
process?
Probability and Impact Matrix
Risk Prioritization
Monte Carlo Simulation
Root cause identification

Explanations:Monte Carlo Simulations are typically associated with the quantitative risk analysis
process. It generates the output as a range instead of a fixed value and shows how likely the output
value is to occur in the range.
62. Which of the following is an example of Lead?
Pillars for a structure can be started 7 days after the foundation to allow for curing
Test lab preparation can start 5 days before a product is made available for test
Both test planning and product development can start simultaneously after the design is
finalized
Crash tests cannot be carried out until a working final model is made available
Explanations:Lead means that the successor activity can start in advance of the predecessor
activity.
63. The estimating technique that uses the statistical relationship between the historical
data and other variables to calculate an estimate for an activity is called:
Analogous Estimating
Parametric Estimating
Three Point Estimating
Monte Carlo technique

Explanations:Parametric estimating is an estimation technique which utilizes the statistical
relationship between a series of historical data and a particular delineated list of other variables.
Some examples of these variables include square footage in a construction project and the number
of lines or codes that exist in a software application. This information is then implemented for the
purpose of calculating and demonstrating an estimate for the activity parameters.
64. In which form of contract will the cost risk lie with the seller?
CPIF
T and M
CPAF
FP
Explanations:Cost risk lies with the seller in a Fixed price contract.
65. While responding to a procurement request, the seller outlined the detailed technical
solution, provided a handful of past customer references, and also made a detailed
commercial offer. Which procurement document would the seller most likely respond
to?
Request for Quotation
Request for Proposal
Invitation for Bid
Bidder conference invitation

Explanations:An RFP requests for a detailed proposal.
66. You are in the process of implementing approved changes, corrective actions,
preventive action, and defect repairs in the project. In which of the following process
groups are you in?
Initiation
Planning
Execution
Monitor and Control

Explanations:The executing process group involves coordinating people and resources, as well as
integrating and performing the activities of the project in accordance with the project management
plan.
67. You are a finance specialist who has been assigned to an organization-wide project
in a strong matrix structure. The Project Manager requests you to work on a report,
which you feel is unnecessary. You have tried to reason with the Project Manager about
this, but the Project Manager insists it is required. What should you do?
Escalate to your functional Manager
Provide the report
Set up a meeting with the Project Manager to discuss the issue
Ignore the request and work on other important tasks

Explanations:As a team member, you need to respond to the request even if you do not personally
agree with it. Since you have already tried to reason with the Project Manager, option C is not
appropriate.
68. A Project Manager realizes that a lot of time and effort are spent by his team in
capturing the data during product testing. Which is the best option to address the issue?
Stop capturing the data as it doesn't add any value to the project activity
Allocate a time at the end of the day to update all the data together
Ask for an additional resource to capture project data
Automate the data capturing process

Explanations:The best alternative is the one which eliminates the root cause of the problem and
prevents subsequent changes. Here the main problem is the inefficient use of time and effort of team
members in capturing the data. The best way to address this is to automate the process thus
reducing both time and effort. Option B could result in incorrect and incomplete data because it's not
recorded at the time of capturing. Whereas Options A and Option C suggest the Project Manager
evades the responsibility of producing valid project data.
69. A Project Manager is facing many serious issues in his project to create an
application for a hospital management system. The project's final deliverable is
scheduled for two weeks from now. It needs to fulfill compliance with mandatory
government health standards. In addition to that there are some changes required to
improve performance which the Project Manager feels will make the customer happy.
Amidst all of this, a senior test engineer asks the Project Manager for a long leave.
Which is the most critical issue the Project Manager needs to address FIRST?
Ensure the product is compliant to government health standards
Find a replacement for the senior tester and ensure he completes knowledge transfer
before leaving
Complete change control process to incorporate changes to enhance performance
Notify the customer about probable delay in the final deliverable to avoid surprise later
Explanations:Ensure the product is compliant with government health standards. This question
exemplifies a typical scenario when a Project Manager needs to integrate information and prioritize
the most critical issue. In this scenario, Option C is part of gold plating and is not actually required in
the project. Option B can pose some trouble to the Project Manager. The question doesn't clearly
establish whether the resource is leaving before or after the final delivery. There is no indication that
his absence would adversely affect the project delivery. In this situation, the most important thing to
focus on should be the compliance testing because it is a mandatory requirement on the project.
70. You are a Project Manager taking over a project midway. It is in the execution
phase. You would like to know more about project deliverables, work required to
complete those deliverables, project constraints, assumptions, etc. Which of the
following documents would be MOST useful?
Work Breakdown Structure (WBS)
Requirements Documentation
Activity List
Project Scope Statement

Explanations:The Project Manager should refer to the project scope statement as it captures all the
details related to the project scope including product acceptance criteria, scope description, project
deliverables, constraints, assumptions, etc. Options A and Option C define project scope at the
smaller work package and activity level respectively. Option B Requirements Documentation
captures requirements of the project related to quality, functional and non-functional requirements,
support requirements, etc. and is an incorrect.
71. Which of the following is an output of the Direct and Manage project work process?
Project Charter updates
Work performance information
Approved change requests
Change requests
Explanations:Change request is one of the outputs of this process.
72. A project is relying on a contractor to deliver a component. The contractor informs
the Project Manager about the likelihood of a 3-week delay in the delivery date. What
should the Project Manager do?
Meet with the team to discuss the issue
Escalate the matter to the senior management of the contractor as per the escalation
matrix
Issue a formal show-cause notice asking why the contract should not be submitted
Inform the senior management and the customer about the possibility of delay to the
overall project due to the delayed component
Explanations:The first thing to do is to understand the impact and find out how the impact can be
contained. Only after this is done, can other steps be considered.
73. You are managing an e-banking solution project when the Vice-President of the
company calls you to discuss an opportunity to manage a critical company project which
can boost your career and professional experience. Your e-banking solution project is
due to complete in 3 weeks. What is your best response to the Vice-President?
You would surely like to manage both the projects together as the latter is a critical
project for the company
You would use a compression technique to finish your current project faster and then
take up this new project
Since the new project is more critical to the organization, you could take this project
immediately and your earlier project can be managed by someone else. It is coming to a
close anyway.
The project should first develop an approved project charter which would formally
initiate the project
Explanations:The project should develop an approved project charter which would formally initiate
the project. An approved project charter formally initiates a project and authorizes a Project Manager
to apply resources to the project. A project without a project charter is not a project. With this in
mind, a Project Sponsor should first develop a project charter. All the other Options A, B, and C are
not suitable until the new project is formally initiated.
74. You are managing a large project team that has some new members joining. You
would like to take the entire team through the project schedule and update them on
where the project stands with respect to the original plan. Which of the following charts
would be most helpful for this purpose?
Gantt Chart
Milestone Chart
Work Breakdown structure
Schedule Baseline
Explanations:A Gantt chart is a bar chart that shows the activities of a project, when each must take
place, and how long each will take. As the project progresses, bars are shaded to show which
activities have been completed. People assigned to each task also can be represented. This is the
most effective tool to show the people assigned to the project where they are with respect to the
original plan.
75. An infrastructure company had an option of bidding for a toll highway project, with
an NPV of $5 million, but they opted for bidding for a power plant project with an NPV of
$6 million. $5 million represents the _________ for the company.
Opportunity cost
Depreciation
Sunk Costs
Internal Rate of Return

Explanations:Opportunity cost is the cost of the opportunity that was foregone in choosing a different
option.
76. You are a Project Manager for an IT company in the final phases of project
execution. Your project status is well within the budget and you are almost a week
ahead of your schedule. During the final testing phase of the project, you realize that the
performance of the product can be increased by almost 20% of the expected value by
doing minor code changes in two modules. This change would require an additional 2
days of work. What should you do NEXT?
Analyze the various alternatives and do a detailed impact analysis before proceeding
with the change
Update the change management form and send it to change control board for
consideration
Discuss the change and impact with the customer and seek his approval
Ignore the change as it is gold plating and should be avoided

Explanations:Ignore the change as it is gold plating and should be avoided. This is an example of
gold plating because this requirement is not actually part of the contract. Such additions are usually
based on a perceived notion of what the customer would like rather than a specific requirement from
the customer. Gold plating is defined in simple words as adding more to the system than is specified
in the requirements. Gold plating can increase operation and maintenance costs and reduce quality
as well.
77. A Project Manager is going through the defect report reviewing the bugs reported
during the testing cycle of a software project. The report has information on the severity
of the bugs, origin of the bugs, and possible resolutions, along with the owner and
reporter of the bugs. The Project Manager wants to prioritize the bug fixing activities by
evaluating the three most frequent reasons for the defects. Which of the following tools
should the Project Manager use?
Control chart
Fishbone diagram
Scatter diagram
Pareto chart
Explanations:Pareto charts works on the Pareto principal which states 80% of the problems usually
stem from 20% of the causes. Pareto charts can be used for defect analysis by arranging defects
data so that the few vital factors that are causing most of the problems reveal themselves.
Concentrating improvement efforts on these few will have a greater impact and be more cost-
effective than undirected efforts.
78. A team is complaining that every quality audit invariably audits its module, but other
modules are not audited at the same frequency. What is the best explanation that can
be provided?
A module gets audited more frequently because it has maximum issues
A module may get audited more because it is the most critical
Modules to be audited are picked up based on the quality management plan
Next time, make sure that all modules get audited at the same frequency
Explanations:The logic for selecting modules for audit should be outlined in the quality management
plan and should be followed.
79. You are managing a critical project with frequent changes in requirements. You are
in the testing phase of the project, and the customer has requested an additional new
feature. You have assessed the impact of the change on the triple constraints with your
team. What should be your NEXT step?
Raise a change request form and send it for approval to the change control board
Look for alternative options including schedule compression techniques like crashing
and fast tracking
Analyze the impact of the change on project quality objectives and quality planning
Update the project management plans and other project documents including project
baselines
Explanations:Analyze the impact of the change on project quality objectives and quality planning. It
is important to analyze the impact of the change not only on the triple constraints but also on quality.
The Project Manager needs to determine whether the quality objectives and quality planning need to
be modified to address the changes. Option B is already addressed as part of assessing the impact
on the triple constraints.
80. The method of examining work or a product to determine whether it conforms to
documented standards is called
Inspection
Statistical Sampling
Audit
Verification
Explanations:Inspection is the examination of work or a product to determine whether it conforms to
documented standards. It is also called peer reviews, review audits, or walkthroughs. Inspection can
be done at any level in the project and can also be used to validate defect repairs.
81. What is the best time to engage in team building activities?
In the beginning of the project
At the end of the project
Throughout the project
In the beginning for some projects and in the end for others
Explanations:Team building is an ongoing activity and must be planned throughout the project.
82. You are managing one of the most technically challenging and complex projects for
your company. In the beginning of the project, there used to be heated arguments on
the team regarding the best approach to solving a problem. However, the project is well
into the execution stage and the team has finished designing the architecture of the
product. They seem to have developed a good understanding of the system. What is
the most appropriate way to handle project conflicts at this stage?
You should continue to determine the best solution and ask the team to implement it
You should let the team explore the best alternatives amongst themselves while you
facilitate and support them.
You should invite ideas from everyone in the team to arrive at the best solution
You should make a decision based on consensus from majority of the team
Explanations:You should let the team explore the best alternatives amongst themselves while you
facilitate and support them. A Project Manager needs to provide more direction in the beginning of
the project because he knows the best way to plan the project. However, as the project team
matures and develops an understanding during project execution phase, the Project Manager needs
to transition to a support role. Your leadership style could be coaching, facilitating, or supporting.
83. Your software project is in the critical system testing stage when two of the senior
members of the team come to you with a conflict on usage of the simulation software
during testing. One senior member claims that the other person keeps the software
engaged for almost all the working hours of the project. You decide to change their
working schedules so that they no longer overlap. Which of the following techniques for
conflict resolution are you using?
Compromising
Collaborating
Forcing
Smoothing
Explanations:The collaborating or problem solving approach is the best option as the PM is solving
the project problem by taking out the overlapping of activities.
84. As a Project Manager you decide to create an issue log which captures issue
description, owner, and the target date for issue closure. All of the following are
common examples of issues in the project EXCEPT:
Differences in Opinion
Probable delay in the next delivery
Pending Root cause Analysis
Delay in receiving feedback from the customer

Explanations:Probable delay in the next delivery represents a project risk and is not an issue as the
event is uncertain. This may or may not happen in future.
85. A Project Manager is working on shortlisting, interviewing, and selecting candidates
for the open positions within a project as per the job descriptions. Which process group
is being worked on here?
Planning
Initiating
Controlling
Executing
Explanations:The process being worked on is Acquire project team, which is part of the executing
process group.
86. A Project Manager likes to involve the project team in the decision-making process.
Whenever there are issues which require urgent decisions, the Project Manager calls
the team to work out a solution together. This approach is:
Correct because it helps to get team buy- in and its commitment to the change
Correct as brainstorming technique helps to bring out creative ideas to solve the
problem
Incorrect as lot of time and effort of the project team are spent on decisions which could
be singularly made by the Project Manager
Incorrect as not all the solutions coming of a brainstorming session can be

implemented, resulting in disappointment in the team
Explanations:The key words here are "involve the project team in all the decision-making process." It
is important for the Project Manager to involve the project team to work out solutions to critical
project issues. However, this approach should be used judiciously as the amount of time spent in the
meetings could lead to an inefficient use of the team's time. Furthermore, in many situations,
meetings delay the decision making process due to internal conflicts.
87. A Project Manager working in a matrix project environment feels there is some
discontent in the team members related to their dual reporting and the role of Project
Manager on the project. The Project Manager wants to communicate with the team to
clarify their doubts. What is the BEST form of communication for addressing this
problem ?
Formal Written mail
Informal chat with the team

Face-to-face-meeting
Informal written mail

Explanations:A face-to-face meeting is ideal for project communication. It gives the Project Manager
an avenue to understand the reasons for discontent and clarify doubts. Face-to- face meetings have
an added advantage of being accompanied with non-verbal (body movements and physical
mannerisms) and paralingual (pitch and tone of voice) communication methods.
88. A Project Manager in an information technology project is discussing a complex
algorithm with a new team member. After a long and thorough verbal discussion, the
Project Manager asks if the team member understood the algorithm and can put it in the
document. The team member implies that he has understood. However, when the
Project Manager goes through the document, he realizes that the member didn't
understand what was said thus resulting in an inefficient use of time and effort. Who is
responsible for this loss of time, and how could it have been avoided?
Project Manager; he shouldn't have given the complex assignment to a new team
member
Team Member; since he implied he understood the discussion and didn't ask his doubts
immediately
Project Manager; he should have also helped the team member in preparing and
reviewing the document
Project Manager; since it is his responsibility to ensure his message is clear and
concise and confirm that the team member truly understands the message
Explanations:In the communication model, it is the sender's responsibility to make the message
clear, complete, and concise so that the recipient can receive it. The sender must also confirm that
the recipient truly understands the message. In this scenario, the Project Manager is at fault. For
more information refer to PMBOK® Guide - Fifth Edition, Project Communications Management, PN
293.
89. You are managing a project with project teams in different geographical locations.
There are approximately 25 team members in 3 different locations each being led by a
team lead. Additionally, there are 3 members from a supporting group that are working
part-time on the project. How many communication channels are possible in your
project?
496
992
424
32
Explanations:This is directly based on the formula n*( n-1 )/2. If n is the number of stakeholders in
the project, the total possible communication channels = n*( n-1 )/2. The project has 25 team
members, 3 team leads, 3 support team members, and the Project Manager. That makes it 32
people and 496 possible communication channels. Please Refer PMBOK® Guide - Fifth Edition,
Project Communications Management, PN 292.
90. A Project Manager is documenting the normal process for escalating the issues on a
project. Which document usually contains this information?
Risk management plan
Project Communication management plan
Quality management plan

Explanations:A project communication management plan would capture the details of the escalation
paths on a project.
91. A key stakeholder of the project is contacted for a requirements document approval
but shows no interest. The Project Manager decides to have a friendly, informal
discussion with the stakeholder to understand the reason for his lack of interest. During
the conversation, the stakeholder expresses his displeasure that two of his key
suggestions were not addressed on the project and feels as though his approval or
feedback doesn't really matter since the main requirements are not being captured.
What is the best option for the Project Manager in this case?
Agree with stakeholder and doesn't take his approval on requirements. Remove his
name from the list of stakeholders and avoid communicating with him further on project
status
Incorporate the requirements of the stakeholder and then take his approval
Talk to your Project Sponsor about the issue and take his approval before taking any
further action
Explain to the stakeholder that although his suggestions were appreciated, it is not
possible to address all of them in this release due to project constraints. You will revisit
them at the next phase.
Explanations:This should be addressed as part of "manage stakeholder expectations." A Project
Manager should proactively work with stakeholders to manage their expectations, address concerns,
and resolve issues. For more information, refer to PMBOK® Guide - Fifth Edition, Project
Communication Management, PN 287.
92. A key stakeholder expresses his concern over lack of project visibility and progress
and says that project status reports received lack information relevant to the
stakeholder's department. How should the Project Manager respond?
Review the Project Communication Management Plan to determine the stakeholder's
needs
Relook at the Manage Communications process to identify the gaps
Raise a change request to address the stakeholder's feedback
Relook at the Control Communications process to understand the problem

Explanations:The communication management plan determines the project stakeholder information
needs and defines the communication approach. It is the document that needs to be referred to
resolve the stakeholder's issues. Since the stakeholder is receiving timely performance reports,
options (b) and (c) are not correct.
93. A Project Manager in an e-learning project is using free downloadable tutorials via
the Internet to reach out to large audiences. This communication method is called:
Interactive Communication
Pull Communication
Push Communication
Personal communication
Explanations:This is an example of a pull communication method which is used for large volumes of
information or for large audiences that require the recipients to access the communication content at
their own discretion. It is easier to recall pull communication as "pulling of information" as desired by
the receiver at his discretion. For more information, refer to PMBOK® Guide - Fifth Edition, Project
Communication Management, PN 295.
94. In one of the project status meetings, two senior team members get into an
argument regarding the introduction of a new tool to automate time sheet filling. Which
of the following would provide you maximum insight on the conversation?
The content and timing of the conversation
The content and timing of the conversation and the communication technology used
Body Language and the words in the conversation
Body language and voice modulation including pitch and tone

Explanations:Option D includes non-verbal and paralingual forms which are critical for effective
communication and form more than 55% of all communication.
95. A CEO from his Paris office wishes to communicate with the technical officer in
China. What is the correct procedure to communicate?
The CEO will decode the message from French to Chinese; the technical staff will
encode it from Chinese to French
The CEO will encode the message from Chinese to French; the technical staff will
decode it from French to Chinese
The CEO will decode the message from French to Chinese; the technical staff will
encode it from Chinese to French
The CEO will encode the message from French to Chinese; the technical staff will
decode it from Chinese to French
Explanations:Each message is encoded by the sender and decoded by the receiver based on the
receiver's education, language, experience, and culture. For more information please refer to
PMBOK® Guide - Fifth Edition, Project Communication Management, PN 293.
96. As a Project Manager you are worried about the continuous bad performance of one
of your team members. You have spoken to him over coffee, but there seems to be no
improvement. What is the MOST suitable way to communicate your dissatisfaction to
the concerned team member?
Informal Verbal
Formal Verbal
Formal Written
Informal Written
Explanations:As this is the second notice to the team member for poor performance, it should be
communicated in a formal written manner.
97. Which of the following is NOT an input to the process Manage stakeholder
engagements?
Stakeholder Management Plan
Communication Management Plan
Change Log
Issue Log
Explanations:An issue log is the output of the process Manage stakeholder engagements. All the
other options are inputs to the process.
98. Which of the following is the output of the process manage stakeholder
engagements?
Issue Log
Stakeholder Management Plan
Communication Management Plan
Stakeholder Register
Explanations:An Issue log is an output of the process manage stakeholder expectations.
99. A Project Manager shares project performance through status reports via email to
all the stakeholders of the project. Which of the following techniques is he using?
Kick-off meeting
Pull Communication
Push Communication
Communication model
Explanations:Push communication is sending information to specific recipients who need
information. This ensures that the information is distributed but doesn't certify that it reached or was
understood by the intended audience. Examples of push communication include letters and press
releases. For more information refer to PMBOK® Guide - Fifth Edition, Project Communication
Management, PN 295.
100. As a Project Manager, you need to estimate the regression testing for your
product. You would like to do 5 full testing cycles. Each cycle is estimated to take 4
days. What is your estimated duration for the testing activity?
25 days
18 to 22 days
18 days
22 to 24 days
Explanations:The estimated duration for 5 testing cycles of 4 days each is 20 days. The correct
estimation range is 18 to 22 days.
101. Which of the following needs is at the lowest level of Maslow's hierarchy?
Self actualization
Esteem
Social
Safety
Explanations:Physiological needs is at the lowest level of the hierarchy. Among the given choices,
safety is at the lowest tier.
102. A project team is working on constantly reviewing and making sure that the right
processes are being followed. Which process will the team use?
Control Quality
Quality Metrics
Explanations:Quality assurance focuses on the process and is done throughout the project
execution.
103. A Project Manager working on a construction project identifies the risk of a heavy
storm in the coming months that might affect the construction activity. However, there is
no reliable information on the weather forecast or the severity of the storm. In this case,
what is the BEST that the Project Manager can do?
Capture the risk in the Risk Register
Ignore the risk as nothing can be done to avoid it
Actively accept the risk and allocate time and cost reserve in contingency fund
Proceed with Risk Response Strategy to counter the risk

Explanations:In this situation, the Project Manager has no information on the timing, anticipated
frequency, or impact of the expected rough weather. Option D may not be possible as there is not
enough information. The best option is to accept the risk but plan a contingency reserve in terms of
cost and time in case the risk occurs. Option A and B are passive approaches and are not
recommended for a good Project Manager who should always be proactive in his approach toward
risk management.
104. Which of the following is NOT a likely outcome of trying to fast track a project?
Reduce the level of risk
Reduce the time taken
Increase the level of risk
Cause more rework

Explanations:Fast tracking (getting more tasks to go on in parallel) may reduce the time taken but
will likely increase risk and rework.
105. You are a Project Manager of a software development project. You have
outsourced a component of your product to a third-party vendor, and it is due to be
delivered next week. You find out that the delivery of the component may be delayed
due to political unrest in the vendor's location. What is the BEST you can do in this
situation?
Report to your senior Manager about probable delay, along with details on the current
political situation at vendor's place
Communicate to the vendor that any possible delay would attract a fine and affect future
payments
Revisit your project schedule and look at alternatives to reduce the impact of the delay
Since there is no official communication from the vendor, you need to use the "wait and
watch" policy
Explanations:This question can be tricky as it doesn't clearly state whether or not the Project
Manager received a formal communication of the delay from the vendor. Since a Project Manager
should proactively look for any event that may delay the project schedule, Option C is the best
alternative. Option B is harsh, especially in a situation that is beyond the vendor's control (e.g.
political unrest in the country).
106. A Project Manager is conducting a bidder conference to select the most suitable
sellers. Which of the following tools will NOT be helpful?
Independent Estimates
Analytical Techniques
Procurement Negotiations
Make-or-Buy analysis
Explanations:The Project Manager is in the process of conducting procurements. and all of the
above are tools and techniques that can be used in the process except Make-or-buy analysis, which
is part of the plan procurement process. For more information refer PMBOK® Guide - Fifth Edition
Project Procurement Management PN 354.
107. In execution phase, implementation of approved actions happens by following risk
management plan and risk register. For this action, which option is correct?
Minimize the negative risk and take the opportunities
Minimize the opportunities and increase the negative risk
Minimize only negative risk
Minimize only opportunities

Explanations:As per the new examination content outline, take advantage of opportunities.
108. While working on a contract, a supplier's factory was severely damaged due to an
earthquake, and the supplier could not deliver the contracted items on time. The liability
of the supplier to pay penalty for delays is probably restricted due to:
Doctrine of Waiver
Privity
Dispute Resolution
Force Majeure
Explanations:The Force Majeure clause protects both parties from liabilities due to unforeseen
events on which nobody has control.
109. You have recently joined a new construction company, and you find that your
employer is violating the construction permit issued by the local city government. What
should you do?
Inform the city authority of the violation
Talk to your employer to find out if they are aware that they are breaking the law
Complain to the legal department of the company
Do nothing as you are new to the organization

Explanations:The best option is to first talk to your employer to discuss your findings and know their
perspective. It would also help you verify your observation.
110. As a Project Manager, you understand the importance of effective communication
with stakeholders. You want to present a project progress report to the stakeholders in
the next project meeting. What should be your approach?
Make the report concise and restricted to specific technical details of the project
Prepare a verbose report but filter the information to remove details
Focus on specific stakeholders with whom you have good personal relationships
Research and understand the experience level and expectations of stakeholders

Explanations:Since a project's success is heavily dependent on the stakeholders' favorable
acceptance of the project, it is important to have effective communication with the stakeholders,
especially during project meetings. For this purpose, the Project Manager should research and
understand the stakeholders' expectations before presenting project progress reports.
111. You are managing a multinational project with team members from different
countries with varying time zones. In this scenario, you wish to choose a communication
medium that is most efficient for the project requirements. What is the most appropriate
way to address this?
Explore communication tools available in the market and ask for quotations exclusively
for your project instead of using the existing tool in the organization
Use the most cost effective technique and explain its usage to everyone
Use a combination of communication technologies
Discuss these communication requirements and available options with stakeholders to

seek their input
Explanations:It is important to have an effective communication medium in this project, especially
since the team is in different geographical locations and communication requirements are complex.
It is best to take input from the stakeholders of the project and understand their communication
requirements before finalizing a technique.
112. You are interviewing candidates for a position in the project. When you receive the
resume of a distant relative who is desperately in need of a job, what should you do?
Give the candidate the job, but insist on good performance
Ask the candidate to apply somewhere else
Declare your position and excuse yourself from the selection process
Do nothing and go with the panel decision

Explanations:The right thing to do is to declare your personal interest and excuse yourself from the
selection process.
113. As a Project Manager, you have a large team reporting to you, with two members
working on a new technology for the first time. At the beginning of the project, you were
concerned that the members wouldn't be able to contribute much due to the technical
complexity of the project. However, you spent time and gave them the required training
in order to help them perform. During your assessment, you find some areas that still
require improvement. What should you do next ?
Discuss this with the Functional Manager and ask him to assign these resources to
some other project as you have already spent enough effort on them
Give them more challenging assignments so that they fail and you have a reason to
expel them from the team
Assess their current weak areas and provide more focused training with regular
feedback
Talk to them and and give them a warning that this is their last chance to perform in the
project
Explanations:The role of a Project Manager is also that of a leader. The question seems to suggest
that improvement in the team's performance would give much better results. Option A would have
been good if the Project Manager would have suggested that members move to a project that
matches their skill set. Since this is not the case, the best option is C.
114. After working as a Project Manager for more than 25 years, you want to share your
learning and best practices with your industry. You do this by writing articles in
international journals and giving interviews to share your experience. This act can be
BEST described as?
Enhancement of professional skills by learning project management and technical skills
Contribution to project management knowledge base by virtue of vast personal

experience
Capturing professional stint in autobiography purely as a retrospection exercise
Informing others about project management principles and helping the profession grow
Explanations:The Project Manager is adding his lessons learned and best practices to the project
management knowledge base.
115. During project execution, the customer interprets a clause in the contract differently
and demands an elaborate design document as part of the next deliverable. According
to you, this is not included in the deliverable list. What best can you do to resolve the
situation?
Change the contract and continue with your project work
Accept the customer's demand as he is responsible for the project's success
Talk to your Project Sponsor about the issue and the implications of accepting such a
request on the schedule and cost of the project
Document the dispute and refer to the claims administration

Explanations:In case of conflicting claims, it is best to refer them to claims administration. Claims
administration resolves claims according to the contract's dispute resolution procedures when the
buyer and seller cannot resolve a claim on their own. Claims administration documents, processes,
monitors, and manages claims during the life of the contract, usually according to the contract terms.
116. You are working at a customer location in a foreign country where it is customary
to exchange gifts during New Year celebrations. Your company forbids you to accept
any form of gift from your customer, but you have a strong feeling that if you refuse to
accept and reciprocate the gesture, it can severely affect your relationship with the
customer. In this case, it is BEST to:
Explain your company policy and politely refuse to accept any gifts
Discuss this situation with your Project Sponsor or legal department
Accept the gift and keep it confidential so that there is no loss of face for your
organization
Take a break from project work to go on a small vacation during the New Year
Explanations:Since the company policy forbids the Project Manager from accepting any gifts, the
Project Manager should consult the Project Sponsor and legal department.
117. Your project has faced some unforeseen issues that have delayed it. The project is
very critical for the company, and it has to meet the scheduled deadline. In order to
meet the deadline, your team would have to work over the weekends for the next two
weeks. However, you know that many of the team members will have personal
commitments, and it will be very difficult for them to work for seven consecutive days.
What is the BEST option?
Hire additional resources and brief them about the project
Inform the customer that this deadline can't be met
Discuss the situation with the team and give them the choice to willingly work overtime
Send an official mail, making it compulsory for the team to work over the weekends
Explanations:The Project Manager should explore all the options to avoid delay in the project. In this
case, there might be some team members willing to work over the weekends, and the Manager can
re-plan the schedule once their availability is confirmed.
118. You are a Project Manager in the process of performing the work defined in the
project management plan to achieve the project objectives. Which process are you in?
Develop Project Management Plan
Monitor and Control Project work
Direct and Manage project work
Execution process group

Explanations:The Project Manager is currently in the "direct and manage project work" process that
is a part of the execution process group.
119. A Project Manager, Joe, is discussing the observed variations between planned
and actual values of defects with his quality engineer. He realizes that he has forgotten
to identify one of the important metrics to analyze defects. Which process group is the
Project Manager in if he evaluates the current result for the metric to see if it requires
corrective action?
Planning
Executing
Monitor and Control
Quality Audit
Explanations:The activity of identifying applicable quality standards, processes, and metrics is
completed as part of project planning. In this case, the Project Manager is evaluating the variation in
the current results for the new metric and whether it requires corrective action. Hence, he is in the
'monitor and control' process group.
120. A Project Manager wants to monitor the performance of a process. She sets up
thresholds for this purpose, and any observation beyond the threshold would trigger a
root cause analysis and corrective/preventive actions. This is an example of:
Specification limits
Control limits
Pareto charts
Tolerances
Explanations:Tolerances or specification limits are customer-specified limitations. These limits are
meant for the purpose of controlling the process. Hence, they are control limits.
121. The Project Manager is reviewing the issue log as part of his execution activity.
Which of the following would be the LEAST appropriate activity for the Project Manager
to perform as part of the monitoring and controlling process group activity?
Assess the corrective actions on the issue register
Determine the next steps for unresolved issues
Use appropriate tools and techniques in order to minimize the impact on project
schedule, cost, and resources
Review the issue and determine if the issue should be avoided, mitigated, transferred,
or accepted
Explanations:Avoid, Mitigate, Transfer, and Accept are risk response strategies where there is an
element of uncertainty involved. It is not appropriate for issue management because issues are
present in here and now.
122. You are assigned as a Project Manager to a project in the execution stage. Current
schedule and performance indices for the project, SPI and CPI are 1.12 and 1.15, and
project performance are well within the baseline. The defects found during internal
testing for the last deliverable were well below the organization limits. However, the
customer doesn't seem to be happy with the project progress. What should be the
FIRST thing the Project Manager should do?
Start managing project as you gain more insight into day to day responsibilities
Meet with the project team to understand open issues in the project
Conduct a meeting with the customer to understand his concern over project progress
Improve project schedule and cost control measure so that SPI and CPI reaches above
1.5
Explanations:The most important thing for the Project Manager who is taking over the project
midway is to understand why the customer is unhappy in spite of the project performance being well
within the baseline. Option A, wouldn't address the main problem and Option D, has no valid
justification. Option B, could be a good option after talking to the customer to address his concerns
and other issues on the project.
123. A Project Manager working in an iterative model of the product development
lifecycle expects many changes during the course of the project. He wants to establish
a robust configuration management system and also make his team aware of the
process. Which of the following statements is NOT true about configuration
management?
The purpose of configuration management is to maintain integrity of work product
Configuration management includes configuration audits, configuration control,

configuration status accounting, and configuration identification
Configuration management focuses on establishing and maintaining consistency of a

product's requirements
Configuration management involves measuring project performance with baselines and

taking corrective action when necessary
Explanations:This is done as a part of the process 'monitor and control project work'. All the other
statements describe the configuration management process.
124. A Project Manager has delivered a major deliverable of the project. The customer
comes back a week after the release saying that he is not entirely satisfied with the
deliverable. What should the Project Manager do NEXT?
Continue with the next deliverable as the project has to be finished on time
Talk to the Senior Manager to discuss the customer concern and resolution
Ensure that the next deliverables have the features that the customer specified and
exceed his expectations
Do a scope verification of this deliverable to check if it satisfies project objectives

Explanations:Verifying the project scope includes reviewing deliverables to ensure that each is
completed satisfactorily. If this is successful, it should provide customer satisfaction. Option C is gold
plating, i.e., providing the customers something they didn't ask for and that wouldn't solve the
problem. Options A and B avoid addressing the main problem directly and are not recommended.
125. The decision to close a project is taken during which process group?
Planning
Executing
Controlling
Closing
Explanations:The decision to close a project (normal or abnormal termination) is taken during the
controlling processes.
126. Your project is in the final stages of testing, and the team is interacting with the
customer on a daily basis to update the customer with the project status and incorporate
his feedback. Which of the following would be the most critical process to be followed in
this scenario?
Control Quality
Control Scope
Manage Communications
Control Risks
Explanations:In this case, frequent changes are expected to be done by the team based on
customer feedback. When a change is presented, a part of considering the change involves
additional planning. The Project Manager and the team must examine how the change affects the
project work and knowledge areas. Thus, Control scope ensures that the project scope is protected
from unnecessary changes and all eligible changes are done using the scope change control
system. Option A, Control Quality, is more focused on ensuring conformance to documented
standards and is not the correct choice.
127. A Project Manager is proactively managing the change through the scope control
process. Which of the following should he be MOST worried about?
Value Added Changes
Errors and Omissions
Risk Response
Verbal communication from key stakeholders

Explanations:Undocumented changes should never be allowed by the Project Manager. He should
ensure that whenever a change is requested, the impact on features and functions of the product
(including that on the triple constraints) is documented with a change request. Only then should the
change continue through integrated change control. Option A, value-added changes, describe
changes in the scope that would provide benefits such as cost reduction. Option B, errors and
omissions, could be both in project scope, which is the work required to complete the project, and
the product scope, which refers to the features and functions of the deliverables. Option C, risk
response, involves changes in the scope required to mitigate an identified risk. Option D, verbal
undocumented changes, poses maximum potential threat to a project.
128. The ES of an activity is 2 days, and the duration of the activity is 5 days. The LF for
the activity is 8 days. What is the total float for this activity?
6 days
3 days
1 day
5 days
Explanations:We can calculate float using the formula EF=ES+D=2+5=7 and LS=LF-D=8-5=3. The
formula for Total float is LS-ES or LF-EF. The answer is 1 day.
129. As a Project Manager and member of the PMO (Project Management Office), you
want to present a snapshot of the status of various projects that the organization is
working on to the senior management. Which of the following charts would be most
suitable for the purpose?
Milestone chart
Gantt Chart
Precedence diagram
Control chart
Explanations:A milestone chart depicts key events along a timescale. It is used for top level reporting
so that management does not become bogged down in the minutia of the projects. A milestone chart
can contain various colors or markings that indicate status. It can also contain other information
related to the project(s), like customers, responsibility, duration, phase of the milestone, etc.
130. You are trying to figure out if there is a correlation between the slack time available
in a shift and the number of rejected components produced during the shift. Which is the
tool that you will use to analyze this?
Pareto charts
Ishikawa diagrams
Histograms
Scatter diagrams
Explanations:Scatter diagrams are used to plot data between two variables to figure out if there is a
pattern or correlation between them.
131. You are managing an infrastructure project that is nearing completion when a
major stakeholder points out a flaw in the design that could make the entire structure
weak. He suggests that you construct two support pillars that would provide the
necessary support. You are worried that this change could impact the schedule and
cost of the project significantly. What is your BEST response to the stakeholder?
Refuse his suggestion as the project is already nearing completion and it's not possible
to make any changes at this stage
Do a root cause analysis with the team to determine how this design flaw could have
been missed, and if there could be more potential problems with the design
Proceed with the change and communicate the impact on project schedule and cost to
the customer
Use a schedule compression technique as part of integrated change control to

investigate and minimize the adverse impact of the change
Explanations:Schedule compression technique is useful not only during project planning to see if the
desired completion date can be met, but also during integrated change control to look at the
schedule impacts of changes to time, cost, scope, or risk. Option B seems to be in good faith but
doesn't address the immediate problem. Option C should be done once all the alternatives are
explored to minimize the adverse effect of the change on the project schedule and other constraints.
132. Project performance reviews using earned value management would NOT typically
incorporate information from:
Variance Analysis
Cost Benefit Analysis
Trend Analysis
Earned Value Technique

Explanations:Cost benefit analysis is a technique that compares positive factors or benefits with
negative ones to determine the net result of performing the action. It is a popular technique for the
project selection method, but will not be useful during the project performance review. Please refer
to PMBOK® Guide - Fifth Edition Project Cost Management PN 193 for more details.
133. As a Project Manager, you realize that the initial budget cost, Budget at
Completion (BAC), for your project is no longer viable. You need to develop a new
Estimate At Completion (EAC) forecast assuming that current variances would continue
in the future. Which of the following formulae should you use to calculate EAC? Here,
AC is the Actual Cost, EV is the Earned Value, and PV is the Planned Value.
EAC = AC + ETC
EAC= AC+ (BAC - EV)
EAC = EV/PV
EAC = BAC/Cumulative CPI

Explanations:This method assumes current variances to be typical of the future. The remaining work
is assumed to be performed at the same cumulative cost performance index (CPI) as what has been
incurred by the project to date.
134. Earned value management is the tool and technique of which process?
Perform Integrated Change Control
Control Costs
Direct and Manage project work
Control Schedule
Explanations:Earned value management is a tool and technique of the Control Costs process. See
page 215 of PMBOK® Guide - Fifth Edition
135. A project team with a CPI of 0.78 is looking for options to reduce cost. Which of the
following would be the BEST option to do so?
Reduce a test cycle in the system testing phase
Reduce scope by cutting down non-essential features
Add more resources to expedite the schedule
Revisit estimates and eliminate risks and then re-estimate

Explanations:Option C wouldn't reduce cost. Option A and B would have a negative effect as they
compromise on quality or scope. Of all the available options, D is the one with minimum negative
effect.
136. You are a Project Manager. You need to decide whether to buy insurance for a
temporary manufacturing facility. The likelihood of a mishap is assessed at 10% and the
likely impact is evaluated at $500,000. The cost of insuring is $20,000 and has a
$10,000 deductible. Would you buy insurance?
Yes, because 50,000 > 21,000
Yes, because 50,000 > 30,000
No, because 30,000 < 500,000
No, because 21,000 < 50,000

Explanations:EMV when there is no insurance is -500,000 * 0.1 = $50,000. EMV when there is
insurance is -(20,000+ 0.1*10,000) = -21,000. Therefore, it makes sense to buy insurance.
137. A project has a CV of -$500 and SPI of 1.2. What can be said about the project?
Your project is over budget and behind schedule
Your project is under budget and behind schedule
Your project is over budget and ahead of schedule
Your project is under budget and ahead of schedule

Explanations:CV < 0 indicates that the project over budget; SPI > 1 indicates that project is ahead of
schedule
138. As a manager, you would like to get the status on the remaining work with respect
to the remaining funds. Which of the following measures will give you the information?
To-Complete Performance Index
Earned Value Technique Performance
Variance Analysis
Trend Analysis
Explanations:To-Complete Performance Index (TCPI) is the calculated projection of cost
performance that must be achieved on the remaining work to meet a specified management goal.
The formula to calculate TCPI is Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-
AC), where AC is the Actual Cost, EV is the Earned Value, EAC is Estimate at Completion, and BAC
is Budget at Completion.
139. Which of the following is the best use of Pareto charts?
To visualize a workflow
To prioritize issues
To perform deeper causal analysis

To examine trends
Explanations:Pareto charts based on the 80-20 rule are useful for prioritizing from among a number
of possible causes because it helps to focus on the 20% causes that result in 80% of the issues.
140. In a normal distribution, what is the probability of finding the actual value between
1 standard deviation distance from the mean?
0.95
0.9973
0.5
0.68
Explanations:The answer is based on the property of the normal distribution.
141. A team is inspecting specific project deliverables to ensure that they are in
accordance with the specifications. Which process is being worked on?
Validate Scope
Control Quality
Explanations:Quality control is the process of examining specific project deliverables to ensure they
are in accordance with the requirements/specifications.
142. Your project is going through an audit cycle. One of the senior auditors points out
that the target value for Schedule Performance Index (SPI) is set to a low value and
should be increased by at least 5 percent. You try to tell the auditor that this target value
is in accordance with the organization baseline and cannot be changed. Which of the
following is the CORRECT statement in this case?
The auditor is right; as the project must meet a critical deadline, target SPI should be
increased
The auditor is right; the target value of SPI is a benchmark for the project, and it should
be kept high
The Project Manager is right; as the project schedule is not critical, target SPI value
needn't be kept too high
The Project Manager is right; target SPI is based on organization baseline derived from
its process maturity level and should be followed by the project
Explanations:Most organizations set up an organization-level baseline called process capability
baseline. PCB or Process Capability Baseline specifies what results to expect when a process is
followed. Using PCB, a project manager can predict, at the gross level, effort required at various
stages, defect densities, overall quality, and productivity. In this case, the Project Manager is right to
set the target values of his project metrics based on the organization baseline value.
143. The customers are performing User Acceptance Tests on the product that was
delivered by the project team. Which process is likely being performed?
Control Quality
Control Schedule
Perform Integrated Change Control
Validate Scope
Explanations:Scope validation is the process of accepting or rejecting the project's deliverables.
144. A Project Manager is working toward improving the competencies, team
interaction, and overall team environment to enhance project performance. Which of the
following tools and techniques would NOT be helpful here?
Training
Recognition and Rewards
Conflict Management
Co-location
Explanations:The Project Manager is in the process of developing project teams. Apart from conflict
management, all the other options are tools and techniques used in the process. Conflict
management is part of "manage project team." For more information, please refer to PMBOK®
Guide - Fifth Edition Project Human Resource Management PN 282.
145. Which of the following is the top source of conflict in a project?
Schedule
Project priorities
Administrative procedures
Personality
Explanations:The top-ranking source of conflict is schedule. Scheduling is probably one of the
toughest obligations of most Project Managers. Next in the list is project priorities. Managers need to
attend to all the projects of the organization, and conflicts arise when all projects are not given
attention and importance. Third on the list is resources. When a project team is understaffed, people
start to feel the intensity of pressure. They may burn out and become less motivated. Technical
conflict and administrative procedures come next on the list. Finally, cost objectives and personality
conflicts complete the list of seven sources of conflict.
146. Which of the following is NOT an input to the Control Communications process?
Issue Log
Work performance information
Work performance data
Project management plan

Explanations:Work performance information is an output (not input) to the Control communications
process. See page 303 of PMBOK® Guide - Fifth Edition
147. A Project Manager wants to present a project performance report to the
management. The report needs to captures project results over the last 3 years to see if
the performance is improving or deteriorating. Which of the following reports should the
Project Manager use?
Earned Value
Status Report
Forecasting Report
Trend Report
Explanations:A trend report would capture this information. Option A, earned value, integrates
scope, cost, and schedule measures to assess current project performance. Option B, status
reports, describes the position of the project based on the performance measurement baseline.
Option C, forecasting report, is used to predict future project status and performance.
148. As part of project stage review, you are presenting project performance reports to
the stakeholders. The reports show that both cost and schedule variances are positive
for the project. What does this indicate about the current project status?
Project is under budget and behind schedule
Project is over budget and behind schedule
Project is under budget and ahead of schedule
Project is over budget and ahead of schedule

Explanations:Answer (c) Cost Variance = Earned Value (EV) - Actual Cost (AC). Positive cost
variance indicates that the project is under budget. Similarly, Schedule Variance = Earned Value
(EV) - Planned Value (PV). Positive schedule variance indicates that the project is ahead of
schedule.
149. A Project Manager wants to perform some tests on the product that might end up
destroying the product. What technique can be used to get around this problem?
Statistical sampling
Regression testing
Automated testing
Stability testing
Explanations:In case the test is likely to prove destructive, it s typically performed on a sample.
150. A project team is in the process of risk tracking and control. The risk control action
defined by the mitigation and contingency plans is being implemented in accordance
with the details of those plans. Who is responsible for implementing these actions?
Project Manager
Project Team
Risk Owner
Risk Manager
Explanations:The risk owner for that particular risk is responsible for implementing the actions
defined by the mitigation and contingency plans. A risk owner is identified during the planning stage
of risk management and helps to assess the risk and produce probability and impact information.
The risk owner develops risk mitigation and contingency plans, provides status data for respective
risk issues, and assists in evaluating effectiveness of the risk control action. The risk owner also
documents threshold criteria of high and medium risks and supports the identification of new risks.
151. In the PDCA cycle, C stands for?
Control
Check
Card
Carryover
Explanations:PDCA stands for Plan-Do-Check-Act.
152. You are managing a project with a total budget of $36,000 to be finished in one
year. You are at the end of the 6th month and the project is currently on schedule;
however, the actual cost of the project is $20,000. What is the cost variance on the
project?
2000
-2000
16000
-6000
Explanations:Cost variance = Earned Value (EV) - Actual Cost (AC). Here, Earned Value is
uniformly spread over the entire project duration. So earned value at the 6th month = [(Total Cost)/
(Total Project months)] * Months completed, i.e., ($36,000/12)*6 = $ 18,000. Cost Variance =
$18,000-$20,000 = -$2,000
153. Which of the following statements is true about control charts ?
Special causes are easier to predict and handle than common causes
Common causes are easier to predict and handle than special causes
A process is stable if it has only special causes
None of the above

Explanations:Two types of variation can be distinguished using control charts: the variations inherent
in a process, such as product design or choice of materials, and special causes of variation, i.e.,
variations from unexpected sources, such as human error or a power failure. When the process is in
control, it is solely governed by common causes and is indicated through data points lying within
control limits. In this case, the only way to improve a process is to make a fundamental change, for
example, upgrade equipment, change procedures, or provide more training. However, the presence
of a special cause would result in data points falling outside the control limit or show trend. Special
causes of variation must be removed before the control chart can be used to monitor the
performance of a process to make it stable and predictable.
154. After awarding contract to one of the sellers, you realize that you have missed a
clause for delay in the contract and want to modify it. How should you proceed?
The contract is legally binding and cannot be changed once signed
The Project Manager should inform the seller about the change in the next meeting
The Project Manager should inform the seller about the change through a formal written
communication
The Project Manager should proceed with Contract Change Control System at his end
Explanations:The Project Manager should proceed with Contract Change control System at his end.
155. Your firm awarded a cost reimbursable contract to a pharmaceutical company for a
research-related activity. Over time, a large number of changes have taken place on the
project, and it has become difficult to keep track of the status of these change requests.
What is the BEST alternative for a Project Manager in this case?
Terminate the existing contract and negotiate a new one with the seller
Capture all the change requests, along with their current status, and follow the contract
change control system
Terminate the existing contract and sign a similar one based on the same terms and
conditions as the earlier one
Seek advice from the senior management of your organization

Explanations:There are strong reasons for the Project Manager to terminate the existing contract
and re-negotiate the terms and conditions. As the earlier contract was cost reimbursable, the Project
Manager had limited information on the contract scope of work. It may not be true now since some
work has been done, and the Project Manager is in a better position to negotiate. Also, since there
are too many change requests with no clarity on how many of them would be approved, it is difficult
for the Project Manager to continue work. The best option for the Project Manager in this case is
Option A,.
156. As a Project Manager, you are conducting a structured review of the seller's
progress to deliver the project within the contract specifications. Your objective is to
determine progress with respect to the procurement statement of work. You would be
doing this review in which stage of the project?
Before contract closure
Before awarding the contract
As part of project status review
In case of nonconformance by seller

Explanations:The Project Manager is doing a procurement performance review as part of the
'administer procurements' process. It is a structured review of the seller's progress to deliver project
scope and quality within cost and on schedule, as specified in the contract. For more information,
refer PMBOK® Guide - Fifth Edition Project Procurement Management PN 379.
157. You are managing a complex, critical project and have put in a lot of effort to make
the team technically proficient during the process. The project is in the final acceptance
testing stage when a senior resource, Janice, comes to discuss her plans of continuing
her education and leaving this current assignment. She would require a positive
recommendation for work from you to fulfill admission requirements. What should you
do?
Tell her that you wouldn't recommend her as she has broken your trust by leaving the
project before closure
Immediately ask the Functional Manager to remove her from the project and give her a
bad recommendation
Discuss and plan her exit so that it would have the least impact on the project schedule
Compliment Janice on her decision and suggest that she can leave the project
whenever she likes as you would handle her additional responsibilities
Explanations:The Project Manager should take steps to minimize the impact of any change that can
affect the 'triple constraints' in the project. Option D is wrong and it sets a wrong example.
158. You are managing a software project that is due for design document release next
week. An influential stakeholder asks you to add a feature to the existing design. This
stakeholder has earlier made unreasonable demands during the last days of release.
What is the best you can do in this situation?
Report his behavior to the senior Manager and suggest that he no longer be associated
with your project as a stakeholder
As this person is influential, you have no option but to listen to him and add the
functionality
Determine the impact of this change on your schedule and their constraints before
taking a decision
Ask him to raise a written change request and then follow integrated change control
Explanations:It is important that a Project Manager considers written and well-documented change
requests for the project.
159. Which of the following conflict resolution techniques is believed to generate the
FEWEST enduring positive results?
Problem Solving
Avoidance
Compromising
Forcing
Explanations:Forcing is the technique that can generate the FEWEST positive enduring results.
160. While monitoring the project, you find that an accepted risk is going to occur.
Which of the following will you use to develop the response:
Risk Response Plan
Fallback Plan
Mitigation Plan
Risk Register
Explanations:The fallback plan includes an alternative set of actions and tasks in the event that the
primary plan needs to be abandoned because of issues, risks, or other causes.
161. Tom has been recently promoted as a Project Manager for a short-term IT project.
Jim, an experienced Project Manager, has suggested to Tom that the most important
task for a Project Manager to be successful is communication with the stakeholders. Jim
explains to Tom that he should communicate the project status to the stakeholders to
get feedback. How will this help Tom on his project?
All the stakeholders will be happy with Tom
This will ensure that the project aligns with the business needs
The Project Sponsor will be happy

Tom has to do this as it is defined in the organizational policies
Explanations:A Project Manager needs to communicate detailed project information and project
status to concerned stakeholders to get their feedback. This will ensure that his project aligns with
the business needs, and there will be fewer unsatisfied stakeholders.
162. A Project Manager has made the final delivery to the customer, and the team is in
the process of completing administrative and contract closure. The team has also saved
the final version of the “lessons learned” in the corporate database.
Which of the following is a critical activity that the Project Manager should complete
before formally closing the project?
Confirm that all the requirements in the project are met
Ensure that all project management processes are complete
Obtain formal sign-off of the project from the customer
Index and archive the project records

Explanations:The most important part of project closure is to get formal sign-off from the customer.
The customer considers the project completed and accepts the completed project. Formal sign-off in
a contracting situation constitutes legal acceptance.
163. Which of the following is typically NOT part of project closure?
Get formal sign off from the customer to confirm customer acceptance of final
deliverable
Measure customer satisfaction as it is a key performance indicator of the project's

success
Hand off completed project deliverables to operations and management
Use the findings of the project to plan future projects

Explanations:Answer (d) Documenting lessons learned is part of closure, but applying those findings
happens during the project planning (not closure) process.
164. A few weeks before the close of a project, the customer submits a request for a
new feature, which will have a major impact. The customer further expects this to be
completed within the original cost and schedule baseline. What should the Project
Manager do?
Meet with the team to understand the impact
Refuse the customer request
Ask the team to voluntarily work extra hours to get the feature completed
Inform senior management about the request

Explanations:The impact is already known to be significant and there doesn't seem to be enough
time to rally around the situation. As the customer is expecting a change that is not easily
achievable, the best course of action is to ask senior management to take a call on this situation.
165. During final payment for a contract, you were surprised to see two line items in the
invoice pertaining to features that were requested by some members of your team.
These items were not really necessary for your project. What should you do about the
invoice?
Ask the team members why they requested the unnecessary items
Pay only for the essential items
Pay as per the original contract and start arbitration proceedings for the rest
Pay for the additional items as well

Explanations:Irrespective of whether they were necessary or not, it is a fact that they were requested
by your team members. Therefore you cannot escape the liability to pay for them.
166. You need to determine when to release resources from your project. Which part of
the staffing management plan will be most useful for this?
Resource Histogram
Safety procedures
Recognition and rewards

Training needs
Explanations:A Resource Histogram is a bar chart that shows the amount of time that a resource is
scheduled to work over a series of time periods.
167. Which of the following is the correct order of actions that you must take during the
closing process?
Get formal acceptance, release the team, write lessons learned, close the contract
Write lessons learned, release the team, get formal acceptance, close the contract
Get formal acceptance, write lessons learned, hand over deliverable to stakeholder(s),
close the contract
Get formal acceptance, close the contract, write lessons learned, release the team
Explanations:One important fact is that you need your team's help when you're writing the lessons
learned. That's why you can't release the team until the lessons learned are documented and added
to the organizational process assets. Also, the last thing you do on the project is close the contract.
Remember, releasing the project team is no longer part of closing, according the new RDS study
conducted by PMI. This was amended in 2011.
168. Your project has just been completed, and one of your subcontractors has sent
you the tickets for a cricket match to thank you for your business. What is the BEST way
to respond?
Thank the subcontractor, but do not give him preference in the next RFP
Thank the subcontractor, but politely refuse the gift
Ask for tickets for the entire team so that it is fair to everyone
Report the subcontractor to PMI®

Explanations:The PMP® Code of Professional Conduct says that you're not allowed to accept any
kind of gift, not even after the project has been finished. This would be considered the same as
taking a bribe.
169. A Project Manager is reporting the final status of the closed contract to the
stakeholders. Which form of communication is appropriate?
Informal Written
Informal Verbal
Formal Written
Formal Verbal
Explanations:All project reports must be communicated as formal written documents.
170. Which of the following is an input of the close project or phase process?
Transitioning of the final product, service, or result
Updates to the Organizational process assets
Accepted Deliverables
Enterprise environmental factors

Explanations:Accepted deliverables is an input to the Close project or phase process.
171. Which of the following is NOT a possible use of historical records?
Establish organizational performance benchmarks
Document best practices that were discovered during the project
Use in closure reports of subsequent projects
Document potential pitfalls that future projects can avoid

Explanations:Historical records from one project cannot become part of the closure reports of other
(future) projects.
172. During the closing, the final project report needs to be based on:
Communications management plan

Project charter
Contract
Explanations:According to the new examination content outline, the final project report needs to be
based on communications management plan.
173. Which one of the following is the last step of project closing?
Archive Project Documents
Measure customer satisfaction at the end of the project
Client appreciates your product
Lessons learned are documented

Explanations:All of the stated options are activities conducted during project closing. Measuring
customer satisfaction at the end of the project is the last step in the closing process group. This is
according to the new changes suggested by the PMI RDS Study.
174. What are the two closing procedures in a project lifecycle known as?
Contract close out and verify Scope
Contract closeout and administrative closure
Project closure and product verification
Project closure and lessons learned

Explanations:The two closing procedures in project lifecycle are known as contract closeout and
administrative closure. Contract closeout is the administrative procedure associated with the end of
the business agreement with the supplier and the archiving of documents in the contract file.
Administrative closure is a procedural mechanism to temporarily stop removal proceedings by
removing the case from the immigration judge's or BIA's calendar.
175. Which of the following statements is FALSE?
Project closure documents and project files are outputs of the Close Project Process
Project files consist of documentation resulting from project activities, such as the
project management plan, scope, cost, risk registers, and quality baselines
The formal acceptance documentation formally indicates that the customer or sponsor
has officially accepted the project deliverables
After the Close Project or Phase process is complete, the Project Manager should
identify and document the lessons learned
Explanations:D is incorrect. The creation of lessons learned documentation is part of the Close
project or phase process.
176. As a Project Manager, if you had to choose among projects A, B, C, and D, which
one would be the BEST option? Here, NPV is Net Present Value.
Project A: NPV $ 50,000, to be completed in 3 years
Project B: NPV $ 40,000, to be completed in 2 years
Project C: NPV $ 70,000, to be completed in 9 years
Project A: NPV $ 60,000, to be completed in 1 year

Explanations:The project with highest value of NPV should be selected. The information on number
of years to complete the project is irrelevant as it is already considered while calculating the value of
NPV. NPV is defined as the difference between the present value of cash inflows and the present
value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment
or project.
177. The popular iterative four step approach of Plan-Do-Check-Act was advocated by:
Joseph Juran
W. Edwards Deming
Philips Crosby
Genichi Taguchi
Explanations:PDCA (plan-do-check-act) is an iterative four-step problem solving process typically
used in business process improvement. It is also known as the Deming cycle, Shewhart cycle,
Deming wheel, or plan-do-study-act. It was proposed by W. Edwards Deming in the 1950's and
suggests that business processes should be analyzed and measured to identify sources of variation
that cause products to deviate from customer requirements. He recommended that business
processes be placed in a continuous feedback loop so that managers can identify and change parts
of the process that need improvements. Plan: Design or revise business process components to
improve results. Do: Implement the plan and measure its performance. Check: Assess the
measurements and report the results to decision makers. Act: Decide on changes needed to
improve the process.
178. Which of the statements about the Arrow Diagramming Method (ADM) or Activity-
on-Arrow (AOA) is NOT true?
The nodes are used to represent activity and arrows show activity dependency
It uses only Finish-to-Start relationship between activities
It may use dummy activities
It's a popular method of drawing a network diagram

Explanations:In the arrow diagramming method (ADM), the arrows are used to represent activities.
The nodes represent activity dependency.
179. A project team working on a water purification plant is determining the right
combination of flow rate, dosage of chlorine, and residence time in the oxidation
chamber to achieve the best results. What is the technique being applied?
Benchmarking
Statistical Sampling
Design of Experiments
Qualitative risk analysis

Explanations:Design of experiments is the technique of finding the optimum combination of factors
that help achieve a certain target objective.
180. The technique for performing root cause analysis is called:
Ishikawa diagram
Kaizen
Deming cycle
Total Quality Management

Explanations:Answer (a) Ishikawa diagrams or fish-bone diagrams are used to perform root cause
analysis.
181. As a buyer, the best possible outcome of a negotiation process is:
For the buyer to get the best possible price
For both parties to get the best possible deal
To get a watertight guarantee on timely delivery
To get a guarantee for best quality

Explanations:The outcome of negotiations is to work out a fair deal.
182. Which of the following is NOT true of decision trees?
Clearly lay out the problem so that all options can be challenged
Provide a framework to quantify the values of outcomes and the probabilities of

achieving them
Allow users to analyze the possible consequences of a decision fully
Enable the finance deprtment to obtain financial approval from the CFO
Explanations:The financial approval required by the finance department may be dependent on
multiple parameters, not only the result evaluated from the decision trees.
183. Pareto Analysis is a simple technique for prioritizing problem-solving work so that
the first piece of work you do resolves the greatest number of problems. It is based on:
Tom Pareto Principle
80/20 Rule
Root Cause Analysis
Why's Principle
Explanations:Although Option A appears correct, Tom Pareto is an ambiguous name. If it had only
been the Pareto Principle, then that would've been the correct answer.
184. Once the risks of the project have been identified, the next step is to manage the
risks. Which of the following is NOT a suitable way of managing the risks?
Using existing assets
Contingency planning
Investing in new resources
Brainstorming
Explanations:Brainstorming is a technique for risk identification. All of the other options are ways of
managing the risks. Existing assets may involve improvements to existing methods and systems,
changes in responsibility, etc. Contingency planning may help you minimize the effect, if it happens.
Investing in new resources may help in reducing or insuring you against risk.
185. Which of the following is NOT part of McKinsey's 7S approach?
Shared Values
Strategy
Share
Styles
Explanations:McKinsey's 7S are Strategy, Structure, Systems, Shared Values, Skills, Styles, and
Staff.
186. A method used for making decisions includes the following steps: (a) List your
options as rows on a table and the factors you need to consider as columns. (b) Score
each option/factor combination and weigh this score by the relative importance of the
factor. (c) Add these scores to give an overall score for each option.Which tool does
NOT use this method?
Decision Matrix Analysis
Pugh Matrix Analysis
Multi-Attribute Utility Theory (MAUT)
Paired Comparison Analysis

Explanations:This tool is referred to as Grid Analysis, Decision Matrix Analysis, Pugh Matrix
Analysis, or Multi-Attribute Utility Theory. Paired Comparison Analysis is an estimation tool.
187. An influence map is a visual model showing the people who influence and make
decisions about your project. The map helps you understand how stakeholders relate to
one another so that you can quickly see the way in which influence flows. While
constructing the influence map, which of the following should NOT be considered?
Importance or weight of a stakeholder's overall influence
Relationships between stakeholders
Amount of influence stakeholders have over others
Types of stakeholders
Explanations:For influence maps, you need to consider the importance of stakeholders, relationships
among stakeholders, and the amount of influence stakeholders have over others.
188. Which of the following is the power that is based on the ability to reward?
Coercive Power
Reward Power
Legitimate Power
Prize Power
Explanations:The power that a Project Manager may possess to reward is referred to as reward
power.
189. Which of the following is NOT the personal style defined by Merrill and Reid in their
employee motivation theory?
Driver
Amiable
Expressive
Affiliation
Explanations:In their employee motivation theory, Merill and Reid define the following personal
styles: Driver, Amiable, Expressive, and Analytical.
190. Which statement is correct about human resource management plan?
HR plan specified how resources will be utilized
HR plan specifies how resource will be assigned
HR plan specifies how communication flows
HR plan specifies how Stakeholder management happens

Explanations:According to the new examination content outline, "assigned" replaces "utilized."
Option (c) and (d) are part of the communication and stakeholder management plans respectively.
191. According to F.C. Moore, “Delegation means assigning work to others and
giving them authority to do so.” Which of the following suggests the right order
for Delegation?
Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of
Assignment, Creation of Responsibility
Transfer of Authority, Assignment of Duties to Subordinates, Acceptance of

Assignment, Creation of Responsibility
Assignment of Duties to Subordinates, Acceptance of Assignment, Creation of
Responsibility, Transfer of Authority
Acceptance of Assignment, Creation of Responsibility, Assignment of Duties to

Subordinates, Transfer of Authority
Explanations:Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of
Assignment, Creation of Responsibility.
192. Which of the following is NOT an obstacle to effective delegation of authority?
Unwillingness of the manager to delegate authority
Fear of competition
Lack of confidence in subordinates
Unwillingness of the subordinate to delegate authority

Explanations:Unwillingness of the subordinate to delegate authority is not an obstacle to effective
delegation of authority.
193. What does the DMAIC process in Six Sigma stand for?
Define the Problem, Measure, Analyze, Improve, and Control
Define the Problem, Measure, Analyze, Indicate, and Control
Define the Problem, Monitor, Analyze, Improve, and Control
Discuss the Problem, Measure, Analyze, Improve, and Control

Explanations:DMAIC stands for Define the Problem, Measure, Analyze, Improve, and Control.
194. During executing, change requests are raised in the project. The project manager
is implementing these changes by following the change management plan. Which
parameter/s should be implemented? Choose the best answer.
Corrective actions
Preventive actions
Approved changes
Approved changes and corrective actions

Explanations:According to new examination content outline, implement approved changes and
corrective actions. Earlier, you only had to implement corrective actions.
195. Which of the following activities is part of initiating?
Conduct procurement
Acquire project team
Inform stakeholders of the approved project charter in order to ensure common

understanding of the key deliverables, milestones, and their roles and responsibilities.
Create WBS
Explanations:Options (a) and (b) are part of executing. Option (d) is part of planning. Informing
stakeholders of the approved project charter in order to ensure common understanding of the key
deliverables, milestones, and their roles and responsibilities is the new task during initiating phase
that has been defined in the examination content outline.
196. Out of the following, who is not a QUALITY guru, i.e., one who has stated a theory
on quality?
Joseph M. Juran
Merby U. Crosmy
Edwards Deming
Kaoru Ishikawa
Explanations:The correct name is Merby U. Crosmy.
197. Procurement management plan is developed based on:
Only Budget
Scope and Schedule
Scope, budget, and schedule
Only scope
Explanations:According to the new examination content outline, budget is also included. Earlier it
was based on scope and schedule.
198. Baselines are an important input to a number of project processes. Outputs of
many processes raise change requests to these baselines. Which of the following is not
a valid project baseline?
Scope baseline
Risk baseline
Cost baseline
Schedule baseline
Explanations:Risk baseline is not a valid project baseline. It is an accepted and approved project
plan.
199. Why is verification and validation of the deliverables required?
To satisfy the customer requirements
To satisfy the sponsor requirements
To satisfy the senior management requirements
To meet the business needs and project requirements

Explanations:According to the new examination content outline, verification and validation of the
deliverables is required not to satisfy customer requirements but to meet business needs and project
requirements.
200. Control risk process needs to be carried out by considering:
Impact of risk
Impact of risk and opportunities in the project
Only opportunities
Customer need
Explanations:According to the new examination content outline, even the opportunities should be
considered.
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Free PMP® Exam Prep Practice Test100250 Tests

A product can spawn a single project in its life

It focuses on managing the properties of a product from a company's business point of

Start with the team ramp-up and planning

Ask some other Project Manager to take over the project

Start the critical activities

It is a group of people working on project management activities for a project

PMO provides administrative support to Project Managers in an organization

It is a council that includes all the Project Managers in an organization

Project Management Plan

Organizational Process Assets

Determining and agreeing on the responsibilities of the internal and external

The project team members are committed

Initial scope and financial resources are committed

Internal and external stakeholders are identified

The Project Manager is developing the project charter

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

Project Statement of Work

Product Statement of Work

Enterprise environmental factors

It formally authorizes the project

It details the business justification of the project

It involves addressing the various needs, concerns, and expectations of the

Coaching, mentoring, training, and oversight

Managing shared resources across all projects administered by PMO

Identifying and developing the organization's methodology, administrative practices, and

Uncertainty is the least at the start of the project

Stakeholder influences increase over the life of the project

Stakeholder identification is a continuous process

Work authorization system

Government and industry standards that affect your project

Knowledge of which departments in your company typically work on projects

Project Officer who works for XYZ

Stakeholder risk tolerances

Historical lessons learned knowledge base

Balanced Matrix Organization

Determine quality standards, processes, and metrics

Determine high-level project assumptions and constraints

Conduct project progress meeting

The Project Sponsor

Project Scope Statement

Project Management Plan

Work performance Information

Charter closure meeting

Project launch meeting

Project kick-off meeting

The project team didn't have required technical expertise

The project sponsor failed to support the project

The project contract was not signed off by the customer

Requirements Management Plan

Stakeholder Management Strategy

Create Work Breakdown Structure (WBS)

Develop Responsibility Assignment Matrix to describe roles and responsibilities of every

Reduce the number of resources from the project

Reduce the number of noncritical activities in the project

Revisit the risks and do a risk analysis of the project

Stakeholder management plan

Human resources management plan

Not enough information

A project will have only one critical path

A critical path takes into consideration logical as well as resource dependencies

Lifecycle costing should be done by the Project Sponsor as it impacts long-term