PMP Certification

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? A. Planning B. Initiating C. Controlling D. Executing

Correct Option: D EXPLANATION The process being worked on is Acquire project team, which is part of the executing process group.

Post the mid review of your project, EV is 42% against PV of 50%. The project manager intends to make up for the 5%. The project sponsor has set aside Rs.100,000 as management reserve. Instead of using it to hire temporary labor or pay overtime, the project manager is using it as an incentive for the team to catch up in 60 days. If the team achieves the deadlines, the money will be used to take the team members and their guests to Miami for an all-expenses paid weekend. What type of power is the project manager referencing? A. Referent B. Reward C. Coercive D. Expert

Correct Option: B EXPLANATION The project manager is rewarding the team by taking them on an all expenses trip to Miami for a weekend and exhibiting his reward power.

27During the executing stage of a project to develop a cashiering application for a retail customer, a senior stakeholder requested that you slightly modify the project scope to incorporate an additional feature. What will be your first course of action? A. Submit the change request to the change control board for its approval or rejection B. Document the change request as per the project scope management plan C. Perform an impact analysis on all project objectives such as scope, time, cost, quality, risk, and others D. Deny the request since it is too late in the project life cycle to incorporate any new change

Correct Option: B EXPLANATION The project manager should document the change request as per the project scope management plan and then submit the change request to the change control board once the impact analysis is completed. The change control board will either approve or deny the request.

Steve is a system engineer who is extremely dedicated and hardworking. His deliverables are always on time, accurate, and of desired quality. He also has a reputation of being a 'nice guy' and being liked by everyone in the organization. Considering all these factors, senior management has decided to assign Steve as a project manager in a new critical engineering project. This is an example of: A. Rewarding good behavior B. The halo effect C. Victor Vroom's expectancy theory D. Perquisites

Correct Option: B EXPLANATION The tendency to rate high or low on all factors due to the impression of a high or low rating on a specific factor is known as the Halo effect. This kind of action has negative impacts on the project and the performing organization.

In which of the following cost management processes is vendor bid analysis used as a tool and technique? A. Plan cost management B. Estimate costs C. Determine budget D. Control costs

Correct Option: B EXPLANATION Vendor bids, specially the winning ones from qualified vendors, are analyzed during the Estimate Costs process.

Which of the following is NOT part of closing processes? A. Formally closing all the supplier contracts B. Verifying the deliverables C. Collecting sign-offs from the customer and other stakeholders D. Lessons learned documentation

Correct Option: B EXPLANATION Verifying that the product meets the requirements is quality control and is a part of Controlling process.

As a Project Manager, you received a change that does not impact the project schedule. What would you do? A. Ask your manager for permission B. Evaluate the impact on other components of the triple constraint C. Get in touch with the Change control board D. Go ahead and accept the change

Correct Option: B EXPLANATION Whenever there is a change, impact on all of the triple constraint factors should be evaluated.

You have replaced an earlier project manager. The project is already in its third month of execution. You need to determine if the project is ahead or behind schedule. What would be the best source of this information? A. Work performance data B. Work performance measurement C. Project management software D. Pareto chart

Correct Option: B EXPLANATION Work performance measurement provides details of planned vs. actual values that help in determining the health of the project. Work performance data is the actual information that helps in measuring performance. Project management software helps track data, while Pareto chart is used in Quality Control.

A Project Manager is documenting the normal process for escalating the issues on a project. Which document usually contains this information? A. Risk management plan B. Stakeholder management plan C. Project Communication management plan D. Quality management plan

Correct Option: C EXPLANATION A project communication management plan would capture the details of the escalation paths on a project.

Which of the following is NOT a justifiable reason to terminate a project? A. The project doesn't fulfill the organization's objective any longer B. Project funding is in serious trouble due to financial meltdown in the company C. There is serious personal conflict between two senior project members, and this is affecting the work D. The project is no longer commercially viable

Correct Option: C EXPLANATION A project is created with a definite set of objectives, and it should be terminated only in extreme situations. Options (a), (b) and (d) are all plausible reasons of project termination. But option (c) is a conflict situation that is inevitable in a project environment and not a justifiable reason for project termination. A Project Manager is expected to resolve conflicts in a project using techniques like establishing team ground rules and using solid management practices like communication planning.

Quality management plan and quality standards are defined based on: A. Project scope B. Project scope and requirements C. Project scope, requirements, and risk D. Project scope and risk

Correct Option: C EXPLANATION According to the new examination content outline, risk parameters are also added to quality management plan and quality standards.

Which of the following is NOT an input to "develop project charter"? A. Business Case B. Contract C. Expert Judgment D. Project Statement of Work

Correct Option: C EXPLANATION Expert judgment is a technique, and not an input.

The higher management in your organization is very averse to risk. While planning the procurement strategy, you would like to make sure that you select the contract type that will have the least risk for the organization. Which of the following contract options will be best in this scenario? A. Cost reimbursable B. Fixed price with economic price adjustment C. Fixed price D. Time and material

Correct Option: C EXPLANATION Fixed price contract will be the best option in this case as this type of contract will have less risk for the buyer and most risk for the seller.

While overseeing a construction project, you are informed by the site supervisor that the painting team has showed up even though the dry wall team is not even half done. The painting team lead is not sure when his team is supposed to start the work. Which of the following is contributing MOST to this issue? A. Team cohesiveness is poor B. Communication management plan is not developed C. A proper work authorization system is not established in the project D. The site supervisor is lacking experience.

Correct Option: C EXPLANATION Work authorization system is a formal, documented procedure to describe how to authorize and initiate work in the correct sequence at the appropriate time. The other options listed here could be contributory factors, but most likely, a work authorization procedure is either not properly established or not properly followed.

As a project manager, you are conducting a structured review of the seller's progress to deliver the project within contract. Your objective is to determine progress with respect to the procurement statement of work. In which stage of the project will you be doing this review? A. Before contract closure B. Before awarding the contract C. As part of the project status review D. In case of non-conformance by seller

Correct Option: C EXPLANATION You are doing procurement performance review as part of the process administer procurements. It is a structured review of the seller's progress to deliver project scope and quality, within cost and on schedule. For more information, refer to Project Procurement Management, page 466, PMBOK® Guide Sixth Edition.

Which of these statements about team awareness is FALSE? A. Team awareness provides a context for group members' own activities B. Team awareness increases when leadership is shared C. Team awareness can only be improved by the group members themselves D. Team awareness reduces the effort needed to coordinate tasks and resources

Correct Option: C EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

A Project Manager has received activity duration estimates from his team. Which of the following does he need in order to complete the schedule development? A. Change Request B. List of Preventive Actions C. Reserves D. Change Control Procedure

Correct Option: C EXPLANATION Once the team members give their estimate, a good Project Manager should add some Reserves. This is also called padding the estimate.

You were competing with another colleague to become the Project Manager of a prestigious new project in the organization. Unfortunately, your colleague got the assignment. At a later date, your colleague comes to you for a document. What would you do? A. Don't give him the document. Create a problem for him B. Just avoid him and let him keep coming to you C. Give him the document and also cooperate with him as much as possible D. Tell him that the document is not useful and that you have lost it

Correct Option: C EXPLANATION Once your colleague has been selected as the Project Manager, you should cooperate with him as much as possible.

You are in the process of determining how long it would take to complete your project. What would be the best tool to use in this case? A. WBS B. Activity List C. Root Cause Analysis D. Network Diagram

Correct Option: D EXPLANATION A Network Diagram is the best choice to identify the Activity Duration.

As a Project Manager, what would you give the highest priority: quality, cost, or schedule? A. Completing the project according to schedule is most important B. Quality is of utmost important. Cost and Schedule come later C. It would depend upon the project D. Cost is most important. Everything else can be compromised.

Correct Option: C EXPLANATION Quality, cost, and schedule are all part of triple constraints, so they are equally important

When does Scope Verification occur? A. At the end of the project B. At the beginning of the project C. At the end of each phase of the project D. During Quality Control

Correct Option: C EXPLANATION Scope Verification occurs at the end of each phase of the project. Option A relates to Product verification not Scope verification.

Whose job is it to determine the priorities among projects in a company? A. Project Manager B. Sponsor C. Senior Management D. Project Team

Correct Option: C EXPLANATION Senior management determines the project priorities, and it is their responsibility to determine the priorities among projects in an organization.

Which of the following is NOT an input to the "Plan Stakeholder Management" Process? A. Project Management Plan B. Stakeholder Register C. Stakeholder Management Plan D. Enterprise Environmental Factors

Correct Option: C EXPLANATION Stakeholder management plan is an OUTPUT, not an input to the process.

What is the best time to engage in team building activities? A. In the beginning of the project B. At the end of the project C. Throughout the project D. In the beginning for some projects and in the end for others

Correct Option: C EXPLANATION Team building is an ongoing activity and must be planned throughout the project.

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? A. Develop Project Management Plan B. Monitor and Control Project work C. Direct and Manage project work D. Execution process group

Correct Option: C EXPLANATION The Project Manager is currently in the "direct and manage project work" process that is a part of the execution process group.

Take the values from the Image. If Task 'F' takes 3 days to complete rather than the planned 1 day, how many days will the project take to complete? simTest A. 28 days B. 24 days C. 25 days D. 26 days

Correct Option: C EXPLANATION The planned project finish date will not be affected as Task F has a float of 8 days, thus the project duration remains as 25 days.

A project manager is in the process of developing a detailed description of a project by identifying project deliverables and work required to create those deliverables. Which of the following will NOT be an input to this process? A. Enterprise environmental factors B. Project charter C. Requirements documentation D. Organizational process assets

Correct Option: C EXPLANATION The project manager is in the process of defining scope and all the above are inputs to the process except requirements documentation. For more information, refer to Project Scope Management, page 150, PMBOK® Guide Sixth Edition.

To calculate the project cost, the project manager utilizes the cost aggregation method by which activity costs are rolled up to the work package costs and the work packages costs are then rolled up to the 'control account ' or 'cost account ' costs and finally the project cost. At this moment, the project manager is in the final stages of determining the cost baseline for the project and funding requirements. Which process is the project manager working on? A. Plan cost management B. Estimate costs C. Determine budget D. Control costs

Correct Option: C EXPLANATION The project manager is in the process of determining the project budget. The cost baseline and the project funding requirements are outputs of the Determine Budget process.

James has been assigned as a Project Manager by the sponsor and is participating in the creation of the project charter. As a mentor, what would you suggest James NOT to define as part of the document? These should be based on the current environment, historical data, and/or expert judgment. A. Key deliverables B. High level assumptions and constraints C. High level risks D. High level procurements

Correct Option: D EXPLANATION As a project manager, James is expected to define the key deliverables of the project based on the business and compliance requirements. He must also define the high level risks, constraints, and assumptions based on the current environment, historical data, and/or expert judgment.

Which of the following is an example of quality assurance? A. Fishbone Diagram B. Pareto Chart C. Inspection D. Process Analysis

Correct Option: D EXPLANATION Audit and process analysis are key quality assurance tools.

Which of the following processes are performed in the closing process group and in what order? A. Administrative Closure and then Contract Closeout B. Contract Closeout and then Scope Verification C. Scope Verification and then Administrative Closure D. Contract Closeout and then Administrative Closure

Correct Option: D EXPLANATION Contract closeout and administrative closure are the processes in the closing process group and are performed in that order.

Which of the following coordinates the project resources to carry out the project per the project plan? A. Resource planning B. WBS C. Monitoring work progress D. Executing process group

Correct Option: D EXPLANATION Executing process group is the correct answer

In a multi-phased project, when should the initiating processes be invoked? A. In the middle of each phase B. At the end of each phase C. Only during the first phase D. At the start of each phase

Correct Option: D EXPLANATION In a multi-phased project, invoking the initiating processes at the start of each phase helps to keep the project focused on the business need for which the project was created.

Construction project estimates tend to be more accurate than IT project estimates due to the historical data that is available to builders and designers. Which of the following is the way the PMBOK® defines estimate at completion (EAC)? A. Same as AC B. Same as EVA C. It is a forecast of most likely total project costs based on previous projects' performance D. It is a forecast of most likely total project costs based on current project performance

Correct Option: D EXPLANATION It is a forecast of most likely total project costs based on current project performance. Estimate at Completion (EAC) is the estimate that is based on the project's performance to date.

You've been hired by a large consulting firm to evaluate a software project. You have access to the CPI and EV for the project, but not the AC. The CPI is .92 and the EV is $172,500. How much money has actually been spent on the project? A. There is not enough information to calculate the actual cost B. 158700 C. 172500 D. 187500

Correct Option: D EXPLANATION AC = EV/CPI = $172,500/.92 = $187,500

Which of the following is part of the Perform Quality Assurance process? A. Benchmarking B. Cost of Quality C. Design of experiments D. Quality audits

Correct Option: D EXPLANATION Quality audits are part of the Perform Quality Assurance process.

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? A. Pareto charts B. Ishikawa diagrams C. Histograms D. Scatter diagrams

Correct Option: D EXPLANATION Scatter diagrams are used to plot data between two variables to figure out if there is a pattern or correlation between them.

Your most recent project status report contains the following information: EV = 3,000, AC = 3,500, and PV = 4,000. The schedule variance is: A. 1000 B. 500 C. -500 D. -1000

Correct Option: D EXPLANATION Schedule Variance, SV = EV - PV = 3000-4000 = -1000

You are managing an infrastructure project which is nearing completion when a major stakeholder points out a flaw in the design which could make the entire structure weak. He suggests that you construct two support pillars. You are worried that this change will significantly impact the schedule and cost of the project. What is your BEST response to the stakeholder? A. Refuse him as the projects is already nearing completion and it is not possible to make any changes at this stage B. Do a root cause analysis with the team to determine how this design flaw could have been missed and if there could be more potential problems with the design C. Proceed with the change and communicate the impact on the project schedule and cost to the customer D. Use a schedule compression technique as part of Integrated Change Control to investigate and minimize the adverse impact of the change

Correct Option: D EXPLANATION Schedule compression technique is useful not only during project planning to see if the desired completion date can be met but also during integrated change control to look at the schedule impacts of changes to time, cost, scope, or risk. Option (b) though seems to be in good faith, doesn't address the immediate problem. Option(c) should be done once all the alternatives are explored to minimize the adverse effect of the change on the project schedule and other constraints.

Choose the true statement regarding Management Reserves and Contingency Reserves A. Management reserves are part of Cost Baseline, but Contingency reserves are not B. Contingency Reserves are for unknown unknowns C. Management Reserves are for known unknowns D. None of the above

Correct Option: D EXPLANATION The correct answer is D - none of the above. Contingency Reserves are part of cost baseline, while Management reserves are not. So, Option A is clearly incorrect. Contingency Reserves are meant to take care of risk-mitigating cost for identified risks. They are the costs of known unknowns, while Management reserve is for unknown unknowns-things like unforeseen work that is part of the scope. Options B and C state exactly the opposite, so they are not the correct answers, which leaves us with D - None of the above.

You are working for a cruise company as a project manager. Your company offers luxury tours to couples at a reasonable price. Currently, the company is considering adding more tours to a few other popular destinations during the holiday season in order to enhance traffic and profitability. Which risk response strategy are you using? A. Share B. Exploit C. Accept D. Enhance

Correct Option: D EXPLANATION The cruise company is using the enhance strategy to increase the traffic and profitability. By influencing the underlying risk triggers, this strategy increases the size, probability, likelihood, and positive impact of an opportunity.

The difference between the maximum funding and the end of the cost baseline is known as: A. Funding Limit Reconciliation B. Reserve Analysis C. Project Budget D. Management Reserve

Correct Option: D EXPLANATION The difference between the maximum funding and the end of the cost baseline is called Management reserve.

Which of the following is NOT used in selecting between multiple competing projects? A. Pay Back period B. Internal Rate of Return (IRR) C. Net Present Value (NPV) D. Earned Value Technique

Correct Option: D EXPLANATION The earned value technique is not a project selection method but a method to track the project progress. All of the others are project selection methods.

In one of the project status reports, two senior team members get into an argument regarding the introduction of a new tool that automates the process of filling out time sheets. What would provide you maximum insight into the conversation from the following? A. The content and timing of the conversation B. The content and timing of the conversation and the communication technology used C. Body Language and the words in the conversation D. Body language and voice modulation including pitch and tone

Correct Option: D EXPLANATION The option includes non-verbal and paralingual forms which are critical for effective communication.

The customer has asked you to get the project completed one week ahead of schedule. What is the best thing for you to do? A. Consult the PMO B. Fast Track C. Crash D. Advise the customer about the impact of the change

Correct Option: D EXPLANATION The other options are used to reduce the project schedule, but the first thing to do is understand the impact of the change.

Which of the following is NOT an output of the "monitor and control project" process? A. Project document updates B. Change request status updates C. Project management plan updates D. Project management plan

Correct Option: D EXPLANATION Of all of the options listed, project management plan is not an output from this process. Project management plan is an output of the Planning stage.

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? A. The content and timing of the conversation B. The content and timing of the conversation and the communication technology used C. Body Language and the words in the conversation D. Body language and voice modulation including pitch and tone

Correct Option: D EXPLANATION Option D includes non-verbal and paralingual forms which are critical for effective communication and form more than 55% of all communication.

Which of the following is NOT true about the project charter? A. It provides the Project Manager the authority to assign organization resources B. It formally authorizes the project C. It details the business justification of the project D. It states what the project is, what the project will deliver, and how all the processes will be managed

Correct Option: D EXPLANATION 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.

The customers are performing User Acceptance Tests on the product that was delivered by the project team. Which process is likely being performed? A. Control Quality B. Control Schedule C. Perform Integrated Change Control D. Validate Scope

Correct Option: D EXPLANATION Scope validation is the process of accepting or rejecting the project's deliverables.

Your team is trying to determine which risks have the most potential impact on the project, in other words, whether the occurrence of a particular threat would merely be an inconvenience or whether it would ruin the project. The team is using a diagram to display this sensitivity analysis by examining all the uncertain elements at their baseline values. Which of the following diagrams are they using? A. Influence diagram B. Cause and effect diagram C. Scatter diagram D. Tornado diagram

Correct Option: D EXPLANATION Sensitivity analysis helps to determine which risks have the most potential impact on a project, or in other words, whether the occurrence of a particular threat would merely be an inconvenience or whether it would ruin the project. A tornado diagram can be used to display the sensitivity analysis data by examining all the uncertain elements at their baseline values. It gives a quick overview of how much the project will be impacted by various elements, and the element with the greatest impact on the project appears at the top. This diagram can be used to determine sensitivity in cost, time, and quality objectives and will be helpful to determine a detailed response plan for the elements with greater impacts

Which of the following is NOT an advantage of a fixed price contract? A. The buyer has less work to manage B. The seller has a strong incentive to control costs C. The buyer knows the total price at project start D. Final cost may be more than a cost reimbursable contract because contractors must add to the price to cover their risk

Correct Option: D EXPLANATION Since the risk of increase in cost lies with the seller on a fixed priced project, the final cost of the contract could be more than a cost reimbursable contract.

Sub network or fragment network templates are most useful when the project has MANY: A. Mandatory Dependencies B. Discretionary Dependencies C. Undefined Variables D. Identical or nearly identical deliverables

Correct Option: D EXPLANATION Sub network or fragment network templates are part of project schedule network template. It can be used to expedite the preparation of networks of project activities, especially when a project includes several identical deliverables.

In a normal distribution, what is the probability of finding the actual value between 1 standard deviation distance from the mean? A. 0.95 B. 0.9973 C. 0.5 D. 0.68

Correct Option: D EXPLANATION The answer is based on the property of the normal distribution.

ISO Stands for __________. A. International Organization for Standardization B. International Standardized Organization C. In Standardized Organization D. None

Correct Option: A EXPLANATION ISO Stands for International Organization for Standardization.

Procurement management plan is developed based on: A. Only Budget B. Scope and Schedule C. Scope, budget, and schedule D. Only scope

Correct Option: C EXPLANATION According to the new examination content outline, budget is also included. Earlier it was based on scope and schedule.

You are the project manager of a software project. You have just analyzed activity sequences, durations, resource requirements, and schedule constraints and created project schedule. To which process does the above tasks belong? A. Define Activities B. Sequence Activities C. Develop Schedule D. Control Schedule

Correct Option: C EXPLANATION Analyzing activity sequences, durations, resource requirements, and schedule constraints and creating project schedule belong to Develop Schedule process.

A project manager is working on a critical deadline. He wants to ensure that there is no scope creep during the project work. Which of the following would be most helpful? A. Work Breakdown Structure dictionary B. Observations C. Decomposition D. Inspection

Correct Option: A EXPLANATION A WBS dictionary provides detailed descriptions of the work to be done for each work package including acceptance criteria and quality requirements. It helps to ensure the resulting work better matches with what is needed. Therefore, the project manager can effectively use this tool to prevent scope creep.

A Project Manager asks you about the software to be used to create the WBS and is concerned about the graphical representation of the WBS. As an experienced Project Manager, you suggest that the key result of creating a WBS is not the graphical representation but: A. Team Buy-in B. Bar Chart C. List of activities D. The WBS numbering system

Correct Option: A EXPLANATION A WBS should be created with the project team, and all of the team members should have confidence that only the work required to complete the project is captured in the WBS. A WBS is not just a graphical representation. It should be used as a tool for team communication so that everybody knows what they are supposed to do and also what other team members are supposed to work on.

A data point in a control chart that requires investigation is called: A. A special cause B. A quality fault C. A rule of seven D. A rule of five

Correct Option: A EXPLANATION A data point in a control chart that requires investigation is called a special cause.

Which of the following best describes any measurable, tangible, or verifiable item that must be produced to complete the project? A. Deliverable B. Data item list C. Work package D. Code of accounts

Correct Option: A EXPLANATION A deliverable is a measurable, tangible, and verifiable item that must be produced to complete the project.

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: A. Product lifecycle B. Project lifecycle C. Feedback loop D. Product development

Correct Option: A EXPLANATION 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 - Sixth Edition page 19.

What should the project manager use to examine project results over a period of time to analyze the improvement in performance? A. Trend Report B. Forecasting Report C. Status Report D. Variance report

Correct Option: A EXPLANATION A trend report is the best option to plot the performance measurements over a period of time and to see if there is any improvement.

As a project manager, you have successfully delivered all project deliverables within stipulated timelines. Your senior management wants you to calculate the Cost of Quality. As a project Manager, what costs would you NOT consider while making this calculation? A. Cost of Hiring B. Prevention costs C. Appraisal costs D. External and Internal Failure costs

Correct Option: A EXPLANATION All of the above are correct, except option A since hiring costs have nothing to do with Cost of Quality. Prevention and Appraisal Costs are the expenditures during the project to avoid failures, while Internal and External Failure Costs are those incurred during and after the project because of failures.

Which type of leadership style is most appropriate when managing large numbers of low-skilled workers? A. Autocratic B. Paternalistic C. Democratic D. Consultative

Correct Option: A EXPLANATION Autocratic is the right type of leadership style for managing large numbers of low skilled workers.

Which of the following statements is true regarding Control Account? A. Used as a Tool and Technique in Activity Definition process B. Used to estimate cost at a level lower than the work package C. Used to control costs of the project D. Used in Integrated Change Control

Correct Option: A EXPLANATION Control Accounts are used to provide a cost estimate at a level higher than the work package. They are used as a technique in activity definition process. They are not used to control costs of the project and neither in Integrated change control.

What are Control charts used for? A. To determine if the process is "in control" B. To determine how various elements of a system are interrelated C. To show trends in a process over time D. To show the pattern of a relationship between two variables

Correct Option: A EXPLANATION Control charts are graphic displays of the results over a time of a process. They are used to determine if the process is "in control."

You have been assigned as a Project Manager of a newly initiated project and have 5 team members. There is a project sponsor (Mr. Smith) and a technical architect who will be involved only during the planning stage. This project is for an external customer. How many communication channels are possible in your project? A. 36 B. 72 C. 28 D. Cannot be determined since project is in the initiating stage

Correct Option: A EXPLANATION This is 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 five team members: a sponsor, a technical architect, an external customer, and the Project Manager himself. Thus, there are 9 people and 36 possible communication channels.

In order to achieve the project deliverables, the project manager has to manage task execution based on project management plan. In doing so, which of the following elements should be considered? A. Budget and schedule B. Leading and developing the project team C. Quality and cost D. Acquiring the team

Correct Option: B EXPLANATION According to the new examination content outline, it is by leading and developing the project team. Earlier, it was based on budget and schedule.

An instrument that has a screw of 15 mm diameter gives the following readings: 16.001 mm, 16.00015 mm, 16.0003 mm, and 15.900 mm. Assuming that the instrument is capable of measuring up to the third place decimal, what BEST can be concluded about the performance of the instrument? A. The instrument is accurate and precise B. The instrument is not accurate but is precise C. The instrument is accurate but is not precise D. The instrument is neither accurate nor precise

Correct Option: B EXPLANATION The instrument is not accurate but is precise. Precision means that the values of repeated measurements are clustered and have little scatter. As the name suggests, accuracy refers to how close the measured values are to the actual value. The measurements, though precise, are not accurate.

During the closing, final acceptance of the deliverables is one of the important activities. Who is supposed to give final acceptance? Choose the best answer. A. Customer B. Sponsor C. Relevant stakeholders D. Operation team

Correct Option: C EXPLANATION According to the new examination content outline, relevant stakeholders give final acceptance. Earlier, the sponsor and or the customer gave the acceptance.

When is the cost highest in the project life cycle? A. At the initiating phase B. During planning C. Midway during the project D. During closure

Correct Option: C EXPLANATION Project cost peaks in the middle of the project as maximum resources are utilized during this phase. Project cost is low at the beginning, peaks midway, and drops rapidly as the project draws to an end. Initiating, planning, and closing are not part of the project life cycle and are process groups.

You are the Project Manager of a software telecom development project. You and your team are working together to create a billing software. Which quadrant of the Power/Influence Grid will the person(s) be responsible for sign-off of the deliverables? A. Keep Informed B. Monitor C. Manage Closely D. Keep Satisfied

Correct Option: C EXPLANATION Since the person responsible for sign-off will have a lot of power and his interest in the project will be high, he will fall in the 'Manage Closely' quadrant, that is, High Power High Interest grid. Refer PMBOK® Guide - Sixth Edition, page 512 for more information on the Power/Influence Grid.

A Project Manager has just been assigned to a project. He is involved in creating a document that would formally authorize the project and capture initial requirements of the stakeholders. What is the output of this process? A. Project Management Plan B. Project Statement of work C. Project Charter D. Business case

Correct Option: C EXPLANATION The Project Charter formally authorizes the project and provides the Project Manager with the authority to apply resources to project activities. Although the project sponsor may create the project charter, it is recommended that the Project Manager participate in the development of the project charter. Options (b) and (d) are inputs to the process of developing the project charter. Please refer to sPMBOK® Guide - Sixth Edition: Project Integration Management page 75.

A work authorization system is a: A.Part of change control system in a project B. A privately created software tool to submit and track changes and monitor and control project activities from project initiation to closure C. Tool used to notify team or contractors that they may begin work on a project or work package D. Tool that helps the team create a Work Breakdown Structure

Correct Option: C EXPLANATION Work authorization system is a subsystem of the overall project management system. It is a collection of formal documented procedures that define how project work will be authorized to ensure that the work is done by the identified organization, at the right time, and in the proper sequence. It includes the steps, documents, tracking system, and defined approval levels needed to issue work authorizations. Option (b) is a description for another important tool that helps project management, i.e., Project Management Information System (PMIS).

As a Project Manager, you are in the process of identifying and documenting relationships among project activities. You are using the Precedence Diagramming Method (PDM). Which of the following relationships are you UNLIKELY to use for this purpose? A. Finish to Start (FS) B. Finish to Finish (FF) C. Start to Start (SS) D. Start to Finish (SF)

Correct Option: D EXPLANATION You are in the process of documenting Sequence Activities, which define four kinds of dependencies or logical relationships between project activities. Start to finish (SF) relationship, which denotes completion of successor activity, depends on initiation of predecessor activity. For example, activity A may have a start-to-finish relationship with activity B; this implies that B doesn't finish before A starts. This relationship is rarely used and uncommonly found in real life situations. An example could be a call center environment where the previous shift doesn't finish until the next one starts.

Which of the following is a disadvantage of a functional organization? A. Project Manager has little or no authority B. Easier management of specialists C. Team members report to a single "Boss" D. Clearly defined career path in area of specialization

Correct Option: A EXPLANATION The other options are advantages of a functional organization.

Which of the following is an input to the plan procurement management process? A. Project management plan B. Procurement Management Plan C. Procurement Statement of Work D. Source Selection Criteria

Correct Option: A EXPLANATION The project management plan is an input to the close procurement process. For more information, please refer to PMBOK® Guide - Sixth Edition Page No. 466.

During the project, you and your team discovered that a key project component was stolen. As this was not planned for, the team decided to launch the product without the stolen component. This is an example of: A. Work around B. Risk Transfer C. Risk Mitigation D. Acceptance

Correct Option: A EXPLANATION Since this was not planned for and the solution was arrived at during the project execution, it is referred to as a work around. The other options are risk response strategies that are worked on during the planning process group.

Which of the following describes management information systems? A. Software that an enterprise uses to support business and administrative operations B. Software projects built for client organizations C. Small applications written for personal use D. Software applications that are marketed to hundreds or even millions of clients.

Correct Option: A EXPLANATION Software that an enterprise uses to support business and administrative operations. You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

Per the diagram, what is the earliest date Task H can finish? simTest A. 17 B. 16 C. 20 D. 25

Correct Option: A EXPLANATION Task H has 2 predecessors, namely Task G and Task X. Task G (EF) - 11; Task X (EF) - 12. Task H will take the larger of the 2 predecessors, hence Task H (ES) - 12. Adding the duration to it, Task H (ES) + 5 = 12+5=17.

Which tools are NOT used in the Control Quality process? A. Quality Audit B. Pareto Charts C. Ishikawa Diagrams D. Inspection

Correct Option: A EXPLANATION The Audit and process analysis are quality assurance tools. All the other options listed are tools used in the Control Quality process.

Which of the following is a key characteristic of the Delphi technique? A. Expert Opinion B. Using Analogous approach to solve problems C. Using Parametric approach to solve problems D. Using Historical data to predict

Correct Option: A EXPLANATION The Delphi technique is based on the philosophy of building consensus with experts.

The ____ is the international organization that controls the standards for quality. A. ISO B. PMP C. PMI D. ISCII

Correct Option: A EXPLANATION The ISO is the international organization that controls the standards for quality.

You have been appointed as a project manager in a reputed hospital. While working on a project, you find that your employer is violating several codes issued by the local health department. What should be your first action in this situation? A. Have a discussion with your employer to find out if they are aware of the violations B. Immediately resign from the company C. Immediately inform the local health department about the violations D. Do not worry about it since it is none of your business.

Correct Option: A EXPLANATION The best option is to verify your observation by having a discussion with your employer about the violations and learn about the employer's perspective.

What do you call the capability to identify, assess, and manage the personal emotions of oneself and other people as well as the collective emotions of groups of people? A. Emotional intelligence B. Expert judgment C. Generational sensitivity and diversity D. Meeting management technique

Correct Option: A EXPLANATION The capability to identify, assess, and manage the personal emotions of oneself and other people as well as the collective emotions of groups of people is called emotional intelligence. Expert judgment is judgment provided based upon expertise in an application area, knowledge area, discipline, industry, and so on, as appropriate for the activity being performed. Understanding the team with age boundaries within the environment and culture of the team including language and skill is Generational sensitivity and diversity. Preparing an agenda and dealing with conflicts are the meeting management techniques. These techniques are newly added in the examination content outline.

A contractor is hired on a Cost Plus Fixed Fee (CPFF) contract. The estimated cost of the contract is $200,000; however at completion, the contract costs total $225,000. The agreed upon percentage fee paid to the contractor is 20%. How much will the contractor receive? A. 265000 B. 225000 C. 40000 D. 185000

Correct Option: A EXPLANATION The contractor will receive in a CPFF contract the cost, $225,000 plus the percentage fee of 20% of the estimated cost of the contract ($200,000) = $40,000. Hence the total amount the contractor will receive is $225,000+$40,000=$265,000.

As a senior member in the executive management team, you have tasked project managers within your team to provide cost estimates for a huge project. You easily foresee the cost estimate of the project to run into millions of dollars. Along with the cost estimate, you are also expecting the Basis of estimates. What would you expect to be included in the documentation for Basis of estimates? A. Basis of estimate, assumptions, known constraints, range of estimate, confidence level B. Cost at unit level and confidence level C. WBS D. None of the above

Correct Option: A EXPLANATION The correct answer is A, which states all the necessary details to be provided as the Basis of estimates.

As a manager on a project, you have identified and created the WBS and WBS Dictionary. You also plan to ensure that each deliverable gets the blessings of your stakeholders and sponsors. Which process are you planning to perform? A. Scope Verification B. Perform Quality Control C. Control Scope D. Define Scope

Correct Option: A EXPLANATION The correct answer is Scope Verification, which deals with verifying that what was delivered was what was required.

There are five stages of development that teams may go through. Which of the following is the correct order in which these stages occur? A. Forming, Storming, Norming, Performing, Adjourning B. Norming, Storming, Forming, Performing, Adjourning C. Forming, Norming, Performing, Storming, Adjourning D. Forming, Performing, Norming, Storming, Adjourning

Correct Option: A EXPLANATION The correct order in which these five stages of development occur are Forming, Storming, Norming, Performing, Adjourning. Refer to PMBOK® Guide - Sixth Edition Page 338.

Which is the best way of selecting a project, when other things are being constant? A. Project with highest IRR B. Project with lowest Payback period C. Project with lowest NPV D. Project with lowest BCR

Correct Option: A EXPLANATION The criteria for selection with regard to NPV and BCR should be that projects with higher values should be selected, hence options C and D are ruled out. Compared to payback period, IRR is a more reliable measure since it considers time value of money, so A is a better option than B.

You are a project manager evaluating a decision to buy a licensed software tool. This tool has a 50% chance of being successfully implemented in your company and would cost $50,000. However, there is a 40% chance that your company would be able to save $150,000 due to improved productivity. What is the expected monetary value of this decision? A. $35,000 B. -$35, 000 C. $21,000 D. -$21, 000

Correct Option: A EXPLANATION The expected monetary value for a project is calculated by subtracting expenses from savings. In this case, Savings = 0.4 * $150,000 = $60,000 and Expenses = 0.5* $50,000 = $25,000. So, EMV = $60,000- $25,000 = + $35,000.

A product description of a project can help in creating procurement details. Which of the following best describes the product description? A. A product description defines the contracted work based on the requirements of the customer B. A product description defines the contracted work C. A product description defines the requirements for the contract work D. All of the above

Correct Option: A EXPLANATION A product description defines the contracted work based on the requirements of the customer.

There are 36 communication channels in your project. How many members do you have in your team? A. 9 B. 10 C. 36 D. 18

Correct Option: A EXPLANATION Number of communication channels = n(n-1)/2, where n= number of members in the team, so 9(9-1)/2 = 72/2 = 36 You have 9 members in the team to have 36 communication channels.

Which of the following is an input of the close project or phase process? A. Transitioning of the final product, service, or result B. Updates to the Organizational process assets C. Accepted Deliverables D. Enterprise environmental factors

Correct Option: C EXPLANATION Accepted deliverables is an input to the Close project or phase process.

An organization has created a special project team to handle a critical project. The team members of this project are dedicated full-time to the project and are pulled from different functional departments. They also have their own set of operating procedures. This organization structure is MOSTLY: A. Projectized B. Functional C. Composite D. Matrix

Correct Option: C EXPLANATION This is an example of a composite form of organizational structure. Some organizations fall somewhere between the fully functional and pure matrix structure, and even a fully functional organization can create a special project team to handle a critical project. The team members of this project are dedicated full-time to the project and are pulled from different functional departments. They also have their own set of operating procedures and may operate outside standard reporting structure.

An activity cannot be started until the predecessor also starts. This is an example of: A. Finish-to-Start B. Finish-to-Finish C. Start-to-Start D. Start-to-Finish

Correct Option: C EXPLANATION 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.

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? A. 6 days B. 3 days C. 1 day D. 5 days

Correct Option: C EXPLANATION 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.

Which hierarchical chart shows all the tasks in a list? A. RBS B. OBS C. WBS D. Scope statement

Correct Option: C EXPLANATION Work Breakdown Structure shows all the tasks.

Which approach to the study of leadership emphasizes the role of situational factors and how these moderate the relationship between leader traits or behaviors and leadership effectiveness? A. Transformational approach B. Transactional approach C. Contingency approach D. Leader oriented approach

Correct Option: C EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

You are a program manager. Your project manager Lynda wants to leave the project before it gets completed. What will you do? A. Forbid this B. Take all the closing tasks on yourself C. Appoint another project manager, but ask Lynda to be available for any customer meetings D. Wait till she leaves

Correct Option: C EXPLANATION You should request Lynda to be available for customer meetings as she may have a better relationship with the customer.

You are managing a project to build a multi-storey complex in your city. You are waiting for the clearance to start construction of the building. Which kind of dependency is this an example of? A. External Dependency B. Mandatory Dependency C. Discretionary Dependency D. Internal Dependency

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

You are the project manager and have decided to outsource a part of the project to a vendor. You have offered a bonus to the vendor if the work is completed in two months. This is an example of: A. Project incentive B. Project goal C. Fixed price contract D. None

Correct Option: A EXPLANATION This is an example of project incentive.

What is the role of the Project Manager in Procurement? A. Ensure contract contains all the project management requirements such as status reporting , meeting attendance, and communication needs B. Ensure contract is satisfying the needs of the project C. Control changes to the contract D. All of the above

Correct Option: D EXPLANATION The project manager must ensure all of the above in Procurement. Many times the project manager works with the contract manager. An important point is that the Project Manager must be assigned before the contract is signed.

The project manager and team are in the process of defining and documenting stakeholders' needs to meet the project objectives. The team is classifying and prioritizing product requirements using the group decision making techniques. Which of the following is NOT a method of reaching a group decision? A. Unanimity B. Majority C. Plurality D. Multiple Decision

Correct Option: D EXPLANATION The question states that the project manager and team are performing the collect requirements process which defines the group decision making technique. The methods of reaching group decision are unanimity, majority, plurality, and dictatorship.

In a matrix organization, two projects have a concurrent need for a certain skill set. However, there is limited availability of resources with the required skill set. Who is responsible for resolving this conflict over resources? A. Senior Management B. Sponsor C. Project Manager D. Functional Manager

Correct Option: A EXPLANATION This is a conflict over resource assignments that needs to be addressed based on project priorities. Project priorities are decided by the senior management of the organization. Functional managers, Project Managers, and sponsors do not decide the priorities of different projects.

Britt claims that the effectiveness of a leader is dependent upon meeting ________ areas of need within the work group. A. One B. Four C. Two D. Three

Correct Option: D EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

Tannenbaum and Schmidt's continuum of possible leadership behavior identifies four main styles of leadership by the manager. What are they? A. Commands, sells, consults and resists B. Tells, helps, joins and leads C. Commands, helps, joins and leads D. Tells, sells, consults, and joins

Correct Option: D EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

Within an organization, leadership influence will be dependent upon the type of _______ that the leader can exercise over the followers. A. Friendship B. Delegation C. Knowledge D. Power

Correct Option: D EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

Given the following values, calculate the variance at completion for the project : PV=300, AC=358, EV=324, EAC=454, and BAC=420 A. Negative variance at 34 B. Positive variance at 130 C. Positive variance at 34 D. Negative variance at 130

Correct Option: A EXPLANATION Variance at Completion(VAC)=BAC-EAC

According to Herzberg's Motivator-hygiene theory, which of the following is not a hygiene factor? A. Variety of work B. Compensation C. Personal life D. Working conditions

Correct Option: A EXPLANATION Variety of work is a motivational agent, not a hygiene factor.

Tom is a project manager on an industrial design project. He is always watching when his team members come into the office, when they take their breaks, and when they leave. He periodically walks around the office to be sure that everyone is doing work when they are at their desks and he insists that he makes every project decision, even minor ones. What kind of manager is he? A. Theory X B. Theory Y C. Cost Cutter D. Effective

Correct Option: A EXPLANATION Tom is Theory X manager as he believes that employees need to be watched all of the time and that all of his team members are selfish and unmotivated.

Which of the following statements is NOT true about a product lifecycle? A. It starts with conception of a new product and ends with its withdrawal B. A product can spawn a single project in its life C. The five stages of each product lifecycle are product development, introduction, growth, maturity, and decline D. It focuses on managing the properties of a product from a company's business point of view

Correct Option: B EXPLANATION 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.

The cost of developing a product fix is related to which "costs of quality" category? A. A prevention cost B. An internal failure cost C. An appraisal cost D. An external failure cost

Correct Option: B EXPLANATION A product fix will require rework, and the cost associated with it will fall under the cost of nonconformance, that is, internal failure cost category.

Control risk process needs to be carried out by considering: A. Impact of risk B. Impact of risk and opportunities in the project C. Only opportunities D. Customer need

Correct Option: B EXPLANATION According to the new examination content outline, even the opportunities should be considered.

You have just been informed by the project sponsor that the customer intends to terminate the project in the middle of the execution process group. Which of the following will you do FIRST as a project manager? A. Share this information with all stakeholders by email B. Evaluate the impact of project closure C. Initiate the Close Project or phase process D. Meet the sponsor to discuss the course of actions

Correct Option: B EXPLANATION As a project manager, the FIRST thing that the you should do is evaluate the impact of the termination on the stakeholders, organization, subcontractors, and project activities. This will enable you to define a course of action to perform.

Your company policy allows accepting gifts from customers within certain limit. Your customer is giving you a gift that is beyond the limit of your company policy. You have already given a gift that has similar value to the customer's representative . What should you do? A. Accept it and don't tell anyone B. Contact your company's senior management and ask for assistance C. Ask your customer about company policy D. Refuse it

Correct Option: B EXPLANATION Best option is to contact your company's senior management and ask for assistance.

A company wants to hire a PMP, and you are applying for the position in the company. You are scheduled to take the PMP exam in a few days. At your interview, a comment is made implying that you are PMP certified. What do you do? A. Clarify that you are scheduled to take your PMP certification exam soon but are not yet PMP certified. B. Confirm that you are PMP certified C. Both of the above are true. D. None of the above

Correct Option: A EXPLANATION You have the responsibility to provide accurate, truthful representations concerning your qualifications, experience, and performance of services to a company.

A noncompetitive form of procurement will NOT be appropriate when: A. The project is under extreme time constraints and needs to be completed soon B. The law requires at least three quotations or proposals C. A seller has unique qualifications that no other sellers have D. There is no other seller except one who can provide the goods or services

Correct Option: B EXPLANATION In non-competitive forms of procurement, a seller is usually selected from a list of qualified sellers interested in and capable of doing the job. Even though competition can result in the selection of a better seller and decreased price, there is no reason for going through the entire procurement process unless the law requires it. If the law requires at least three proposals or quotations, then you cannot go for a sole source.

The organization's CEO intends to convey some complex, detailed information to the "Moonstar" project stakeholders. Which of the following is the best method of communicating this kind of information? A. Verbal B. Written C. Vertical D. Lateral

Correct Option: B EXPLANATION In order to communicate complex and detailed information with the project stakeholders, the best method of communication is written.

Which of the following is true with respect to Plan Cost Management? A. Develop the high-level budget B. Develop the cost management plan C. Develop the budget plan D. Develop both budget plan and cost management plan

Correct Option: B EXPLANATION In the latest examination content outline, budget plan is replaced with cost management plan. Option (a) is part of Initiating.

George is working on an international project which involves 150 team members and the project budget is $1,400,000. The weekly status meeting is conducted worldwide and is scheduled for Wednesday at 5:00 PM and the duration of the meeting is two hours. All of the team members globally communicate using the video conferencing unit at their location. What kind of communication method is this? A. Push communication B. Interactive communication C. Pull communication D. Push Pull communication

Correct Option: B EXPLANATION Interactive communication is the most efficient way to ensure a common understanding by all participants on specified topics and is performed between two or more parties performing a multidirectional exchange of information. It includes meetings, phone calls, video conferencing to name a few.

A systematic method of eliminating waste is called_______. A. Six Sigma B. Lean C. Kanban D. Agile

Correct Option: B EXPLANATION Lean is a systematic method of eliminating waste. Six sigma is a technique to reduce defects. Kanban is based on Just In Time principle for continuous improvement. Agile is used in rapidly changing environment where the iteration duration is 2 to 4 weeks.

You have to select between two projects: Project A with Net Present Value (NPV) of $100,000 and Project B with NPV of $70,000. What is the opportunity cost of selecting Project A over Project B? A. 30000 B. 70000 C. 1,70,000 D. 1,00,000

Correct Option: B EXPLANATION NPV is the total value of all the future cash flows today, so you should generally select the project with the higher NPV for execution. When you do that, you are actually losing the opportunity to do the competing project. The opportunity cost is the NPV of the project that you have not selected.

At what level of the WBS should the budget be estimated to assist in budget control during the monitoring and controlling process group? A. Highest B. Lowest C. Third D. Major work effort

Correct Option: B EXPLANATION By having the WBS at its lowest level, more information is available to make a more accurate cost estimate.

In whose favor should the differences between requirements be BEST resolved? A. Sponsor B. Customer C. Managing Director D. Project Manager's Boss

Correct Option: B EXPLANATION Differences should always be resolved in favor of the Customer.

You were given a budget of $3000 and you spent $2000. However, you only completed $1200 worth of work. What do you currently expect the TOTAL project to cost considering your situation? A. Not possible to estimate B. $5,000 C. $6,000 D. $6,200

Correct Option: B EXPLANATION Estimate at completion (EAC) =BAC/CPI. Here, we have BAC=$3,000, AC=$2,000, and EV=$1,200. CPI=EV/AC=1200/200=.6. So, EAC=3000/.6 =5,000.

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? A. Scope baseline B. Risk baseline C. Cost baseline D. Schedule baseline

Correct Option: B EXPLANATION Risk baseline is not a valid project baseline. It is an accepted and approved project plan.

The popular iterative four step approach of Plan-Do-Check-Act was advocated by: A. Joseph Juran B. W. Edwards Deming C. Philips Crosby D. Genichi Taguchi

Correct Option: B EXPLANATION PDCA (plan-do-check-act) is an iterative four-step problem solving process typically used in business process improvement. It is also known as the Deming cycle, Shewhart cycle, Deming wheel, or plan-do-study-act. It was proposed by W. Edwards Deming in the 1950's 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.

In the PDCA cycle, C stands for? A. Control B. Check C. Card D. Carryover

Correct Option: B EXPLANATION PDCA stands for Plan-Do-Check-Act.

Which of the following is the best use of Pareto charts? A. To visualize a workflow B. To prioritize issues C. To perform deeper causal analysis D. To examine trends

Correct Option: B EXPLANATION 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.

You are responsible for making all kinds of arrangements for your company's annual picnic. You have taken all the necessary actions and have reserved an outdoor park on a particular day. You have bought umbrellas and rented tents just in case you need them. Which of the following risk strategies are you using in this case? A. Passive acceptance B. Contingency planning C. Avoidance D. Transference

Correct Option: B EXPLANATION The contingency plan includes specific action that will be taken if opportunities or threats occur.

Per the diagram, how many days will the project take to finish? simTest A. 19 days B. 25 days C. 24 days D. Cannot be determined

Correct Option: B EXPLANATION The duration of the project is 25 days.

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: A. Risk Response Plan B. Fallback Plan C. Mitigation Plan D. Risk Register

Correct Option: B EXPLANATION 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.

A project has 10 team members spread across 4 different countries. How many channels of communication exist? A. 20 B. 45 C. 40 D. 10

Correct Option: B EXPLANATION The formula to calculate the number of channels is (n*(n-1)/2), where n stands for the number of team members on the project.

You are a project manager who is contemplating outsourcing a software development activity versus building it in-house. Which of the following factors would LEAST influence your decision to outsource? A. Requirements of project schedule B. Risks involved in the activity C. Technical skill of the vendor D. Physical location of the vendor

Correct Option: D EXPLANATION This is an example of deriving answers through the process of elimination. All of the other factors are critical and should be considered during the make or buy analysis. Since this is a software development project, the physical location of the vendor is not critical.

You are managing a project related to building a skyscraper. However, as per regulations, no work can be started till the government body has approved and provided necessary clearance. What kind of dependency is this is an example of? A. Mandatory Dependency B. Hard Logic C. Discretionary Dependency D. External Dependency

Correct Option: D EXPLANATION This is an externally imposed or mandated dependency. Options A and B are the same and are not the correct choices.

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? A. Benchmarking B. Reverse Engineering C. Process Analysis D. Value Analysis

Correct Option: D EXPLANATION 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.

Which of the following theories demonstrates that employees who believe their efforts will lead to effective performance and who expect to be rewarded for their accomplishments remain productive as rewards meet their expectations? A. Abraham Maslow's Hierarchy of Needs B. Alderfer's Existence, Relatedness, Growth (ERG) Needs C. McClelland's Achievement Motivation theory D. Victor Vroom's Expectancy theory

Correct Option: D EXPLANATION Victor Vroom's Expectancy theory demonstrates that employees who believe their efforts will lead to effective performance and who expect to be rewarded for their accomplishments remain productive as rewards meet their expectations.

As a project manager, you understand the importance of contract documents and correspondence for future references. Which of the following can be used to manage and store contract and procurement of documents and records? A. Claims Administration B. Audit Reports C. Lessons Learned D. Records Management System

Correct Option: D EXPLANATION The records management system consists of a specific set of processes, related control functions, and automation tools that are consolidated and combined as part of the project management information system. The system contains retrievable archive of contract documents and correspondence.

You have just started administering a contract when management decides to terminate the contract. What should you do first? A. Go back to solicitation B. Go back to solicitation planning C. Finish contract administration D. Go to contract closeout

Correct Option: D EXPLANATION You should look at closing the contract and seeking help from the legal and contracts departments of the company. You should also let the management know of the repercussions.

You are the project manager overseeing the development of a new console video game. It has 10 components, and 5 team members are working on it. There are 15 stakeholders for this project, and one of the stakeholders is the previous owner of the company. One of the components is of major concern because it is a difficult one to implement. You find out that it will take 10 days to complete the component. You also find out that as of now the CPI=.81, and the SPI=1.2. What should be your main concern in this project at this time? A. The stakeholder who was the previous owner B. Schedule C. Number of stakeholders in this project D. Cost

Correct Option: D EXPLANATION Your SPI is more than 1, which indicates that you are ahead of schedule, but your CPI is less than 1, which suggests that you are over budget. Cost should be the main concern at this time.

A Project Manager is identifying relevant enterprise and environmental factors in a project. Which of the following is NOT a valid example? A. Organizational culture and processes B. Stakeholder risk tolerances C. Employee performance review records D. Historical lessons learned knowledge base

Correct Option: D EXPLANATION 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 - Sixth Edition Introduction, page 38.

You are the Project Manager of a project in which team members have dual reporting structure. In addition to reporting to you, they also report to their functional manager. Also, the team members are expected to do the project work along with department work. You are working in which form of organization? A. Functional B. Projectized C. Tight Matrix D. Matrix

Correct Option: D EXPLANATION These are the characteristics of a matrix organization where team members have dual reporting structure, and the teams work in their respective functional areas while performing project work. Tight matrix has nothing to do with organization structure. It simply denotes keeping the project team in the vicinity. Please refer to PMBOK® Guide - Sixth Edition, page 47.

In the Blake Mouton managerial grid that is focused on task versus person, where would country club leadership fall? A. High Production High People B. High Production Low People C. Low Production Low People D. Low Production High People

Correct Option: D EXPLANATION These leaders are most concerned about the needs and feelings of members of their team. They operate under the assumption that as long as team members are happy and secure, they will work hard. What tends to result is a work environment that is very relaxed and fun, but where production suffers due to lack of direction and control.

Project Team has created sub-plans for each activity in the project plan. These plans are called: A. Resource plans B. Activity plans C. Sub-plans D. Management plans

Correct Option: D EXPLANATION These plans are called management plans.

The Project Manager has obtained final acceptance of the project deliverables by the customer. Which of the following is NOT an activity of the "project closing" process? A. Collate lessons learned and update the organization's knowledge base B. Distribute the final project report to all the stakeholders C. Transfer ownership of deliverables to assigned stakeholders D. Assess old risks and update risk register

Correct Option: D EXPLANATION This activity is executed as part of the "monitoring and controlling" process group. All the other options are activities performed as part of the "project closing" process group.

You have been assigned as the Project Manager of a new e-business project. There appear to be many risks involved in the project, but nobody has evaluated them to assess the range of possible outcomes. What was not done? A. Risk Identification B. Risk Register not updated C. Risk Analysis D. Risk Response Planning

Correct Option: C EXPLANATION This can include qualitative or quantitative risk analysis.

Which of the following is NOT the personal style defined by Merrill and Reid in their employee motivation theory? A. Driver B. Amiable C. Expressive D. Affiliation

Correct Option: D EXPLANATION In their employee motivation theory, Merill and Reid define the following personal styles: Driver, Amiable, Expressive, and Analytical.

In the communication process, a basic model of communication that exhibits how information is sent from the sender and how it is received by the receiver has all the following components EXCEPT: A. Sender B. Message and feedback message C. Urgency D. Noise

Correct Option: C EXPLANATION Urgency is not included in the basic communication model but should be considered when determining the method of communication to be used.

WBS for your project has been prepared and distributed to the project team members. When execution begins, which document will provide the detailed descriptions of the WBS elements? A. Scope Statement B. Project Management Plan C. WBS Dictionary D. Project Statement of Work

Correct Option: C EXPLANATION WBS dictionary provides detailed descriptions about the deliverables listed in the WBS.

If a person desires to excel in his tasks, as per Maslow's Hierarchy of Needs, what type of need is the person exhibiting? A. Love or Belonging B. Physiological C. Self-actualization D. Safety

Correct Option: C EXPLANATION When a person desires to exceed or excel in her tasks, it is considered the highest level of need. The person now wants to realize her full potential, which is Self-actualization.

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? A. Project Management Plan B. Quality Management Plan C. Process Improvement Plan D. Product Management Plan

Correct Option: C EXPLANATION 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.

The calculation of pricing for a project can be extremely complex with regard to valid cost estimates and price quotes from vendors. Which of the following facilitates the pricing of a project by a structured decomposition of the total effort into individual activities and by defining cost elements of labor, material, and equipment? A. Cost Estimation Plan B. Cost Management Plan C. Work breakdown structure D. Bottom up estimating

Correct Option: C EXPLANATION Work breakdown structure (WBS) uses the decomposition tool to have the activities identified which in turn identifies the resources needed.

Under which process group should documentation of lessons learned occur? A. Executing B. Monitoring and Controlling C. Closing D. Throughout the project

Correct Option: D EXPLANATION According to the new examination content outline, it should be done throughout the project.

Project information may be distributed using a variety of methods including project meetings, hard copy document distribution, shared access to networked electronic databases, fax, electronic mail, voice mail, video conferencing, and electronic tools for project management. What are they known as? A. Project controls B. Push and Pull communications C. Project distribution systems D. Information Management Systems

Correct Option: D EXPLANATION All of the methods stated in the question are commonly known as information management systems.

Which of the following could not be provided with Activity Attributes? A. Details regarding predecessor and successor activities B. Details regarding Leads and Lags C. Details regarding who and where the activity will be performed D. Details regarding root causes of issues

Correct Option: D EXPLANATION All the options are correct except option D. Activity attributes do not provide details of root causes of issues.

Which of the following is NOT a technique used in "develop project team" process? A. Training B. Interpersonal Skills C. Co-Location D. Observation and Conversation

Correct Option: D EXPLANATION All the other options, like training to enhance team members' skill, teaching interpersonal Skills or soft skills to improve understanding and increase co-operation, and placing team members physically close to each other (co-location), help in developing the team. Observation and Conversation are techniques used in "manage team" process. Please refer to PMBOK® Guide - Sixth Edition Project Resource Management, page 345.

The change control board just approved a change request to modify one of the major deliverables. In which process will this change be implemented? A. Perform Integrated Change Control B. Monitor and Control Project Work C. Close Project or Phase D. Direct and Manage Project Work

Correct Option: D EXPLANATION An approved change request for corrective actions, preventive actions, and defect repairs will be implemented in the Direct and Manage Project Work process.

Which of the following is NOT an input to the process Manage stakeholder engagements? A. Stakeholder Management Plan B. Communication Management Plan C. Change Log D. Issue Log

Correct Option: D EXPLANATION An issue log is the output of the process Manage stakeholder engagements. All the other options are inputs to the process.

If Earned Value (EV) is $550, Actual Cost is $650, and Planned Value is $600, what is the Cost Variance (CV)? A. 100 B. -50 C. 50 D. -100

Correct Option: D EXPLANATION Apply the formula (CV=EV-AC) to get the answer. Though planned value is also provided in this question, it is not used in solving this problem.

A Heuristic is best described as: A. Thumb rule B. Activity diagram C. Workaround D. Control tool

Correct Option: A EXPLANATION A Heuristic is a thumb rule. An example is cost per square feet.

The purpose of a contract is to distribute a reasonable amount of ____________between the buyer and seller. A. Risk B. Responsibility C. Reward D. None

Correct Option: A EXPLANATION A fair contract shares a reasonable amount of risk between the buyer and the seller.

Which of the following is NOT a way of avoiding conflict? A. Asking two team members to work on the same activity B. Keeping the team informed of the exact project status C. Clearly assigning work with no overlapping responsibilities D. Continuously motivating the team to help them face work challenges

Correct Option: A EXPLANATION Assigning overlapping responsibilities is sure to lead to conflict. One of the good ways to avoid conflict is to ensure that such things are avoided as much as possible. Refer PMBOK® Guide - Sixth Edition to know more on the conflict management techniques.

What does the DMAIC process in Six Sigma stand for? A. Define the Problem, Measure, Analyze, Improve, and Control B. Define the Problem, Measure, Analyze, Indicate, and Control C. Define the Problem, Monitor, Analyze, Improve, and Control D. Discuss the Problem, Measure, Analyze, Improve, and Control

Correct Option: A EXPLANATION DMAIC stands for Define the Problem, Measure, Analyze, Improve, and Control.

Which of the following statements is TRUE regarding Fixed Price Contract? A. The buyer has the least risk in this type of contract if scope is clearly defined B. Changes can be made in scope by the buyer with no impact on cost C. This contract should be your choice if you need work to begin right away D. All of the above

Correct Option: A EXPLANATION Did you choose option D? If so, read again. Which options sound incorrect? Changes to scope cannot be made without a cost implication. In fact, this is best applicable when the seller clearly defines the scope. If work needs to begin right away, the contract type should be Time and Money, not Fixed price since you may not have everything clearly defined.

As part of Quantitative Risk Analysis, a Project Manager has derived four packages with the following probability and impact. Using EMV (Expected Monetary Value), which one should he use in the project? A. Work package I: Probability 15% and Impact $20,000 B. Work package II: Probability 7 % and Impact $10,000 C. Work package III: Probability 7 % and Impact $15,000 D. Work package IV: Probability 15% and Impact $10,000

Correct Option: A EXPLANATION EMV = Probability * Impact. If the impact is positive, it is an opportunity, and if the impact is negative, it is a threat. From the given options, all are opportunities, and the one which is highest should be the right option.

Your project team has completed the project work. Which of the following is NOT done before the project is closed? A. Ensure that the schedule baseline has been updated B. Get formal acceptance of the deliverables from the customer C. Make sure that the scope of the project was completed D. Verify that the product acceptance criteria have been met

Correct Option: A EXPLANATION Ensure that the schedule baseline has been updated.

A project is over budget when: A. CPI > 1 B. SPI > 1 C. CPI and SPI > 1 D. CPI < 1

Correct Option: D EXPLANATION CPI = EV/AC. If the EV is less than AC, then CPI less than 1, which means the project is over budget.

Which of the following is an output of the Direct and Manage project work process? A. Project Charter updates B. Work performance information C. Approved change requests D. Change requests

Correct Option: D EXPLANATION Change request is one of the outputs of this process.

The technique for performing root cause analysis is called: A. Ishikawa diagram B. Kaizen C. Deming cycle D. Total Quality Management

Correct Option: A EXPLANATION Ishikawa diagrams or fish-bone diagrams are used to perform root cause analysis.

Which process group includes processes used to formally terminate all activities of a project or a project phase? A. Executing B. Monitoring and Control C. Planning D. Closing

Correct Option: D EXPLANATION Closing includes processes used to formally terminate all activities of a project or a project phase.

Your project activity float is negative 10. What is your course of action? A. Add more resources B. Ask more time to complete the project C. Use less experienced team members D. Ignore it

Correct Option: A EXPLANATION Negative activity float indicates your project is behind schedule. Adding more resource is the best option.

The _________ details the different tasks for members in the project. A. Responsibility Assignment Matrix (RAM) B. WBS C. SOW D. Scope statement

Correct Option: A EXPLANATION Responsibility Assignment Matrix (RAM) details the different tasks for the members in the project.

A Cost Performance Index (CPI) of 0.73 means that: A. The Project is only getting 73 cents out of every $1 spent B. The Project would cost 37% more than originally planned C. The Project is progressing at 73% of the rate originally planned D. The Project would cost 73% more than originally planned

Correct Option: A EXPLANATION The Project is only getting 73 cents out of every $1 spent.

A team member is not performing well on a project because of inexperience. There is nobody who is better qualified to do the job. As a Project Manager, what should you do? A. Arrange training for the team member B. Escalate the matter to higher authority C. Try doing it on your own D. Wait till the team member fails to deliver

Correct Option: A EXPLANATION This is the best possible solution among the other given options.

You are the project manager for a project. You are updating the WBS during Define Activities. This process is often called ________. A. Refinements B. Updates C. Activities D. Supporting detail

Correct Option: A EXPLANATION Updating the WBS during Define Activities is often called Refinements. It occurs with riskier projects.

Which of the following is the highest point in Maslow's Hierarchy of Needs? A. Self Actualization B. Esteem C. Social D. Safety

Correct Option: A EXPLANATION You are expected to know about Maslow's Hierarchy of Needs.

Which of the following constitutes Juran's "quality trilogy"? A. Planning, inspection, control B. Planning, improvement, control C. Planning, organizing, control D. Product, price, customer

Correct Option: B EXPLANATION "Planning, improvement, control" constitute Juran's "quality trilogy."

A manager is managing a collection of projects that are grouped together to facilitate effective management to meet strategic business objectives. The manager is called a: A. Program manager B. Portfolio manager C. Project manager D. Stakeholder

Correct Option: B EXPLANATION A portfolio refers to a collection of projects or programs grouped together to facilitate effective management to meet strategic business objectives. The person managing it is called a portfolio manager. Portfolio management describes methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics such as business objectives and technical strategy.

You are a project manager who is currently in the monitoring process group. You and your team are trying to identify the relationship between an independent variable and the dependent variable by plotting their values on a diagram. One of your team members asks you what is this diagram known as? A. Control chart B. Scatter diagram C. Cause and Effect diagram D. Statistical sampling

Correct Option: B EXPLANATION A scatter diagram displays the relationship between two elements as points on the graph. These elements are the dependent and the independent variables.

During the closing, the final project report needs to be based on: A. Stakeholder management plan B. Communications management plan C. Project charter D. Contract

Correct Option: B EXPLANATION According to the new examination content outline, the final project report needs to be based on communications management plan.

Anne is a project manager who is managing a project where there will be a number of people working together. She wants to enhance the ability of the team to work together and perform as a team. What can she do to maximize the ability of the team to do this? A. Cohabitation B. Co-location C. Staffing plan D. Work Breakdown structure

Correct Option: B EXPLANATION Co-location involves placing many (or all of the most active) project team members in the same physical location to enhance their ability to perform as a team.

A project manager overseeing a WIMAX deployment project just completed negotiation for three additional resources from different functional areas as well as extra reserve money for her project. During the negotiation, two of the functional managers were very skeptical about the request for additional resources and were reluctant to assign their resources to her project. She attempted to influence the functional mangers by using her association with a high-level executive. Which of the following forms of power is she using in this situation? A. Referent B. Coercive C. Expert D. Reward

Correct Option: B EXPLANATION Coercive power involves leveraging a technique that coerces others to agree to the proposal.

In a matrix organization, a Project Manager can expect the communication to be: A. Open and Accurate B. Complex C. Difficult to Understand D. Simple

Correct Option: B EXPLANATION Communication in a matrix organization is complex because each team member has two bosses, a functional manager and a Project Manager.

A project manager wants to determine the number and types of tests for a project. He is using a statistical method to identify the factors that may influence specific variables of the project, so he can select applicable test scenarios. Which technique is the project manager using ? A. Brainstorming B. Benchmarking C. Statistical sampling D. Design of Experiments

Correct Option: D EXPLANATION Design of Experiments (DOE) is a systematic approach to investigate a system or process. A series of structured tests are designed in which planned changes are made to the input variables of a process or system. The effects of these changes on a predefined output are then assessed. Design of experiments is a discipline that has very broad application across all the natural and social sciences, as well as various other sectors like automotive, software, defense, and healthcare.

From the diagram, what is the Float for Task D? simTest A. 3 B. 0 C. 21 D. 24

Correct Option: B EXPLANATION Float for Task D can be calculated as LS -ES = 21-21=0.

Which of the following is NOT a power derived from the Project Manager's authority? A. Formal B. Expert C. Reward D. Penalty

Correct Option: B EXPLANATION If someone is assigned as a Project Manager, he or she gets formal power along with the power to reward or penalize. Expert power comes from experience or education. If you are recognized as an expert, people will count on your opinion and are more likely to follow your leadership.

Which of the following is a tool and technique used in "Control Communications" process? A. Change Requests B. Meetings C. Issue Logs D. Stakeholder Register

Correct Option: B EXPLANATION Meetings are a tool and technique used in "Control Communications" process.

What form of organization is used in large, modern corporations? A. Matrix B. Composite C. Functional D. Projectized

Correct Option: B EXPLANATION Most of the large corporations use the best combination of strong matrix, projectized, and functional organizations. Refer to PMBOK® Guide - Sixth Edition Page 47.

Which of the following statements is NOT true about a watch list? A. It consists of risk that do not have a high enough probability or impact to make it into risk register but that still need to be monitored B. It documents low probability and low impact risks for historical use C. It is an output of the proven qualitative risk analysis process D. Noncritical risks on the watch list need to be reviewed at intervals during the project to ensure they have not become critical

Correct Option: B EXPLANATION Noncritical risks on the watch list are not only for historical use but also need to be monitored at intervals during the project to ensure they have not become critical.

Rob works for a consulting company that regularly acquires project teams for new assignments. Once the assignment is over, the team is dissolved. What kind of organization is Rob working for? A. Matrix B. Projectized C. Functional D. Balanced Matrix

Correct Option: B EXPLANATION Refer PMBOK® Guide page 47, for more information on organization structures.

In making an investment in a project, investors require compensation for: A. The risk-free rate of return plus a risk premium plus a premium for inflation B. Sacrifice of immediate use of cash for consumption or other investments and possibility of inflation and risk C. Payback period in years x investment x (1 + discount rate)periods D. Inflation and depreciation

Correct Option: B EXPLANATION Sacrifice of immediate use of cash for consumption or other investments, possibility of inflation and risk.

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? A. Thank the subcontractor, but do not give him preference in the next RFP B. Thank the subcontractor, but politely refuse the gift C. Ask for tickets for the entire team so that it is fair to everyone D. Report the subcontractor to PMI®

Correct Option: B EXPLANATION 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.

As a Project Manager of a large project with hundreds of stakeholders, which of the following is the BEST course of action? A. Incorporate needs of only important stakeholders B. Incorporate needs of all stakeholders C. Ask your manager to manage the stakeholders D. Eliminate some of the stakeholders

Correct Option: B EXPLANATION The Project Manager is required to identify all the stakeholders and incorporate the requirements of every stakeholder.

You are in the process of executing a project that deals with laying out electrical cables connecting two cities. You have been reporting progress on a monthly basis. This month, due to unplanned vacations, many of the staff have not turned up at work. This has caused a delay in the schedule. You decide to check if the schedule variance is within the allowable threshold. What document should you refer to? A. Project Management Plan B. Schedule Management Plan C. Project Schedule Network Diagram D. Activity Definition

Correct Option: B EXPLANATION The acceptable schedule variances are defined in the Schedule Management Plan.

For a project, Earned value = 600, Actual Cost = 400, and Estimate to Completion= 700. What is the estimate at completion? A. 1200 B. 1100 C. 1300 D. 300

Correct Option: B EXPLANATION The formula for Estimate to Complete (ETC) = Estimate at Completion (EAC) - Actual Cost (AC ). Estimate at completion = Estimate to complete + Actual cost, that is, 700 + 400 = 1100.

Which of the following is a technique of "controlling project scope"? A. Expert Judgment B. Variance Analysis C. Alternative Identification D. Product Analysis

Correct Option: B EXPLANATION The other three options are techniques of "define scope."

Which of the following is the power that is based on the ability to reward? A. Coercive Power B. Reward Power C. Legitimate Power D. Prize Power

Correct Option: B EXPLANATION The power that a Project Manager may possess to reward is referred to as reward power.

Which of the following is NOT an input of the close project or phase process? A. Project management plan B. Project management methodology C. Accepted deliverables D. Organizational process assets

Correct Option: B EXPLANATION The project management methodology describes the process (or lifecycle) that you use to manage your project.

A project manager is employed by a construction company and is responsible for furnishing the completed building. The sponsor is developing a document which authorizes the project manager. Which is this document? A. Work breakdown structure B. Project charter C. Project baseline D. Project plan

Correct Option: B EXPLANATION The sponsor first gets the project charter created and authorizes it. This will assign the project manager to the project and define the high level scope, risks, constraints, and assumptions of the project.

Which of the following are the MOST important inputs to derive the total funding requirements and periodic funding requirements of a project? A. Management Reserve and Contingency Reserve B. Cost Baseline and Management Reserve C. Funding Limit Reconciliation D. Project Budget and Contingency Reserve

Correct Option: B EXPLANATION The total funds required for the project are included in the cost baseline, along with any management reserve. The cost baseline includes contingency reserves, projected expenditures, and anticipated liabilities. Refer to PMBOK® Guide Sixth Edition, Project Cost Management, page 254.

Which of the following is NOT a purpose of a configuration management system? A. Ensuring all the project team members have the latest version of the project document B. Ensuring all the relevant changes are communicated to the stakeholders C. Maintaining consistency of the product's performance and its functional attributes D. Configuration identification, Configuration status accounting, and Configuration verification and audit

Correct Option: B EXPLANATION This is a part of communication management. All the other options (a), (c), and (d) are completed as part of Configuration Management System.

Two team members were arguing about a design problem. The project manager, a technical expert himself, reviewed the issue and gave them clear directions about the design approach. This is an example of: A. A theory Y manager B. Forcing C. A team at the "performing" stage D. Building team competency

Correct Option: B EXPLANATION This is an example of "Forcing" as an approach of conflict resolution.

Which of the following is NOT an input to the Monitor Communications process? A. Issue Log B. Work performance information C. Work performance data D. Project management plan

Correct Option: B EXPLANATION Work performance information is an output (not input) to the Monitor communications process. See page 388 of PMBOK® Guide - Sixth Edition

In which process is "meeting" not used as a Tool and Technique? A. Identify Stakeholders B. Plan Stakeholder Management C. Manage Stakeholder Engagement D. Control Stakeholder Engagement

Correct Option: C EXPLANATION "Meeting" is not used as a Tool and Technique in Manage Stakeholder Engagement process.

A Project Manager is reporting the final status of the closed contract to the stakeholders. Which form of communication is appropriate? A. Informal Written B. Informal Verbal C. Formal Written D. Formal Verbal

Correct Option: C EXPLANATION All project reports must be communicated as formal written documents.

There are four projects A, B, C, and D. One of them has to be selected for execution. Project A has an internal rate of return (IRR) of 22%, Project B has an IRR of 25%, Project C has an IRR of 19%, and Project D has an IRR of 17%. Which project will you take up for execution? A. Project D B. Project C C. Project B D. Project A

Correct Option: C EXPLANATION An internal rate of return is similar to keeping your money in a bank account. You will choose the bank that gives the maximum return. The same is true for the project. You need to select the project that has the highest internal rate of return.

Earned Value Analysis is used to measure performance based on a few parameters. Identify them. A. Scope and Cost B. Scope and Schedule C. Scope, Cost, and Schedule D. Cost and Schedule

Correct Option: C EXPLANATION Earned Value Analysis is used to measure performance based on Scope, Schedule, and Cost.

You are in the monitor risks process of identifying, analyzing, and planning for newly arising risks, taking corrective actions, and reviewing the execution and effectiveness of risk responses. All of the following are tools and techniques for monitor risks EXCEPT: A. Risk reassessment B. Variance and trend analysis C. Enhance D. Risk audits

Correct Option: C EXPLANATION Enhance is a strategy to deal with an opportunity. By influencing the underlying risk triggers, this strategy increases the size, probability, likelihood, and positive impact of an opportunity.

You are a project manager of a company, and your project is currently in execution phase. The customer has requested you for additional work. This work will affect the budget but not the schedule of the project. What should you do next? A. Add the additional requirements to the project plan B. Ignore the request C. Explain the change procedure and ask to submit a request for change D. Discuss with the project team about the change

Correct Option: C EXPLANATION Explaining the change procedure and asking to submit a request for change is the best choice

Which of the following is a "hygiene factor" under Herzberg's Motivation-Hygiene Theory? A. Recognition for excellent work B. Self-actualization C. Good relations with coworkers and managers D. Clean clothing

Correct Option: C EXPLANATION Herzberg's Motivation-Hygiene Theory states that people need things like good working conditions, a satisfying personal life, and good relations with the boss and coworkers these are called "hygiene factors." Until people have them, they generally don't care about "motivation factors" like achievement, recognition, personal growth, or career advancement.

Which of the following conflict resolution techniques is believed to generate the FEWEST enduring positive results? A. Problem Solving B. Avoidance C. Compromising D. Forcing

Correct Option: D EXPLANATION Forcing is the technique that can generate the FEWEST positive enduring results.

A Project Manager is calculating the weighted average of activity duration estimates to do the schedule network analysis. Which schedule network analysis technique is the Project Manager using? A. "What-If" Scenario Analysis B. Critical Chain Method C. PERT D. Critical Path Method

Correct Option: C EXPLANATION In the PERT technique, three estimates (Optimistic, Pessimistic and Most Likely) of each activity duration are calculated and then a weighted average of each duration estimate is arrived at.

Voice mail and e-mail are examples of: A. Interactive communication B. Pull communication C. Push communication D. Push Pull communication

Correct Option: C EXPLANATION Letters, memos, faxes, e-mails, and voice mails are examples of Push communication.

Which of the following is NOT part of McKinsey's 7S approach? A. Shared Values B. Strategy C. Share D. Styles

Correct Option: C EXPLANATION McKinsey's 7S are Strategy, Structure, Systems, Shared Values, Skills, Styles, and Staff.

Which of the following is the correct order of actions that you must take during the closing process? A. Get formal acceptance, release the team, write lessons learned, close the contract B. Write lessons learned, release the team, get formal acceptance, close the contract C. Get formal acceptance, write lessons learned, hand over deliverable to stakeholder(s), close the contract D. Get formal acceptance, close the contract, write lessons learned, release the team

Correct Option: C EXPLANATION 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.

As a Project Manager, you need to ensure that quality standards are followed on your project. In which PMBOK® process is the quality standards that need to be followed identified? A. Develop Project Charter B. Collect Requirements C. Plan Quality Management D. Perform Quality Assurance

Correct Option: C EXPLANATION Plan quality management defines what quality standards should be chosen for the project and how to satisfy them.

Communication can be of the following forms except: A. Formal and Informal B. Written and Verbal C. Precise and Vague D. Vertical and Horizontal

Correct Option: C EXPLANATION Precise and vague are not forms of communication, while all others are.

Which of the following is a tool to perform qualitative risk analysis process? A. Monte Carlo Simulation B. SWOT (Strength, Weakness, Opportunities and Threat C. Probability-Impact Matrix D. Root cause identification

Correct Option: C EXPLANATION Probability-Impact matrix is used in analyzing the probability and impact of the identified risks.

You are a Project Manager in a construction company and urgently require some expert welders for a short duration. You checked their availability internally with the functional manager, but the functional manager is not able to match the skills required. You decide to acquire these resources on contract. Which of the following is the BEST type of contract for your requirements? A. Cost Reimbursable B. Fixed Price C. Time and Material D. Cost Plus Incentive Fee

Correct Option: C EXPLANATION Since the requirement is short term and the Project Manager wants to have a brief and quick contract, a time and material contract is the best option. Time and material contracts are most suitable for staff augmentation, acquisition of experts, etc. Please refer to PMBOK® Guide - Sixth Edition Project Procurement Management page 472.

Which of the following Quality Theorists advocated the 80/20 principle ? A. W Edwards Deming B. Philips Crosby C. Joseph Juran D. Walter A Shewhart

Correct Option: C EXPLANATION The principle was suggested by Joseph Juran, but named after Pareto. It is useful to be aware of the popular quality theorists and their main principles.

Which of the following represents the estimated value of the work actually accomplished? A. PV B. AC C. EV D. CV

Correct Option: C EXPLANATION The question is asking for the definition of earned value. This question also assumes that you are comfortable with terms like EV, SV, and CV, which are used in the earned value technique.

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? A. Ask the team members why they requested the unnecessary items B. Pay only for the essential items C. Pay as per the original contract and start arbitration proceedings for the rest D. Pay for the additional items as well

Correct Option: D EXPLANATION 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.

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? A. Report his behavior to the senior Manager and suggest that he no longer be associated with your project as a stakeholder B. As this person is influential, you have no option but to listen to him and add the functionality C. Determine the impact of this change on your schedule and their constraints before taking a decision D. Ask him to raise a written change request and then follow integrated change control

Correct Option: D EXPLANATION It is important that a Project Manager considers written and well-documented change requests for the project.

During the project execution, a large number of changes are made to the project. The Project Manager should: A. Wait for all the changes to happen and print a new schedule B. Make only the changes approved by the management C. Talk to management before any changes are made D. Make the approved changes and retain the schedule baseline

Correct Option: D EXPLANATION Make the approved changes and retain the schedule baseline. It's not bad to have changes, but changes must be managed and the baseline should be maintained.

As per Maslow's theory of Hierarchy of needs, which is the correct order of needs? A. Psychological, Physiological , Safety , Love/belonging , Esteem B. Safety , Love/belonging , Esteem, Self-actualization, Physiological C. Self-actualization , Love/belonging , Esteem, Safety, Physiological D. None of the above

Correct Option: D EXPLANATION Option D is the correct answer. As per Maslow's theory of Hierarchical needs, the first need of humans is a basic need for survival (air, water, food, etc.). This need is termed Physiological. Once this need is met, the next need is the need of Safety and Security. This can be in the form of a Secure Job, Health, Insurance, etc. The next need is termed need of Love or Belonging. As per Maslow's theory, humans need to belong and find acceptance among their social groups. The fourth need is termed the need of Esteem-to be respected and valued by others. Once the above four needs are met, then the final one is Self-Actualization, which is the desire to accomplish. So, the correct order of needs as per this theory is Physiological, Safety, Love/Belonging, Esteem, and Self-actualization.

During control procurements, a procurement audit includes all of the following EXCEPT: A. Reviewing the contract terms to ensure that they have all been met B. Identifying successes and failures that should be recognized C. Documenting lessons learned D. Using the payment system to process consideration as per the terms of the contract

Correct Option: D EXPLANATION Payment system is a tool used under control procurement and not close procurement.

Project Quality Management includes: A. Customer satisfaction B. Prevention over inspection C. Continuous improvement D. All of the above

Correct Option: D EXPLANATION Project Quality Management includes Customer satisfaction, Prevention over inspection, Continuous improvement and Management responsibility.

Who does the project team report to in a projectized organization? A. The project team does not report to anybody B. CEO C. Functional Manager D. Project Manager

Correct Option: D EXPLANATION Project teams report to Project Manager in a projectized organization

Which of the following is NOT part of a quality plan? A. Benchmarking B. Cost of Quality C. Design of experiments D. Quality audits

Correct Option: D EXPLANATION Quality audits are part of a Perform Quality Assurance process.

A team is inspecting specific project deliverables to ensure that they are in accordance with the specifications. Which process is being worked on? A. Perform Quality Assurance B. Validate Scope C. Plan Quality Management D. Control Quality

Correct Option: D EXPLANATION Quality control is the process of examining specific project deliverables to ensure they are in accordance with the requirements/specifications.

You are the project manager for an office setup project. As part of the project, you are required to purchase the hardware, software, and furniture. You have signed contracts with the customer and various vendors. Halfway through the project, the customer decides to add features to the workflow software. This addition of features will require changes to the signed contract. Who has the authority to change the contract? A. Sponsor B. Project Manager C. Customer D. Contract Administrator

Correct Option: D EXPLANATION The contract administrator has the authority to change the contract.

The key benefits of ____________ process is that it will maintain or increase the efficiency and effectiveness of stakeholder engagement activities as the project evolves and the environment changes. A. Plan Stakeholder Management B. Identify Stakeholders C. Manage Stakeholder Engagement D. Control Stakeholder Engagement

Correct Option: D EXPLANATION The key benefits of Control Stakeholder Engagement process is that it will maintain or increase the efficiency and effectiveness of stakeholder engagement activities as the project evolves and the environment changes.

The staffing management plan, which is part of the human resource plan, describes when and how human resources requirements will be met. Information on the staffing management plan may vary according to the application area and project size. Key areas may be the following except, A. Staff acquisition B. Resource calendars C. Compliance D. Work Items

Correct Option: D EXPLANATION The staffing management plan may include staff acquisition, resource calendars, staff release plan, training needs, recognition and rewards, compliance, and safety.

A project manager has some new members join in her team. She wants to help them see their roles and provide the project team with an understanding of where their work packages fit in the project management plan. Which of the following would be the most suitable document? A. Requirements documentation B. Requirements traceability matrix C. Responsibility assignment matrix D. Work breakdown structure

Correct Option: D EXPLANATION The work breakdown structure is the foundation of project planning and a powerful tool for expressing the scope or extent of a project in simple graphic terms. It represents the project in terms of the hierarchy of deliverables and services it will produce. Hence, it would be an effective tool in providing the new members an understanding of where their work packages fit into the overall project management plan and gives them an indication of the impact of their work on the project. Option (c) Responsibility Assignment Matrix would give clarity with respect to individual roles on the project. Option (a) Requirements Documentation focuses more on how individual requirements would fulfill business needs for the project.

You are overseeing a software project to develop a new video console game. Which of the following statements is TRUE about your project? A. A phase will not start until the deliverables for the previous phase have been reviewed and approved. B. Your internal and external stakeholders will have the same level of influence throughout your project. C. Any scope change during the initial phase of the project will be very time consuming and expensive D. You will be acquiring several team members during the executing phase.

Correct Option: D EXPLANATION Your project can move into a subsequent phase even if the deliverables of the prior phase are not completely approved. Any scope change in the initial stage will be the least expensive and consume the least amount of time. Stakeholder influence is highest at the start and diminishes as the project proceeds. You will mostly acquire your team members during the project executing phase.

Which of the following is a tool for the quality assurance process? A. Quality Audits B. Cost of Quality C. Histogram D. Quality Metrics

Correct Option: A EXPLANATION A Quality Audit is the systematic examination of a quality system carried out by an auditor.

A team member is showing up late to work and leaving early. This is negatively affecting the project. The project manager decides that the team member must be reprimanded. Which of the following is the BEST way to handle this situation? A. In a one-on-one meeting with the team member B. At the next team meeting C. In a private meeting with the team member and his functional manager D. Over email

Correct Option: A EXPLANATION A project manager should correct a team member for poor behavior always one-on-one, in person, and in private.

According to Maslow's Hierarchy of needs, what comes HIGHEST on the pyramid? A. Social B. Safety C. Physiological D. Hygiene Factors

Correct Option: A EXPLANATION 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.

Which of the following is the output of the process manage stakeholder engagements? A. Issue Log B. Stakeholder Management Plan C. Communication Management Plan D. Stakeholder Register

Correct Option: A EXPLANATION An Issue log is an output of the process manage stakeholder expectations.

Which of the following is also known as failure costs? A. Cost of poor quality B. Internal costs C. Prevention costs D. Cost of defects

Correct Option: A EXPLANATION Cost of quality is the cost incurred to ensure quality. Failure costs include costs to rework products, components, or processes that are non-compliant, costs of warranty, work and waste, and loss of reputation.

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? A. 16 days B. 15 days C. 21 days D. 18 days

Correct Option: A EXPLANATION Expected time = (O + 4M + P)/6 = 16

Which of the following statements is true regarding Critical Path? A. There can be more than one Critical Path in a Schedule Network Diagram B. Critical Paths generally always have negative float C. Activities on Critical Path have positive float D. Critical Path has a duration less than that of the non-critical paths

Correct Option: A EXPLANATION Generally activities on Critical Path have Zero float. Critical Path is the one which has the longest duration. So, options B, C, and D are not correct. You can always have more than one Critical Path in a project.

As a Project Manager, you have a problem with a team member's performance. Which of the following is the best way of communicating this problem to the team member? A. Informal Verbal B. Formal Written C. Formal Verbal D. Informal Written

Correct Option: A EXPLANATION If this does not solve the problem, then you should go for formal written communication. Refer PMBOK® Guide - Sixth Edition for more information on Project Communications Management.

A typical title for a Project Manager in a weak matrix structure is: A. Project Coordinator B. Project Manager C. Project Leader D. Program Manager

Correct Option: A EXPLANATION In a weak matrix organization, a Project Manager typically performs the coordination role.

What is the best use of a Work Authorization System? A. It manages the timing and sequence of activities that need to be performed B. It manages who performs the activity C. It identifies the resources needed to complete activities D. It is used for comparing actual work against the baselines

Correct Option: A EXPLANATION It defines how work will be authorized and how work will be done at the right time and in the right sequence. Option B is not correct since who performs the work comes from the responsibility assignment matrix and neither is option C the right answer. Option D is related to monitoring and controlling work performance data, which is not covered by Work Authorization System.

Take the values from the image. If Task 'A' takes 9 days to complete rather than the planned 5 days, how many days will the project take to complete? simTest A. 29 days B. 24 days C. 25 days D. 26 days

Correct Option: A EXPLANATION It will take 29 days. The planned project finish date will be delayed by 4 days as Task 'A' is on the critical path.

In which of the following situations is network diagram better than bar chart? A. To show interdependencies between activities B. To analyze schedule progress C. To analyze WBS D. To analyze project plan

Correct Option: A EXPLANATION Network diagram is best to show Interdependencies between activities.

A project manager is using a single duration estimate to calculate activity duration. Which type of mathematical analysis is being used? A. Critical Path Method (CPM) B. Project Evaluation and Review Technique (PERT) C. Monte Carlo D. Graphical Evaluation and Review Technique (GERT)

Correct Option: A EXPLANATION PERT uses three duration estimates namely, "pessimistic estimate," "optimistic estimate," and "most likely estimate," whereas Critical Path Method (CPM) uses only one duration estimate.

Which of the following uses a weighted average duration estimate to calculate duration? A. PERT B. CPM C. GERT D. Pareto chart

Correct Option: A EXPLANATION Program Evaluation and Review Technique (PERT) uses a weighted average duration estimate to calculate duration. It uses the probability of an estimate's accuracy. Expected Time = (Low + 4*Medium + High) / 6

As a project manager of a project, you have just completed Schedule network diagram. What should you do next in schedule management? A. Estimate Activity Resources B. Sequence Activities C. Estimate Activity Durations D. Develop Schedule

Correct Option: A EXPLANATION Schedule network diagram is an output of Sequence Activities, NEXT process is Estimate Activity Resources.

A high-level project's schedule constraints have just been determined. Which phase is the project in? A. Initiating B. Closing C. Planning D. Monitoring and Control

Correct Option: A EXPLANATION The high level schedule constraints are determined during the initiating phase of the project. The detailed planning is done during the planning phase.

The aim of quality is to: A. Ensure fitness to use and conformance to requirements B. Meet customer requirements C. Fulfill quality objectives D. Lower cost of quality

Correct Option: A EXPLANATION The most acceptable definition of quality is fitness for purpose given by J M Duran and conformance to requirements given by P B Crosby. Quality aims at providing customers, both internal and external, with products and services that fully satisfy their negotiated requirements.

Which of the following is an output from the "identify stakeholder" process? A. Stakeholder Register B. Stakeholder plan C. Stakeholder Management Strategy D. Stakeholder identification document

Correct Option: A EXPLANATION The output of identify stakeholder process is a document, which is the stakeholder register, and it lists the stakeholders and their interest in the project.

Take the values from the image. In case task B is delayed by 2 days, what will be the impact on the project finish date? simTest A. Project gets delayed by 2 days B. Project gets delayed by 7 days C. No change in Project finish date D. Project gets delayed by 1 day

Correct Option: A EXPLANATION The project will get delayed by 2 days as Task B is on the critical path.

The purpose of a quality audit is to: A. Identify inefficient and ineffective policies B. Identify project quality for customer C. Study organizational behavior D. Prepare a report for the quality team

Correct Option: A EXPLANATION The purpose of a quality audit is to identify inefficient and ineffective policies.

As per the diagram, what is the Critical Path? simTest A. ABCDE B. FGH C. FXH D. A and B

Correct Option: A EXPLANATION There are 3 paths in this network diagram and their respective durations are as follows: ABCDE - 25, FGH - 16, FXH - 17. Since path ABCDE is the longest path with zero float for all of the activities, it represents the critical path.

The Scope Baseline consists of _____. A. Approved Project Scope Statement, WBS, WBS Dictionary B. Preliminary Project Scope Statement, Approved Project Scope Statement, WBS, WBS Dictionary C. Scope Management Plan, WBS, WBS Dictionary D. Scope Management Plan, Approved Project Scope Statement, WBS Dictionary

Correct Option: A EXPLANATION This is the only correct answer.

Understanding and managing the team when the team is spread across different locations, time zones, and shifts is called______ A. Virtual/Remote Team management B. Peer-review process C. Delegation Technique D. Interpersonal Skill

Correct Option: A EXPLANATION Virtual/remote team management refers to understanding and managing the team when the team is spread across different locations, time zones, and shifts. Peer-review process is the review by people who are at the same level of expertise. Delegation involves assigning an activity to another person. Interpersonal skill is the ability to establish and maintain relationships with other people.

A buyer has distributed a document to buy cement for his construction company and in response received several price quotations. Which of the procurement documents has the buyer used? A. Request for proposal B. Request for quotation C. Invitation for bid D. Proposal

Correct Option: B EXPLANATION A price quote is usually in response to a request for quote. A bid is usually in response to an invitation for bid. A request for proposal is used for responding to proposal documents.

Completion of project phase is also referred to as: A. Gold Plating B. Kill Point C. Scope Creep D. Metrics

Correct Option: B EXPLANATION Completion of project phase is also referred as kill point.

How is contract closure different from administrative closure? A. Contract closure involves the customer as well B. Contract closure is done before administrative closure C. Contract closure can be done many times in a contract D. Contract closure is not mandatory

Correct Option: B EXPLANATION Contract closure is done before administrative closure. All other options are wrong. The customer may be involved in administrative closure (e.g., contributing to lesson learned).

A project manager is interested in knowing the approximate cost of her project so that she can identify whether the vendors' offered price is reasonable. The best tool to use in this scenario is: A. Inspection and audits B. Independent estimate C. Screening system D. Weighting system

Correct Option: B EXPLANATION Independent Estimates or in-house cost estimates are often provided by consulting services

Due to a lack of employee training and proper production controls, defects in a production run cause rework which costs the company $250,000. How much of this cost is directly attributable to the employees on the production line? A. $75,000 B. $37,500 C. $2,12,500 D. $1,45,000

Correct Option: B EXPLANATION Management is directly responsible for 85% of those factors influencing the quality of a product or $212,500. This leaves the employees with the responsibility for the remainder of the cost or $37,500.

Which of the following is NOT true regarding subdividing the work in the WBS? A. Subdivide until it has a meaningful conclusion B. Subdivide until it can be done by a single person C. Subdivide until it cannot be logically subdivided further D. Subdivide until it can be accurately estimated

Correct Option: B EXPLANATION Options (a), (c), and (d) are important properties to be considered while creating a WBS.

As a project manager, you need to manage the stakeholders for your project. What is NOT true for stakeholders? A. Individuals and organizations involved in the project are stakeholders B. Individuals and organizations that are not related to the project are stakeholders C. Individuals and organizations that are affected by the project are stakeholders D. Individuals and organizations that provide financing for the project are stakeholders

Correct Option: B EXPLANATION Stakeholders are individuals or organizations that are involved in or affected by the project outcome.

Which of the following are addressed by the project managers? A. Long-range/strategic planning (5 years or more) B. Intermediate-range planning (1 to 5 years) C. Ongoing - indefinite D. Repetitive

Correct Option: B EXPLANATION The Project Managers address intermediate-range planning (1-5 years) and short-range/tactical planning (1 year or less). Since only intermediate range is provided as an option, B is the correct answer.

Given a project which reports a CPI less than 1, you have asked one of your managers to generate the TCPI. Which formula should the project manager use in this case? A. ( BAC - EV ) / ( BAC - AC ) B. ( BAC - EV ) / ( EAC - AC ) C. EV / AC D. EV / PV

Correct Option: B EXPLANATION The correct answer is Option B. Option A is to be used when the project is within budget. In this case, the CPI value is less than 1, so the project is not within budget. Option B is to be used when the project is over budget, which is the case here. So, it is the correct formula to use. Options C and D are not TCPI formulas. They are the CPI and SPI calculations and thus are not the correct choice.

A film making project has just come to an end and the movie is released. Which of the following is the MOST relevant metric to evaluate the success or failure of the project? A. Schedule variance B. Revenue from ticket sales during the first 3 weeks C. Cost variance D. Amount of time correcting editing errors

Correct Option: B EXPLANATION The most relevant metric in this case is ticket sales, as that is the ultimate validation of customer satisfaction.

During the project lifecycle, a Project Manager can change the schedule baseline ONLY through: A. Customer-defined change in the schedule B. Formally approved change through the change control process C. Corrective action based on Performance Report D. Project showing high deviation from the baseline

Correct Option: B EXPLANATION The schedule baseline can only be changed after it is formally approved by the stakeholders and executed through the change control process.

A step-by-step instruction guide on how to complete work or procedure is called: A. Work Breakdown Structure B. Work Instruction C. Baseline D. Control Account Identifie

Correct Option: B EXPLANATION Work instructions are step-by-step instructions for the accomplishment of a task by one person and are retained in the department or unit where the work is performed. Work instructions are often referred to as desk procedures, task outlines, or standard operating procedures (SOPs).

How is the precedence diagramming model (also called activity on node) different from activity on arrow? A. Activity on Node uses only Finish to start activity dependency B. There is no difference C. Activity on Node uses all four types of activity dependencies D. Activity on Node uses Dummy Activities

Correct Option: C EXPLANATION All of the other options listed are characteristics of "activity on arrow" network diagrams.

When work on the first phase of the project is finished, what should the project manager ensure as part of closing before beginning the next phase? A. Define the project objectives for the next phase B. Identify the stakeholders for the next phase C. Ensure that there has been formal acceptance of the deliverables of the first phase D. Perform a kick off meeting for the next phase

Correct Option: C EXPLANATION As part of the closing of the first phase, the project manager must ensure that there has been formal acceptance of the deliverables of the first phase. Thereafter, only the project manager can initiate activities for the next phase.

During which specific process does the project manager prevent scope changes from overwhelming the project? A. Define Scope B. Validate Scope C. Control Scope D. Perform Integrated Change Control

Correct Option: C EXPLANATION Control Scope is the process of monitoring the status of the project and product scope, maintaining control over the project by preventing overwhelming scope change requests, and managing changes to the scope baseline. It also assures that underlying causes of all requested changes and recommended corrective actions are understood and processed through the Integrated Change Control Process

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? A. Benchmarking B. Statistical Sampling C. Design of Experiments D. Qualitative risk analysis

Correct Option: C EXPLANATION Design of experiments is the technique of finding the optimum combination of factors that help achieve a certain target objective.

Which of the following types of power is considered best when leading a team? A. Reward B. Penalty C. Expert D. Formal

Correct Option: C EXPLANATION Expert power is the ideal type of power to lead a team.

Which of the following is a tool and technique for the Determine budget process? A. Monte Carlo analysis B. Delphi technique C. Funding Limit Reconciliation D. Parametric estimation

Correct Option: C EXPLANATION Funding limit reconciliation is one of the techniques used in the Determine budget process. See Page 253 of the PMBOK® Guide - Sixth Edition.

When is the best time to do scope verification? A. During administrative closure of the project B. At the beginning of the project C. At the end of each phase of the project D. At the end of the project

Correct Option: C EXPLANATION If you think that Option A could be the right answer, please note that you should verify the product scope at the end of the project.

In Abraham Maslow's Hierarchy of Needs, accomplishment, respect, attention, and appreciation are represented as: A. Physiological B. Self-actualization C. Esteem D. Social

Correct Option: C EXPLANATION In Abraham Maslow's Hierarchy of Needs, accomplishment, respect, attention, and appreciation are represented as esteem.

Which of the following activities is part of initiating? A. Conduct procurement B. Acquire project team C. Inform stakeholders of the approved project charter in order to ensure common understanding of the key deliverables, milestones, and their roles and responsibilities. D. Create WBS

Correct Option: C EXPLANATION 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.

Which of the following is NOT a tool and technique of the Perform Qualitative Risk Analysis process? A. Risk probability and impact assessment B. Probability and impact matrix C. Expected monetary value analysis D. Risk data quality assessment

Correct Option: C EXPLANATION Perform Qualitative Risk Analysis is the process of prioritizing risks by assessing and combining their probability of occurrence and impact on the project if they occur. This fast, relatively easy to perform, and cost effective process ensures that the right emphasis is on the right risk areas as per their ranking and priority and helps to allocate adequate time and resources for them. Even though numbers are used for the rating in Perform Qualitative Risk Analysis, it is a subjective evaluation and should be performed throughout the project. Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of overall project objectives of identified risks. It mostly performs numerical analysis using a modeling technique such as expected monetary value (EMV) of the probability and impact of risks moved forward from the Perform Qualitative Risk Analysis process.

You are using a large number of subcontractors on your project. When you inspect the attendance register, you notice a lot of irregularities in time-in and time-out. Your project is within cost and time budgets, and your team leads claim that such irregularities would not impact the project. However, you see this as a potential risk. Where do you record this? A. Risk Register B. To do List C. Watch list D. Trigger List

Correct Option: C EXPLANATION Potential problems that have not yet become risks are listed on the watch list. The watch list is regularly monitored to ensure that if any of the listed issues become risks, they are handled using the project risk management processes.

Risks can be divided into two basic types: business risk and pure or insurable risk. Of the following, which one falls under business risk? A. Personnel Loss B. Machine Breakdown Loss C. Profit Loss D. Property Value Depreciation

Correct Option: C EXPLANATION Profit loss is always considered a business risk.

Which of the following processes documents configuration management activities in a project? A. Collect requirement B. Define scope C. Plan scope management D. Validate scope

Correct Option: C EXPLANATION Requirements and configuration managements activities are documented as a part of the requirements management plan, which is an output of the Plan Scope Management process.

Trend analysis is often performed using: A. Fishbone diagram B. Design of Experiments C. Run Chart D. Pareto Chart

Correct Option: C EXPLANATION Run charts (often known as line graphs) display process performance over time. They help to spot and analyze upward and downward trends, cycles, and large aberrations in the project performance over time.

As a Project Manager, you have called for a risk review meeting. While going through the risk register, you found out that there is a risk that cannot be avoided or transferred and the impact or probability cannot be mitigated. What would you do? A. This is a residual risk. Look for another set of response strategies B. Re-calculate Risk Probability * Impact Value C. Just wait for risk to occur as you have already implemented all of the risk response strategies D. This is a secondary risk and secondary priority for you

Correct Option: C EXPLANATION Since you have already implemented all of the risk management strategies, you can just wait for risk to occur. If it occurs, follow your contingency plan.

Multiple classification models are available to prioritize the key stakeholders and to ensure efficient use of effort to communicate and manage their expectations. One such model is the Salience Model. Which of the following parameters is NOT considered by this model? A. Power B. Urgency C. Influence D. Legitimacy

Correct Option: C EXPLANATION The Salience Model is a multiple classification model that describes classes of stakeholders based on their power, urgency, and legitimacy. Influence is a key parameter used in the Power/Influence grid and Influence/Impact grid. For more information on this process, refer to Page No: 513 of PMBOK® Guide - Sixth Edition.

The decision to close a project is taken during which process group? A. Planning B. Executing C. Controlling D. Closing

Correct Option: C EXPLANATION The decision to close a project (normal or abnormal termination) is taken during the controlling processes.

You are in the process of implementing approved changes, corrective actions, preventive actions, and defect repairs on a project. Which process group are you in? A. Initiation B. Planning C. Executing D. Monitor and Control

Correct Option: C EXPLANATION The executing process group involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance to the project management plan.

A project is plagued by changes to the project charter. Who has the primary responsibility to decide if these changes are necessary? A. Project Manager B. Project Team C. Project Sponsor D. Stakeholder

Correct Option: C EXPLANATION The project sponsor has the primary responsibility of deciding the changes that need to be made to the project charter.

The duration of an activity has the following estimates - optimistic: 25 days, most likely: 48 days, and pessimistic: 65 days. Which of the following is the time estimate of this activity based on the beta distribution? A. 43 days B. 49 days C. 47 days D. 48 days

Correct Option: C EXPLANATION The time estimate required according to PERT is: [(P+O)+(4*M)]/6 = [(65+25)+(48*4)]/6 = 47 days.

A project manager wants to capture the details of the activities he will be doing to enhance the value of the process. This includes process objectives, inputs, outputs, interfaces with other processes, and process metrics. Which of the following documents would be MOST helpful? A. Project Management Plan B. Quality Management Plan C. Process Improvement Plan D. Product Management Plan

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

Herzberg divided motivation factors into two classes: satisfiers and dissatisfiers. Examples of satisfiers are: A. Vacation time B. Work satisfaction, fringe benefit C. Plush offices space, performance-based salary raise D. Sense of personal achievement, work satisfaction

Correct Option: D EXPLANATION A sense of personal achievement and work satisfaction are examples of Herzberg's satisfiers.

To acquire and manage the project team, which of the following plan or documents should be referred to? A. Human Resource management plan B. Procurement management plan C. Project charter D. Human Resource management plan and Procurement management plan

Correct Option: D EXPLANATION According to the new examination content outline, a human resource management plan should be considered in addition to the procurement management plan.

Your team is working on the installation and configuration of a database server. A project manager from another project called you to inform you that he is waiting for the completion of the server setup as his team will also be using the server for their testing. You were not aware of this and inform the project manager that the server installation and configuration will be delayed by a few days. What kind of dependency does the other project have on your project? A. Discretionary dependency B. Mandatory dependency C. Internal dependency D. External dependency

Correct Option: D EXPLANATION An external dependency is related to a non-project activity and is considered outside the control of the project team. This is an example of external dependency since the other project manager does not have control over the completion of the server setup but the project has a dependency on it.

Which of the following statements is correct? A. Develop risk management plan by considering uncertainty B. Develop risk management plan by considering opportunity C. Develop risk management plan by considering project manager's wish D. Develop risk management plan by considering uncertainty and opportunity

Correct Option: D EXPLANATION As per the new examination content outline, risk management plan should consider opportunities as well.

Which of the following is NOT a cost estimation tool or technique? A. Parametric B. Bottom-Up C. Analogous D. Cost Aggregation

Correct Option: D EXPLANATION Cost Aggregation is a cost budgeting tool. The other three options are cost estimation tools.

Which of the following determines if a project idea is realistic? A. Matrix study B. Demand study C. Case project study D. Feasibility study

Correct Option: D EXPLANATION Feasibility study determines if a project is realistic or not.

One of the team members informs you that she has identified a design defect that will delay the project by two weeks. You check the risk register and realize that no response plan for this situation had been documented. What action should you take FIRST? A. Replace the team member who made the mistake in design B. Call the customer immediately and inform them about the situation C. Contact the sponsor for advice D. Evaluate the impact and brainstorm options with the team members

Correct Option: D EXPLANATION In this kind of situation, you should always find out details of the design defect before you have a discussion with the sponsor or the customer. The very first thing you should do is to evaluate the impact of the design defect and have a brainstorming session with the team members on possible solutions.

Which of the following is NOT an input to the process manage stakeholder expectations? A. Stakeholder Register B. Project Management Plan C. Issue Log D. Negotiation Skills

Correct Option: D EXPLANATION Negotiation skills are part of management skills. This technique is not used in the process to manage stakeholder expectations.

A project team, during the project execution, has identified new risks as an action item from the risk audit findings. Which part of the risk management process are they in? A. Identify Risks Process B. Perform Qualitative Risks Analysis C. Plan Risk Response Process D. Control Risks Process

Correct Option: D EXPLANATION New risks can be identified during the risk identification and monitor and control risk processes. Since these new risks are the result of a risk audit, the project is using the monitor and control process rather than the planning process.

You are aware that filtering happens while the message is communicated between sender and receiver. What is NOT considered as one of the causes of filtering? A. Semantics B. Language C. Culture D. Distance

Correct Option: D EXPLANATION Of all the stated options, distance is not considered as one of the causes for filtering.

Midway through the project, as a Manager, you are performing Earned Value Methodology to report performance. Based on your calculations, you realize that the initial plan is no longer valid. However, you still need to provide an EAC. What is the best course of action? A. Calculate EAC as EAC = BAC / CPI B. Calculate EAC as EAC = AC + BAC - EV C. Calculate EAC as EAC = AC + (BAC - EV/(CPI * SPI ) D. Calculate EAC as EAC = AC + Bottom-up Estimate

Correct Option: D EXPLANATION Option A is to be used if past CPI is expected to continue. Option B is to be used if future work is going to be performed at the planned rate. Option C is to be used if both CPI and SPI influence remaining work. Option D is to be used when the initial plan is no longer valid, which is the case here.

A senior scientist is informing the laboratory technicians about a new project which will be starting soon, along with the type of work that the lab personnel will be expected to do. Which of the following is NOT a barrier under communication management that could hinder the lab personnel's ability to convey the information? A. Language and semantics B. Organizational culture and values C. Intelligence and knowledge base D. Relative distance of the lab to the scientist's office

Correct Option: D EXPLANATION Options A, B and C, "language and semantics," "organizational culture and values," and "intelligence and knowledge base" are barriers to effective communication and can be considered as factors that lead to filtering. Option D, "relative distance of the lab to the scientist's office," is not a barrier to communication.

As a project manager of a large product, you and your team have shipped the deliverables to your customer. However, the customer has reported a number of serious issues in the quality of deliverables. As a result of this, the cost of quality of your project is deemed high. In the above scenario, which type of cost would have caused the cost of quality to increase? A. Less Rework B. Higher productivity C. Lower costs D. Increased stakeholder satisfaction

Correct Option: D EXPLANATION Options A, B, and C are benefits of meeting Quality Requirements. The question states what has contributed to increased cost of Quality. As the stakeholder is not satisfied with the deliverables, there is rework involved. There is an impact on productivity and increase in cost. It also decreases stakeholder satisfaction. So, amongst the choices, option D is the correct option.

You and your team are in the process of creating WBS and WBS Dictionary. What would be the best choice of attributes in a WBS Dictionary? A. Work Package ID and Work Package Description B. Work Package ID, Control Account ID, and Work Package Description C. Work Package Description D. Work Package ID, Control Account ID, Work Package Description, Acceptance Criteria, Responsible Organization, Cost, Assumptions

Correct Option: D EXPLANATION Options A, B, and C each provide great details of what a WBS Dictionary should contain. So, they all seem like the right choices. However, the question asks about the BEST choice of attributes in a WBS Dictionary, which is provided in Option D. Note that the WBS and WBS Dictionary are corelated by WBS Name and Work Package ID

You have asked your team members to provide estimates of tasks. You see that a specific team member has provided estimates on the higher side. You discuss the matter with the team member, and get a reply that as the team member did not have an idea of how long it would take, the team member had guessed the estimate and then to be on the safer side simply doubled it. What is this known as? A. Lead B. Lag C. Free Float D. Pad

Correct Option: D EXPLANATION Pad is adding time as a buffer to project estimate. As the team member was uncertain of what it would take and, as stated, to be on the safer side she simply doubled the estimate. Padding is a sign of poor Project Management.

Your company has just bagged a project for electric cable layout and routing for a large shopping complex, and you have been tasked with providing the cost estimates. You choose to rely on your past experience of similar such projects. You breakdown the costs of the cables per foot and unit cost of cable trays. What type of cost estimating technique are you relying on? A. Analogous cost estimate B. Top-down cost estimate C. Bottom-up cost estimate D. Parametric estimates

Correct Option: D EXPLANATION Parametric estimates is the correct choice. This is so because we have derived the cost per unit, cost of cables per feet, etc. Based on the unit cost, parametric estimates are used to determine an estimate of the total cost.

Archival of the documents and materials has to happen according to which element? A. Communication management plan B. Quality management plan C. Project charter D. Generally accepted practices

Correct Option: D EXPLANATION Per the new examination content outline, archival of the documents and materials should happen according to the generally accepted practices.

Which of the following needs is at the lowest level of Maslow's hierarchy? A. Self actualization B. Esteem C. Social D. Safety

Correct Option: D EXPLANATION Physiological needs is at the lowest level of the hierarchy. Among the given choices, safety is at the lowest tier.

As a Project Manager, you present your cost estimate to the Project Sponsor. The sponsor asks you to cut the cost by 10%. What should you do? A. Replace the originally planned resources with new resources at lower rates B. Strongly say "No" to the Sponsor and walk out of the project C. Ask all team members to reduce the cost of their activities by 10% D. Cut some of the project activities and inform the Sponsor

Correct Option: D EXPLANATION Play with triple constraint by cutting down the scope of work and obtain sponsor approval.

The Project Quality Management process must __________. A. Address the quality of the management and product B. Improve project management and the quality of the product C. Ensure that the project satisfies customer requirements D. All of the above

Correct Option: D EXPLANATION Project Quality Management addresses both the management of the project and the product. It improves project management as well as the quality of the product. It ensures that the project will satisfy customer requirements.

Your team has delivered phase one of a project to the client. Based on client feedback and issues found by the client, you decide to do some introspection to identify root causes so that the subsequent deliverables do not face the same issues. What techniques would you choose to apply? A. Perform Quality Audits B. Review Activity Network Diagrams C. Lookup Process decision program charts D. Process Analysis

Correct Option: D EXPLANATION Quality Audits are meant to ascertain if the project activities conform to the policies and procedures, so it is not the correct answer. Activity Network diagrams are used for scheduling, while Process decision program charts are used to anticipate intermediate steps. The correct answer is Process Analysis, which is used to identify a problem and its cause and develop preventive actions.

You are a Project Manager in a leading manufacturing company, and you are managing a critical project for the company. Your project is facing severe cost constraints, and you cannot delay the delivery date of the product. After consulting stakeholders and the customers, you decide to lower both the quality and grade of the product. The decision to lower the quality and grade of the product is _______. A. Wrong, as grade and quality should never be compromised in a product. B. Wrong, as grade can be compromised but not quality C. Wrong, as quality can be compromised but not grade D. Correct, as both grade and quality can be compromised according to project need

Correct Option: D EXPLANATION Recall triple constraints and real life project constraints. Though it is not advised to compromise on quality and grade, the Project Manager and team are responsible for managing the tradeoff in quality and grade of the delivered product in specific scenarios. This should be approved by the customer and stakeholders.

You have recently attended a talk at your local PMI® chapter on project closure. One of your colleagues wants your counsel to figure out the element that is not a closure activity. What would be your answer? A. Project archives B. Project closure C. Lessons learnt D. Rework

Correct Option: D EXPLANATION Rework is the least likely answer. Rework would happen throughout the project whenever a defect is detected. The rest of the options are associated with project closure.

You are trying to identify and categorize as many potential risks as possible in the mission critical project that you are overseeing. Which of the following will NOT help you with your effort? A. Delphi technique B. Brainstorming C. SWOT analysis D. Risk register

Correct Option: D EXPLANATION SWOT analysis and information gathering techniques such as brainstorming and Delphi technique are used in the Identify Risks process in order to identify and categorize potential risks in the project. Risk register is an output of the Identify risks process.

You are in charge of a project to build a bridge across a river. You are midway through the project. However, due to changes in environmental laws, the project can no longer proceed and would need to be terminated. Executive management has asked you to document the level of work completed for the project. In which of the following processes would this be done? A. Project Closure B. Contract closure C. Project charter D. Scope Verification

Correct Option: D EXPLANATION Scope verification is performed not only while a project is being executed but it is also performed when a project is terminated. It is used to determine the level of completion.

Which of the following is NOT an enterprise or environmental factor that can influence, direct, and manage project work? A. Stakeholder risk tolerance B. Organizational culture and structure C. Project Management Information System (PMIS) D. Standardized guidelines and work instructions

Correct Option: D EXPLANATION Standardized guidelines and work instructions' is a part of Organizational Process Assets. Refer to PMBOK® Guide - Sixth Edition 'Project Integration Management' page 93.

You are a Project Manager of a software project that has finished the design stage and is moving to the implementation stage. At the end of the design phase, you got the document reviewed and you tracked and closed the defect logs. Also, as part of the design stage review and kick-off for the implementation phase, you checked current SPI and CPI and revisited the risks. What did you forget to do? A. Identify new risks for the next stage and update risk register B. Take corrective and preventive actions from design review so that defects can be minimized C. Conduct an impact analysis of the defects found during the design review D. Communicate project stage review findings to all the stakeholders

Correct Option: D EXPLANATION The Project Manager needs to communicate project progress to stakeholders at all the major milestones. Option (a) would have been addressed during revisiting the risk as part of kick off meeting, whereas Options (b) and (c) are not mandatory activities and may not be required in every project.

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? A. The contract is legally binding and cannot be changed once signed B. The Project Manager should inform the seller about the change in the next meeting C. The Project Manager should inform the seller about the change through a formal written communication D. The Project Manager should proceed with Contract Change Control System at his end

Correct Option: D EXPLANATION The Project Manager should proceed with Contract Change control System at his end.

You are in charge of building a bridge across a river. All the initial groundwork and structural designs have been completed and work is in progress. You know that the next two months will be particularly critical involving some critical activities such as Arc welding of stiffener plates. You know your company employs welders who specialize in this kind of work. However, you are apprehensive about their availability for the next two months. What should you refer to first to find if these welders are available for the next two months? A. Milestone List B. Pareto Chart C. Histograms D. Resource Calendars

Correct Option: D EXPLANATION The correct answer is Resource Calendars. These provide information regarding availability of resources and also the duration of their availability. So, referring to these documents would be the first course of action.

You, as a project manager, are in the process of midway review at the end of the first year of a $50K project. The earned value analysis shows that the PV is $25K, the EV is $20K, and the AC is $15K. What can be determined from these figures? A. The project is behind schedule and over budget. B. The project is ahead of schedule and under budget. C. The project is ahead of schedule and over budget. D. The project is behind schedule and under budget.

Correct Option: D EXPLANATION The data provided in this question is :-BAC=$50K, EV=$20K, PV=$25K, AC=$15K. SV = (EV-PV)=$20K-$25K=--$5K. CV = (EV-AC)=$20K-$15K=$5K. Looking at the data, it is evident that the project is behind schedule and is also under budget.

Which of the following is NOT true about the human resource plan created by the Project Manager during the planning process group? A. Defines the roles and responsibilities of the project team members B. Includes an effective project organization structure C. Provides guidance about how resources will be utilized and managed D. Defines the work breakdown structure

Correct Option: D EXPLANATION The human resource plan defines the roles and responsibilities of the project team members to create an effective project organization structure and provide guidance regarding how resources will be utilized and managed. A work breakdown structure is created by deconstructing the scope, and not by the human resource plan.

A Project Manager is allocating the overall cost estimates to individual activities to establish a baseline for measuring project performance. What process is the Project Manager performing? A. Cost Estimation B. Cost Management C. Cost Control D. Cost Budgeting

Correct Option: D EXPLANATION The project Manager is performing the Cost Budgeting process.

You recently took over a project from a senior project manager who just left the company. You realize that several team members are lacking critical skills to carry out the project activities. The previous manager also mentioned that many of the team members will need specialized training. Which of the following actions should you take next to identify the appropriate training for the team members? A. Refer to the PMBOK' Guide B. Review the WBS and WBS dictionary C. Analyze the responsibility assignment matrix D. Refer to the staffing management plan

Correct Option: D EXPLANATION To identify the appropriate training for the team members, you should refer to the staffing management plan as it identifies the training needs and certification requirements of the team members.

Which of the following is NOT an obstacle to effective delegation of authority? A. Unwillingness of the manager to delegate authority B. Fear of competition C. Lack of confidence in subordinates D. Unwillingness of the subordinate to delegate authority

Correct Option: D EXPLANATION Unwillingness of the subordinate to delegate authority is not an obstacle to effective delegation of authority.

Which of the following statements is NOT true regarding WBS? A. Provides a graphical picture of the hierarchy of the project B. Identifies all the work that needs to be performed C. Helps estimate costs and schedule D. Helps identify dependencies

Correct Option: D EXPLANATION WBS does not help identify dependencies.

You are currently working on a web development project to develop a new user interface for a legacy mainframe banking application. You are under a time and material contract to develop a web-based interface for this application. You have finished the work 20 hours earlier than expected. This means the profit of your company will decrease. What should you do? A. Bill the customer for the expected amount as this is allowed by the provisions of your contract B. Tell the customer you'll be adding additional requirements to the project in order to meet profit estimates C. Add activities to the project to increase the number of billable hours D. Inform the customer that your project is complete

Correct Option: D EXPLANATION You should truthfully inform the customer that you have completed the project.

Which of the following is NOT a possible use of historical records? A. Establish organizational performance benchmarks B. Document best practices that were discovered during the project C. Use in closure reports of subsequent projects D. Document potential pitfalls that future projects can avoid

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

What is the purpose of a fishbone diagram? A. Illustrates how various factors might be linked to potential problems or effects B. Determines if a process is in control C. Shows trends in a process over time D. Shows the pattern of relationship between two variables

Correct Option: A EXPLANATION A fishbone diagram is used to illustrate how various factors might be linked to potential problems or effects.

An activity has an Early Start (ES) of 5 days and Late Start (LS) of 16 days. What is the activity's float? A. 11 days B. 21 days C. 5 days D. 16 days

Correct Option: A EXPLANATION Activity float = Late Start - Early Start = 16-5 = 11 days

A Project Manager is concerned about team building on her project. One of the mandatory things that the project manager must have for good team building is: A. Commitment from top-level management B. Co-location of team members C. Establishment of clear negotiated goals D. Open discussion of poor individual performance

Correct Option: A EXPLANATION For team building, it is essential that there is support from top-level management.

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? A. Statistical sampling B. Regression testing C. Automated testing D. Stability testing

Correct Option: A EXPLANATION In case the test is likely to prove destructive, it s typically performed on a sample.

According to the Utility Theory, what are the dimensions on the X and Y axis? A. X-axis denotes money at stake and y-axis denotes utility B. X-axis denotes utility and y-axis denotes money at stake C. X-axis denotes performance and y-axis denotes money at stake D. X-axis denotes money at stake and y-axis denotes performance

Correct Option: A EXPLANATION In the Utility Theory, the X-axis denotes money at stake and y-axis denotes utility.

A communications management plan is a subsidiary of the project management plan that can be formal or informal, highly detailed, or broadly framed. It is based on the needs of the project. It should include all of the following EXCEPT: A. Project communication B. Stakeholder communication requirements C. Method, time frame, and frequency for the distribution of required information D. Glossary of common terms

Correct Option: A EXPLANATION Project communication is an output of the Manage Communications process. All other items listed are included in the communications management plan.

Which of the following is an example of the cost of conformance? A. Quality Training B. Cost of Rework C. Warranty cost D. Scrap

Correct Option: A EXPLANATION Quality training helps to increase productivity, so it is listed as a cost of conformance.

Top-down estimating is also called _______ estimating. A. Analogous B. Primary C. Organizational D. Simple

Correct Option: A EXPLANATION Top-down estimating is also called analogous estimating.

James, a Project Manager, has been advised to use a Pareto chart for his project. How can a Pareto chart help James? A. To identify whether Process is in control or not B. To focus his attention on critical issues C. To identify the root cause of a Problem D. To determine the correlation between two variables

Correct Option: B EXPLANATION A Pareto chart helps identify a few critical issues that have the maximum impact on the project. Option A refers to a control chart, and option C refers to a fishbone diagram. Option D refers to the scatter diagram.

Which of the following is NOT true about Monte Carlo Simulation? A. It is a way to represent and analyze risk and uncertainty B. It is impractical for large models C. Latin hypercube sampling is a variant of Monte Carlo simulation D. The uncertainty in key input quantities is represented as a probability distribution

Correct Option: B EXPLANATION A common misconception about Monte Carlo simulation is that the computational effort is combinatorial (exponential) in the number of uncertain inputs, thus making it impractical for large models.

Which of the following can be used to manage and store all documents, correspondence, and communication relevant to a contract? A. Lessons learned B. Records management system C. Audit reports D. Procurement documents

Correct Option: B EXPLANATION A records management system can include indexing, archiving, and retrieval systems to capture and store all documents, correspondence, and communication relevant to a contract. For some projects, every record, such as emails, payments, and written and verbal communication is recorded and stored.

You are the project manager of a marketing project and need to purchase some equipment. The accounting department needs a unilateral contract from you. To which of the following is the Accounting department referring? A. Legal Binding Contract B. Purchase Order C. Statement of Work D. WBS

Correct Option: B EXPLANATION A unilateral contract is simply a purchase order.

You are in the initial stages of a project and your sponsor asks for a cost estimate. You find a similar project was done in the past by the organization and compare it with your current project. You also get the opinions of experts to derive the estimate. Which method was used to derive the estimates? A. Expert judgment B. Analogous estimate C. Parametric estimate D. Bottom-Up estimate

Correct Option: B EXPLANATION Analogous estimates are usually done in the initial stages of the project when limited information is known. They use historical information and expert judgment. Analogous cost estimating is generally less costly and time-consuming compared to other methods, but it is also less accurate.

A project has been delivered according to the contract by the project team; however, the customer is not happy. The customer feels that the deliverable has some serious defects and is far below expectations in terms of quality and functionality. What should the Project Manager do in this situation? A. Talk to the project sponsor to discuss the issue B. Proceed to project closure activity C. Discuss the issues with the customer and find ways to resolve them D. Brainstorm with technical experts, stakeholders, and team members to understand issues in the project

Correct Option: B EXPLANATION As the project has been delivered according to the contract, the Project Manager has already fulfilled his obligation, and he can move to project closure activity. A contract is a legal document; once signed, it represents a mutually binding agreement that obligates the seller to provide a specified product and the buyer to provide monetary compensation. In this case, the deliverable was according to the contract and there is no objective evidence to believe otherwise.

A project is reporting a negative Cost Variance. What does this mean? A. The project is under Budget B. The project is over Budget C. The project is running as per Budget D. None of the above

Correct Option: B EXPLANATION CV = (EV - AC). So, if the Cost Variance is in the negative, the Actual Cost is greater than the earned value, which means the project is running over budget.

A Project Manager is managing a project where there will be a number of persons working together. She wants to enhance the ability of the team to work together and perform as a team. One of the things she can do to enable this is: A. Cohabitation B. Co-location C. Staffing plan D. WBS

Correct Option: B EXPLANATION Co-location involves placing many or all of the most active project team members in the same physical location to enhance their ability to perform as a team.

Project performance reviews using earned value management would NOT typically incorporate information from: A. Variance Analysis B. Cost Benefit Analysis C. Trend Analysis D. Earned Value Technique

Correct Option: B EXPLANATION Cost benefit analysis is a technique that compares positive factors or benefits with negative ones to determine the net result of 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 - Sixth Edition Project Cost Management page 282 for more details.

You are managing a project with a total budget of $36,000 that will be finished in 1 year. You are at the end of the 6th month, and project is on schedule. However, the actual cost of the project is $20,000. What is the cost variance in the project? A. 2000 B. -2000 C. 16000 D. -6000

Correct Option: B EXPLANATION Cost variance = Earned Value (EV)- Actual Cost (AC). Here, Earned Value is assumed to be uniformly spread over the entire project duration. So, earned value at the 6th month = [(Total Cost)/ (Total Project months)] * Months completed; i.e., ( $36,000/12)*6 = $18,000. Cost Variance = $18,000-$20,000 = -$2,000.

Which of the following statements about critical path is TRUE? A. It is the shortest path from start to finish B. All the activities on the critical path do not have any float C. A project will have only one critical path D. A critical path takes into consideration logical as well as resource dependencies

Correct Option: B EXPLANATION 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.

Earned value management is the tool and technique of which process? A. Perform Integrated Change Control B. Control Costs C. Direct and Manage project work D. Control Schedule

Correct Option: B EXPLANATION Earned value management is a tool and technique of the Control Costs process. See page 261 of PMBOK® Guide - Sixth Edition

A Schedule Performance Index (SPI) of 0.67 means that" A. You are ahead of the Schedule by 33% B. You are progressing at only 67% of the rate originally planned C. You are progressing at only 37% of the rate originally planned D. You are behind the schedule by 33%

Correct Option: B EXPLANATION For more information on SPI, please refer to page 263 of PMBOK® Guide - Sixth Edition.

There are two basic types of warranties. What warranty type relates to "merchantability" or "fitness for particular purpose"? A. Express B. Implied C. Guarantee D. Selective

Correct Option: B EXPLANATION Implied represents merchantability or fitness for particular purpose.

A project manager is discussing the project management triangle and triple constraints with his team. What three constraints is he referring to in project management terminology? A. Cost, Schedule, Quality B. Cost, Schedule, Scope C. Cost, Scope, Customer Satisfaction D. Cost, Scope, Product

Correct Option: B EXPLANATION It is a well-known fact that projects need to be performed and delivered under certain constraints. Traditionally, these constraints have been listed as scope

How is a project lifecycle different from a product lifecycle? A. Project lifecycle talks about specific project management activities B. Project lifecycle is different for different industries C. Project lifecycle has no methodology D. Product lifecycle sees many products through their lifecycle

Correct Option: B EXPLANATION Option C is wrong as a product lifecycle sees many projects through their lifecycle. Option D is also wrong. A project management plan has various project activities.

Rearranging resources so that the same number of resources work on the project each month is also called: A. Fast Tracking B. Leveling C. Crashing D. Floating

Correct Option: B EXPLANATION Since you are making sure that the same number of resources work on the project each month, you are doing resource leveling.

John is a new Project Manager who has joined an existing powerhouse project midway through project execution. He wants to understand the use of creating a "lessons learned" database. What would you tell him? A. This should be done is order to be formally relieved from the Project B. It serves as historical record for future projects C. This should be done as it's a company policy D. The Project Manager can show this as his accomplishment

Correct Option: B EXPLANATION The "lessons learned" database serves as a historical record for future projects.

A request, demand, or assertion of rights by a seller against a buyer for consideration, compensation, or payment under a legally binding contract, such as a disputed change, is often referred to as a: A. Trial B. Claim C. Refinement D. Audit

Correct Option: B EXPLANATION The above statement is the definition of a claim. Please read the PMBOK® Guide - Sixth Edition Glossary, Page No. 700.

A customer is well known for making a lot of changes to an ongoing project. You have been assigned as the Project Manager for a new project from this customer. What would you do in the beginning of the project to manage this customer? A. Send a copy of your company change control procedure B. Involve the customer as early as possible on the project C. Strictly say "No" to the customer a few times D. Inform your manager about the customer's past record

Correct Option: B EXPLANATION The best way to handle this scenario is to involve the customer as early in the project as possible. Many stakeholders may create problems because of ignorance, so involving them early in the project makes them aware of the project benefits.

Which of the following is NOT true about the initiating process group? A. Large projects may divide the projects into phases B. The project team members are committed C. Initial scope and financial resources are committed D. Internal and external stakeholders are identified

Correct Option: B EXPLANATION The entire project team is usually not available during initiation.

Of the following baselines, which is not a part of the Project Management Plan? A. Scope Baseline B. Quality Baseline C. Cost Baseline D. Schedule Baseline

Correct Option: B EXPLANATION The project management plan contains the following baselines: Scope, Schedule, and Cost. In fact, there is no such baseline as a Quality Baseline.

Which of the following is NOT a technique used in "Acquire Project Team" process? A. Pre-assignment B. Delphi technique C. Negotiation D. Virtual teams

Correct Option: B EXPLANATION The tools and techniques for the "Acquire resources" can be found on Page 328 of PMBOK® Guide - Sixth Edition.

For the company review meeting, you have to prepare graphical charts to show the project performance trends. Which two charts will help you to do that? A. Pareto chart and control chart B. Control chart and run chart C. Gantt chart and control chart D. Histogram and run chart

Correct Option: B EXPLANATION These would be ideal as the project performance has to be presented. The control chart maps the trend or run of the processes on one side of the mean. The run chart is a line graph that shows data points plotted in the order in which they occur and show trends in variation, decline, or improvement in the process over time. Pareto diagrams will not be the ideal choice as they are specific types of histogram which are ordered by frequency. This holds that a relatively smaller number of causes will typically produce a majority of the problems or defects.

Jenny is an assistant to the senior Project Manager. She has been asked to calculate the value of EAC (Estimate At Completion) using the Budget At Completion (BAC) value. Assist her in finding the correct formula. A. Multiply by CPI B. Divide by CPI C. Multiply by SPI D. Divide by SPI

Correct Option: B EXPLANATION This is straight from the earned value formulas. CPI is Cost Performance Index and SPI is Schedule Performance Index.

In order to determine the details of the work to be performed in work packages, which of the following can be used? A. WBS B. WBS Dictionary C. Control Account D. Work Packages

Correct Option: B EXPLANATION WBS Dictionary provides details such as description of work to be done for each work package, any schedule milestones, and statement of work. It is also used to prevent scope creep.

One of the projects that you were managing was recently canceled due to a change in marketplace conditions. What is your best course of action in this situation? A. Renegotiate with the higher management to continue the project B. Gather lesson learned C. Complete the project deliverables D. No action is needed since the project was canceled

Correct Option: B EXPLANATION You should make sure to gather lessons learned so that future projects can benefit. There is no reason to renegotiate with the higher management at this time. The project manager should document the number of completed and pending deliverables when the project is canceled.

Which of the following tools is a graphical representation of a process that helps analyze how problems occur and also identifies potential process improvement opportunities? A. Benchmarking B. Root cause analysis C. Flow chart D. Design of experiments

Correct Option: C EXPLANATION A flow chart helps the project team anticipate and identify where quality problem might occur in a project, which in turn helps the team develop alternatives when dealing with quality problem.

A project with a CPI Index of 0.96 indicates: A. The project has cost overrun and will not complete within budget B. The project has cost underrun with respect to performance to date C. The project has cost overrun for work completed so far D. The project has schedule overrun

Correct Option: C EXPLANATION CPI and SPI are always indicative of current status of performance. We can't confidently state that project will not finish within budget if current CPI is less than 1.

You have to catch a flight to submit a tender document for a strategic project for your company. You are running late for the flight, but there is a possibility that you can speed up and catch the flight. What would you do? A. Ask your Manager for guidance B. Speak to customer to postpone the last date of bid submission C. Don't speed because it's dangerous and against the law D. Speed up and catch the flight

Correct Option: C EXPLANATION Don't speed because it's dangerous and against the law. PMI® is against violating any applicable law, including traffic laws.

You are a vendor and are discussing project closure with your customer. All of the following would be outputs of closing a project EXCEPT: A. Correspondences B. Contract changes C. Enterprise environmental factor updates D. Payment requests

Correct Option: C EXPLANATION Enterprise environmental factor updates is the least suitable option. You would probably look at enterprise environmental factor updates within your organization and not involve the customer.

Which of the following is NOT an input to the close project or phase process? A. Organizational process assets B. Project Management Plan C. Expert Judgment D. Accepted deliverables

Correct Option: C EXPLANATION Expert judgment is a technique for this process, and not an input.

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? A. Project Manager B. Union representatives C. Project Officer who works for XYZ D. Team Managers

Correct Option: C EXPLANATION Since the Project Officer who works for XYZ is the sponsor, he is responsible for approving and signing the charter.

Standard deviation is a measure of : A. How far the estimate is from the lowest estimate B. How far the estimate is from the highest estimate C. How far the measurement is from the mean D. How good the sample data is

Correct Option: C EXPLANATION Standard deviation is the measure of how far the measurement is from the mean.

As a Project Manager, you have to recommend one among the projects A, B, C, and D. Which one would be the BEST option? Here, NPV is Net Present Value. A. Project A: NPV $50,000 to be completed in 3 years B. Project B: NPV $40,000 to be completed in 2 years C. Project C: NPV $70,000 to be completed in 9 years D. Project A: NPV $60,000 to be completed in 1 year

Correct Option: C EXPLANATION The project with the highest NPV should be selected. The information on the number of years to complete the project is irrelevant because it has already been considered while calculating NPV. NPV is defined as the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project.

What is the MOST important thing that a project manager should ensure during the "Validate scope" process? A. Accuracy B. Timeliness C. Acceptance D. Completeness

Correct Option: C EXPLANATION Validate Scope involves formal acceptance of the work deliverables.

Functions such as training the group, setting standards, maintaining discipline, and appointing sub-leaders may be called: A. Task functions B. Individual functions C. Team functions D. Work functions

Correct Option: C EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

Which of the following is not a technique to plan procurements? A. Make or Buy Analysis B. Market Research C. Expert Judgement D. Bidder Conference

Correct Option: D EXPLANATION A bidder conference is a technique to conduct procurements. The other three are techniques to plan procurements.

You just started working on a contract, but the senior management of your organization decides to terminate the contract. What should you do? A. Follow the "Develop Project Charter" Process to start a new Project B. Follow the "Plan Procurement" Process and look for another vendor C. Follow the "Develop Project Management Plan" to re-plan the Project D. Follow the "Close Contract Process" to formally close the Contract

Correct Option: D EXPLANATION A contract is either terminated or it's completed because the scope of work is completed. In either case, the contract closure process needs to be followed to ensure that you have historical information about the contract.

During the closing phase, feedback should be collected from: A. Sponsor B. Customer C. Team D. Relevant stakeholders

Correct Option: D EXPLANATION According to the new examination content outline, feedback should be collected from the relevant stakeholders.

A customer asked you to work on a contract scope of work for 6 months and come back to him when the work has been completed. As a Project Manager of the vendor organization, what should you do? A. Complete the work and also keep a written record that the customer has asked you not to contact him B. Ask your senior management to check if the customer is genuine C. Meet the customer at the end of six months with deliverables D. Complete the work as requested, but keep verifying the scope with the customer

Correct Option: D EXPLANATION Although the customer has requested not to be contacted, you should keep verifying what you are doing to ensure there is no gap in understanding the requirements.

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? A. Overlapping relationship B. Sequential relationship C. Multi-phase relationship D. Iterative relationship

Correct Option: D EXPLANATION 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.

One of your colleagues is not clear about what should be looked at during project closure. Which of the following would NOT be relevant to look at? A. Performance measurement documentation B. Product documentation C. Project archives D. Project plans for the next project

Correct Option: D EXPLANATION Closure for the current project does not involve looking at subsequent projects. All other aspects are relevant. Performance measurements will show if there is any variance. Product documentation needs to be handed over to the customer. Project archives will show up if any necessary documents or activities are missing.

You have a team spread across five countries. What is the best communication method to follow? A. Formal Verbal B. Informal Verbal C. Informal Written D. Formal Written

Correct Option: D EXPLANATION Communication is a big issue. If the team members are geographically distributed, it's a good practice to use formal written communication. Project Managers should spend 90% of their time in communication.

Your Program Manager asks you to reduce the project duration. You look at the network diagram and start identifying the activities that can possibly happen in parallel. Which technique are you using? A. WBS B. Crashing C. Flow Charting D. Fast Tracking

Correct Option: D EXPLANATION Fast tracking is the process of replacing the serial relationship of activities with a parallel relationship in order to reduce the project duration. This is one of the schedule network analysis techniques.

As a Project Manager, you delivered a new product to your customer, but the very next day, you got a call from the customer saying that some of the features that were expected were not present in the new product release. What is the first thing that you should do? A. Call for a team meeting and discuss the customer's concerns B. Ask your team members to immediately start building the missing features C. Review Project Contract and Identify the Possible Problem D. Request a meeting with the customer and try to understand what features were not present in the product

Correct Option: D EXPLANATION In questions of this sort, you need to follow the basic principle of first getting clarity on what the problem is. In this case, the customer is talking about some missing features. As a first step, you should try to understand what is missing.

You have received many complaints from your customers indicating that the screens of laptop manufactured at your plant are getting many black spots and marks after six months of use. Which of the following tools should your team members use to identify potential causes of this problem? A. Flow chart B. Statistical sampling C. Design of experiments D. Ishikawa diagram

Correct Option: D EXPLANATION Ishikawa diagram is a tool used for systematically identifying and presenting all the possible causes and sub-causes of a particular problem in a graphical format. It can help in quality control by identifying the causes that contribute to a quality problem.

Which of the following statements is NOT true about project life cycle? A. An iterative life cycle builds the concept in successive levels of details in order to create the end result B. An incremental life cycle delivers a complete, useable portion of the product in each iteration C. An adaptive life cycle defines the fixed scope, schedule, and cost with the clear understanding that these will be refined and adjusted as the project progresses D. Iterative, incremental, and adaptive are different types of a plan-driven project life cycle

Correct Option: D EXPLANATION Iterative, incremental, and adaptive are different types of change-driven project life cycle.

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? A. Reduce a test cycle in the system testing phase B. Reduce scope by cutting down non-essential features C. Add more resources to expedite the schedule D. Revisit estimates and eliminate risks and then re-estimate

Correct Option: D EXPLANATION 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.

Which of the following factors is NOT part of Maslow's Hierarchy of Needs? A. Physiological Needs B. Social Needs C. Security Needs D. Material Needs

Correct Option: D EXPLANATION Per Maslow's Hierarchy of Needs, there are five different levels of human needs: Physiological Needs, Security Needs, Social Needs, Esteem Needs, and Self-actualizing Needs.

Which statements describe the relationship between the project phases and the project lifecycle? A. The project lifecycle contains the iterative incremental elements of a project phase B. The project lifecycle contains the repetitive elements of a project phase C. The project lifecycle is regarded as a sequence of project activities, while phases are defined to control the overlapping of activities D. Collectively, the project phases are known as the project lifecycle

Correct Option: D EXPLANATION Phases are divisions within a project where extra control is needed to effectively manage the completion of a major project deliverable. The high-level nature of project phases makes them an element of the project lifecycle. For more information, please refer to PMBOK® Guide - Sixth Edition Page No. 547.

During the audit, you realize that many of the risks were not identified during the planning stage, so you decide to reassess project risks. Which process are you in? A. Identify Risks B. Plan Risk Management C. Perform Quantitative Risk Analysis D. Monitor Risks

Correct Option: D EXPLANATION You can identify new risks during both risk identification and risk monitoring processes. Since these new risks are an outcome of risk assessment, risk audit, and periodic risk review, it is part of "monitor risks" process. Refer PMBOK® Guide - Sixth Edition Project Risk Management, page 453.

Which of the following is a simple representation of a decision problem that offers an intuitive way to identify and display essential elements such as decisions, uncertainties, objectives, and how they influence each other? A. Mind tree B. EMV tree C. Intuitive tree D. Influence diagrams

Correct Option: D EXPLANATION You can see such questions in the PMI® exam. These questions are included in the PMI® exam to judge the difficulty level.

3 sigma is equal to: A. 99.73% B. 99.99% C. 95.46% D. 68.26%

Correct Option: A EXPLANATION 3 Sigma is equal to 99.73%.

You have just delivered a product to your client for acceptance when you get a call that some features they were expecting are missing. What is the first thing you should do? A. Get your team together and reprimand them for building a product that does not meet user expectations B. Tell the client that the product passed all of your internal quality inspections and scope verification processes, so it must be fine C. Tell the team to start building the missing features into the product right away D. Call a meeting with the client to understand exactly what is unacceptable in the product and try to figure out what went wrong along the way

Correct Option: D EXPLANATION You should meet with the client to get a better understanding of what went wrong and why the product is not meeting their needs.

You are the project manager of a software project. Your team member wants to make technical changes to an activity, which will add more time to that activity. What should you do? A. Check if the activity is on critical path B. Allow team members to change the activity C. Report to senior management D. Ignore change in activities

Correct Option: A EXPLANATION "Check if the activity is on critical path" is the best option.

Which of the following is the MOST appropriate statement to describe a Project Management Office? A. It is the center of excellence for project management in an organization B. It is a group of people working on project management activities for a project C. PMO provides administrative support to Project Managers in an organization D. It is a council that includes all the Project Managers in an organization

Correct Option: A EXPLANATION A PMO is supposed to be the center of excellence for project management in an organization.

A project should be terminated for all of the following reasons EXCEPT: A. lack of team synergy B. the project no longer meets the company's objectives C. the resources are not available to complete project activities D. project funding has been significantly reduced

Correct Option: A EXPLANATION All of the mentioned options can be reasons for project termination, but not lack of team synergy.

Which of the following BEST describes when you perform the monitor and control project work process? A. Continuously throughout the project B. As soon as every deliverable is completed C. At scheduled milestones or intervals during the project D. At the end of every project phase

Correct Option: A EXPLANATION As a project manager, you need to constantly monitor the project for changes and take the appropriate action whenever you make a change.

The process of comparing actual or planned project practices of a project with those of other projects to generate improvement ideas and a basis for performance measurement is called: A. Benchmarking B. Design of Experiments C. Prototyping D. Quality Assurance

Correct Option: A EXPLANATION Benchmarking is the process of comparing one's business processes and performance metrics including cost, cycle time, productivity, or quality with another industry where similar processes exist. This benchmarking provides a snapshot of the performance of your business and helps you understand where you are in relation to a standard.

At the close of your project, you measure the customer satisfaction and find that some customer needs were not fully met. Your supervisor asks you the steps you will take during your next project to improve customer satisfaction. Which subsidiary plan would you consult to determine this information? A. Quality management plan B. Communications management plan C. Staffing management plan D. Risk management plan

Correct Option: A EXPLANATION Customer satisfaction is about making sure that the people who are paying for the end product are happy with it. Customer satisfaction is an important part of modern quality management.

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? A. Yes, because 50,000 > 21,000 B. Yes, because 50,000 > 30,000 C. No, because 30,000 < 500,000 D. No, because 21,000 < 50,000

Correct Option: A EXPLANATION 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.

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? A. Initiating B. Planning C. Executing D. Closing

Correct Option: A EXPLANATION 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

ITPro Consultancy, LLC, an Internet service provider (ISP), is planning to establish its own network infrastructure. The company figured out that it would cost around $180,000 to establish its own network using in-house resources. Once the network is established, there will be a recursive cost of $4,000/month for operational and maintenance activities. An experienced vendor has offered to set up the infrastructure for a license fee of ten dollars per user. ITPro will have two thousand users using the network per month. It will also need to pay a junior accountant $2,000/month to manage the billing. How many more months will ITPro have to use the infrastructure after establishing the network using in-house resources rather than hiring the vendor? A. Ten months B. Nine months C. Twenty months D. Fifteen months

Correct Option: A EXPLANATION Let n equal the number of months when both options' cost will be the same ((2000*10) + 2000) n = 180,000 + 4000n Or (20,000+2,000) n=180,000+4000n Or 22,000n=180,000 + 4000 n Or 18,000 n= 180,000 Or n = 180,000/18,000 Or n= 10 Let n equal the number of months when both options' cost will be the same ((2000*10) + 2000) n = 180,000 + 4000n Or (20,000+2,000) n=180,000+4000n Or 22,000n=180,000 + 4000 n Or 18,000 n= 180,000 Or n = 180,000/18,000 Or n= 10

According to Maslow's hierarchy of needs, what comes at the BOTTOM of the pyramid? A. Physiological B. Social C. Esteem D. Self Actualization

Correct Option: A EXPLANATION Maslow and other theorists might be referenced on the PMP exam and it is important to get familiar with them. Maslow's hierarchy of needs is displayed as a pyramid and displays the five levels of human need from bottom to top. These needs include Physiological, Safety, Social, Esteem, and Self Actualization.

In the project environment, there are four general categories of communication: formal written, informal written, formal verbal, and informal verbal. Which of the following is NOT an example of a formal written communication? A. To do list written on the whiteboard B. Changes to the project management plan C. Time sheet submitted by the team members D. Leave application due to ill health

Correct Option: A EXPLANATION Of all the listed options, "to do list written on the whiteboard" is not a formal written communication.

Which of the following statements is correct regarding the kickoff meeting? A. Kickoff meeting is conducted not only to inform but also to engage and gain commitment from stakeholders B. Just to get the commitment C. Just to inform D. Just to inform and engage stakeholders

Correct Option: A EXPLANATION Per the new examination content outline, kickoff meeting is conducted to communicate the start of the project, the key milestones, and other information to inform and engage stakeholders and gain their commitment.

Your organization is having a severe cash flow problem, and you were asked to minimize the cost in your small project as much as possible. Which of the following processes may you consider eliminating in such a scenario? A. Perform Quantitative Risk analysis B. Monitor risks C. Identify risks D Plan risk management

Correct Option: A EXPLANATION Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of overall project objectives of identified risks. It mostly performs a numerical analysis of the probability and impact of risks moved forward from the Perform Quantitative Risk Analysis process. A small project with limited budget may consider skipping this process if management decides that quantitative statements about risk and impact are not needed.

You have been hired by a contractor who wants you to manage a construction project for one of his clients. The project team has been working on this for six weeks. You need to determine whether the team is ahead of or behind schedule. Which of the following techniques is the BEST to use? A. Performance measurement B. Schedule change control system C. Bottom-up estimating D. Project management software

Correct Option: A EXPLANATION Performance measurement is what you're doing when you look at the work that the team is performing in order to determine whether the project is ahead of or behind schedule.

You are a project manager in your organization. Joe, a trainee, wants to know when a project manager needs to be assigned to a project. What would be your BEST answer? A. During the initiation stage B. During the Planning stage C. When the stakeholders approve the budget D. After the project is proven feasible

Correct Option: A EXPLANATION Project Managers are assigned during the initiation process of the project. This is the best answer choice.

Which of the following is a source of information about specific project constraints and assumptions based on the current environment, historical record, and expert judgment? A. Project Charter B. Communication Management Plan C. Risk Management Plan D. Project Scope Management Plan

Correct Option: A EXPLANATION Project constraints, assumptions, and high level risks are listed in the project charter based on the current environment, historical data, and/or expert judgment. This will help the project manager identify the project limitations and propose an implementation approach. The project scope management plan details how the project scope will be managed, such as how changes to the project scope will be dealt with.

Conformance to specifications document is a description of: A. Quality B. Scope C. Integration D. None of the above

Correct Option: A EXPLANATION Quality on a project means that you are conforming to a standard that is set before you start the project.

Your most recent project status report contains the following information: EV = 3,000, AC = 3,500, and PV = 4,000. The schedule performance index is: A. 0.75 B. 1.33 C. 0.83 D. 1.17

Correct Option: A EXPLANATION SPI = EV/PV = 3000/4000 = 0.75

The project schedule should be measured against _______ to recommend corrective and preventive actions. A. Schedule Baseline B. Work Performance Measurement C. Earned Value Technique D. Variance Analysis

Correct Option: A EXPLANATION Schedule baseline is an important and effective yardstick that acts as a benchmark to determine project status. Meeting schedule baseline is one of the measures of project success.

Skills such as Performance appraisal, recruitment, retention, regulatory issues, and labor relations are considered under _______ area. A. Administrative B. Project Management C. Accounting D. General Management

Correct Option: A EXPLANATION Skills such as performance appraisal, recruitment, retention, regulatory issues, and labor relations fall under administration rather than management.

Your company worked on a new video console game for several months and invested a large amount of money in the development of the game. Unfortunately, the game was a flop as one of the competitors also launched a similar but more sophisticated and higher-quality game at the same time your company launched its game. The cost for research and development, patents, manpower, equipment, and intellectual property that your company spent on the development of the game is referred to as: A. Sunk cost B. Opportunity cost C. Depreciation D. Law of diminishing returns

Correct Option: A EXPLANATION Sunk cost is a retrospective cost that is already paid in a project and is often used to describe what is written off from a canceled project as unrecoverable.

Team development would be MOST difficult in a _______ organization. A. Weak Matrix B. Projectized C. Tight Matrix D. Balance Matrix

Correct Option: A EXPLANATION Team development is most difficult in a weak matrix organization because the power to manage resources lies with the functional manager, and the Project Manager has limited authority. Please refer to table 2-1 Organizational Influences on Projects PMBOK® Guide - Sixth Edition, page 47.

A CEO from his Paris office wishes to communicate with the technical officer in China. What would be the correct procedure? A. The CEO will encode the message from French to Chinese, and the technical officer will decode it from Chinese to French B. The CEO will decode the message from French to Chinese, and the technical staff will encode it from Chinese to French C. The CEO will encode the message from Chinese to French, and the technical staff will decode it from French to Chinese D. The CEO will decode the message from French to Chinese, and the technical staff will encode it from French to Chinese

Correct Option: A EXPLANATION The CEO will encode the message from French to Chinese, and the technical officer will decode it from Chinese to French. Each message is encoded by the sender and decoded by the receiver based on the receiver's education, language, experience, and culture. For more information, refer to Communication models, page 373, PMBOK® Guide - Sixth Edition.

A Project Manager is trying to successfully complete a project, but her role in the organization is limited and she has no control over project budget. Although she has some power to authorize decisions, she needs to seek approval on most of the major decisions. Also, her team members work only part-time on the project. The Project Manager is in a _______ organization. A. Functional B. Projectized C. Composite D. Strong Matrix

Correct Option: A EXPLANATION The Project Manager has limited authority and no control on project budget. Also, her team members are not allocated full time to project work. Therefore, it can be deduced that the Project Manager is working in a functional organization structure.

Which hierarchical chart shows resources? A. RBS B. OBS C. WBS D. Scope statement

Correct Option: A EXPLANATION The Resource Breakdown Structure shows various resources, both human and mechanical, needed for the project.

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? A. Push to create and approve the charter B. Start with the team ramp-up and planning C. Ask some other Project Manager to take over the project D. Start the critical activities

Correct Option: A EXPLANATION The charter is important because it formally authorizes a project. The Project Manager must do whatever possible to get the charter issued.

Which of the following is the correct formula for calculating the present value of a business or organization? Note: R = interest rate, n = time periods A. Present Value = Future Value/(1+R)^n B. Present Value = Future Value/(1-R) C. Present Value = Future Value (1+R) D. Present Value = Future Value (1-R)^n

Correct Option: A EXPLANATION The correct formula for calculating present value is Present Value = Future Value/(1+R)^n

You have been assigned to identify the key stakeholders for an internal project that has recently been formally approved. Which of the following is your starting point? A. Project charter B. Business case C. Statement document D. Procurement document

Correct Option: A EXPLANATION The project charter is the initial document that describes the scope, Project Manager assignment, business case, expectations, and assumptions and constraints. It would be the first document that describes the project.

You are managing a large diversified project team. In the initial days of the project, the team members behaved like independent individuals and seemed reserved, learning about their roles and responsibilities. Then, as the team began to work on the project and participate in technical decisions, their trust level grew. The team members now support each other's needs and work together. According to you, which stage of team development is the team in? A. Norming B. Performing C. Forming D. Adjourning

Correct Option: A EXPLANATION The stage at which team members begin to work together and adjust work habits and behavior to support the team and develop trust is the Norming stage. There are five stages of team development: Forming, Storming, Norming, Performing, and Adjourning. Please refer to PMBOK® Guide - Sixth Edition Project Resource Management, page 338.

The major type of standard warranty that is used in the business environment is: A. Express and Implied B. Normal and Extended C. Default and Customized D. Formal and Informal

Correct Option: A EXPLANATION The two types of warranties are express and implied. Express involves an actual promise specifically stated or expressed in a contract or an agreement. Implied means the terms of the warranty are created by the law regardless of the words of the parties in the contract or the agreement.

A project manager is mainly responsible for the coordination of activities, resources, equipment, and information on the project. His authority is limited, and he has to negotiate with the functional manager to get suitable resources for his project. In which organization is the project manager probably working? A. Weak Matrix B. Balanced Matrix C. Strong Matrix D. Composite Matrix

Correct Option: A EXPLANATION This role is a description of a project expeditor or a project coordinator, where the project manager's role is more of a communicator or staff assistant with limited authority and no control over project budget. He negotiates with the functional manager to gets resources for his project.

Which of the following is true regarding scope baselines for high technology R and D projects where creativity cannot be planned? A. They need to be developed as much as possible B. Do not plan C. Depends on assumption D. Cannot be developed

Correct Option: A EXPLANATION Though R and D projects involve creativity, they cannot be planned properly and need to be progressively elaborated until they reach a stage where scope baselines can be defined to a near perfect level.

While identifying risks in your project, your team cannot find an efficient way to reduce the impact and probability or to insure against one of the risks. The relevant work is integral to the project; thus, you cannot simply remove the work package. There is no suitable company to outsource the work to either. What is the best course of action in this situation? A. Identify ways to transfer the risk B. Accept the risk and have contingency reserves C. Identify ways to avoid the risk D. Keep looking for ways to mitigate the probability and impact of the risk

Correct Option: A EXPLANATION Transferring risk may increase costs but will assist in moving the risk from the primary to another group or entity, lowering the overall risk exposure.

Your management asked you to study the work method to determine a faster, less costly, and more efficient method to complete the project. This is an example of: A. Value engineering B. Resource leveling C. Schedule compression D. Learning curve

Correct Option: A EXPLANATION Value engineering is mainly focused on finding a less costly way to do the same work and on achieving more out of the project in every possible way to increase the bottom line, decrease costs, improve quality, and optimize the schedule without reducing impacting the scope.

Comparing target dates with the actual or forecast start and finish dates is called: A. Variance Analysis B. Earned Value C. Progress Reporting D. Crashing

Correct Option: A EXPLANATION Variance Analysis: Comparing target dates with the actual or forecast start and finish dates.

A Project Manager is in the process of obtaining formal acceptance of the completed project deliverables through inspection, reviews, audits, and walkthroughs. Which process of project management is the Project Manager in? A. Create WBS B. Validate Scope C. Quality Assurance D. Quality Control

Correct Option: B EXPLANATION "Validate Scope" is the process of formalizing acceptance of the completed project deliverables. It includes reviewing deliverables with the customer or sponsor to ensure that they are completed satisfactorily and obtaining formal acceptance. On the other hand, inspection during quality control is more focused on ensuring conformance to documented standards. Quality control usually precedes project scope verification and sometimes occurs simultaneously.

You are the project manager and decided to outsource a part of the project to a vendor. The vendor discovered some issues that impact the cost and schedule of its work. How does the vendor update the agreement? A. A new contract needs to be signed by your company and the vendor B. A contract addendum needs to be signed by your company and the vendor C. An SOW needs to be signed by you and the vendor D. None of the above

Correct Option: B EXPLANATION A contract addendum needs to be signed by your company and the vendor.

A process with lack of consistency and predictability is called: A. In control B. Out of control C. Bad quality D. Quality noise

Correct Option: B EXPLANATION A process with lack of consistency and predictability is called out of control.

Which of the following is NOT a project? A. Campaigning for an election B. Family Weekend drives to sea coast C. Writing an autobiography about project management experience D. Preparing for PMP® examinations

Correct Option: B EXPLANATION A project is a temporary endeavor undertaken to create a unique product, service, or result. Family weekend drive is an ongoing activity and is not a project.

A project manager is using a chart that cross-references team members with the activities or work packages they are to accomplish. Which of the following is an example of this kind of chart? A. Gantt chart B. RACI chart C. Milestone chart D. Flowchart

Correct Option: B EXPLANATION A responsibility assignment matrix (RAM) chart cross-references team members with the activities or work packages they are to accomplish. One example of a RAM is a RACI (responsible, accountable, consult, and inform) chart, which can be used to ensure clear divisions of roles and responsibilities.

Brad is the Project Manager of a new data migration project. He is supposed to release his project WBS. In order to create his WBS, Brad goes to the organization process database and looks at the WBS of a completed data migration project. He uses that as a starting point to create his own WBS. Which of the following tools and techniques of creating WBS process is he using? A. Template B. Decomposition C. Brainstorming D. Delphi Technique

Correct Option: B EXPLANATION Brad is using the technique of Decomposition

During which procurement process is contract negotiation done? A. Close Procurements B. Conduct Procurements C. Plan Procurements D. Control Procurements

Correct Option: B EXPLANATION Contract negotiation to select the seller is done as a part of the conduct procurements process.

You are a Project Manager and are in the closing process of the project. Your customer has been presented with a formal acceptance and sign-off document. They refuse to sign, claiming that the product does not meet their expectations. You know that this situation could have been prevented by doing all of the following, EXCEPT: A. Requesting sign-off at important milestones B. Documenting the customer's refusal to sign C. Documenting the requirements D. Performing quality inspections during the process

Correct Option: B EXPLANATION Documenting the requirements, performing inspections, and requesting acceptance and sign-off at important milestones are all acceptable ways to assure customer satisfaction.

You are currently in the Monitoring and Controlling Project Work process of a networking project to implement a Wi-Fi network in a rural community. Which of the following tasks will you perform as a part of this process? A. Mange the project's vendors closely B. Compare the plan to the actual performance C. Collect requirements from the stakeholders D. Produce the deliverables of the project

Correct Option: B EXPLANATION During Monitoring and Controlling process, the Project Manager compares actual versus planned performance to determine variances and metrics of performance for the effort.

As part of 'Manage Communications' in Communication Management, which of the following analysis or information would be most relevant to a sponsor or senior management of the project? A. Work Performance Index B. Earned Value Management C. Estimate to Complete D. Exception Report

Correct Option: B EXPLANATION Earned Value management methodology integrates scope, schedule, and resources to objectively measure project performance and progress and would be most useful for sponsors and senior management. Work Performance Index compares planned versus actual performance, while Estimate to Complete only talks about schedule, which would not be as informative as Earned Value management. Exception Report is a document that includes only major variations from the plan and is not relevant to the case.

Which of the following is NOT a purpose of the configuration management system? A. Ensure all the project team members have the latest version of the project document B. Ensure all the relevant changes are communicated to the stakeholders C. Maintain consistency of product's performance and its functional attributes D. It includes Configuration identification, Configuration status accounting, and Configuration verification and audit

Correct Option: B EXPLANATION Ensuring that all the relevant changes are communicated to the stakeholders is a part of communication management. All the other options are completed as part of the configuration management system. Refer to PMBOK® Guide - Sixth Edition Project Communications Management, page 359, and configuration management system, page 701.

A project manager managing a video project was informed by one the team members about a complex problem that can have a drastic negative impact on the project. The project manager immediately defined the cause of problem by analyzing the problem using a fishbone diagram, identified a solution, and implemented the solution. The project manager recently received a call from the same team member and was informed that the same problem resurfaced. What did the project manager most likely forget to do? A. Validate the solution to the sponsors B. Confirm that the solution solved the problem C. Use a Pareto chart D. Identify why the problem occurred

Correct Option: B EXPLANATION Even though the project manager spends a great deal of energy and time preventing problems, there are still problems that need to be resolved. Below is the problem-solving technique: - Define the cause of the problem (not just symptoms) - Analyze the problem (cause and effect diagram) - Identify solutions - Implement the selected solution - Review the solution

You are trying to address the limitations associated with a network diagram and are utilizing a modified network diagram that will allow feedback loops and conditional branches. Which method are you using? A. PERT B. GERT C. Precedence diagram D. Arrow diagram

Correct Option: B EXPLANATION GERT is a modified network diagram drawing method that allows conditional branches and loops between activities. For example, you may have two activities to design a software component and test it. Depending on the result of the testing, you may or may not redesign the component.

With respect to change, what is the most important activity for a Project Manager to focus on? A. Inform Project Sponsor about the change B. Prevent unnecessary change C. Track and record the change D. Implement the change

Correct Option: B EXPLANATION If you think that option D, "Implement the change," could also be the right answer, please note that the changes are actually done by the project team and not by the Project Manager.

The standard deviations for the four tasks on the critical path are 3, 5, 10, and 3. What is the standard deviation for the entire critical path? A. You cannot determine the standard deviation on critical path. B. 11.95 C. 5.8 D. 143

Correct Option: B EXPLANATION In order to calculate the standard deviation for the entire critical path, we need to take the square root of the sum of the squares of each tasks' standard deviation. This is explained mathematically by: (3^2)+(5^2)+(10^2)+(3^2) = 9+25+100+9=143. Taking the square root of 143 is 11.95.

You are the project manager for an international project which has more than 45 key stakeholders. Management has asked you to ensure that the project's completion cost should not be more than $34 million. You have to identify the key constraints of this globally important project. Which one of following will you identify? A. Internationalization constraint B. Budget constraint C. Management constraint D. Hard logic

Correct Option: B EXPLANATION It is the Budget constraint. This is an international project, but that is not a constraint (option A). Management constraint (option C) is not a used terminology in PMBOK Guide - Sixth Edition. Hard logic (option D) is used in for defining dependencies.

For your project, you sent a request to the procurements department for purchase of 1000 modems. A few days later, you are told that the PO has been issued in the favor of XYZ Inc. You inform Mandy, one of your friends who work for this organization, about this transaction. Per PMI is there a violation of professional responsibility? A. Yes; you have informed Mandy about the transaction. Therefore, there is violation of professional responsibility as confidential information has been leaked. B. No, you informed Mandy after the PO was issued. Therefore, there is no violation of professional responsibility because confidential information has not been leaked. C. Yes D. Can't say

Correct Option: B EXPLANATION No, you informed Mandy after the PO was issued. Therefore, there is no violation of professional responsibility as confidential information has not been leaked. Since the PO has already been issued and the transaction is public now, there is no confidential information being leaked. If the transaction had been shared prior to the issuance of the PO, then it would have been a violation of responsibility.

During the project execution, the status report shows that an activity on the critical path is delayed. As a Project Manager, what should you do? A. Deliver incomplete activity B. Compress the schedule C. Reduce the scope D. Stop the project execution

Correct Option: B EXPLANATION Of the options listed, compressing the schedule is the best option.

You are going to be the Project Manager for an LMS project, so you are looking for all possible information before the project initiation phase. Which is the best source of information for your project? A. Business plans B. Organizational process assets C. Work breakdown structure D. Project charter

Correct Option: B EXPLANATION Organizational process assets include any process related assets from all of the organizations involved in the project that can be used to influence the project's success.

Which of the following quality theorists advocated the popular iterative four-step approach of Plan-Do-Check-Act? A. Joseph Juran B. W. Edwards Deming C. Philips Crosby D. Genichi Taguchi

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

What are the end results of the Plan Quality Management process? A. Quality control measurements, validated changes, and change request B. Quality management plan, quality metrics, and process improvement plan C. Quality management plan, quality checklist, and quality control measurements D. Work performance information, quality management plan, and process improvement plan

Correct Option: B EXPLANATION Plan Quality Management is the process of identifying all the relevant quality requirements, specifications, and standards for the project and product and specifying how the specifications will be met. Quality management plan, quality metrics, and process improvement plan are the outputs of this process.

Which of the following is NOT part of the Control Quality process? A. Fishbone Diagram B. Quality Audits C. Pareto Diagram D. Histogram

Correct Option: B EXPLANATION Quality audits are part of the Perform Quality Assurance process.

Henry is a contract manager and is in the process of signing a contract with a vendor for the installation of computer servers. He is aware of the entire scope of work. Which contract type would he sign with the vendor? A. Cost Plus Fixed Fee B. Fixed Price C. Time and Material D. Cost Plus a Percentage of the Cost

Correct Option: B EXPLANATION Since the scope of the work is clear, Henry should go for a fixed price contract. Refer PMBOK® Guide - Sixth Edition, page 471 for different types of contracts.

Which of the following is NOT a technique to plan communication in the project? A. Communication Requirement Analysis B. Communication Management Plan C. Communication Methods D. Communication Technology

Correct Option: B EXPLANATION The communication management plan is an output of the "plan communication" process. Refer PMBOK® Guide - Sixth Edition, page 377.

A project manager wants to measure project performance against the project baseline. Which technique would be MOST helpful? A. Variance Analysis B. Earned Value Technique C. Work Performance Information D. Reserve Analysis

Correct Option: B EXPLANATION The earned value technique helps to measure project performance against the project baseline. It is a better method than simply comparing the plan with the actual as it integrates cost, time, and work completed. The earned value technique can also be used to forecast future project performance. Option (c) Work Performance Information is an output of control costs and not a technique. Option (a) Variance Analysis can be used to assess the magnitude of variation to the original baseline for just a single parameter.

As a project manager, you need to estimate the regression testing for your product. You would like to do 5 full testing cycles and each cycle is estimated to be 4 days long. What should be your estimated duration for the testing activity? A. 25 days B. 18 to 22 days C. 18 days D. 22 to 24 days

Correct Option: B EXPLANATION The estimated duration for 5 testing cycles of 4 days duration is 20 days, and the correct estimation range is 18 to 22 days.

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? A. 25 days B. 18 to 22 days C. 18 days D. 22 to 24 days

Correct Option: B EXPLANATION The estimated duration for 5 testing cycles of 4 days each is 20 days. The correct estimation range is 18 to 22 days.

Your project has just been approved by the management. The project stakeholders identify and develop the project charter. The information from the initiating phase acts as inputs to a process. Identify the process. A. Executing B. Planning C. Controlling D. All of the project phases

Correct Option: B EXPLANATION The initiating processes serve as direct inputs to the planning processes. Options (a), (c), and (d) are incorrect as initiating processes do not directly serve as an input to the executing, controlling, or closing processes.

You are responsible for managing a project that deals with laying out a freeway connecting two major port cities. Progress on the project has been smooth, and you and your team are very confident on completing the project well within the stipulated timelines. On reviewing, you see that the project has also run below the budget, resulting in savings. You decide to add an extra feature of reflector strips on the road every mile. You do a quick calculation and are satisfied that neither budget nor schedule will slip. You feel that by adding these extra features you could also bag some future projects. This is an example of: A. Scope Creep B. Gold Plating C. Integrated Change Control D. Fast Tracking

Correct Option: B EXPLANATION This is an example of Gold Plating. Integrated change control deals with formally approving or rejecting changes before they are implemented, so it is not the correct answer. Fast tracking is a schedule compression technique, so it too is not the correct answer. While Scope Creep is related to change in scope, it is related to uncontrolled changes in product or projects scope and is often due to client interference. Gold plating is done intentionally or knowingly for some strategic purpose. Here, the manager believes that by adding the extra features, future projects could be bagged.

Plan risk response focuses on: A. Identifying a comprehensive list of risks for the project B. Managing the contingency reserves C. Creating strategies to deal with the risks in a project D. Creating workarounds for unplanned risks

Correct Option: C EXPLANATION A Plan risk response generates a plan that the Project Manager will use to deal with the risks.

Which of the following is NOT a characteristic of a project? A. It is composed of interrelated activities B. It is temporary C. It is repeated every week D. It has a definite beginning and end

Correct Option: C EXPLANATION A project is a one-time endeavor with a definite start and end date. It is not generally repeated every week.

One of the subcontractors on your team explains how he faked his PMI® certificate and got onto the project team. As a certified Project Manager, what should you do? A. Advise him not to do this in future B. Do nothing, as he is now a friend C. Report the matter to PMI® D. Inform your manager about him

Correct Option: C EXPLANATION As a certified Project Manager, you are expected to be ethical. Since forging a PMP® certification is unethical, you should immediately inform PMI® about it.

Risk Breakdown Structure is an example of: A. Text-oriented format B. Functional chart C. Hierarchical representation of risks according to risk categories D. Matrix-based organization chart

Correct Option: C EXPLANATION As part of risk breakdown structure, all risks are placed in a hierarchical structure as they are identified, which makes your risk planning more efficient.

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? A. Informal Verbal B. Formal Verbal C. Formal Written D. Informal Written

Correct Option: C EXPLANATION As this is the second notice to the team member for poor performance, it should be communicated in a formal written manner.

A project has a CV of -$500 and SPI of 1.2. What can be said about the project? A. Your project is over budget and behind schedule B. Your project is under budget and behind schedule C. Your project is over budget and ahead of schedule D. Your project is under budget and ahead of schedule

Correct Option: C EXPLANATION CV < 0 indicates that the project over budget

You are in the final stages of determining your cost baseline for the project and funding requirements. Which process are you in? A. Cost planning B. Cost estimating C. Cost budgeting D. Cost control

Correct Option: C EXPLANATION Cost baseline and project funding requirements are outputs of determining budget. They are done as part of cost budgeting for the project. Please refer to Project Cost Management, PMBOK® Guide Sixth Edition, page 248.

Which of the following analyses integrates scope, cost and schedule measures to assess project performance? A. Trend analysis B. Project presentations and review C. Earned value analysis D. Variance analysis

Correct Option: C EXPLANATION Earned value analysis is used to integrate scope, cost, and schedule measures to assess project performance. Trend analysis and variance analyses are included in earned value analysis. Variance analysis may include only a comparison of actual performance with one specific baseline. Presentations may be used to deliver information obtained during earned value analysis.

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? A. Procurement documents B. Project Charter C. Expert Judgment D. Enterprise environmental factors

Correct Option: C EXPLANATION Expert judgment is a tool and technique for the "identify stakeholders" process and is not an input.

While managing an ERP project, you realize the targeted project end date will be delayed by several days. Upon further investigation, you identify some activities that can be performed in parallel. You also realize that you have not fully utilized some of your resources in the project. What will be the BEST course of action in this situation? A. Apply leads and lags B. Apply resource leveling C. Apply fast tracking and crashing D. Develop a new project schedule

Correct Option: C EXPLANATION Fast Tracking and Crashing a schedule are techniques used to evaluate the Critical Path and relationships between tasks to optimize a schedule.

A Project Manager wants to present project performance reports of his project. Which of the following formats should he use? A. Pareto Chart B. Responsibility Assignment Matrix C. Bar Chart D. Control Chart

Correct Option: C EXPLANATION Gantt chart is a type of bar chart that depicts progress in relation to time. It is often used in planning and tracking a project. Although it is a weak planning tool and does not help organize the project as effectively as a Work Breakdown Structure or network diagram, a Gantt chart is an effective tool for project progress reporting and control.

Earned value implementations can be scaled along the dimensions of granularity and frequency to achieve the degree of rigor required by the significance and the uncertainty of the project. Which of the following truly explains granularity? A. Risk Rigor relationship B. Time interval at which project performance is assessed C. Level of detail to which the project work scope is broken down using a WBS D. Total Budget

Correct Option: C EXPLANATION Granularity refers to the level of detail to which the project work scope is broken down using a WBS.

You are overseeing a project to implement a new computer infrastructure at the local hospital. You are finding it difficult to evaluate the exact cost impact of some risks identified in the project. In this kind of situation, you should consider evaluating on a _______. A. Numerical basis B. Quantitative basis C. Qualitative basis D. Forecast basis

Correct Option: C EXPLANATION If you cannot estimate the value of the impact, you can utilize qualitative estimates as low, medium, high, and others. Qualitative Risk Analysis is the process of prioritizing risk by assessing and combining their probability of occurrence and impact to the project if they occur. This fast, relatively easy to perform, and cost effective process ensures that the right emphasis is on the right risk areas as per their ranking and priority and helps to allocate adequate time and resources for them. Even though numbers are used for the rating in the Perform Qualitative Risk Analysis process, it is a subjective evaluation and should be performed throughout the project.

Which of the following CANNOT be considered an indicator of a team's effectiveness? A. Improvements in skills that allow the team to perform assignments more effectively B. Improvements in competency that help the team perform better C. Increased staff turnover rate D. Increase in team cohesiveness and trust

Correct Option: C EXPLANATION Increased staff turnover rate does not indicate improvement in team effectiveness as an effective team should definitely have lower attrition or staff turnover rates. As team members would feel more fulfilled with their role in the project, they would like to continue in the project longer.

Which of the following would NOT be part of cost of conformance? A. Prevention cost B. Appraisal cost C. Internal failure cost D. Cost of training

Correct Option: C EXPLANATION 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 - Sixth Edition, Project Quality Management, page 283 for more details.

What is the main purpose of the project charter? A. It contains the initial scope of work B. It contains the list of risks that need to be addressed C. It authorizes the Project Manager to use organization resources to execute the project D. It identifies the project sponsor who will pay for the project

Correct Option: C EXPLANATION It gives the Project Manager the authority to spend money and commit corporate resources to the project. In most project situations, the project team does not report to the Project Manager in the corporate structure. This reporting structure can lead to cooperation and performance issues. The project charter helps resolve these issues.

You are a project manager for a project in the execution stage. The current Schedule Performance Index (SPI) and Cost Performance Index (CPI) for the project are 1.2 and 1.1. The project performance is well within the baseline. The defects found during the internal testing for the last deliverable were well below organization limits. However, the customer does not seem to be happy with the project's progress. What should be the FIRST thing the Project Manager does? A. Start managing the project as you gain more insight into day-to-day responsibilities B. Meet with the project team to understand open issues in the project C. Conduct a meeting with the customer to understand his concern over the project's progress D. Improve the project schedule and cost control measure so that SPI and CPI reaches above 1.5

Correct Option: C EXPLANATION It is important for the project manager to understand why the customer is unhappy in spite of the project performance being well within the baseline. Option (a) would not address the main problem and option (d) has no valid justification. Option (b) could be a good option after talking to the customer to address his concerns and other issues on the project.

Which of the following statements regarding analogous estimation is INCORRECT? A. Activities need not be identified B. It is less expensive than other estimations C. It is the most accurate technique for estimation D. It requires considerable experience to do well

Correct Option: C EXPLANATION It is the most accurate technique for estimation. Bottom-up estimates give more accurate estimates because they are done at a later phase of the project when sufficient information is available. Analogous estimation is done in the initial stages of the project. Since it works with limited available information, option (a) also holds true. Also, analogous estimation is a form of expert judgment that relies on past data, so it requires considerable experience to do well (option d). Analogous estimation is quicker and requires less effort and cost.

A Project Manager has taken up a project midway and is going through project schedules and status reports. He realizes that the previous Project Manager has inaccurately calculated the project status and that the project would definitely miss the next milestone. What should the Project Manager do in this case? A. Call the previous Project Manager and ask him for an explanation B. Inform the customer and stakeholder about the impeding delay C. Look at the project schedule again to find alternatives to meet the schedule D. Wait for the next milestone date to arrive to report the delay

Correct Option: C EXPLANATION Looking at the project schedule again to find alternatives to meet the schedule is a positive and proactive approach that helps to minimize the impact of the problem.

A hospital is installing a new hospital management system to enable IT hospital functioning. For this purpose, representatives from several departments are selected to create a task force assigned to implement the project. What is this organization structure called? A. Functional Organization B. Projectized Organization C. Composite Organization D. Balanced Matrix Organization

Correct Option: C EXPLANATION Many times, even a fundamentally functional organization may create a special project team to handle a critical project. This may have many characteristics of a project team in a projectized organization. The team may include full-time staff from different functional departments, develop its own set of operating procedures, and operate outside the standard, formalized reporting structure.

Which of the following types of organizations would have the most complex communication management ? A. Functional Organization B. Projectized Organization C. Matrix Organization D. Ad hoc Organization

Correct Option: C EXPLANATION Matrix organization has a combination of both functional and projectile characteristics as project members are from across the organization. This makes the communication more complex and challenging as team members not only need to communicate within their project team but across different horizontal departments and vertical domains. Note: There is no word for ad hoc organization in the PMBOK® Guide - Sixth Edition.

As a project manager, you chair a weekly exchange of information meeting among team leaders. This is an example of communication that is: A. Internal, formal, and horizontal B. External, informal, and vertical C. Oral, internal, and informal D. Oral, external, and formal

Correct Option: C EXPLANATION Meeting with team leaders is oral, internal, and informal.

You are managing a project in which your team members are uncertain as to how much time will be needed for each activity. Which of the following techniques is considered the most useful in this case? A. Precedence Diagramming Method (PDM) B. Arrow Diagramming Method (ADM) C. Project Evaluation and Review Technique (PERT) D. Critical Path Method (CPM)

Correct Option: C EXPLANATION Project Evaluation and Review Technique (PERT) is the technique used for time measurement in case of uncertainties. Optimistic, pessimistic, and most likely are taken into consideration.

A Project Manager has just finished a Gantt (bar) chart representing the project schedule. Which of the following documents does NOT get updated? A. Activity Resource Requirement B. Risk Register C. Resource Leveling D. Calendar

Correct Option: C EXPLANATION Resource leveling is a technique and has no relationship with ®developing project schedule® activity. Resource leveling can also be used to balance the workload of primary resources over the course of the project, usually at the expense of one of the traditional triple constraints (time, cost, scope).

Which of the following is NOT a measure of the profitability of a project or program? A. Return on original investment B. Net present value C. Depreciation D. Discounted cash flow

Correct Option: C EXPLANATION Return on original investment, net present value, and discounted cash flow are measures of the profitability of a project or program. Depreciation is the loss of value of an asset due to its usage, so this is not a measure of the profitability of a project or program.

S Curve depicts a relationship between: A. Resource Availability and time B. Remaining budget and time C. Actual Cost, Planned Value, and Earned Value D. Cost and Quality

Correct Option: C EXPLANATION S curve shows a relationship between Actual Cost, Planned Value, and Earned Value.

A project manager learned that a corrective action was taken by a team member and was not documented. What should the project manager do FIRST? A. Report the violation to the functional manager B. Clarify the reasoning behind the team member's action C. Assess if the action should be documented D. Find out who caused the problem

Correct Option: C EXPLANATION Since the corrective action is not documented, the next step is to document. The Project Manager needs to assess if the action should be documented.

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? A. Training B. Recognition and Rewards C. Conflict Management D. Co-location

Correct Option: C EXPLANATION The Project Manager is in the process of developing teams. Apart from conflict management, all the other options are tools and techniques used in the process. Conflict management is part of "manage team." For more information, please refer to PMBOK® Guide - Sixth Edition Project Resource Management page 336

You are the Project Manager of a project that involves the launch a new model of a car. The car has to hit the market before the festival season. However, you received information that the workers are planning to go on a strike at the same time. You try to come up with a strategy to get the new model of the car launched despite the strike. This is an example of: A. Risk Mitigation B. Risk Transfer C. Risk Acceptance D. Risk Avoidance

Correct Option: C EXPLANATION The Project Manager knew about the workers' strike (the risk) and looked for a workaround. This is an example of accepting the risk and finding alternative options.

You have successfully completed a project. You have now been assigned a project which is midway in its execution. You have had to take up this project due to non-availability of the current project manager. This is a complex project involving multiple contractors and teams at various geographical locations. You decide to look up the requirements of the types of reports and frequency of sending them. Where would you find this information? A. Project Management Plan B. Scope Management Plan C. Communication Management Plan D. Stakeholder Analysis

Correct Option: C EXPLANATION The correct answer is Communication Management Plan. This Plan provides information such as frequency of communication, type of communication, and who is responsible for communication.

The procurement process can be a challenge if your vendors are not responsive to customer requests for information. Part of this procurement process might include a procurement audit. What is the objective of a procurement audit? A. To determine whether the vendor has been overcharging B. To expose errors of the vendor C. To identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project D. To get the best possible rates from the vendor

Correct Option: C EXPLANATION The objective of a procurement audit to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project.

In the project environment, the individual ultimately responsible for quality control is: A. The line workers who must strive "to do things right the first time" to avoid quality problems. B. The company's quality control manager who must work with the project members to ensure the quality control program is effective C. The project manager is ultimately responsible for quality control, as well as the project as a whole D. The customer must ensure that the vendor provides a quality product

Correct Option: C EXPLANATION The project manager is ultimately responsible for quality control, as well as the project as a whole. The Project Manager should ensure that the quality of the project meets expectations.

The release criteria include: A. The timing of the release of team members B. The method in which you will release them C. Both of the above are true D. None

Correct Option: C EXPLANATION The release criteria include both the timing of the release of team members and the method in which you will release them.

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? A. Project Manager B. Project Team C. Risk Owner D. Risk Manager

Correct Option: C EXPLANATION 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.

You and your team have done extensive brainstorming and discussions. You have also looked up the Organizational process assets and have come up with an exhaustive list of risks. You and your team members feel fairly confident now that you know all the risks. You decide to prioritize the risks and only focus on the high-priority ones. A team member indicates that a large number of risks have very low priority. She suggests you simply ignore them. You disagree and decide to maintain a list of such low-priority risks. Where will you maintain these low-priority risks? A. Risk Register B. Risk Management Plan C. Watch List D. Issue Log

Correct Option: C EXPLANATION The risks have been identified in the Risk register. Based on prioritization, risk priorities are also updated in the risk register. All risks that are deemed low on priority, though maintained in the Risk Register, are maintained in the Watch List specifically. The Risk Management Plan and the Issue Log are not meant to note or log risks. So, the correct answer is Watch List.

You have been assigned as a project manager to implement a new office automation application. Management asks you to make sure that the new application will work on existing infrastructure and can easily be integrated with other major application currently running in the organization. Which of the following is this an example of? A. Assumptions B. Project scope C. Constraint D. Expectation

Correct Option: C EXPLANATION This is an example of constraints. Constraints are limitations that limit the available options for a project.

You are executing a project. The customer asks for a change that's going to increase the schedule risk. What should you do first? A. Inform your manager about the customer's request B. Inform the customer that the project would get delayed C. Analyze the impact of the change with your team D. Go ahead and accept the change

Correct Option: C EXPLANATION This is the first thing that you should do. Unless you know the impact, you will not be sure about what to communicate to either your manager or the customer.

After a major milestone release, some of the key stakeholders are not happy and complain that their requirements are not met. To ensure their approval for the release, the project manager should have involved them in the process: A. Project Management Plan Development B. Identifying Constraints C. Validate Scope D. Schedule Management

Correct Option: C EXPLANATION Validate Scope is the process of formal acceptance of completed project scope and deliverables by stakeholders through signature on paper or via an email that specifically states project approval. Prior validation of scope would have avoided dissatisfaction of stakeholders after the milestone release. Although involving stakeholders from the development of project plan (option a) would have eliminated the root cause of the problem, completing scope verification with the stakeholder would have ensured their approval for the release.

You are working on a project when the customer calls to explain that he wants another feature added to the product. However, there is no additional budget for the new feature. What should you do? A. Ask your manager for guidance B. Inform the customer that he must provide additional funds for the new feature C. Follow the contract change control process D. Remove some other feature and add the new feature

Correct Option: C EXPLANATION Whenever there is a change, the right process is to follow change control. It is quite possible that you can remove the old feature and add the new feature at the same cost, but it should be done following the change control process.

Giving feedback and ensuring the continuous visibility of individual contributions promote: A. group process losses B. group composition C. group synchronization D. group learning

Correct Option: C EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

Your management has asked you to lead a team to negotiate and finalize a deal with one of the vendors. While negotiating, you will NOT be focused on: A. Developing a good understanding and relationship with the seller B. Obtaining a fair and reasonable price for the product, service, or result C. Obtaining the lowest possible price and commitment for the shortest project duration from the vendor D. Discovering and dealing with disputes as much as possible prior to signing the contract

Correct Option: C EXPLANATION You should always try to have a win-win situation. The lowest possible price and shortest possible duration will put the vendor in an extremely difficult situation and increase the potential for failure. Your main objective of negotiation will be to build trust, obtain a fair and reasonable price that both parties are comfortable with, and uncover the points of conflict and dispute prior to final contract signing.

One of your stakeholders is very disheartened about the fact that three of her key recommendations were not implemented in the project. She sends you an e-mail stating that she will not be able to review and approve the user test case document that you sent her as she thinks that her feedback does not matter much. What is your best course of action? A. Immediately implement her recommendations. B. Remove the stakeholder from the stakeholder register and avoid further communications. C. Explain to her that the recommendations were not implemented due to time and budget constraints, but the team will reassess them in the next release. D. Have an urgent meeting with the sponsor to discuss the next strategy.

Correct Option: C EXPLANATION You should proactively work with stakeholders to manage their expectations, address their concerns, and resolve issues.

You are overseeing a large construction project to build a power plant. Your company has purchased a big piece of land close to a mountain and far away from the city for the plant. One of your team members reported to you that while digging the ground they found some artifacts. Upon initial assessment, you realize these artifacts have some archaeological significance. What should you do in this kind of situation? A. Ask the team members to keep it a secret and collect all the artifacts for the benefit of the project. B. This kind of finding is a norm in construction projects; thus, ignore the finding and proceed with the project as per the plan. C. Proceed with the project as planned, but inform the higher management about the findings. D. Stop digging and call the archaeological department to quickly research the finding.

Correct Option: D EXPLANATION A project manager should understand the significance of this kind of findings and must consult the experts before proceeding further.

A project has been initiated, and the project manager is in the process of defining and documenting stakeholders' needs that are required to meet the project objectives. The project manager is very careful in performing this process as the project's success is directly influenced by the effort taken in capturing and managing project and product requirements. Which of the following is NOT a tool or technique in preparing the requirements documentation? A. Facilitated workshops B. Group decision making C. Prototypes D. A-beta technique

Correct Option: D EXPLANATION All of the above are tools and techniques for this process except A-beta technique.

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

Correct Option: D EXPLANATION An approved project charter formally initiates a project and authorizes a project manager to apply resources to the project. A project without a project charter is not a project. Considering this, a project sponsor should first develop a project charter. All the other options (a), (b), and (c) are not suitable until the new project is formally initiated.

You have been asked to provide Cost estimates for a project which would be responsible for the complete electrical installation in warehouses. As a project manager, you have had past experience in similar projects in your previous organization. The organization you have joined also has recently done a similar project. There is an urgency in providing the estimate as mandated by executive management. What estimation technique would you adopt? A. Ask your previous organization for the estimates B. Use Parametric Estimating technique C. Use Bottom-up Estimating D. Use Analogous Estimating

Correct Option: D EXPLANATION Analogous estimating relies on previous similar projects as the basis of estimation. So, it relies on historical information. This technique is used when there is limited amount of detailed information like during early phases of the project. It is less costly and less time-consuming. As time is a constraint as stated in the question, this is the best choice.

Your new project for constructing a dam is in the early planning stages. Customers ask you to give a high-level estimate of the total duration of the project as soon as possible. Which estimation technique would be most suitable? A. Parametric estimation B. Bottom-up estimation C. Three-point estimation D. Analogous estimation

Correct Option: D EXPLANATION Analogous estimation is used when there is a limited amount of detailed information available on the project. This process is less costly and time consuming than other techniques, but it is also less accurate. Analogous estimation is a form of expert judgment that is most reliable when information is available on previous similar projects.

What does the Kaizen theory state? A. Evaluate project performance on regular basis B. Bring the inventory cost to zero by making inputs available only when required C. Use a process of Plan-Do-Check-Act to improve quality D. Apply continuous small improvements to reduce costs and ensure consistency

Correct Option: D EXPLANATION Apply continuous small improvements to reduce costs and ensure consistency. Kaizen theory looks for uninterrupted, ongoing incremental change, and it states that there is always room for improvement.

Capture, analyze, and manage lessons learned using lessons learned management techniques to enable continuous improvement. To which process group does this task belong? A. Planning B. Closing C. Executing D. Monitoring and Controlling

Correct Option: D EXPLANATION As per the new examination content outline, this task has been added under Monitoring and Controlling.

Which of the following project(s) have the best burn rate? A. Project 1: EV is $130K and AC is $110K B. Project 2: AC is $130K and EV is $110K C. Project 3: EV is $110K and AC is $150K D. Project 4: AC is $110K and EV is $150K

Correct Option: D EXPLANATION CPI is evaluated as EV/AC. Using this formula, the burn rate for the different projects are: Project 1 - 1.18, Project 2 - 0.846, Project 3 - 0.73, and Project 4 - 1.36. We can see that Project 4 has the highest burn rate which indicates for every $1 of work being done, the value is $1.36.

During the execution of a project, the project manager is developing the project team to higher levels of competency and performance. Which of the following techniques is he working on? A. Mentoring B. Training C. Motivation D. Coaching

Correct Option: D EXPLANATION Coaching is developing the project team to higher levels of competency and performance. Mentoring is guiding the less experienced people to reach to the next level. Training is formal or informal way of enhancing the competencies of the people. Motivation is creating an environment to achieve the project objectives by satisfying the team. These techniques are newly added in the examination content outline.

A Project Manager understands the information needs of important stakeholders and documents how they would be met. Which document is being prepared? A. Stakeholder register B. Stakeholder management plan C. Human resources management plan D. Communications management plan

Correct Option: D EXPLANATION Communications management plan contains details of how the communication needs of the project's stakeholders will be met.

You are overseeing a project to implement an online travel package reservation system that has 6 sponsors and 13 stakeholders. You want to make sure that your project stakeholders will receive the correct version of the product. Which of the following plans will you use to specify how versioning information will be tracked? A. Quality management plan B. Scope management plan C. Change management plan D. Configuration management plan

Correct Option: D EXPLANATION Configuration management plan is a subset of the project management information system (PMIS) that describes the different versions and characteristics of the product, service, or result of the project and ensures accuracy and completeness of the description.

Which of the following statements is FALSE? A. Project closure documents and project files are outputs of the Close Project Process B. Project files consist of documentation resulting from project activities, such as the project management plan, scope, cost, risk registers, and quality baselines C. The formal acceptance documentation formally indicates that the customer or sponsor has officially accepted the project deliverables D. After the Close Project or Phase process is complete, the Project Manager should identify and document the lessons learned

Correct Option: D EXPLANATION D is incorrect. The creation of lessons learned documentation is part of the Close project or phase process.

A project manager overseeing a construction project negotiated a deal with a tools and equipment rental company for different tools needed in his project. As a part of the deal, the rental company will supply all ten pieces of equipment for total price of $3000/month for the duration of the project. Which of the following costs is this an example of? A. Indirect cost B. Sunk cost C. Opportunity cost D. Fixed cost

Correct Option: D EXPLANATION Fixed cost is based on a predefined service delivery for a flat, prenegotiated rate. The risk is on the seller.

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? A. Importance or weight of a stakeholder's overall influence B. Relationships between stakeholders C. Amount of influence stakeholders have over others D. Types of stakeholders

Correct Option: D EXPLANATION For influence maps, you need to consider the importance of stakeholders, relationships among stakeholders, and the amount of influence stakeholders have over others.

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? A. Using the Influence/Impact matrix B. Correctly identifying the internal and external stakeholders C. Determining and agreeing on the responsibilities of the internal and external stakeholders D. Giving the stakeholders extra incentives to win them over to your side

Correct Option: D EXPLANATION Giving extra incentives to stakeholders to win them over amounts to gold plating or (even worse) unethical practices, so it is not recommended.

You are the project manager for a project, and your team members have a dual reporting structure. In addition to reporting to you, they also report to their functional manager. The team members are also expected to do the project work along with their department work. In which form of organization are you working? A. Functional B. Projectized C. Tight Matrix D. Matrix

Correct Option: D EXPLANATION In a matrix organization, team members have a dual reporting structure and the team works in their respective functional areas, along with project work. Option (c) tight matrix has nothing to do with organization structure. It simply denotes that the project team is kept in the same vicinity. Please refer to Influences of Organizational Structures on Projects, page 47, PMBOK® Guide Sixth Edition.

A project has been severely delayed, and the Project Manager is trying his best to bring it back on schedule. To expedite the work, he has added more resources and has asked them to work overtime. Which of the following could NOT be a possible outcome of crashing a project? A. Increase in Project Cost B. Increase in Project Risk C. Decrease in morale of team members D. Increase in rewards and recognition

Correct Option: D EXPLANATION Increase in rewards and recognition. PMI doesn't advocate rewarding team members if they need to work overtime due to poor planning. It is important to reward only desirable behavior. However, crashing a project could result in higher project cost and/or risks and/or lower team morale.

A project manager is conducting a bidder conference to select the most suitable sellers. Which tool will NOT be helpful in the process? A. Independent estimates B. Analytical techniques C. Procurement negotiations D. Make-or-buy analysis

Correct Option: D EXPLANATION Make-or-buy analysis is done during Plan Procurement Management process, not during Conduct Procurements, of which bidder conferences is a part.

As a project manager, you have been asked by the customer to give an overview of the project status using milestone charts. Which of the following statements are INCORRECT about milestone charts? A. Milestones have zero duration B. Milestone charts are like bar charts but show only major events C. Milestone charts can be used to capture the status of project schedule D. Milestone charts are used to define a phase of a project

Correct Option: D EXPLANATION Milestone charts capture the major milestones on the project which represent the beginning or completion of a deliverable, work package, phase, or project. Milestones are zero duration activities and are commonly used to present project status to the senior management or the customer.

You are a project manager managing a project that has not been making good progress. Certain issues like a flash flood have significantly delayed the laying out of the plinth for the shopping complex. There have been a lot of escalations from key stakeholders, and executive management is pressing for getting the project on track. In a review meeting, your lead architect, sensing the urgency, suggests a change that could significantly reduce the schedule. She is very confident that the suggested change will work to get things on track. As a project manager, what is the best course of action? A. The project is lagging, so implement the change request as it would reduce the schedule B. Reject the idea of making the change as this will need an approval from change control C. Create a change request and submit it to change control board D. Identify the impact of the change on the scope and cost and then include this information in the change request

Correct Option: D EXPLANATION No changes should be made without a formal approval, so option A is clearly wrong. Rejecting ideas without doing a thorough analysis of the impact is also not the correct approach. Now the option of creating a change request and submitting it for approval sounds like the right option. However, the better approach is to always do an analysis of the impact on scope, time, and cost and then submit the change request. So while option C is correct, the better option is D.

Portfolio management is the responsibility of the senior management team of an organization or business unit. Which of the following is NOT a technique that is used to support the portfolio management process? A. Heuristic model B. Scoring technique C. Visual or mapping techniques D. Grid technique

Correct Option: D EXPLANATION Of the following listed techniques, the grid technique is not used to support the portfolio management process.

Kathy is a project expeditor and has recently been promoted to the role of Project Manager. Currently, she is undergoing training in project management and wants to understand how a performance appraisal is different from a team performance assessment. What would you tell her? A. It's a tool for team building B. It's a tool for reducing employee turnover C. Performance appraisal is an evaluation of the team's effectiveness D. Performance appraisal focuses on team member performance

Correct Option: D EXPLANATION Performance appraisal focuses on team member performance, while a team performance assessment is an evaluation of a team's effectiveness. It is based on indicators such as improvement in skills that allows individuals to perform assignments more effectively, improvement in competencies that helps the team perform better as a team, and reduced staff turnover rate.

A Project Manager has signed a contract with the buyer and project is moving toward completion. At this stage, the Project Manager realizes that he has missed an important functionality in the product and the contract needs to be changed to accommodate that. How should the Project Manager proceed to resolve this? A. Since the Project Manager has already signed the contract and the project is nearing completion, this change need not be updated in the project B. The Project Manager shall communicate the change request and its implication to the seller in a meeting C. The Project Manager can bring up this deviation during Procurement Performance Review D. The Project Manager should raise a formal change order that is signed by both the parties to incorporate the change

Correct Option: D EXPLANATION Project Manager should raise a formal change order, signed by both the parties to incorporate the change. A contract is a legal document which is binding to both the parties, and any changes in the contract can only be done through a change order signed by both the parties. Option (a) has some truth since the project is nearing completion, the change could be incorporated in the next phase, but there is not enough information to validate that. Option (b), since this change requires change in the contract it needs to go through formal change order rather than a usual discussion in the meeting. Option (c), procurement performance review is done at the completion of a contract to identify success and failures to help and improve the procurement process.

In the data center project that you are managing, you identified several internal and external restrictions or limitations that will affect the performance of a process within the project. Which of the following BEST identifies these issues? A. Project assumptions B. Project scope C. Project requirement D. Project constraint

Correct Option: D EXPLANATION Project constraints are known limitations on a project relating to schedule, cost, quality, resources, etc.

Which of the following is NOT an output of the Control Costs process? A. Work performance information B. Cost forecasts C. Change requests D. Project funding requirements

Correct Option: D EXPLANATION Project funding requirements is an input and not an output of the Control costs process. All other options are outputs of this process.

The difference between a cost baseline and cost budget can be best described as: A. The Contingency Reserve B. The Sunk cost C. Project Cost Estimate D. The Management Reserve

Correct Option: D EXPLANATION Refer PMBOK® Guide page 252, for more information on management reserves.

You're managing a construction project to install several hundred air conditioner panels in a new office building. Every floor has identical panels. The customer, a construction contracting company, has provided specifications for installation. The team is using a process to install and verify each panel. As the team completes each panel, your team's quality control inspector measures it and identifies defects. The root cause of each defect is identified. You want to identify the ongoing trends of defective installations. Which is the BEST tool to use for this? A. Pareto Chart B. Fishbone diagram C. Control chart D. Run chart

Correct Option: D EXPLANATION Run charts tell you about trends in your project by showing you what your data looks like as a line chart.

To Complete Performance Index is used to: A. Determine when the project would be complete B. Determine the feasibility of the project C. Identify the risks in the project D. Determine the cost performance required to meet certain objectives

Correct Option: D EXPLANATION TCPI is a measure of the ratio of the work remaining to the funds remaining.

Forecasting is the process of predicting future project performance based on the actual performance to date. Forecasting methods may be classified in the following categories EXCEPT : A. Judgmental methods B. Delphi technique C. Causal methods D. Cost series methods

Correct Option: D EXPLANATION The Forecasting methods are classified in the following categories-judgmental methods, Delphi technique, causal methods, time series methods.

Which of the following is NOT an input to the plan procurements process? A. Project Charter B. Project Management Plan C. Business Documents D. Procurement Management Plan

Correct Option: D EXPLANATION The Procurement Management Plan is an output of the Plan Procurements process. The other answers reflect inputs into the process.

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? A. Work Breakdown Structure (WBS) B. Requirements Documentation C. Activity List D. Project Scope Statement

Correct Option: D EXPLANATION The Project Manager should refer to the project scope statement as it captures all the details related to the project scope including 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.

You are in charge of building a shopping portal. You are fairly confident as you have a team experienced in doing such work. As per the agreement at the end of the first month, you organize a demonstration of the software. You invite the sponsor and key stakeholders. Later, the sponsor informs you that she is not very happy with the progress, indicating that one of the clients who would be using this software is not satisfied as her needs are not being met. Satisfying this client's needs would mean some radical changes with an impact on both cost and schedule. What could be the root cause of this issue? A. Deliverables were not as per requirement B. The stakeholder is making unrealistic demands C. The scope statement was ambiguous D. All the stakeholders were not identified

Correct Option: D EXPLANATION The correct answer in this case is improper stakeholder analysis - Option D. While options A, B, and C could be true, the question gives no indication of these being the case. The question does mention about an important client whose expectations were not met. Stakeholder analysis deals with identifying all the stakeholders, their needs and expectations, and their influence. In this case, the client's needs are not being met, which indicates that stakeholder analysis and identification were not done correctly.

You are managing a project responsible for doing plantation on a large reserve land. You have created the schedule network diagram and have identified two paths. Path 1 consists of two activities of a duration of 2 and 5 weeks, respectively. Path 2 consists of 3 activities with durations of 1, 3, and 3 weeks, respectively. Which of the two paths is the Critical Path? A. Path 1 B. Path 2 C. Neither D. Both Paths 1 and 2 are Critical Paths

Correct Option: D EXPLANATION The duration of both the paths is 7 weeks. Remember that the path with the longest duration is the critical path and you can have more than one Critical Path.

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? A. You would surely like to manage both the projects together as the latter is a critical project for the company B. You would use a compression technique to finish your current project faster and then take up this new project C. 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. D. The project should first develop an approved project charter which would formally initiate the project

Correct Option: D EXPLANATION 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.

A Project Manager is in the process of comparing actual performance to the scope statement to determine variances, evaluate possible alternatives, and take the appropriate action. Which of the following will NOT be an output of this process? A. Work Performance Information B. Updates in project management plan C. Change Requests D. Change Control Meetings

Correct Option: D EXPLANATION The project team is in the "control scope" process. "Change control meetings" is a tool from the "perform integrated change control" process. Option (a), (b), and (c) are the outputs of the "control scope" process. Refer to PMBOK® Guide - Sixth Edition Project Scope Management, page 619.

Which of the following statements is NOT true about a Project Management Office (PMO)? A. PMO is an organizational body responsible for centralized and coordinated management of projects B. PMO conducts periodic project audits to monitor compliance with project management standards C. PMO can also be responsible for the direct management of projects D. To be managed together, the projects supported by a PMO should be related

Correct Option: D EXPLANATION The projects supported by a PMO may not be related other than being managed together. The specific form and structure of a PMO would purely depend upon the needs of the organization it supports. For more information on PMOs please refer to Introduction, page 48, PMBOK® Guide Sixth Edition.

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? A. It involves identifying requirements B. It involves addressing the various needs, concerns, and expectations of the stakeholders as the project is planned and carried out C. It involves balancing the competing project constraints such as scope, quality, schedule, budget, resources, and risk D. The specific project will not influence the constraints on which the Project Manager needs to focus on

Correct Option: D EXPLANATION The question has a negative connotation. Refer page 10 of PMBOK® Guide - Sixth Edition.

You are in the process of defining activities and have broken down the WBS into individual activities. You now uniquely tag each activity with a unique code. So, you have defined an ___ for each activity. A. Schedule Network Diagram B. Activity List C. Milestone List D. Activity Identifier

Correct Option: D EXPLANATION The question states that you have decided to uniquely tag each identified activity, which is nothing but Activity Identifier. This is done during creation of the Activity List.

In the middle of a project, you are informed that the resources promised at the beginning of the project are no longer available. What would you do? A. Assert that you can no longer execute the project B. Re-plan the project without promised resources C. Identify other resources that can be provided to you in compensation for earlier promised resources D. Evaluate the impact of not having the promised resources

Correct Option: D EXPLANATION The right thing to do in this case is to first evaluate the impact.

A project manager notices that a control chart has a group of seven non-random data points in a series between his upper control limit and mean. What does it indicate about the process stability of the project? A. This is a random cause of variation and can be ignored B. The process is stable and in control as none of the data points are outside control limits C. The control limits for the process are well within specification limits D. The process is out of statistical control and needs to be investigated

Correct Option: D EXPLANATION The rule of seven is a heuristic rule which refers to a group of seven non-random data points in a series between the upper control limit and mean. It denotes the presence of an assignable or special cause in the process and that the process is out of a state of statistical control. Option (c) is true for a stable process, but it does not relate to the question.

You are managing a project which involves building software for the aeronautical domain. The nature of the work is complex and needs a lot of research. During Quality assurance, both the development team and testing team suggest that the quality assurance process be changed to include White Box testing and not just rely on Black Box testing. The teams want to make this shift in approach as they believe this would lead to better quality of deliverables. What is the best course of action? A. As the changes will help improve quality, execute white box testing B. Create a change request C. Refuse to adopt this change as this would mean a change in the agreed process D. Analyze the impact of the change on scope, schedule, and cost, and then write up a Change Request

Correct Option: D EXPLANATION This is a question meant to test your understanding of change management. Any change, however small or big, should always be first analyzed for its impact on the constraints-scope, cost, and schedule-and then submitted to change control for approval. Changes without formal approval should not be implemented.

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

Correct Option: D EXPLANATION This is an example of gold plating as this requirement is not actually part of the contract. Some other forms of gold plating are adding extra functionality, higher quality component, and extra scope. Such additions are usually based on the perceived notion of what the customer would like rather than a specific requirement from the customer. Gold plating is defined in simple terms as adding more to the system than is specified in the requirements. Gold plating can increase operation and maintenance costs and reduce quality. Since only 34 percent of all projects succeed (per the observations from 2004), a project manager should focus on successful conformance to requirements. PMI® does not advocate adding extra functionality without benefits or gold plating.

John was assigned to a new software development project. At the end of a change control board meeting, the Project Manager asks John to complete the paperwork required to make the changes. Jon's position can be BEST described as: A. Project Coordinator B. Change Control Board Member C. Program Manager D. Project Expeditor

Correct Option: D EXPLANATION This position is typically found in weak matrix organizations. Project expeditors do not have any authority, but they typically work as staff assistants to the Project Manager. If you look at the question carefully, John is assisting the Project Manager in doing the required paperwork.

You are managing a project to develop the marketing strategy for launching a new body freshener. Recently you found out that a couple of your client representatives made some disparaging remarks regarding your progress reports as they seem to be written in a language that they do not understand. How could you have avoided this situation? A. Perform more rigorous status progress meetings with the client's representatives B. Hire an expert writer who can translate the reports in the required format C. Take their names out of the mailing list if possible, otherwise ignore them after all you cannot satisfy everyone involved in the project D. Develop a communication management plan

Correct Option: D EXPLANATION This scenario shows the absence of a communication management plan. The communication management plan describes the communication needs and expectations for the project, how and in what format information will be communicated, when and where each communication will be made, and who is responsible for providing each type of communication.

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? A. Decision Matrix Analysis B. Pugh Matrix Analysis C. Multi-Attribute Utility Theory (MAUT) D. Paired Comparison Analysis

Correct Option: D EXPLANATION 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.

You are the project manager for the ABC Project. Initially, you identified 5 stakeholders for your project. As the project moved ahead, 5 more stakeholders got involved in the project. Assuming that they all need to communicate with each other, how many additional communication channels should be there? A. Depends on the number of project team members B. 5 C. 45 D. 35

Correct Option: D EXPLANATION Using the formula N(N-1)/2, where N represents the number of stakeholders, there are 35 communication channels. Initially there were 5 stakeholders which made 10 channels. An addition of 5 more members means the team has 10 members and 45 channels. Therefore, the additional communication channels are 45-10=35.

As a project manager, you are working with your team to explore alternatives to decrease the cost of a project without compromising on performance or the scope of the project. Which technique are you most probably using? A. Benchmarking B. Reverse engineering C. Process analysis D. Value analysis

Correct Option: D EXPLANATION Value analysis is also referred to as "value management" or "value methodology" (VM). It requires a systematic approach to identify project functions and assigns values to those functions to get the functions at the lowest overall cost without experiencing a loss of performance.

A Project Manager has made a major release in the project. The customer tells you a week after the release that he is not entirely satisfied with the deliverable. What should the project manager do NEXT? A. Continue with the next deliverable to finish the project on time B. Discuss the customer concern and resolution with the senior manager C. Ensure that next deliverables have enough features, which the customer would like to have, to exceed his expectations D. Do a scope verification of this deliverable to see if it satisfies project objectives

Correct Option: D EXPLANATION Verifying the project scope includes reviewing deliverables to ensure that each is completed satisfactorily. If this is successful, it should provide customer satisfaction. Option (c) is gold plating. Options (a) and (b) avoid addressing the main problem directly.

A project is in execution. A team member, Jennifer, approaches the project manager and indicates that she is not sure of what work she needs to perform. Which document would be the best source of this information? A. Project Scope Management Plan B. Project Scope Statement C. Project Management Plan D. Work Breakdown Structure Dictionary

Correct Option: D EXPLANATION WBS Dictionary provides details of the work to be done.

During risk response planning, you identified a few new risks. What should you do? A. Document the risks and let the contingency reserve take care of them B. Ask to increase the contingency reserve to take care of these new risks C. Discuss with your Program Manager D. Follow the risk management processes of calculating risk probability and impact

Correct Option: D EXPLANATION When new risks are identified, you should follow the risk management processes. The next step is to analyze the probability and impact of the risks.

How is the role of project expeditor different from project coordinator? A. Project coordinator has some power to make decisions B. Project coordinator acts primarily as Staff assistant C. Project coordinator acts as a communication coordinator D. Project coordinator can control project budget

Correct Option: A EXPLANATION A project coordinator has some power to make decisions. The only difference between the role of coordinator and expeditor is that the former has some power to make decisions and may report to high level management, while the latter acts as a communication coordinator, that is, he or she monitors and reports the status of the project to the senior management. Option (b) and (c) are true for both the roles of coordinator and project expeditor, and option (d) is a false statement.

You are the Project Manager of a large team with people from diversified locations. There are many groups within a project, such as architects, human resources, legal, quality engineers, etc., with their own hierarchy and reporting structure. In order to ensure that each team member has clarity on their own and other members' reporting structure, you decide to capture all of this information graphically. Which of the following documents will you be using for this purpose? A. Project Organization Chart B. Resource Breakdown Structure C. Organization Breakdown Structure D. Resource Assignment Matrix

Correct Option: A EXPLANATION A project organization chart is part of the human resource plan and displays project team members and their reporting structure. Depending on the project requirements, team size, and their reporting hierarchy, this chart could be highly detailed or broadly framed. Please refer PMBOK® Guide - Sixth Edition page 319.

A summary activity in a network logic diagram is often referred to as a: A. Hammock Activity B. Dangler C. Milestone D. Subtask

Correct Option: A EXPLANATION A summary activity in a network logic diagram is often referred to as a Hammock activity.

John has been assigned to a project recently, and he is in the process of documenting the project charter with the project sponsor. Which of the following MUST he include in the Project Charter? A. Project purpose or justification B. Positive risks C. Budget estimates D. Risk analysis

Correct Option: A EXPLANATION According to PMBOK® Guide - Sixth Edition, Sec 4.1.3.1 Page 81, the project description must be included in the project charter. Options C and D, budget estimates and risk analysis may be included in some project charters, if required.

You are the Project Manager of a project for which a prototype was recently delivered. The sponsor of the project calls you and gives you an overall estimate for the project. This form of estimate is known as ____ A. Analogous Estimate B. Parametric Estimate C. Heuristic Estimate D. Three Point Estimate

Correct Option: A EXPLANATION Analogous Estimate (also called Top down approach) is a form of Expert Judgment. It uses estimations from previous similar activities to estimate future durations. The accuracy of estimates derived using this method depends on the correctness of historical information, similarity of the historical projects (here a prototype project), and expert judgment.

Which of the following processes does not have defect repair as one of the outputs? A. Perform Integrated Change Control Process B. Control Procurements C. Monitor and Control D. Control Schedule

Correct Option: A EXPLANATION Defect repair can be a component of a change request. Change requests are the input for ®perform integrated change control® process and can be the output for the remaining options.

As a Project Manager of a complex and relatively new technology, you have asked for an expensive training for yourself and the team from the project sponsor. Although the sponsor has agreed to your request, he asks you to start the project in the meantime. Which of the following is NOT an option for you? A. Since you have already asked your sponsor for training, you can do nothing to enhance your skills in the meantime B. Visit PMO and Organization project database to go through lessons learned from previous projects C. Talk to fellow Project Managers who have executed similar projects in the organization D. Join an organization or library to gain access to journals featuring the technology

Correct Option: A EXPLANATION Doing nothing is the worst option because there is always something that can be done to enhance your skills and knowledge.

During the initiating stage, which of the following elements will be identified to meet the project goals? A. Key deliverable B. Stakeholders C. Quality D. Vendors

Correct Option: A EXPLANATION Even though the identification of stakeholders and potential sellers happens as part of initiating phase through the "identify stakeholders" process, this will not help to meet the project goals. Key deliverables help in meeting the project goals. Quality identification happens during planning.

In which of the following types of contracts does the buyer have the MAXIMUM cost risk? A. Cost Reimbursable B. Fixed Price C. Time and Material D. Cost Plus Fixed Fee

Correct Option: A EXPLANATION In a cost reimbursable type of contract, the buyer has the maximum risk because the total cost of the project remains unknown. This is usually used when the buyer is not able to come up with complete contract statement of work and has limited understanding. Similarly, in a Fixed Price Contract Option (b) the buyer has least cost risk, because any additional cost over and above the negotiated price has to be borne by the seller.

You are managing a large project that has many stakeholders across various departments in the organization. During the planning stage, you created a communication management plan based on the project organization structure and external stakeholder requirements in order to manage the flow of project information. During project execution, one of the stakeholders contacts you and informs you that his expectations have not been completely accounted for in the project. What should be your BEST response to the situation? A. Understand his expectations and update project documents accordingly, starting with stakeholder register B. Since the stakeholder analysis has already been completed and all the other stakeholders have been agreed to the project deliverables, the process cannot be repeated for this particular stakeholder C. Go through the stakeholder analysis with the team as there might be more unidentified stakeholders in the project D. Inform the stakeholder that he will be included in all project communications and he can raise his concerns whenever he feels his requirements are not being addressed

Correct Option: A EXPLANATION Managing stakeholder expectations and establishing an effective communication with them is one of the most critical activities for project success. The Project Manager should update the project documents according to the requirements of the stakeholders. Option (B) is incorrect as all the stakeholders in the project need to be identified and their expectations managed throughout the project. Option (C) is incorrect as there is no reference in the question to suggest that more stakeholders might have been missed in the project. Option (D) is an incorrect approach. The Project Manager should proactively manage stakeholder expectation in the project.

A project team is in the process of identifying quality requirements and standards for the project. It is documenting how the project will demonstrate compliance. The team has referred to organizational process assets and is using tools like statistical sampling and control charts. Which process of Quality Management is the project team performing? A. Plan Quality Management B. Perform Quality Assurance C. Perform Quality Control D. Manage Project Team

Correct Option: A EXPLANATION Notice the words "identifying quality requirements and standards." This is a part of quality planning. So, the project is in Plan Quality Management process in the planning phase. Please refer to PMBOK® Guide - Sixth Edition Project Quality Management page 277.

There are three projects A, B, and C. NPV for projects A, B , and C are $50,000, $ 80,000, and $ 40,000 respectively. In a meeting, the management unanimously has chosen projects A and C. What is the opportunity cost of the project? A. 80000 B. 130000 C. 90000 D. 0

Correct Option: A EXPLANATION Opportunity cost is the cost of giving up the opportunity by selecting a project(s) over another. Here, Project B is not selected.

As a Project Manager, you are estimating the duration of your project activities using PERT (Program Evaluation and Review Technique). For a particular project activity, your Optimistic estimate is 14 days, Pessimistic estimate is 47 days, and Most Likely estimate is 27 days. What should be the expected duration of this activity? A. 28.17 B. 31 C. 43 D. 36

Correct Option: A EXPLANATION PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely. The expected duration is calculated using the equation: Expected Duration = [P + 4(ML) + 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 answer comes out to be 28.167 days or 28.17 days.

You are a Project Manager in an oil company and have joined a project midway. You want to understand how requirement activities and configuration management activities such as changes to the product requirement will be initiated. You want to know how impacts will be analyzed, tracked, and reported. You also want to know the authorization levels required to approve these changes. Which of the following documents will provide this information? A. Requirements Management Plan B. Integrated Change Control C. Project Charter D. Project Scope Statement

Correct Option: A EXPLANATION Requirements management plan documents how requirements will be analyzed, documented, and measured in the project. It also includes configuration management activities such as how changes to the product requirement will be initiated, how impact will be analyzed, tracked and reported, and who will authorize these changes. Option (b), Integrated Change Control, is a process required for effective and efficient change management. Refer to PMBOK® Guide - Sixth Edition Project Scope Management, page 137.

Your project team is involved in estimating the cost of the project as a part of project cost management. Which of the following tools and techniques will NOT be applicable for this purpose? A. Cost Benefit Analysis B. Reserve Analysis C. Cost of Quality D. Alternatives Analysis

Correct Option: A EXPLANATION Reserve Analysis, option (B), is an analytical technique to determine a reserve for budget, estimated costs and funds for the project. It is an important technique in the process of estimating costs. Option (C), Cost of Quality is the sum of all costs a company invests into the release of a quality product and can be used to prepare cost estimates. Option (D), Alternatives Analysis can also be used as a technique to evaluate identified options in order to select which options or approaches to use to execute and perform the work of the project. However, Cost Benefit Analysis is a technique that compares positive factors or benefits with negative ones to determine the net result of doing the action. It is a popular technique for selecting projects but will not be useful during cost estimation at the activity level. Please refer to PMBOK® Guide - Sixth Edition Project Cost Management, page 245 for more details.

A Project Manager is forced to give a contract to a preferred supplier as he has a strict deadline to meet. What could be the BIGGEST risk in this situation for the Project Manager? A. The seller has not proven that he has required expertise and resources to take this assignment B. The Project Manager didn't get a chance to evaluate other vendors who could be better C. The seller may not fulfill the evaluation criteria to bid for the project D. The seller may not meet acceptance criteria in the contract, and Project Manager might have to accept what he gets

Correct Option: A EXPLANATION Since this contract is given to the seller without evaluating his competency, the project manager is taking a major risk. Option (b) and (c) are issues, not risks, because they are known facts. Option (d) is incorrect because the contract is legally binding and the seller is bound to oblige the contract.

You are a Project Manager. In the process of sequencing activities for your project, you create a schedule network diagram that uses boxes called nodes to represent activities and connects them with arrows to represent logical relationships between them. What is this popular scheduling diagram known as? A. Precedence Diagramming Method (PDM) B. Arrow Diagramming Method (ADM) C. Program Evaluation and Review technique (PERT) D. Graphical Evaluation and Review Technique (GERT)

Correct Option: A EXPLANATION The Precedence Diagram Method, also known as Activity-On-Node, is a tool for scheduling activities in a project plan and constructing a project schedule network diagram that uses boxes, referred to as nodes, to represent activities and connects them with arrows that show the dependencies.

A Project Manager is involved in a procurement management process in a centralized contracting environment. He is assigned a full-time contract manager who reports to him for the project. In this scenario, which of the following is usually NOT the role of the Project Manager? A. Provide increased expertise in contracting and also guide the team on standardized company practices B. Make sure the contract contains all project management requirements C. Identify risks and incorporate mitigation and allocation of risks into contracts D. Help tailor the contract to the unique needs of the project

Correct Option: A EXPLANATION The Project Manager is working in an organization with a centralized contracting group. He has also been assigned an experienced full-time contract manager who would be a specialist in contracting procedure. In these circumstances, it is not expected for a Project Manager to provide guidance on organization contracting policies.

Halo Effect refers to ____. A. The assumption that a person who is good at technology will also be a good Project Manager B. Hiring the best C. Recruiting the best in management D. Promoting from within

Correct Option: A EXPLANATION The assumption that a person who is good at technology will also be a good Project Manager is an example of Halo effect.

Which of the following elements are to be considered while developing the project schedule? Pick the best answer. A. Project deliverables B. Project timeline C. Quality D. Cost

Correct Option: A EXPLANATION The project schedule is developed from activities, which are decomposed from the Scope Baseline (the Deliverable). The Timeline is a result of sequencing activities and estimating resources and durations. The Schedule itself will describe the timeline.

You are managing a large and complex project which is in the planning stage. After assessing the detailed project requirements with the stakeholders, you ask the team to create a Work Breakdown Structure (WBS). However, since most of the team is new, you decide to brief them on some rules of creating a WBS. Which of the following statements is INCORRECT about a Work Breakdown Structure? A. WBS is a list of specific activities used to accomplish the deliverables B. WBS includes only work needed to create deliverables. Hence, work not in WBS is not part of the project C. Lower-level WBS components are a decomposed result of the upper-level WBS components D. WBS allows better estimation of cost, risk, and time

Correct Option: A EXPLANATION WBS is a list of specific activities used to accomplish the deliverables. Work Breakdown Structure (WBS) is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope. Hence, it is NOT a list of specific activities used to accomplish the deliverables. How the work is completed (activities) can vary and change throughout the project, but deliverables cannot change without a change request. For more information on Work Breakdown Structure (WBS), please refer to PMBOK® Guide - Sixth Edition Project Scope Management, page 156.

A Project Manager is responding to a business proposal from an overseas company. Which of the following should he refer to as a guide to understand the business practice(s) that are allowed and discouraged? A. Procurement documents, including contract statement of work B. Organization policies and procedures C. Project Charter D. PMI code of Professional Conduct

Correct Option: B EXPLANATION A Project Manager is an expert in control. Legal (as well as Purchasing) experts will provide guidance about business decisions one would make in a foreign country. The PMI® Code of Ethics (1.1.3) states, ®We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities.®. Option (b) is better.

A Project Manager wants to capture information related to staff acquisition and release, training needs, resource calendar, recognition, and rewards. Which of the following documents would be most appropriate? A. Project Management Plan B. Resource Management Plan C. Project Team Assignments D. Issue Log

Correct Option: B EXPLANATION A resource management plan that is a part of the resource plan describes when and how the resource requirements will be met. A project management plan, option (a), may or may not contain a resource management plan; hence, (b) is a better option. Option (c) Project team assignments is an output of the 'acquire resources' and can include project team directories, memos to team members, etc. Option (d) Issue log is used for capturing project issues and is not the correct answer.

As part of Stakeholder Analysis, it is important to prioritize the needs of key stakeholders to ensure efficient use of effort to communicate with them and manage their expectations. Which of the following is NOT a classification model? A. Power/Influence grid B. Power/Impact grid C. Power/Interest grid D. Influence/Impact grid

Correct Option: B EXPLANATION All of the other options are classification models used to prioritize stakeholders' needs. Refer PMBOK® Guide - Sixth Edition, page 512 for more information on the multiple classification models.

Which of the following statements describes the relationship between project phases and the project life cycle? A. The project lifecycle contains the iterative incremental elements of a project phase B. Collectively, the project phases are known as the project life cycle C. The project lifecycle is regarded as a sequence of project activities, while phases are defined to control the overlapping of activities D. The project lifecycle contains the repetitive elements inside a project phase

Correct Option: B EXPLANATION Collectively, the project phases are known as the project life cycle.

You are a Project Manager of an ambitious project in an organization. Although you have successfully managed many critical projects before, this is a new organization and you are working on this technology for the first time. However, you hear that the company has proven expertise on the technology and has also done a similar project in the past. In this situation, what is the BEST option available to you? A. Approach the Project Manager from the earlier project and take his inputs B. Obtain historical records and guidance from the Project Management Office (PMO) C. Involve Stakeholders and take their opinion and expertise on the project D. Continue to manage the project by your instincts until there is a major issue

Correct Option: B EXPLANATION Obtain historical records and guidance from the PMO. Though all the options except (d) reflect proactive nature of the Project Manager and is appropriate, the best option is to go through historical records from the PMO. It will help you to get an objective and systematic assessment of past projects in the organization. Remember, a project management office plays a critical role by providing centralized management of the projects and access to policies, templates, lessons learned, and historical records of projects.

A Project Manager has worked on many challenging projects and has managed teams across the globe in the last 20 years of his career. Now, he intends to share his best practices and lessons learned throughout his professional career. The Project Manager is: A. Enhancing his professional skills by evaluating his experience and strengths B. Contributing to the project management knowledge base C. Capturing his professional stint in an autobiography D. Informing others about project management principles and helping the profession grow

Correct Option: B EXPLANATION Project Manager is contributing to the project management knowledge base. The Project Manager is sharing the lessons learned and best practices and contributing to the project management knowledge base.

You are a Project Manager in an organization with a functional structure; hence, it is important that you negotiate suitable resources for your project from the functional manager. Which of the following tools could be a valuable asset to prove your project resource requirements to the functional manager? A. Staffing Management Plan B. Network Diagram and Project Schedule C. Resource Assignment Matrix D. Project organization chart

Correct Option: B EXPLANATION Project schedule, along with network diagram (that graphically represents the project schedule), provides the most convincing visual proof of the resource requirements in the project and can be used during resource negotiation by the Project Manager. A project schedule is derived from a WBS, an effort estimate for each task, and a resource list with availability for each resource, so it is granular and most accurate. A staffing management plan provides guidelines on how human resources should be defined, staffed, managed, and controlled. Options (c ) and (d) capture the reporting structure and the roles and responsibilities of the team members; therefore, they are not the best choices.

As a Project Manager, you have created a Resource Breakdown Structure (RBS) for your project. Which of the following statements is NOT TRUE about Resource Breakdown Structure (RBS)? A. It is a hierarchical structure of resources B. It is used for estimating resource utilization C. It is used for organizing and reporting project schedule D. It has resources grouped by category and type

Correct Option: B EXPLANATION Resource Calendars, not RBS, are used for Resource Utilization. Resource Breakdown Structure (RBS) is focused on creating a hierarchical list of the resources, both significant and seemingly redundant, that are involved in the project. Every hierarchical level lists a number of resources that are needed for carrying out various kinds of project-related activities. Every kind of resource is further divided into a number of categories or resource-types to help classify them.

After a high-level management meeting, the manager chairing the meeting asks the Project Manager to document and communicate the action items to all the stakeholders. The Project Manager is part of a ______________ organization structure. A. Balanced Matrix B. Weak Matrix C. Strong Matrix D. Tight Matrix

Correct Option: B EXPLANATION The Project Manager is part of a weak matrix organization and is playing the role of project expeditor. The project expeditor acts primarily as staff assistant and communication coordinator. The expeditor personally cannot make or enforce decisions.

A Project Manager who has just been assigned to a new project has been asked by his sponsor to come up with an initial cost estimate called a Rough Order of Magnitude (ROM). This would typically fall in which range? A. -50% to +100% B. -25% to +75% C. -10% to +15% D. -100% to +50%

Correct Option: B EXPLANATION The Rough Order of Magnitude estimate (ROM) is usually done in the initial stages of the project, when limited information is available. The budgeted estimate will be in the range of -10% to +25%, and the definitive estimate will be in the range of -5% to +10%.

A project team is in the process of obtaining seller responses, selecting a seller, and awarding a contract. For this purpose, the team is using some predefined selection criteria to evaluate the bids and select the most appropriate seller. Which process of project management is the project team working on? A. Plan Procurement Management B. Conduct Procurements C. Control Procurements D. Proposal Evaluation

Correct Option: B EXPLANATION The activities are part of the 'conduct procurement' process, which includes obtaining seller responses, selecting a seller, and awarding a contract based on selection criteria to qualified sellers. Although the team is working on proposal evaluation, Option (d) is not a process, but a tool.

A car manufacturing company conceptualized a new car that will be more fuel efficient, ergonomically designed, and that satisfies the latest safety regulations. This car was recently launched and has now moved into full-fledged production. This is an example of: A. Operation, as the company is into car manufacturing, which is an ongoing process B. Project, as this car was conceptualized, designed, and has now been launched C. Project, as it has clear scope and requirements in terms of safety compliance, fuel efficiency, etc. D. Operation, as this activity didn't create a unique product

Correct Option: B EXPLANATION This is a typical scenario where project intersects with operation during product life cycle. Notice the word launched. All the activities before launch of the vehicle are part of a project, which is a temporary activity with a well-defined unique output. Once the car moves to production, it becomes an ongoing operation for the company.

Which of the following activities is part of the initiating phase? A. Develop stakeholder management plan B. Conduct benefit analysis with stakeholders to validate project alignment with organizational strategy and expected business value C. Validate Scope D. Conduct kick-off meeting

Correct Option: B EXPLANATION This task has newly been added to the examination content outline. Options (A) and (D) are part of planning. Option (C) is part of Monitoring and Controlling.

You are the Project Manager of a large and complex project. Your project team has finished creating a Work Breakdown Structure for the project. However, some of the team members are still not sure of the kind of work included in each of their work packages. Which of the following documents would you suggest they go through? A. Project scope statement B. Project Management Plan C. Work Break Structure (WBS) Dictionary D. The Product Scope document

Correct Option: C EXPLANATION A Work Break Structure (WBS) Dictionary accompanies a Work Breakdown Structure and provides a description of the work to be done for each WBS package. It provides more detailed descriptions of the WBS components, such as work description, schedule milestones, schedule activities, resources required, cost estimates, quality requirements, acceptance criteria, etc. The project scope statement contains details about the scope of the project, but it is at a much higher level and will not be helpful in this situation.

A project is in the initiating stage, and the Project Manager is identifying project communication constraints. Which of the following could be a valid constraint? A. The project could face high attrition rate B. Management and customer expect detailed formal status reports on the project C. Project team members would be required to work from different geographical locations D. Many stakeholders of the project would not be able to attend the planned project kick-off meeting

Correct Option: C EXPLANATION Constraints always limit project team options. Option (a) is a known risk, and (b) and (d) can be addressed under stakeholder management by drawing consensus on the report format and rescheduling the meeting date.

A cost reimbursable contract has an estimated cost of $20,000. If the seller beats the cost, 80% of the savings will go to the buyer and 20% will go to the seller. If the actual costs come in at $18,000, what is the final price? A. $18,000 B. $18,200 C. $18,400 D. $18,600

Correct Option: C EXPLANATION For this question, Target price = $ 20,000; Actual cost = $ 18,000; Sharing ratio = 80/20; Actual cost to buyer = $18000 + ($20,0000-$18,000)*20% = $18,400

As a part of Stakeholder Management, a Project Manager can follow all of these management practices, EXCEPT: A. Identify all the stakeholders and capture them in the project team directory B. Ensure that stakeholders' expectations are met and gain support for the project C. Give preference to stakeholders over customers in case of conflict of interest D. Communicate all relevant information about the project to stakeholders

Correct Option: C EXPLANATION In case of conflict of interest, it should generally be resolved in favor of the customer or organization who would use the project's product or service.

Which of the following statements DOES NOT describe the essence of Integration Management in the context of Project Management? A. Balancing of competing objectives and the exploration of alternative actions B. The processes and activities needed to identify, define, combine, unify, and coordinate process and project management activities within the Project Management Process Group C. Integrating different components from the development cycle to create the final deliverable D. Managing interdependencies among Project Management knowledge areas

Correct Option: C EXPLANATION Integrating different components from a development cycle to create a final deliverable is an example of Software integration management used in software development projects. During this software integration phase, components from different development modules are integrated into one product and tested. However, integration management involves making choices about resource allocation, trade-offs among competing objectives, and managing interdependencies among project management knowledge areas, i.e., options (a), (b) and (d). Please refer PMBOK® Guide - Sixth Edition Project Integration Management, page 69.

A large project with a team of 150 people is in the planning stage. It will span over a duration of 3 years and is under strict budget. A Project Manager is using the project charter to assess the detailed project requirements in consultation with the stakeholders and to establish the key project deliverables. He sets his project quality objective based on the organization capability baseline set by the quality policy. However, one of the stakeholders refuses to accept this and asks him to reduce the quality objective as it will help cut down cost of quality of the project. He also refuses to approve the project if the Project Manager does not agree to his suggestion. What should the Project Manager do? A. Explain to the stakeholder that Cost of Quality is less than cost of project B. Explain to the stakeholder that if Quality objectives are set lower than expected, they will be highlighted during Quality Audit C. Explain to the stakeholder that the quality policy is used to set quality objectives for all the projects in the organization and they need to abide by it D. Agree to the stakeholder's suggestion and reduce the metric as he will not approve the project otherwise

Correct Option: C EXPLANATION Option (c) is correct because quality policy is set by the management in the organization and not by the Project Manager, but he needs to abide by it. Option (b) though correct, is wrong in essence. The project should follow the right process by choice, and not due to fear of being caught during audits.

In a meeting, the Sponsor has discussed three projects with you: Project A with Net Present Value of $55,000 and a payback period of 5 years; Project B with Net Present Value of $95,000; and Project C with payback period of 10 years. He provides you with additional information about the projects and intends to assign you as the Project Manager for the selected project. As a Project Manager, you are NOT expected to: A. Conduct project selection methods to select one of the three projects discussed with you by the sponsor to evaluate feasibility of new products and services B. Proceed to select the project with higher NPV C. Engage in deceitful practices D. Participate in the project selection method

Correct Option: C EXPLANATION Per the new examination content outline, the project manager participates in the development of the project charter.

Which estimate technique does the Program Evaluation and Review Technique (PERT) use to define the approximate range of activity costs? A. Earned Value Technique B. Parametric Estimation Technique C. Three Point Estimate Technique D. Historical Information

Correct Option: C EXPLANATION Program Evaluation and Review Technique (PERT) calculates an expected activity cost using the weighted average of the three estimates, that is, (Most Likely+ Optimistic+ Pessimistic)/3. Most likely is the approximate realistic scenario, that is, the cost of the activity given the resources likely to be assigned, their productivity, and realistic expectations of availability. Optimistic is the best-case scenario, that is, the activity duration is based on a best-case scenario of what is described in the most likely estimate. Pessimistic is the worst-case scenario, that is, the activity duration is based on a worst-case scenario of what is described in the most likely estimate.

A Project Manager is managing a project that has constraints on the availability of required resources throughout the project. He needs to rearrange the schedule in such a way that a constant number of resources are used each month. Which of the following techniques should the Project Manager use to achieve this? A. Fast Tracking B. Crashing C. Leveling D. Lagging

Correct Option: C EXPLANATION Resource leveling is a technique that allows one to adjust the start and end dates to accommodate the demand and supply of resources. Refer Page 211, PMBOK® Guide - Sixth Edition.

A project is in the execution stage. The customer comes back with an additional feature to be added in the forthcoming milestone delivery. The project team has assessed the impact of the change by performing Integrated Change Control. The Project Manager should: A. Hold a meeting with the customer to explain why it is not a good option to incorporate change requests during project execution B. Create a change request and proceed for review by the Change Control Board C. Review Quality Management Plan and evaluate the effect of the additional feature on quality D. Notify stakeholders affected by change

Correct Option: C EXPLANATION Review Quality Management Plan and evaluate the effect of the additional feature on quality. Quality needs to be considered whenever there is a change in a triple constraint. If you choose option (d), you are quite close. The stakeholders should be informed as part of change management. Option (b) would have been completed by the project team as part of Integrated Change Control.

A new Project Manager takes over a project during the execution phase. One of the main issues faced by the project is that the customer complains of poor visibility on the project. What should be his first step toward resolving the issue? A. Have a discussion with the customer to understand why he feels the project lacks visibility B. Have a discussion with the team members who have been in the project since the beginning to understand customer-specific communication needs C. Go through the communication management plan to understand customer communication requirements and assess whether they are being addressed properly D. The Project Manager should first understand the project and go through project management plan to understand the project properly

Correct Option: C EXPLANATION Since the communication management plan details the communication requirements of all the stakeholders, the project manager should first ensure that the plan is being properly followed. Option (a) and (b) can follow later. Option (d), though true, is not relevant to the situation. Refer to PMBOK® Guide - Sixth Edition, Project Communication Management, page 377.

Which of the following is an example of smoothing as part of promoting interaction among stakeholders? A. The Project Manager keeps himself aloof and uninvolved from team conflicts and lets the team handle it themselves B. The Project Manager calls the troublemakers and tries to resolve their problems through discussion C. The Project Manager downplays the difference of opinion, saying the difference lies only in perception D. The Project Manager takes the side of the more experienced resource as he is more valuable to the project

Correct Option: C EXPLANATION Smoothing is a technique in which the Project Manager emphasizes agreement rather than difference of opinion, and option (c) is the correct choice.

You have been assigned to a large construction project, and you are in the "Initiating" process group. You have identified the project stakeholders using a stakeholder analysis tool and defined the high-level scope of the project. During these activities, you have identified a key project limitation regarding the project location. What is the BEST option for you in this situation? A. Document the project limitation as a project constraint B. Discuss the project constraint with the project sponsor and the customer C. Document the project limitation as a project constraint and propose an implementation approach to the sponsor and customer, if required D. Ignore the project constraint and work toward getting approval for the project charter

Correct Option: C EXPLANATION The PMI® Code of Ethics (1.1.3) states, ®We provide accurate information in a timely manner.® The project is not yet approved, and this limitation could keep it from being approved. You could select (b), which allows you to just provide information and reports, but active management of the project requires you to confront the limitation and facilitate its resolution quickly.

A project has a project manager, a sponsor, a human resource specialist, a quality analyst, and seven team members. How many communication channels are possible in the project? A. 50 B. 110 C. 55 D. 115

Correct Option: C EXPLANATION The number of communication channels possible can be deduced using the formula n*(n-1)/2. In this case, (11*10)/2 = 55.

You are a Project Manager, and your project sponsor has asked you to come up with the total funding requirements of the project. What will be the total funding requirements for your project? A. The total approved budget by time period B. The total project budget plus anticipated liabilities C. The total funds, including the cost baseline and any management reserves D. The total individual cost estimates

Correct Option: C EXPLANATION The total funds include cost baseline plus management reserves, if any. Cost baseline includes contingency reserves for the risk remaining after risk response planning. A management reserve is an extra amount of funds to be set aside to cover unforeseen risks or changes in the project, and total fund requirement for the project would include management reserves. Option (a) and option (b) describe cost baseline, and option (d) refers to cost budgeting.

Your company is bidding for a major project from Company X. You have a friend in Company X, and he requests your help in evaluating the proposals. What action should you take? A. Accept the friend's request and work impartially while helping on the proposal evaluation B. Accept the friend's request and take care of your company's interests while helping on the proposal evaluation C. Reject the friend's request D. Ask your Manager's opinion

Correct Option: C EXPLANATION This is a clear situation of conflict of interest, and the Project Manager should reject the request.

You are a Project Manager for an infrastructure development project, and the project involves building a multi-storey building. You have submitted your project estimates for cost and duration to the client. You also inform the buyer that the estimates would be true provided there is an 8ft foundation built on the site already. What does this statement describe in your project? A. Risk B. Constraint C. Assumption D. Mandatory Dependency

Correct Option: C EXPLANATION This is an assumption you have made about the usability of existing foundation to derive the project estimates. An assumption, by definition, is a statement that is assumed to be true and from which a conclusion can be drawn. There may be external circumstances or events that must occur for the project to be successful. These are categorized under project assumptions. This is not a risk as there is no element of uncertainty involved. Risk, by definition, is an event which may or may not occur in the future. If it occurs, it can positively or negatively affect the project. There is also no justification to believe that this is a project constraint, as constraints usually limit project options and are outside the control of the project team. Pre-existence of a foundation for building a multi-storey building is also not an example of Mandatory Dependency (option d).

A heuristic is a ____. A. Scheduling method B. Controlling Tool C. Planning Tool D. Rule of Thumb

Correct Option: D EXPLANATION A heuristic is also referred to as a Rule of Thumb.

After a project management plan is prepared and approved, a project stakeholder asks the Project Manager to correct some syntax and grammatical errors in the project document as they could be misleading. What should the Project Manager do? A. Refuse as these are trivial changes and can be ignored B. Refuse as the project management plan has already been discussed and approved C. Refuse and ask the stakeholder to meet the project sponsor D. Refuse and ask the stakeholder to raise a change request that can be considered by the change control board

Correct Option: D EXPLANATION All changes in the project should be documented through change requests and should go through proper change management process. Option (a) is wrong because the question says the grammatical errors could be misleading and are not trivial.

Which of the following is NOT true with regard to ROI (Return on Investment)? A. It defines the cumulated net income from an investment at a given point in time or during a defined period. B. It includes investment and direct and indirect costs and may include allowances for capital cost, depreciation, risk of loss, and/or inflation C. It is generally stated in currency units, as a percentage, or as an index figure. D. It is the time when cumulated net income is equal to the investment.

Correct Option: D EXPLANATION It is the time when cumulated net income is equal to the investment.

A Project Manager is going through the Project Statement of Work provided by the project sponsor. Which of the following will NOT be a part of this document? A. Business Need B. Product Scope Description C. Strategic Plan D. Performance Measurement Baseline

Correct Option: D EXPLANATION Performance Measurement Baseline is a part of the project management plan. Refer PMBOK® Guide - Sixth Edition Project Integration Management, page 88, Project Procurement Management, page 477.

The Project Manager is participating in the development of a project charter by gathering and analyzing the stakeholders' requirements and ensuring that the project scope, milestones, and deliverables are documented correctly. Which of the following is NOT achieved by the sponsor's approval of the project charter? A. Formalizing the authority assigned to the Project Manager B. Gaining commitment of the stakeholders C. Gaining acceptance for the project by the stakeholders D. Ensuring formal acceptance of the deliverables by the customer

Correct Option: D EXPLANATION The Project Charter is approved by the sponsor and the customer (if required). It formalizes the authority assigned to the Project Manager and helps the Project Manager gain commitment and acceptance for the project. Option (d) is correct in this scenario as formal acceptance of the project deliverables is part of the 'Validate Scope' process and is performed during the Monitoring and Controlling process group.

A project is in the final testing stage and is approaching a critical deadline. Two senior members of the team who have already had disagreements throughout project execution are caught up in a deadlock. The Project Manager has earlier tried his best to sort out their differences but it hasn't worked. What is the BEST the Project Manager can do in this situation? A. Talk to the project sponsor since they are senior members of the project B. Give them a final warning and make it clear that such behavior is not encouraged C. Talk face-to-face with each of them individually to sort out their differences D. Use an Autocratic approach and make a decision that is best for the project

Correct Option: D EXPLANATION The Project Manager is responsible for the project's success. This project is approaching a critical deadline, and these two members have always been a problem. Telling your sponsor about this issue is definitely not an option, as a Project Manager should be able to handle conflicts within the team. Option (B) and (C) may not work as the Project Manager has tried earlier to resolve their differences amicably. The only option is to make a decision that is in the best interest of the project, including expulsion of one resource if required.

You are a Project Manager of a software project that has finished the design stage and is moving to the implementation stage. At the end of the design phase, you got the document reviewed and you tracked and closed the defect logs. Also, as part of the design stage review and kick-off for the implementation phase, you checked current SPI and CPI and revisited the risks. What did you forget to do? A. Identify new risks for the next stage and update risk register B. Take corrective and preventive actions from design review so that defects can be minimized C. Conduct an impact analysis of the defects found during the design review D. Communicate project stage review findings to all the stakeholders

Correct Option: D EXPLANATION The Project Manager needs to communicate the project progress to stakeholders at all the major milestones. Option (A) would have been addressed during revisiting the risk as part of kick off meeting, whereas Options (B) and (C) are not mandatory activities and may not be required in every project.

You work in a pharmaceutical company, and your client has shared some confidential information with you. A medical university requests you to share the information about the client for their research. What should you do? A. Share the information as it will be used purely for academic purposes B. Share the information but hide all references that could expose the client C. Never share any information about the client as you are bound by Non-Disclosure Agreement D. Contact your client and seek permission to disclose the information

Correct Option: D EXPLANATION The best option is to consult the client on these matters. Option (a) seems to be in good faith, but you need to remember that the owner of the data is the client, so you can't share the information without seeking his or her approval.

A project team is in the process of estimating the types and quantities of resources required to perform each activity. Which of the following activities will NOT be done by the team during this process? A. Estimate the type and quantity of resource required to perform each activity B. Go through the past data and lessons learned from previous projects C. Study the organization policies and procedures regarding staffing D. Identify and show network dependency in the project activities

Correct Option: D EXPLANATION The project team is in the process of Estimating Activity Resources, and the activities provided as options (b) and (c) are done as part of this process. Option (d), which involves creating a schedule network diagram to display project schedule activities and logical relationship between them, is part of the Sequence Activities process.

A software project run in an IT company has 14 stakeholders and is in the final testing stage. At this point, the technical architect leaves the project and two new test engineers join. What is the change in the potential communication channels of the project? A. Communication channel would remain unaffected by change in team members. B. Number of communication channels will increase by 13. C. Number of communication channels will increase by 26. D. Number of communication channels will increase by 14.

Correct Option: D EXPLANATION The question is asking about the change, not the total potential communication channels in the project. The total possible communication channels = n*(n-1)/2, where n is the number of stakeholders in the project. When the technical architect was part of the project team, there were 14 stakeholders, which made a total of [(14*13)/2] = 91 channels. When the technical architect left the project team and two new test engineers were added, there were 15 stakeholders, which made a total of [(15*14)/2] =105 channels. The change in the potential communication channels is 105-91=14.

You have delivered many complex and technically challenging projects in the past and have won respect and appreciation for your work from the customers and senior managers in the organization. Which form of power are you using? A. Formal (Legitimate) B. Reward C. Expert D. Referent

Correct Option: D EXPLANATION This an example of Referent power derived from respect and appreciation. A leader may use several types of power. Formal authority (legitimate power) is the ability to influence through the authority to direct, based upon position in the hierarchy of the organizational structure or the perception of official empowerment to issue orders. Reward power is the ability to influence based upon direct or indirect control over positive consequences one desires to gain, such as raises in compensation, bonuses, promotions, choice assignments, or other perks. Penalty (coercive) power is the ability to influence based upon direct or indirect control over negative consequences one desires to avoid, such as the lack of raises in compensation, bonuses, promotions, choice assignments, or other perks. Expert power is the ability to influence based upon expertise or special knowledge considered important to the work at hand. Referent power is the ability to influence based upon respect, loyalty, admiration, affection, or a desire to gain approval.

In a project kick-off meeting, there is utter chaos, with all the attendees talking simultaneously. The Project Manager is not able to present his report due to the commotion, and the stakeholders feel that their expectations are not being met properly. Also, many of the invited attendees are not present. What must have the Project Manager done to avoid this situation? A. Communicate the agenda of the meeting clearly to all the Stakeholders B. Postpone the meeting to ensure availability of all the Stakeholders C. Conduct a brainstorming session to reach a consensus with Stakeholders D. Establish ground rules for the meeting and communicate the rules to all the attendees

Correct Option: D EXPLANATION This is a question where you need to concentrate on the root cause of the situation. There is no evidence to believe that option (a) was not done. Option (b) may not always be feasible. Also, option (c) may not be required once the Project Manager is able to present his point of view and order is restored. The most important thing in this situation is to establish clear expectations regarding acceptable behavior by project team members. Discussing ground rules also allows team members to discover values that are important to one another and to improve productivity.

You are working on a critical project for a large enterprise. The project has a major milestone delivery next week and is in the final testing phase. The project team is working on two critical showstopper bugs that are affecting the project. One of the senior members of the project has resigned, and the outsourced component that was scheduled for delivery next week may be delayed. Additionally, the current performance indices are 1.09 (CPI) and 1.90 (SPI). What is the MOST critical issue faced by the project? A. Cost and Schedule B. Delay in third party component C. Resource movement D. Testing defects

Correct Option: D EXPLANATION This question exemplifies a typical scenario when a Project Manager needs to integrate information and make a decision from many choices. Since both CPI and SPI are more than one, cost and schedule are in control. Delay in third-party components is a risk that may or may not occur. Furthermore, there is no information to suggest that it will delay the milestone release. The Project Manager can plan for knowledge transfer to minimize the effect of senior member's resignation. The showstopper bugs need to be resolved before delivery, and that is the most critical issue faced by the project.

Which of the following is an example of external failure cost? A. Cost of testing B. Cost of training C. Cost of documentation D. Warranty cost

Correct Option: D EXPLANATION Warranty cost is the only cost which belongs to the category of external failure cost. Training and documentation are prevention costs. Testing is appraisal cost. Please refer to PMBOK® Guide - Sixth Edition Project Quality Management, Cost of Quality page 282.

Which of the following factors is MOST critical to achieving customer satisfaction? A. Ensure that the project satisfies all the quality-related metrics B. Ensure that the project is completed within the scheduled timelines C. Ensure that the project is completed within the allotted budget D. Ensure that the project satisfies all the requirements given by the customer

Correct Option: D EXPLANATION While the options (a), (b), and (c) are desirable in fulfilling all the customer requirements for the project, option (d) is most critical.

James is a Senior Manager at a telecommunications company. He is currently managing a project that involves developing a voice-over IP gateway that addresses the challenges faced by service providers who are deploying packet-based voice networks. All of the technical work has already been completed on the project and the project is in the closing phase. Which of the following should be performed at this stage? A. Document lessons learned B. Ensure that the project is integrated with other projects C. Perform scope verification D. Verify the quality of process

Correct Option: A EXPLANATION "Document lessons learned" is an activity that is performed during the closing process.

You are managing a large and changing project team which is joined by some new members. You would like to take the entire team through the project schedule and where the project currently stands with respect to the original plan. Which of the following charts would be most helpful? A. Gantt Chart B. Milestone Chart C. Work Breakdown structure D. Schedule Baseline

Correct Option: A EXPLANATION A Gantt chart is a bar chart that shows the activities of a project, when each activity must take place and how long each will take. As the project progresses, bars are shaded to show the activities have been completed. People assigned to each task can also be represented. This is the most effective tool to show the people assigned to the project where they are with respect to the original plan. Option (b) Milestone Chart is a high-level summary of the project schedule and more suitable for senior management. Option (c) the work breakdown structure (WBS) is used to show the work that is in the project. Option (d) schedule baseline denotes the standard by which project performance is measured.

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? A. Gantt Chart B. Milestone Chart C. Work Breakdown structure D. Schedule Baseline

Correct Option: A EXPLANATION 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.

You need to determine when to release resources from your project. Which part of the staffing management plan will be most useful for this? A. Resource Histogram B. Safety procedures C. Recognition and rewards D. Training needs

Correct Option: A EXPLANATION 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.

A software company created a base package that must be implemented for each customer. Which of the following will be used to ensure that the new base functionality does not break existing custom features and that the changes are evaluated across all relevant versions of the product? A. Configuration management system B. Process improvement plan C. Perform integrated change control D. Work authorization system

Correct Option: A EXPLANATION A configuration management system is the subset of the project management information system (PMIS) that describes the different versions and characteristics of the product, service, or result of the project and ensures accuracy and completeness of the description. It is all about managing different configurations of a product. At some point in time, a product will be baselined and different configurations, versions, and branches are managed from that point. The process improvement plan looks at processes and outlines the activities and steps that will enhance their value. Perform Integrated Change Control is the process necessary for reviewing change requests, approving or disapproving, and managing changes to the deliverables, project management plan and documents, and the organizational process assets. A work authorization system is a formal, documented procedure to describe how to authorize and initiate work in the correct sequence at the appropriate time.

You are a project manager in a manufacturing company, and you want to assess the current quality of your production process. You also want to check if the process is stable over time or if there are any special causes of variation. Which tools would be MOST suitable for this purpose? A. Control chart B. Pareto Chart C. Test of Normality D. Inspection

Correct Option: A EXPLANATION A control chart is a statistical tool used to distinguish between variation in a process resulting from common causes and variation resulting from special causes. Some variation may be the result of causes which are not normally present in the process. This could be a special cause of variation. Some variation is simply the result of numerous, ever present differences in the process. This is a common cause of variation. Control charts differentiate between these two types of variation. It also presents a graphic display of process stability or instability over time. Process stability is defined as a state in which a process has displayed a certain degree of consistency in the past and is expected to continue to do so in the future.

A software project is in the testing phase and the project manager has found a high number of defects in one particular module. He decides to determine the root cause of this problem by analyzing all the potential causes and grouping them into different categories. Which technique is he using? A. Fish Bone diagram B. Pareto chart C. Control charts D. Checklists

Correct Option: A EXPLANATION A fish bone diagram or cause and effect diagram is a popular technique to determine the root cause of a problem by identifying potential factors causing an overall effect. Causes are usually grouped into major categories to identify the sources of variation. Some of the popular categories are people, method, machines, materials, measurements, and environments.

While working in a quality management, you have identified the point where the benefits or revenue from improving quality equals the incremental cost to achieve that quality. Which of the following analyses have you performed? A. Marginal analysis B. Root cause analysis C. Benchmarking D. Quality control analysis

Correct Option: A EXPLANATION A marginal analysis refers to the point where the benefits or revenue from improving quality equals the incremental cost to achieve that quality.

As a project manager and a member of the PMO (Project Management Office) you want to present a snapshot of the status of various projects taking place in the organization to the senior management. Which of the following charts would be most suitable for the purpose? A. Milestone chart B. Gantt chart C. Precedence diagram D. Control chart

Correct Option: A EXPLANATION A milestone chart depicts key events along a time scale. It is used for top-level reporting, so management does not become bogged down in the minutia of the projects. Milestones on a milestone chart can be shown in various colors or with markings that indicate status. The chart can also contain other information related to the projects.

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? A. Milestone chart B. Gantt Chart C. Precedence diagram D. Control chart

Correct Option: A EXPLANATION 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.

You are overseeing the ERP implementation project that will cost the company $1 million and will take three years to complete. Six months into the project, higher management decides to terminate your project as it finds an off-the-shelf solution that can be implemented in three months at a fraction of the planned cost. What is the first thing you should do in a situation when your project no longer seems commercially viable for the company? A. Conduct scope verification B. Release the team immediately C. Document the lessons learned D. Have an urgent meeting with the sponsor to discuss the situation

Correct Option: A EXPLANATION A project can be terminated at any time due to a specific reason or convenience. The project manager should conduct a scope verification to measure the amount of completed work up to the cancellation. Other steps can be taken once the scope verification is completed and the project manager has the details about the current situation.

Higher management has assigned you as the project manager very early in the project life cycle for a very critical project. You are asked to start working on the project charter immediately. Which of the following activities will you not be performing? A. Develop the scope statement document B. Identify and document high-level risks C. Identify project constraints and assumptions D. Perform order of magnitude estimating

Correct Option: A EXPLANATION A project charter identifies the high-level business objectives and needs, current understanding of the stakeholders' expectations, and the new product, service, or result. The project budget and the cost baseline will be finalized and accepted in the planning process group.

A project manager, James is working in a weak matrix organization and plays the role of communication coordinator with some power to make decisions. He reports to a higher-level manager. Which of the following roles is he probably in? A. Project coordinator B. Project expeditor C. Project lead D. Lead coordinator

Correct Option: A EXPLANATION A project coordinator's role is similar to a project expeditor's role, and they act primarily as staff assistants and communication coordinators. However, unlike project expeditors, project coordinators have some power to make decisions and report to high-level managers.

You are a project manager managing a construction project which is midway through the execution phase. The project is progressing well and is on time when one of the vendors informs you that there will be a weeklong delay in his delivery due to a law and order problem in his city. Which of the following documents would best capture the impact of the delay on the project? A. Network Diagram B. Procurement Management Plan C. Work Breakdown Structure D. Risk Register

Correct Option: A EXPLANATION A project network diagram captures the project schedule and would be the best document to reflect the impact of the delay of a deliverable on a project schedule. A work breakdown structure shows what work is on the project but does not focus on how long it should take. The risk register would show an increase in project risk and would not help to determine the impact of delay on the project schedule.

As a project manager, you are explaining to your project team the difference between a resource histogram and a responsibility assignment matrix. What does a resource histogram show that a responsibility assignment matrix does not? A. Time B. Activity C. Inter-relationships D. Person in charge of each activity

Correct Option: A EXPLANATION A responsibility assignment matrix gives the picture of who is responsible for doing what on the project (it states the specific resources against the work packages from the WBS). On a resource histogram, the use of resources is shown over time.

You are a project manager building a prototype board for an embedded project. Since your organization lacks the required level of fabrication expertise, you outsource the fabrication process for board development to an external vendor. During the course of the project, the vendor informs you of a probable delay by 3 days in the final delivery of the fabricated board. This is an EXAMPLE of: A. Secondary Risk B. Residual risk C. Risk Trigger D. Risk Workaround

Correct Option: A EXPLANATION A secondary risk can be defined as a risk created by the response to another risk. In other words, the secondary risk is a consequence of dealing with the original risk. In the current scenario, the risk in the delay of the final deliverable by an external vendor is a response to the existing risk of inadequate in-house expertise for board fabrication. It is important to understand the difference between option (a) secondary risk and option (b) residual risk. Secondary risks are those which are caused by the treatment or response to the risk, whereas residual risk is the risk which remains even after you have treated or responded to the risk.

You are using a quantitative risk analysis and modeling technique that helps to determine which risks have the most impact on a project. Your goal is to find whether the occurrence of a particular threat would be merely an inconvenience or would ruin the project. Which of the following tools will be most appropriate for your analysis? A. Tornado diagram B. SWOT analysis C. Expected monetary value D. Reserve Analysis

Correct Option: A EXPLANATION A tornado diagram is a diagramming method to display sensitivity analysis data by examining all the uncertain elements at their baseline values. It gives a quick overview of how much the project will be impacted by various elements. The element with the greatest impact on the project appears at the top. This diagram can be used to determine sensitivity in cost, time, and objectives and is helpful in determining detailed response plans for elements with greater impacts.

You are the project manager of a project and have added some dummy activities to correctly show all logical relationships. Which network diagramming method have you used? A. ADM (Arrow Diagramming Method) B. Precedence Diagramming Method (PDM) C. PERT D. None

Correct Option: A EXPLANATION ADM (Arrow Diagramming Method) uses dummy activities to correctly show all logical relationships. Arrow Diagramming Method (ADM) uses arrows as activities, and nodes are used to connect and show dependencies. The Precedence Diagramming Method (PDM) uses boxes or nodes as activities and arrows as dependencies between the nodes.

If an employee is working towards the satisfaction of his/her safety needs, which of the following is the highest need that he/she has already satisfied? A. Physiological B. Need for approval from the society C. Need for self-esteem D. Social

Correct Option: A EXPLANATION According to Maslow's theory, once the physiological needs are satisfied, a person looks into the next level of needs, which are safety needs.

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? A. Key deliverables B. Project schedule C. Project Statement of Work D. Product Statement of Work

Correct Option: A EXPLANATION 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.

While planning for a project, you decide to keep a good grip over project risks. You and your team members have come up with the list of possible risks and would now like to prioritize them based on their probability and impact. In which process would this activity take place? A. Perform Qualitative Risk Analysis B. Perform Quantitative Risk Analysis C. Risk Identification D. Risk Register

Correct Option: A EXPLANATION After the Risks are identified, risk prioritization based on impact and probability is done in the Qualitative Risk Analysis. The question states that the risks are already identified, so Risk Identification is already done. Risk Register is an output of the Risk Identification process; there is no such process as Risk Register. Quantitative Risk Analysis deals with assigning a numerical value to each risk, so the correct answer is Qualitative Risk Analysis.

What are the primary benefits of meeting Quality Requirements? (Choose all that apply.) A. Less Rework, Higher productivity, Lower costs, Increased stakeholder satisfaction, Increased profitability B. Decreased productivity due to time spent on Quality Requirements C. Increased costs due to rework D. Decreased stakeholder satisfaction

Correct Option: A EXPLANATION All the details stated are benefits of meeting Quality Requirements. By doing a cost benefit analysis of each quality activity, we can compare the cost of Quality with expected benefit. Options B, C, and D are, in fact, results of poor Quality.

In a control chart, what does upper specification and lower specification limit (USL, LSL) signify? A. These are based on requirements of the contract and reflect the maximum and minimum values allowed B. They are set by the PM and stakeholders to reflect points for corrective action C. These are usually +/- 3 limits based on normal distribution D. These are used to monitor cost and schedule variances

Correct Option: A EXPLANATION All the options apply to control charts. However, specification limits are usually specified by the customer and are part of the contractual requirements. To avoid confusion between specification and control limits, always remember that specification limits specify the imposed limits beyond which a product may not be accepted. To have a stable and predictable process, it should operate within control limits. Stable and predictable process control limits should lie within the specification limits. Please Refer PMBOK® Guide - Sixth Edition Control Charts, page 304.

Which of the following statements is not true regarding the Scope Management Plan? A. Scope Management Plan is not a part of the Project Management Plan B. It provides guidance on how the Project Scope will be verified C. It provides guidance on how the scope will be defined, documented, monitored, and controlled D. It provides guidance regarding the enterprise environmental factors and organizational process assets that would play a part

Correct Option: A EXPLANATION All the options except Option A are true regarding the Scope Management plan. The Scope Management Plan is part of the Project Management Plan.

Which of the following must happen before a project is closed? A. The customer must accept the project's product B. Lessons learned must be documented C. The project team must have a new project D. Project Charter

Correct Option: A EXPLANATION Although lessons learned must be documented, the minimum expectation is that the customer accepts the product.

You have been assigned as a project manager for an ongoing project and asked to provide activity duration estimates as soon as possible. You are surprised to find out that there is no detailed information available on the project. You explore your organizational process assets and identify a few similar projects that had been completed in the past. Which of the following tools are you using? A. Analogous estimate B. Three-point estimate C. Heuristic estimate D. One point estimate

Correct Option: A EXPLANATION An analogous estimate measures project parameters such as budget, size, complexity, and duration based on the parameters of a previous, similar project and historical information. It is usually done during an early phase of the project when not much information is available.

A project manager knows that managing the expectations of stakeholders helps to increase the probability of project success by ensuring that stakeholders understand the project benefits and risks. For this process, he could use all the following tools and techniques EXCEPT: A. Issue log B. Communication skills C. Observation/Conversation D. Negotiation

Correct Option: A EXPLANATION An issue log is an input to the process manage stakeholder expectations. All others are tools and techniques for the process. For more information, refer to Project Communications Management, page 96, PMBOK® Guide Sixth Edition.

An important stakeholder identified a problem with one of the features of a software application your team is working on and submitted a change request. Even though it was out of project's scope, the change control board has approved the change. The BEST action to take next is A. Add the risk to the risk register and gather information about its probability and impact B. Disregard any risk at this stage of the project life cycle C. Have a meeting with the stakeholder to discuss the risk D. Identify what went wrong in the Identify Risks Process.

Correct Option: A EXPLANATION Any time you come across a new risk, the first thing you should do is document it in the risk register and then analyze the impact as well as the probability of that risk. You should not take any further action until you've analyzed the risk.

During the initiating phase, a project manager is studying the laws and regulations including labor law, following country standards, guideline, and statutory. Which of the following knowledge and/or skills is the manager using? A. Applicable laws and regulations B. Project quality best practices and standards C. Regulatory requirements D. Quality assurance and control techniques

Correct Option: A EXPLANATION Applicable laws and regulations include labor law, country standards, guideline, and statutory laws. Project quality best practices and standards provide the mechanism to align to the industry or government standards. Regulatory requirements include government and industry standards which may impact the project outcome. Environmental factors include weather condition, infrastructure, and economic factors which can impact the planning. Quality assurance and control techniques help in ensuring the process is carried out per the expectation, identifying best practices and measuring the project output to see the deliverables are meeting the expected standards. These techniques are newly added in the examination content outline.

You are a project manager working on a strict deadline. You find a work package on the critical path which is highly complex and could delay the final delivery of your product. After consulting your customer, you decide to drop this work package from the project. Which risk response strategies do you use in this case? A. Avoid B. Reduction C. Sharing D. Retention

Correct Option: A EXPLANATION As a project manager, you use risk avoidance or elimination by not doing the activity. Other approaches are reduction by mitigating the risk, sharing by outsourcing, or insuring and retention by accepting and budgeting for project risks.

Ongoing project planning is also known as ____. A. Rolling Wave Planning B. Resource Planning C. Contingency Planning D. Continual Improvement

Correct Option: A EXPLANATION As a project progresses, more project information is gathered and additional planning may be required. This progressive detailing of the project management plan is referred to as "rolling wave planning," indicating that planning and documentation are iterative and an ongoing process. Please refer to PMBOK® Guide - Sixth Edition Project Management Process for a Project, page 185.

Your project is coming to an end, and you are in the process of listing the activities that must be performed to close the project. Which of the following should be performed during the closing process? A. Issue a formal notice of project completion to sellers B. Issue payment schedules and requests C. Request final inspection reports for all vendor-supplied products D. Seek legal counsel from the company's legal department prior to closing the project

Correct Option: A EXPLANATION As part of the closing process, you need to issue a formal notice of project completion to sellers.

In execution phase, implementation of approved actions happens by following risk management plan and risk register. For this action, which option is correct? A. Minimize the negative risk and take the opportunities B. Minimize the opportunities and increase the negative risk C. Minimize only negative risk D. Minimize only opportunities

Correct Option: A EXPLANATION As per the new examination content outline, take advantage of opportunities.

You and a group of managers conduct a weekly meeting for sharing information and project management best practices. Joe who is a colleague of yours explains the need for correctly identifying all the project stakeholders. He explains that in his current project he has made use of Stakeholders Engagement Assessment Matrix. Many of the other colleagues are not quite aware of the need and usage of this matrix. Which of the following is the best choice? A. Lists all the stakeholders along with their current engagement and desired engagement B. Lists all the stakeholders C. Lists only those stakeholders who are Resistant D. Lists only those stakeholders who are Supportive

Correct Option: A EXPLANATION As the name suggests, Stakeholders Engagement Assessment Matrix is used to identify the current engagement level of project stakeholders. It can also be used to indicate the desired level of engagement. Through this analytical process, gaps in engagement levels can be identified and action plans and communication plans can be generated to bridge these gaps. The Stakeholder Engagement Assessment Matrix does not list stakeholders depending on their engagement level, so options C and D are clearly wrong. While you might be tempted to choose option B since you do list down all the stakeholders in a matrix in the document, the better and more qualified answer is Option A. Here, along with the complete list of stakeholders, you also indicate their current and desired engagement level.

You are negotiating with a contractor for additional staff augmentation-a number of software developers and a few testers. As a buyer, you don't quite have the exact statement of work ready. What kind of contract is MOST appropriate for this kind of work? A. Time and Materials - T and M B. Cost plus fixed fee - CPFF C. Firm Fixed Price Contract - FFP D. Fixed Price Incentive Fee Contracts - FPIF

Correct Option: A EXPLANATION As the nature of work is not quite clear and this deals with contracting additional staff, the best choice of contract is T and M. Fixed price contracts are applicable where scope of work is quite clear, which is not the case here. Choosing a Cost-reimbursable contract makes no sense since the unit rate of staff can be determined and agreed between you and the seller. So, the best option is T and M.

The project that you are in charge has been successfully completed. The last of the deliverables have been formally accepted by the client. You had several contractors with whom contracts were prepared. With the project done, you decide to communicate the completion details and closure of contracts. Which is the best form of communication? A. Formal written B. Formal verbal C. Informal verbal D. Informal written

Correct Option: A EXPLANATION As this is related to a contract, it must be a formal written form of communication. Any other form of communication related to contracts is not acceptable.

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? A. Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of Assignment, Creation of Responsibility B. Transfer of Authority, Assignment of Duties to Subordinates, Acceptance of Assignment, Creation of Responsibility C. Assignment of Duties to Subordinates, Acceptance of Assignment, Creation of Responsibility, Transfer of Authority D. Acceptance of Assignment, Creation of Responsibility, Assignment of Duties to Subordinates, Transfer of Authority

Correct Option: A EXPLANATION Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of Assignment, Creation of Responsibility.

Why is it essential to document assumptions from the point of initiation of your project? A. Failure to validate assumptions may result in significant risk events B. Assumptions are absolute and nonnegotiable C. Assumptions allow for baseline adjustments in case of project crisis D. Assumptions limit the project team's options for decision-making

Correct Option: A EXPLANATION Assumptions are not based on factual information, and failure to validate an assumption may result in significant risk events. Assumptions are usually documented during the project initiating and planning processes. These assumptions are not absolute and can be negotiable. Assumptions do not limit the project team's options for decision making; however, constraints do. Assumptions also do not allow for baseline adjustments in case of project crisis as it's not the correct process for adjusting project baselines.

You are managing a project that is responsible for setting up an alcohol distillery. Your team is in its eighth month of execution. One of the vendors informs you that the agitators' delivery is going to be delayed by a week. You look up the project management plan and the schedule baselines and decide to set up all the reactors first. By moving tasks around based on your analysis, you see that there would be no impact on any of the performance measurement baselines. What should you do next? A. Go ahead and execute the rescheduled tasks as there is no impact on any of the baselines B. Write up a change request and submit it to change control for approval C. Analyze the impact of the change on the triple constraints and then submit a change request D. Do nothing as this would cause changes to the baselines

Correct Option: A EXPLANATION Be careful and read carefully regarding the situation you are being asked to evaluate. In this case, the change is not going to impact any of the baselines. In such cases, the project manager has the authority to make changes to the project if there is no impact on the baselines. This is one condition where changes can be made without undergoing change control, but note that this is done after ensuring that there is no impact on the baselines.

A project has initial budgeted cost, also called Budget at Completion (BAC), of $100,000. As the project progresses, these are the current figures: Planned Value (PV) is $20,000, Actual Cost (AC) is $25,000, and Earned Value (EV) is $15,000. What is the Estimate at Completion (EAC), assuming the current variances are atypical of the future? A. $110,000 B. $90,000 C. $100,000 D. $115,000

Correct Option: A EXPLANATION Budget at Completion is the initial budgeted cost. In this case, it is 100,000 USD. Note that EAC = AC + (BAC - EV), when current variances are thought to be atypical of future. Hence, EAC = $25,000 + ($100,000 - $15,000) = $110,000.

Your project has current CPI of 1.2 and SPI of 0.86. What does the figure indicate about the project performance? A. The project has cost underrun and is delayed B. The project has cost overrun and is delayed C. The project has cost underrun and is ahead of schedule D. The project has cost overrun and is ahead of schedule

Correct Option: A EXPLANATION CPI > 1 indicates cost of completing the work is less than planned, but SPI < 1 indicates that project is behind the schedule.

You are overseeing a project to implement a payroll application and are currently in the Identify Risks process of identifying and documenting the projects risks. Which of the following information gathering techniques are NOT used in the Identify Risks process? A. Checklist analysis B. The Delphi technique C. Interviewing D. Brainstorming

Correct Option: A EXPLANATION Checklist analysis is a part of Requirements Identification used to look for issues or potential threats in the process.

While managing a project, you discovered that a few of your team members are not getting along. You also realized that three team members are not sure how to complete their deliverables. All of your team members are working together in the same building. You also set up regular weekly meeting with all the team members in a single meeting room. Which technique will NOT be helpful in this situation? A. War room B. Training C. Reward and recognition D. Negotiation

Correct Option: A EXPLANATION Colocation/war room is a technique of placing many or all of the most active project team members in the same physical location to enhance their ability to perform as a team. Since all the team members are in the same building and having meetings in the same meeting room most of the time already, colocation is not a technique we should be considering in this case. Other techniques listed here will be beneficial to resolve conflict and concern about deliverables.

Which of the following documents has information regarding how people should be informed about the project's progress? A. Communication Management Plan B. Risk Management Plan C. Cost Management Plan D. Schedule Management Plan

Correct Option: A EXPLANATION Communication Management plan has information regarding how people should be informed about the project's progress.

A popular tool used to monitor project performance, including cost and schedule variances, and ensure that process operates within acceptable limits is called: A. Control Chart B. Run Chart C. Pareto Chart D. Flowchart

Correct Option: A EXPLANATION Control charts, also known as Shewhart charts or process-behavior charts, is a popular tool used to monitor project performance, including cost and schedule variances, and ensure that the process operates within acceptable limits. Run charts that are often used to show trends over a finite period of time, relative to an average. Please refer to PMBOK® Guide - Sixth Edition Control Charts, page 304 for more details.

Your project has a virtual team. Half of your team members are located in another country where they are working for a subcontractor. The subcontractor's team members speak a different dialect of English than your team does. After a conference call, two of your team members make jokes about the way your subcontractor's team members speak. What is the BEST way to handle this situation? A. Correct the team members individually and hold a training session for your team to help remove communications barriers B. Immediately correct the two people in front of the rest of the team C. Report the team members to senior management and recommend that they be punished D. Remove noise from the communication by contacting the subcontractor and requesting that the team adjust the way they speak

Correct Option: A EXPLANATION Correct the team members individually and hold a training session for your team to help remove communications barriers. As per PMI, it's unacceptable to belittle anyone based on how they speak, the way they dress, or any other aspect of their cultural background. If you see a member of your team doing this, it is your responsibility to do what is necessary to correct the behavior and prevent it from happening in the future.

Senior management has asked you to shorten your project schedule by 2 months by any means. In order to achieve the target, you added a couple of additional resources to the team and also approved unlimited overtime for the team members. You realize that you are taking the risk of potential conflicts and additional management time and cost to the project. The technique you are using is: A. Crashing B. Critical chain C. Critical path D. Fast tracking

Correct Option: A EXPLANATION Crashing is a technique of adding additional resources to a project activity to complete it in less time. Examples of crashing could include approving overtime, bringing in additional resources, or paying to expedite delivery to activities on the critical path. Crashing does not always produce a viable alternative and may result in increased risk, more management time and/or cost. Increasing the number of resources may decrease time but not in a linear amount as activities will often encounter the law of diminishing returns.

Which processes are in the Initiating process group? A. Develop Project Charter and Identify Stakeholders B. Develop Project Charter and Develop Project Management Plan C. Develop Project Charter and Collect Requirements D. Develop Project Charter and Manage Stakeholder Engagements

Correct Option: A EXPLANATION Develop Project Charter and Identify Stakeholders belong to the Initiating process group.

Which of the following is not a Risk Identification tool or technique? A. Risk Register B. Documentation Reviews C. Brainstorming D. Interviewing

Correct Option: A EXPLANATION Documentation reviews help identify risks based on the plans and assumptions, so this is a Risk Identification tool. Brainstorming deals with getting together various stakeholders and identifying potential risks. Interviewing experienced project participants, stakeholders, and subject matter experts is also a great source of identifying risks. Risk Register is not a tool, rather it is the document in which identified risks are documented, so the Risk Register is not a Risk Identification tool.

Your team has estimated that there is a 40 percent probability of a delay in the receipt of required parts with an additional cost of $15,000 to the project. This delay will cost the company $20,000 in lost business. Upon further investigation, you identified that if an existing component could be adapted, it would save the project $10,500 in engineering costs. There is a 30 Percent probability that the team can take advantage of that opportunity. What is the total expected monetary value (EMV) of these two events? A. -$10,850 B. $14,000 C. $3,150

Correct Option: A EXPLANATION EMV is a form of decision tree analysis used to select the best of several alternative courses of action. Each decision note has an input based on the cost and its probability, which produces an output. In this case, one of the branches of the decision tree would be a 40% chance of an $15,000 in additional costs and a resultant loss of $20,000 in revenue, so the total impact would be .4 * (-$15,000 + -$20,000) = -$14,000 . The other branch for the new component has $10,500 in cost savings, so the net effect is $10,500 * .3 = $3,150. We add the -$14,000 and the $3,1,50 to get the Expected Monetary Value of both decision tree paths which equals -$10,850

While reviewing the status of your project, you found that for a given time period, your AC is $390,000 and PV is 380,000. Your have a budget of $900,000 and so far have completed 40 percent of the work. What should you report to the management about your project? A. The project is behind schedule and over budget B. The project is behind schedule and under budget C. The project is progressing according to the plan D. The project is ahead of schedule and under budget

Correct Option: A EXPLANATION EV= BAC* actual % complete So, EV = 900000*40 percent = $360,00 SV = EV-PV So, SV = 360,000 - $380,000= -$20000 CV= EV ' AC So, CV = $360,000- $390,000 = -$30000 Since both CV and SV are negative, you are over budget and behind the schedule. We know EV= BAC * actual % complete So, EV = 900000 * 40 percent = $360,00 SV= EV-PV So, SV = 360,000 - $380,000= -$20000 CV= EV ' AC So, CV = $360,000- $390,000 = -$30000 Since both CV and SV are negative, you are over budget and behind the schedule.

You are the project manager of the ABC project which has an allocated budget of $650,000. You have completed 30% of the work with an expenditure of $26,000 against your plan of 45%. What is the earned value? A. 195000 B. 292500 C. 26000 D. -26000

Correct Option: A EXPLANATION Earned value is calculated by multiplying the percentage of completion, 30% by the BAC, i.e. $650,000, for a value of $195,000.

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? A. Ensure the product is compliant to government health standards B. Find a replacement for the senior tester and ensure he completes knowledge transfer before leaving C. Complete change control process to incorporate changes to enhance performance D. Notify the customer about probable delay in the final deliverable to avoid surprise later

Correct Option: A EXPLANATION 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.

As a part of the Monitoring and Controlling process group, you and your project team have listed and are assessing the corrective actions in the issue register. What is the NEXT step that you will perform? A. Determine steps to resolve issues by using appropriate tools to minimize the impact on project cost, schedule, and resources B. You have already listed the corrective actions and it is now the customer's responsibility to decide the resolutions C. Follow the Change control method D. Communicate the corrective actions to the stakeholders

Correct Option: A EXPLANATION Even if you have listed the corrective actions, the next task is to get them implemented and initiate the resolution of the unresolved issues.

Which technique is used in the "Identify Stakeholders" process? A. Expert Judgment B. Stakeholder management strategy C. Stakeholder register D. Procurement of documents

Correct Option: A EXPLANATION Expert Judgment is a technique used in the "Identify stakeholders" process. Option D, Procurement of documents, is the input to this process. Options B and C, stakeholder management strategy and stakeholder register, are the outputs from this process. For more information on this process, refer to Page No. 507 of PMBOK® Guide - Sixth Edition

Which of the following is NOT a likely outcome of trying to fast track a project? A. Reduce the level of risk B. Reduce the time taken C. Increase the level of risk D. Cause more rework

Correct Option: A EXPLANATION Fast tracking (getting more tasks to go on in parallel) may reduce the time taken but will likely increase risk and rework.

You are a project manager working on a compliance project in a banking firm. The project is scheduled to complete in six weeks from now. Your sponsor tells you that if the project finishes sooner, the company can get some monetary incentives offered by the government. Therefore, you decide to fast track the project. This decision would: A. Increase the project risk B. Not affect the project risk C. Decrease the project risk D. Cannot be determined

Correct Option: A EXPLANATION Fast tracking is the process of rescheduling tasks originally planned in a series to be performed in parallel. Fast tracking always involves risk that could lead to increased costs and rework.

You are utilizing a technique of reconciling the expenditure of funds with the funding limits set for the project. As per the variance between expenditure of funds and planned limit, you are trying to reschedule activities to level out the rates of expenditures. This technique is known as: A. Funding limit reconciliation B. Cost aggregation C. Reserve analysis D. Forecasting

Correct Option: A EXPLANATION Funding limit reconciliation is a technique of reconciling the expenditure of funds with the funding limits set for the project. As per the variance between the expenditure of funds and planned limit, the activities can be rescheduled to level out the rates of expenditures.

While overseeing a web-based application project, you notice that one of the team members is extremely dedicated to the project and is a consistent overachiever. In order to appreciate her contribution to the project, you offer her a corner office where she can concentrate on her work without much interruption. This kind of reward is a: A. Perquisite B. Fringe benefit C. Special achievement award D. Bribe

Correct Option: A EXPLANATION Giving special rewards to some employees, such as assigned parking spaces, corner offices, and executive dining, are considered perquisites. Fringe benefits are the standard benefits formally given to all employees, such as education benefits, health insurance, and profit sharing.

You may have two activities to design a software component and test it. Depending on the result of the testing, you may or may not redesign the component. Which of the following network diagram techniques will you use that permits loops to represent non-sequential activities? A. Graphical evaluation and review technique (GERT) B. Activity on node (AON) C. Activity on arrow (AOA) D. Precedence diagramming method (PDM)

Correct Option: A EXPLANATION Graphical evaluation and review technique (GERT) is a modified network diagram drawing method that allows conditional branches and loops between activities.

Your company has won a prestigious project that deals with building software to be used on spaceships landing on the moon. After building the schedule network diagram, you identify the critical path and also a number of near-critical paths. What does this mean with respect to Risks related to Project Schedule? A. The project is at high risk of meeting its schedule, considering additional near-critical paths B. The project has no risks of meeting its schedule, considering additional near-critical paths C. Near-critical path will have no impact on the schedule; hence, no risks at all D. The near-critical path activities have a lot of Float, so there is no fear of not meeting the project completion

Correct Option: A EXPLANATION Greater the number of near-critical paths, greater the risk of the project not meeting its scheduled completion dates. This is because the near-critical path activities will have very little float, so thereby hardly any flexibility. Any slippages in these tasks, in addition to tasks on the Critical Path, can lead to schedule slippage. Hence, options B, C, and D are incorrect.

A cost plus incentive fee (CPIF) contract has an estimated cost of $250,000 with a predetermined fee of $15,000. If the seller can save the buyer any money, the sharing ratio will be 75/25 (buyer/seller). The maximum fee is $24,000, and the minimum fee is $8,000. The actual cost of the project is $225,000. What will be the final fee for the seller and the total savings for the buyer? A. $21,250, $18,750 B. $15,000, $25,000 C. $25,000, $20,000 D. None of the above

Correct Option: A EXPLANATION Here target cost = $250,000, and actual cost = $225,000. Thus, savings = $250,000 - $225,000 = $25,000. Seller portion of savings is 25 % of $25,000 = $6,250. Buyer portion of savings is 75 % of $25,000 = $18,750. Final fee for seller is $15,000 - $6,250 = $21,250. Thus, total cost for the buyer is $225,000 + $21,250 = $246,250.

Which of the following defines standards and provides specifications for products, services, and systems to meet quality, safety, and efficiency? A. ISO B. BS C. CMMI D. IEEE

Correct Option: A EXPLANATION ISO is an international organization for standards and is an independent body that provides standards for products, services, and systems to meet quality requirements. It is mostly used in the manufacturing industry. CMMI or Capability Maturity Model Integration is used mostly in the software industry. It is not a standard but a set of best practices. BS or British standards from British Standard Institute help organizations improve their quality and performance, reduce their risk, manage and protect their reputations, and be more sustainable. IEEE is Institute of Electrical and Electronics Engineers. It provides standards in some of the areas, like software test documentation, software unit testing, and Quality assurance planning.

While working in a foreign country, you are asked to pay the security guard for private protection service every time you transfer expensive equipment from one warehouse to another. You know this would not be a common practice in the US as it may be considered a bribe, but it is customary in the country you are now working in. What would be your best of action? A. Pay for the service as it is customary in the country you are now working in B. Never pay for the private protection service C. Ask for guidance from PMO D. Ask for guidance from the sponsor

Correct Option: A EXPLANATION If it is customary in the country you are working in to pay for the private protection service, it will not be a bribe. A long as it is acceptable, reasonable, and legal in that country, you should pay the security guard the protection fee.

You are the Project Manager of a new risk management software that is being developed for one of your customers. You are midway through the project, and you are showing the first version of the product to your stakeholders. While the demo is in progress, one of the stakeholders points out that a few features requested by the customer's CEO are not present in the product. Incorporating those features would require changing the design of the product, which is expensive at this stage. What is the reason for such a scenario? A. Stakeholder analysis was not done properly B. The team misunderstood the requirement C. The CEO requirements were not in line with what the product was supposed to do D. The stakeholder who pointed out this problem was trying to create issues

Correct Option: A EXPLANATION If the project has gone to a stage where a demo is being presented to key stakeholders and some stakeholder requirements seem to be missing, it indicates that stakeholder analysis was not done properly.

You are the project manager of a project, and one of the functional managers wants to make a major scope change during the execution of the project. What should be your action? A. Prepare an impact detail of the change for the functional manager B. Refuse the change C. Complain to the sponsor D. Ignore the request

Correct Option: A EXPLANATION If there is scope change by a functional manager during the execution of the project, then the project manager sends the impact detail of the changes to functional manager.

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? A. Product Scope B. Project Scope C. Scope baseline D. Requirements Management Plan

Correct Option: A EXPLANATION 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.

Which of the following is a key objective of the Validate Scope process? A. To ensure that the customer accepts the project deliverable B. To track progress of requirement completion C. To get better visibility on project progress D. All of the above

Correct Option: A EXPLANATION If you have got this question wrong, please read the Scope Management chapter for better understanding of what needs to be done in the Validate Scope process.

Your customer asks for a small change in the project, which was not budgeted initially. It is a small effort compared to the total project, and you need the goodwill of the customer to be successful in a multi-million dollar gas project. What will you do? A. Implement approved changes according to the change management plan to meet the project requirements B. Since you need to maintain goodwill, you agree to incorporate the change C. Speak to the sponsor for his consent D. Tell the customer to keep it a secret and not inform the sponsor about the change to be implemented

Correct Option: A EXPLANATION Implement approved changes according to the change management plan to meet the project requirements.

A Project Manager is working on constructing a new bridge, but is not getting enough project attention. Resources are occupied in process-related work and the Project Manager has little authority to assign resources. In what form of organization is the project being performed? A. Functional B. Strong Matrix C. Projectized D. Weak Matrix

Correct Option: A EXPLANATION In a functional organization, team members are more concerned about their functional work than the project activities. In this case, the project is not getting enough attention because resources are occupied in process-related work, and the Project Manager does not have much authority to direct them to the project work.

Identify a statement about the Arrow Diagramming Method (ADM) or Activity-on-Arrow (AOA) that is not true. A. The nodes are used to represent activity and arrows show activity dependency B. It uses only Finish to Start relationship between activities C. It may use dummy activities D. It is a popular method of drawing network diagram

Correct Option: A EXPLANATION In the Arrow Diagramming Method (ADM), the arrows are used to represent activities.

Which of the statements about the Arrow Diagramming Method (ADM) or Activity-on-Arrow (AOA) is NOT true? A. The nodes are used to represent activity and arrows show activity dependency B. It uses only Finish-to-Start relationship between activities C. It may use dummy activities D. It's a popular method of drawing a network diagram

Correct Option: A EXPLANATION In the arrow diagramming method (ADM), the arrows are used to represent activities. The nodes represent activity dependency.

You have been working with a few vendors to procure the services and goods you need for one of the critical projects you are overseeing. You sent out your RFP template to these vendors so that they can submit their proposals to you. The RFP contains a narrative description of the products and services that you need for the project. Which part of the RFP document does this BEST describe? A. Statement of work B. Business case C. Resource management plan D. Project charter

Correct Option: A EXPLANATION In the case of an external project, the client will send out the statement of work as a part of the bidding document such as a request for proposal (RFP). The SOW is a narrative description of products, results, or services to be supplied by the project, including the business need, product scope description or what is to be done, and how the project supports the strategic plan.

As a project manager of a research project which is in the middle of the execution, you realize that your original estimates were flawed and are no longer valid. Which formula would help you develop a forecasted Estimate to Completion (EAC)? Here, AC is Actual Cost, EV is Earned Value, ETC is Estimate to Complete, CPI is Cost Performance Index, and BAC is Budget at Completion. A. EAC = AC + Bottom-up ETC B. EAC = AC + (BAC-EV C. EAC = BAC/CPI D. EAC = AC + (EV- BAC

Correct Option: A EXPLANATION In this scenario, the new forecasts for Estimate to Complete (EAC) would be based on new estimates to complete the remaining work or ETC. The most common EAC forecasting approach is a manual, bottom-up summation by the project team. Please refer to page 264, PMBOK® Guide Sixth edition for more details.

As a project manager of a research project which is in the middle of execution, you realize that your original estimates were flawed and are no longer valid. Which formulas would help you to develop a forecasted Estimate to Complete (EAC)? Here AC is the Actual Cost, EV is the Earned Value, ETC is Estimate to Complete, CPI is Cost Performance Index, and BAC is Budget at Completion. A. EAC = AC + Bottom up ETC B. EAC = AC + (BAC-EV) C. EAC = BAC/CPI D. EAC = AC + (EV- BAC)

Correct Option: A EXPLANATION In this scenario, the new forecasts for Estimate to Complete (EAC) would be based on new estimates to complete the remaining work or ETC. The most common EAC forecasting approach is a manual, bottom-up summation by the project team. Please refer to the PMBOK® Guide - Sixth Edition Project Cost Management, page number 264 for more details.

You are working for a healthcare project facility and overseeing the implementation of a new computer infrastructure and office automation project at the local hospital. The project was progressing well, and not many change requests had been submitted. Recently, you made a major release in the project and communicated the successful news to all the relevant members of the project. You were surprised when the customer called to inform you that he was not very happy with the deliverable and would be asking for a major modification soon. What should you do first in this kind of situation? A. Do a scope verification of this deliverable to check if it satisfies project objectives B. Have an urgent meeting with the sponsor to discuss the situation C. Ignore the customer's concern and concentrate on the next deliverable to complete the project on time D. Assure the customer that the next deliverable will have additional features to meet and exceed his expectations

Correct Option: A EXPLANATION In this specific situation, the project manager should do a scope verification of the deliverables to ensure that they satisfy project objectives and were completed satisfactorily. A project manager should always get all the details first before taking an action such as discussing the concern with the sponsor. Gold plating or offering customers extra or additional features will not solve any real problem and should be avoided.

You have supplied software code to a manufacturer, and the manufacturer has paid for your code. However, one of your testers informs you that there is a potential problem with the code. This was not identified at the time the software was supplied. It has the potential to be a problem to the manufacturer. Also, the tester informs you that the chances of this problem occurring are very slim. What should be done in such a case? A. Inform the manufacturer about the potential problem and supply him with the new version of the software B. Ask your management for guidance as does not look good to inform the customer about the potential problem C. Reward the tester for doing a great job D. Wait for the Manufacturer to report the problem and charge him extra for solving the problem

Correct Option: A EXPLANATION Inform the manufacturer about the potential problem and supply him with the new version of the software. It's unethical to not let the customer know about a known problem.

The method of examining work or a product to determine whether it conforms to documented standards is called A. Inspection B. Statistical Sampling C. Audit D. Verification

Correct Option: A EXPLANATION Inspection is the examination of work or a product to determine whether it conforms to documented standards. It is also called peer reviews, review audits, or walkthroughs. Inspection can be done at any level in the project and can also be used to validate defect repairs.

The method of examining work or a product to determine whether it conforms to documented standards is known as: A. Inspection B. Statistical Sampling C. Audit D. Verification

Correct Option: A EXPLANATION Inspection is the examination of work or a product to determine whether it conforms to documented standards. It is also called peer reviews, review audits, or walkthroughs. Inspection can be done at any level in the project and can also be used to validate defect repairs.

You are in charge of a software project and you are almost 40% complete. The project stakeholders want a performance report to date. You had planned to use Earned Value Management methodology. You come up with the following numbers: EV = 100 AC = 300 PV = 150 BAC = 600. You and your team have faced numerous issues till now. However, you choose to ignore the current work performance and decide to go with what was originally planned. Based on this information, what would be the EAC for the project? A. 800 B. 200 C. 600 D. 1800

Correct Option: A EXPLANATION It is stated that the issues experienced in the project were ignored, so the past performance is not considered and the planned values are considered. So, the formula: EAC = AC + (BAC - EV) = 300 + (600 - 100) EAC = 800.

You were about to send a deliverable to your customer when you realize that there is a defect that the customer would not notice. What would you do? A. Discuss with the customer B. Go ahead and send the deliverable C. Inform your senior management and seek guidance D. Extend the Project deliverable timeframe

Correct Option: A EXPLANATION It's ethically not right to send a deliverable with a known defect to the customer. In the present case, the best thing is to speak with the customer to see if he is ok with you sending the deliverable with the defect.

You are working on a large project where you have to identify various subcontractors to do certain parts of the project. One of your potential subcontractors, Susan, is not from the same city and you have called her for contract term negotiations at your office the next morning. However, the evening before the meeting, you find out that the part of work that needs to be subcontracted has been cancelled. What should you do in such a scenario? A. Cancel the meeting B. Change face-to-face meeting to Telephonic Meeting C. Ask your Subordinate to meet the Subcontractor D. Meet the Subcontractor as you have already called her

Correct Option: A EXPLANATION It's not ethical to waste anyone's time when you know that the task that was supposed to be subcontracted has already been cancelled.

Johnny is the project manager of the Galaxy Project. Quality audits of the deliverables show there are several problems with the product. The organization has asked Johnny to create a chart showing the distribution of problems and their frequencies. Which of the following is the right tool to assist Johnny? A. Pareto diagram B. Ishikawa chart C. Control chart D. Flowchart

Correct Option: A EXPLANATION Johnny needs to create a Pareto diagram. A Pareto diagram maps out the causes of defects and illustrates their frequency. Option C is incorrect because a control chart does not identify the problems

You are participating in development of the project charter for a new project. Which of the following is NOT a part of the enterprise environmental factors? A. Lessons learned from previous projects B. Knowledge of which departments in your company typically work on projects C. The work authorization system D. Government and industry standards that affect your project

Correct Option: A EXPLANATION Lessons learned are part of the organizational process assets, not enterprise environmental factors.

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? A. Lessons learned from previous projects B. Work authorization system C. Government and industry standards that affect your project D. Knowledge of which departments in your company typically work on projects

Correct Option: A EXPLANATION Lessons learned are part of the organizational process assets.

You are in charge of a painting project for a high-rise building. As part of the planning, you need to take a decision of buy vs. lease some stilt ladders needed on site. The cost of the ladder is $1000 and a daily cost of $4, while the daily lease cost is $12. If you were to lease the ladder, what should be the duration to ensure your decision is correct? A. A duration less than 126 days B. A duration less than 150 days C. A duration greater than 126 days D. A duration greater than 126 days

Correct Option: A EXPLANATION Let's assume the duration to be X days. 12 * X = 1000 + 4 * X, 8X = 1000, X = 125. This means that if the ladder is used for any duration equal or greater than 125 days, it is economical to purchase rather than lease. So, in other words, to lease the duration should be equal to or less than 125 days.

What is the meaning of the term 'management by objective' in project management? A. A management philosophy that advocates establishing unambiguous and realistic objectives and conducting periodic reviews to ensure they are being met B. Management of projects by a central office that determines objectives to be met for each project C. It is PMI's organizational maturity model for project management D. A project gets better managed over length of the project as objectives become clearer

Correct Option: A EXPLANATION Management by objective advocates establishing unambiguous and realistic objectives, and conducting review to ensure objectives are being met, and enabling corrective action whenever necessary. The implication for the Project Manager it that the project might lose its resources and support from management if the project doesn't support the corporate objectives.

What is the key purpose of the Monitoring and Controlling process group? A. Measure project performance in order to identify and quantify any variances and perform approved corrective actions B. Perform preventive actions so that no variances ever occur in the project lifecycle C. Conduct daily status meetings D. None of the above

Correct Option: A EXPLANATION Measure project performance in order to identify and quantify any variances and perform approved corrective actions. Preventive actions should be identified and implemented during this process group but they will not ensure that variances won't take place throughout the project lifecycle. Only conducting daily status meetings will not assist in monitoring and controlling the project.

You are in the process of selecting the seller for a part of your project that needs to be subcontracted. The project is being performed under a tight budget, and your senior management has given you strict instructions to select the lowest bidder. You have narrowed down to two bids. The lowest bid was from a bidder that you had a bad experience with in the past. The other bidder is very well known for treating customers well. Whom will you select? A. The lowest bidder B. Ask the other bidder to match the lowest price C. Disqualify the lowest bidder by citing some clause D. Select the other bidder as you will have a nice time working with them

Correct Option: A EXPLANATION Once the rules for selecting the right vendor are communicated to you by the senior management, you should follow them. In this case, the senior management has clearly communicated that the lowest bidder must be selected.

Which of the following tools is used to document the lessons that were learned when the contract was administered? A. Procurement audit B. Buyer-conducted performance review C. Quality audit D. Contract review

Correct Option: A EXPLANATION Once you've closed a contract, it's important to conduct a procurement audit.

During a regular project meeting, one of the team members suggests a nice feature that the customer may like. The Project Manager says "no" to this feature as the project should concentrate only on what is required for completion. This is an example of: A. Scope Management B. Change Management C. Project Management D. Quality Management

Correct Option: A EXPLANATION One of the key responsibilities of a Project Manager is to ensure that only what is in the project scope is done. Doing more than what is part of the project scope is called gold plating, and PMI® is against gold plating.

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. A. Opportunity cost B. Depreciation C. Sunk Costs D. Internal Rate of Return

Correct Option: A EXPLANATION Opportunity cost is the cost of the opportunity that was foregone in choosing a different option.

Regarding Rolling Wave Planning, which of the following statements are true? (Choose all that apply.) A. Rolling Wave Planning is a form of progressive elaboration. B. It is a planning technique performed only once. C. Work that is to be performed in the long term is planned in greater detail as compared to work in near term. D. It is a form of planning where all the details are estimated upfront.

Correct Option: A EXPLANATION Option A is the correct answer. It correctly explains Rolling Wave Planning. Option B, C, and D are clearly not correct since not all details are estimated upfront, rather only the immediate activities or tasks are estimated upfront. This process is performed iteratively and not only once.

Alex is the Project Manager of a large machinery manufacturing project. During the execution phase of the project, the customer asks for a major change in the machine design. The change has a huge time and cost implication, but the customer says there is not enough funding for this change. As a Project Manager, what should Alex do? A. Meet with the customer to understand why he is asking for the change B. Ask the team members to implement the change without going to the change control board C. Escalate the issue to senior management and seek guidance D. Do nothing and let the work continue as usual

Correct Option: A EXPLANATION Option B will be ruled out. If you are making any change, the change control board should be involved. Option D is not a good option. It just involves postponing the problem. Escalating the issue is not a good option unless you have complete details. The best option is option A.

You and your team have just created a schedule network diagram. You have come up with the estimates and have defined the durations and subsequently have identified the Critical Path. You now decide to do a "Forward Pass" through the Schedule Network Diagram. What would you be calculating? A. The Early Start and Early Finish for each activity B. The latest start and latest finish for each activity C. The duration of the other paths D. The duration of the critical path

Correct Option: A EXPLANATION Options C and D are incorrect as the Forward Pass is not used to calculate the duration. In fact, the critical path is calculated based on duration. Option B talks about Late Start and Late Finish, which are calculated using Backward Pass. Using "Forward Pass," we calculate the Early Start and Early Finish of all the activities in the network diagram.

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? A. 61.67 +/- 8.00 B. 31.27 +/-8.00 C. 61.67 +/-3.00 D. 31.27 +/-3.00

Correct Option: A EXPLANATION PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely, given by the equation Expected Duration = [P + 4(ML) + O]/6. Range is +/- standard deviation = (P-O)/6, where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this method, the correct answers comes out to be 61.67 days and range (+/-Standard Deviation) is 8.00.

As a project manager, you are estimating the duration of your project activities using PERT (Program Evaluation and Review Technique). For a particular project activity, your optimistic estimate is 41 days, pessimistic estimate is 89 days, and most likely estimate is 60 days. What would be the expected duration and range of the estimate for this activity? A. 61.67 +/- 8.00 B. 31.27 +/-8.00 C. 61.67 +/-3.00 D. 31.27 +/-3.00

Correct Option: A EXPLANATION PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely, given by the equation: Expected Duration = [P + 4(ML) + O]/6. Range is +/- standard deviation = (P-O)/6, where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this method, the duration is 61.67 days and the range (+/-Standard Deviation) is 8.00.

As a project manager, you are ensuring that project cost control is done on your project. All of the following are mostly true about project cost control except: A. The cost baseline is updated all the time B. Appropriate stakeholders are informed about the approved changes to the project cost C. All the changes to the project cost are recorded pre and post their approval D. Cost performance is monitored to detect the variance between the cost base line and actual cost performance

Correct Option: A EXPLANATION Per the PMBOK® Guide - Sixth Edition, the cost baseline should not be updated frequently. The cost baseline updates should be done only based on the approved changes. See page 254 of PMBOK® Guide - Sixth Edition.

An independent team from your organization has identified wasted steps that are not necessary for creating the product for your project. They have recommended a few actions for process improvement and have requested that some of the process documents be updates. Which of the following best describes what is being performed? A. They are performing manage quality activity B. They are performing quality control activity C. They are monitoring and controlling activities D. They are directing and managing project work

Correct Option: A EXPLANATION Perform manage quality is a process to determine if the project activities are complying with organizational and project policies, standards, processes, and procedures. This process is primarily concerned with overall process improvement and does not deal with inspecting the product for quality or measuring defects. The primary focus is on steadily improving the processes and activities undertaken to achieve quality.

A project manager is in the Plan Communications Management process of identifying the information and communication needs of the people involved in a project by determining what needs to be communicated, when, to whom, with what method, in which format, and how frequently. Which of the following is NOT a tool and technique in this process? A. Performance reporting B. Communication requirement analysis C. Communication methods D. Communication technology

Correct Option: A EXPLANATION Performance reporting is a tool and technique in the Manage Communications process, not in the Plan Communications Management process. Communication requirement analysis, communication methods, and communication technology are tools and techniques in Plan Communications Management process.

You are developing strategies to effectively engage stakeholders throughout the project life cycle. What is process you are working on? A. Plan Stakeholder Management B. Identify Stakeholders C. Manage Stakeholder Engagement D. Control Stakeholder Engagement

Correct Option: A EXPLANATION Plan Stakeholder Management is the process to develop a strategy to effectively engage stakeholders throughout the project life cycle.

A Project team is working on how better or faster it can carry out the work and what optimization it can make within the project. Which of the following techniques/knowledge/skills are being used? A. Process analysis techniques B. Performance measurement techniques like KPI, key success factors C. Project quality best practices and standards like (ISO, CMMI) D. Lean and efficiency principles

Correct Option: A EXPLANATION Process analysis techniques help understand how better or faster you can carry out the work and what optimization you can make. Performance measurement techniques like KPI and key success factors decide the acceptance/rejection/satisfaction criteria. Project quality best practices and standards like (ISO, CMMI) provide the mechanism to align to the industry or government. Lean is reducing the waste and efficiency is how better or faster one can achieve the result.

Which of the following integration management processes is responsible for implementing process improvement activities? A. Direct and Manage Project Work B. Monitor and Control Project Work C. Develop Project Charter D. Perform Integrated Change Control

Correct Option: A EXPLANATION Process improvement activities, including corrective actions, preventive actions, and defect repairs, are implemented in the Direct and Manage Project Work process.

Which of the following techniques translates project objectives into tangible deliverables and requirements by improving the project team's understanding of the product? A. Product analysis B. Alternative generation C. Inspection D. Decomposition

Correct Option: A EXPLANATION Product analysis techniques, such as product breakdown, systems analysis, system engineering, value engineering, value analysis, functional analysis, and others, may be used to perform a detailed analysis of the product, service, or result. This technique translates project objectives into tangible deliverables and requirements by improving the project team's understanding of the product.

You are working on a project to build a hybrid car which would run on both fuel as well as electricity. This car would have a 1000 cc engine and work on a regenerative braking system. It should be able to seat four passengers including a driver and comply with Euro 4 emission norms. These parameters are described as: A. Product Scope B. Project Scope C. Scope baseline D. Requirements Management Plan

Correct Option: A EXPLANATION Product scope includes the features and functions that characterize a product, service, or result. It describes the service that will exist as a result of your project. Product scope is different from project scope. Project scope is the work that needs to be accomplished to deliver a product, service, or result with the specified features and functions.

Senior management needs to be informed regarding the progress of your project. You will be making progress reports based on the scope, schedule, and cost details provided in which of the following options? A. Project Management Plan B. Project Charter C. Earned Value calculations D. PERT and CPM

Correct Option: A EXPLANATION Project management plan is the basis for project execution. Hence, progress reports are prepared on the scope, schedule, and cost details provided in the project management plan.

The project sponsor wants a 10% reduction in costs estimates prepared by the project team. The motive is to improve the IT infrastructure downtime Service Level Agreement (SLA) by 3%. Which of the following would be the best course of action for the project manager? A. Provide an accurate estimate with supporting documentation B. Resubmit reduced estimates and make mitigation plans to manage consequential risk C. Brainstorm with the team to identify potential cost reduction D. Prepare a plan for improving SLA by 5%

Correct Option: A EXPLANATION Provide details of an accurate estimate with supporting documentation. While options B and C appear likely to be exercised under the situation, a professional project manager would stand by accurate estimates and secure the approval of management.

A project team is working on constantly reviewing and making sure that the right processes are being followed. Which process will the team use? A. Perform Quality Assurance B. Control Quality C. Plan Quality Management D. Quality Metrics

Correct Option: A EXPLANATION Quality assurance focuses on the process and is done throughout the project execution.

A project manager has derived quality metrics, along with tolerance limits for his project. Which process is the project manager in? A. Plan Quality Management B. Perform Quality Assurance C. Control Quality D. Define Scope

Correct Option: A EXPLANATION Quality metrics are determined as an output to the plan quality process along with tolerance limits for each of them. A metric would give the actual value or the measurement of a project or product attribute, whereas a tolerance defines the allowable variations in the metrics. The selection of the metrics on a project would heavily depend on the type of project and the objective of collecting the metrics.

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? A. Plan Quality Management B. Perform Quality Assurance C. Perform Quality Control D. Define Scope

Correct Option: A EXPLANATION 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.

You are a Project Manager of a dynamic project team. Recently, there have been some changes in the team structure, and you don't know if they would positively or negatively affect the project. What is the BEST approach to address this? A. Conduct a risk benefit analysis B. Conduct a gap analysis C. Increase project budget D. Revise project plan

Correct Option: A EXPLANATION Risks reassessment should be done whenever new risks or uncertain events (which could positively or negatively affect the project) are found.

Rocky is the Project Manager of LFV project. As part of the Initiation process group, he participated in developing the project charter and is now in the process of identifying people or organizations impacted by his project. He is working on the creation of a document that contains all the details related to the identified stakeholders. Which formal document is Rocky working on? A. Stakeholder Register B. Stakeholder Analysis C. Stakeholder document D. Stakeholder management strategy

Correct Option: A EXPLANATION Rocky is currently in the "Identify stakeholders" process. The main output of this process is the stakeholder register which contains all the details related to the identified stakeholders and includes identification information, assessment information, and stakeholder classification.

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

Correct Option: A EXPLANATION Rolling wave planning is a form of progressive elaboration where work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the WBS. Therefore, work can exist at various levels of detail, depending on where it is in the project life cycle. As more information is known about upcoming events, the near-term higher-level work packages can be decomposed further. Option (b) templates are usually standardized, so they would not be very helpful tools for evolving requirements. Option (c) and (d) are not recognized tools and techniques of project Schedule Management.

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? A. Rolling Wave Planning B. Templates C. Extreme Programming D. Just in Time

Correct Option: A EXPLANATION Rolling wave planning is a form of progressive elaboration where work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the 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.

As a Project Manager, you are asking each of your team members to give time estimates of their activities and calendar dates when they are available to work on those activities. What exactly are you doing? A. Schedule Development B. Schedule Network Analysis C. Schedule Control D. Activity Sequencing

Correct Option: A EXPLANATION Schedule development is the process of assigning calendar dates of when each activity will be done and by whom. This is exactly what the Project Manager is doing.

Which activity from the following should a project manager perform when confronted with a situation in which a payment to facilitate an activity is advised by a liaison agent for a project with a foreign country? A. Seek legal advice to ensure that the payment is not a bribe B. Do not make the payment C. Make the payment D. Insist for documentation

Correct Option: A EXPLANATION Seek legal advice to ensure that the payment is not a bribe. When a project manager is not clear about the business processes in a foreign country, it is necessary to seek legal advice to make sure that such payments are legitimate and not construed as a bribe or illegal practices.

A Project Manager is working on a highly visible project in an organization and is most concerned about project performance and progress. His cost variance is currently $150 and schedule variance percentage is -15%. Which of the following statements about the cost and schedule performance of the project is INCORRECT? A. The project has spent more money on work accomplished than planned B. You have overestimated the amount of time needed to complete the project C. The Project has faced some unplanned or planned setbacks that have affected the schedule D. The project is doing favorably cost-wise but is lagging behind in schedule

Correct Option: A EXPLANATION Since cost variance for the project is positive, it means that Earned Value > Planned value; hence, the project has achieved more than planned in terms of cost. However, the negative value of the schedule variance percentage denotes that the project is lagging in terms of planned schedule objectives. Schedule Variance % is defined as = (Earned Value - Planned value)/Planned Value. This could be due to overestimation (Option B) or an unplanned activity affecting the schedule (Option C). (Option D) is also correct statement as discussed above.

A project manager wants to award a contract to the same supplier from his previous project without going through the entire procurement process. Which of the following would NOT be a valid justification? A. A preferred supplier from a previous project is less risky B. The project has severe constraints in terms of timeline C. The supplier holds patent for the technology used in the project D. The supplier's internal vendor rating is very high

Correct Option: A EXPLANATION Since this preferential supplier is not selected through the conduct procurement process, you would lose the value of competition. Assuming all the other factors remain same, aggregated risks would be higher from preferential suppliers than from the ones selected through competitive bidding. The reason is this seller would never be asked to prove his expertise over others for this project.

Your company has a policy of having every software project reviewed and approved by the Architecture Review Board prior to the construction phase of a project. You need to ensure that the project design is cleared by the Architecture Review Board. This is an example of which of the following? A. Stage Gate that can be a Milestone B. Milestone that cannot be a Stage Gate C. New scope for the project D. Project integration

Correct Option: A EXPLANATION Stage Gate or Phase Exit or Kill Points are known as "Phase-end-Review" which is what the scenario explains. Refer to PMBOK® Guide - Sixth Edition Page 21.

A project manager is working on a set of activities to be carried out to achieve not only the project deliverables but also benefit realization to meet the organization goals. Which of the following techniques is the manager working on? A. Strategic management B. Stakeholder management planning C. Customer satisfaction metrics D. Benefits realization

Correct Option: A EXPLANATION Strategic management is a set of activities to be carried out to achieve not only the project deliverables but also benefit realization to meet the organization goals. Stakeholder management planning includes the different strategies to be adopted to engage the stakeholders. Customer satisfaction metrics refer to identification of parameters which helps to measure and check whether the customer fulfillment is achieved or not. Benefits realization is a set of processes defined to ensure that project deliverables are in alignment with organizational strategies and are creating value. These techniques are newly added in the examination content outline.

Instead of rejoicing at the end of a project, the stakeholders are breathing a sigh of relief. None of them were confident that the project would meet the end date. Which of the following is NOT one of the reasons that this project had difficulty? A. Lack of a payback period B. Lack of milestones C. Lack of a communication plan D. Lack of a stakeholder management plan

Correct Option: A EXPLANATION The "payback period" is a project selection criterion and not a document or plan to measure the performance.

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? A. Create Network Diagram for the project B. Determine quality standards, processes, and metrics C. Determine high-level project assumptions and constraints D. Conduct project progress meeting

Correct Option: A EXPLANATION The Project Manager has created a WBS, a WBS dictionary, and an activity list in the planning stage. The next step would be to create a network diagram for the project. Quality standards and metrics can be identified once 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.

A Project Manager is in the process of preparing a plan that documents how the procurement process will be managed: from developing procurement documents to contract closure. She is also going through project requirements and scope documents with the team and discussing different contract types to decide the one most suitable for the project. According to you, which process of procurement management is the Project Manager in? A. Plan Procurement Management B. Conduct Procurements C. Control Procurements D. Close Procurements

Correct Option: A EXPLANATION The Project Manager is in the 'plan procurement management' process, and she is preparing the procurement management plan with her team. Contract types are also important tools of this process, which is carried at the planning stage of the project. Please refer to PMBOK® Guide - Sixth Edition Project Procurement Management page 466.

A project manager is working with stakeholders to develop an acceptable schedule and uses an iterative approach along with the critical path method to derive the optimum schedule which would be used as a baseline to track and control the project schedule. Identify the part of the process groups the project manager is in. A. Planning Process Group B. Executing process group C. Initiating process group D. Monitor and control process group

Correct Option: A EXPLANATION The Project Manager is in the schedule development process which is part of the planning process group. For more information, please refer to Planning Process Group, PMBOK® Guide Sixth Edition, page 565.

You are a Project Manager. When you perform earned value analysis for a project, you find that SPI is 1.3 and CPI is 0.85. What can be said about the project status? A. The Project is ahead of the schedule and over the budget B. The Project is behind the schedule and under the budget C. The Project is ahead of the schedule and under the budget D. The Project is behind the schedule and over the budget

Correct Option: A EXPLANATION The Project is ahead of the schedule and over its budget. This is a straightforward earned value technique question.

A project manager is using an S-curve to reflect the various expenditures of resources over the projected time of the project. This S-curve indicates that: A. Bulk of the project cost is spent during the middle of the project B. The project follows linear expenditure over all the phases C. The project resource cost would be directly proportional to the size of the project D. The project has high risk of attrition during the middle of the project.

Correct Option: A EXPLANATION The S-curve is used in project management as a means of representing the various expenditures of resources over the projected time of the project or as a means of charting the real-time expenditure of resources. This is important to project management as it can be used to monitor the project as it progresses. Also, it can be compared to the projected S-curve to determine if the project is being completed within the time and budget limitations. The shape of the curve indicates maximum cost and staffing levels during the middle of the project.

An example of scope validation is: A. Reviewing the performance of an installed software module B. Managing changes to the project schedule C. Decomposing the WBS to a work package level D. Performing a benefit/cost analysis to determine if we should proceed with the project

Correct Option: A EXPLANATION The Scope validation is the process of formalizing acceptance of the completed project deliverables. It includes reviewing deliverables with the customer or sponsor to ensure that they are completed satisfactorily. It also includes obtaining formal acceptance of deliverables by the customer or sponsor.

As a Project Manager, what can you use to clearly communicate the work that is included in the work packages? A. WBS Dictionary B. Scope Statement C. Requirements Document D. Project Management Plan

Correct Option: A EXPLANATION The WBS dictionary has the detailed work description of all the work packages.

You are managing a project, and to ensure things run smoothly, you have decided to provide project information periodically to all the stakeholders. You have decided that you would report against the baselines for scope, cost, and schedule. Which of the following would be the best choice? A. Performance reporting B. Status reports C. Forecasts D. Risk Register

Correct Option: A EXPLANATION The best choice is Performance reporting with respect to the triple constraints - Scope, Schedule, and Cost. Forecasts are future projections and risk register deals with risks, which are not the right options. While status reports could be an option, the best answer is Performance reporting.

You are a project manager working on a critical project. You track the project schedule closely. While reviewing the critical path, you realize that the project is showing negative float. What should be your BEST response to the situation? A. Use a schedule compression technique B. Reduce the number of resources in the project C. Reduce the number of non- critical activities in the project D. Revisit the risks and do a risk analysis of the project

Correct Option: A EXPLANATION The best option is to compress the project schedule because critical path activities that are delayed can result in negative float on a project. In this case, the project manager should use a schedule compression technique like fast tracking or perform in parallel critical path tasks that were originally planned sequentially. Crashing assigns additional resources to critical path tasks while maintaining scope. For an interesting article on schedule compression techniques visit http://www.projectsmart.co.uk/project-scheduling-and-resource-levelling.html

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? A. Use a schedule compression technique B. Reduce the number of resources from the project C. Reduce the number of noncritical activities in the project D. Revisit the risks and do a risk analysis of the project

Correct Option: A EXPLANATION The best option is to compress the project schedule because 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.

Which of the following statements is NOT true regarding change log? A. Change log is used to log only approved change requests B. It is used to document changes that occur during a project C. The changes along with their impact on cost, time, and risk are logged D. Rejected change requests are also captured in the change log

Correct Option: A EXPLANATION The change log is used to log all change requests-approved and rejected changes. Along with the changes, their impact on cost, time, and risk details are also documented. So, option A is not true regarding change logs and hence is the correct answer.

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? A. Review the Project Communication Management Plan to determine the stakeholder's needs B. Relook at the Manage Communications process to identify the gaps C. Raise a change request to address the stakeholder's feedback D. Relook at the Control Communications process to understand the problem

Correct Option: A EXPLANATION The communication management plan determines the project stakeholder information needs and defines the communication approach. 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.

A key stakeholder expresses his concern over the lack of project visibility and progress. He says that he has seen the project status reports, but most of the time they lack information relevant to his department. How should the project manager respond? A. Review the Project Communication Management Plan to determine the stakeholder's needs B. Relook at Manage Communication Process to identify the gaps C. Raise a change request to address the stakeholder's feedback D. Relook at Control Communications Process to understand the problem

Correct Option: A EXPLANATION The communication management plan determines the project stakeholder information needs and defines the communication approach. Since the stakeholder is receiving timely performance reports options (b) and (c) are not correct.

You are in the process of making cost estimates for a project. However, detailed requirements are not yet available. A similar project was executed by your company, and you decide to use the past project's historical data to come up with your estimates. This is called: A. Analogous estimating B. Parametric estimating C. Bottom-up estimating D. Three point estimating

Correct Option: A EXPLANATION The correct answer is Analogous estimating. It relies on past or historical data of similar nature. As the project is at an early state, where the detailed requirements are not yet available, this is the best technique suited to come to an early estimate, though it may not be very accurate.

You are a Project Manager of a large and complex project that is partly outsourced to a third party. Under these circumstances, your planned expenditure sometimes overshoots the funding limits set for the project. As a Project Manager, how do you best handle the situation? A. Relook and adjust the scheduling of work to smoothen out or regulate the expenditure B. Discuss this situation with your project sponsor or customer to work out a solution C. Use Management Reserve allocated for the project D. Delay the payments of vendor for that phase

Correct Option: A EXPLANATION The customer will set limits on disbursement of funds for the project. The Project Manager sometimes needs to reschedule activities or impose date constraints on work packages in such a way that the expenses are within funding limits set for the project. Option (b) is not advisable as Project Manager is expected to address this within his purview. Option (c) is wrong as management reserve is the budget reserved for unplanned changes to cost and scope. Option (d) is ethically wrong.

Rolling wave planning is a form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail, and future work is planned at a higher level of the WBS. Which process uses rolling wave planning as a tool and technique? A. Define Activities B. Sequence Activities C. Estimate Activity Resources D. Develop Schedule

Correct Option: A EXPLANATION The define activities process uses rolling wave planning as a tool and technique.

A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $150K with a predetermined fee of $15K and a share ratio of buyer to seller equal to 70/30. The actual cost of the project is $120K. How much savings did the seller make in total, and out of the total savings how much did he make because of the incentive? A. $30K, $9K B. $55K,$30K C. $32K, $27K D. $15K,$3K

Correct Option: A EXPLANATION The estimated cost of project is $150K, and the actual cost of project is $120K. This implies a net savings of $30K. The sharing ratio is 30% for the seller which is $9K. The total value of the amount received by seller is $120K+$9K+15K = $144K (actual cost + incentive + fixed fee).

While overseeing a new wireless media streaming device development project, you notice that your team members are having significant difficulties resolving an issue that they discovered during unit testing. Upon further investigation, you realize that the approach team members are using to resolve the issue is arbitrary and disorganized. What is the correct approach for the team members to take in this kind of situation? A. Use the cause and effect diagram to identify the root cause of the issue B. Use the Pareto chart to identify the cause that is giving rise to 80 percent of the problem C. Use the control chart to determine where the process is going out of control D. Use the Monte Carlo analysis to do a detailed what-if analysis

Correct Option: A EXPLANATION The first step to resolve an issue is to identify the root cause of the issue. Cause and effect (Ishikawa/Fishbone) diagram is a tool used for systematically identifying and presenting all the possible causes and sub causes of a particular problem in a graphical format. It can help in quality control by identifying causes that contribute to quality problems.

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? A. Meet with the team to discuss the issue B. Escalate the matter to the senior management of the contractor as per the escalation matrix C. Issue a formal show-cause notice asking why the contract should not be submitted D. Inform the senior management and the customer about the possibility of delay to the overall project due to the delayed component

Correct Option: A EXPLANATION 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.

Calculate the point of total assumption using the following data: Target cost = $100,000, Target profit = $20,000, Target Price = $120,000, Buyer/Share ratio = 70/30, Ceiling price = 140,000. A. 128571.43 B. 122142.86 C. 135000 D. 115714.29

Correct Option: A EXPLANATION The formula PTA = [(Ceiling price - target price)/Buyer share +Target cost] = $128,571.43. The point of total assumption (PTA) is a point on the cost line of the profit-cost curve determined by the contract elements associated with a fixed price plus incentive (FPI) contract above which the seller effectively bears all of the costs of an overrun.

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

Correct Option: A EXPLANATION The functional manager is interested to carry functional activities than project activities. The Project Manager has limited authority and no control over the project's budget. Also, his team members are not allocated full-time on project work. Hence, the Project Manager is working in a functional organization structure.

A project manager is trying to identify the specific training, coaching, mentoring, assistance, or changes required to improve the team's performance and effectiveness by making formal or informal assessments of the project team's assessment. Which of the following is the project manager performing? A. Team performance assessment B. Project performance assessment C. Observations and conversations D. Team-building activities

Correct Option: A EXPLANATION The goal of team performance assessment is to identify the specific training, coaching, mentoring assistance, or changes required to improve the team's performance and effectiveness. The project management team makes formal or informal assessments of the project team's effectiveness while team development efforts such as training, team building, and colocation are implemented. A team's performance is measured against the agreed-upon success criteria, schedule, and budget target. The evaluation of a team's effectiveness may include indicators such as how well the team is performing, communicating, and dealing with conflicts.

Company ABC invested $400,000 in a project with expected cash inflows of $40,000 per quarter for the first two years and $80,000 per quarter from third year. Another project has a payback period of 25 years for the same amount of investment. Which project should you select? A. The first project B. The second project C. Cannot be determined D. Both projects

Correct Option: A EXPLANATION The initial investment is $400,000. There are 4 quarters (3 months in each) in a year; thus, Cash inflows for the first year is 4*$40,000 = $160,000. So, in two years, the cash inflow will be $160,000*2 = $320,000. In the first quarter of the third year, the cash inflow will be $80,000. Thus, total cash inflow by that time will be $320,000+$80,000=$400,000, which is equivalent to the initial investment. The payback is 2 years and 3 months since it will take this amount of time to get the initial investment back. The second project has a longer payback period, so we should go for the first project.

From the diagram, what is the latest finish date of Task F? simTest A. 9 B. 10 C. 8 D. 1

Correct Option: A EXPLANATION The latest finish date of Task F is dependent on the early start dates of Task G and Task X, 10 and 9 respectively. Of the two, pick the lowest value in order to get the successors started on time. Hence the latest finish date of Task F is 9.

You are in charge of a project, and to ensure things go well, you have had monthly meetings with the stakeholders. The project is running on schedule and budget. You are in your fourth month of execution, but the stakeholder indicates dissatisfaction with the deliverables. Making changes in the deliverables would mean a delay in the schedule. What would have been the most important process that could have prevented this situation? A. Scope Planning B. Scope Control C. Schedule Control D. Risk Monitoring and Control

Correct Option: A EXPLANATION The most important process that could have prevented this situation would have been Scope Planning. Project deliverables are defined during scope planning, so proper implementation of this process could have prevented this situation.

Which of the following is the MOST COMMON reason for conflict? A. Schedules B. Personalities C. Technical Beliefs D. Administrative policies and procedures

Correct Option: A EXPLANATION The most widely accepted common reasons for conflict in a team are Schedules, Priorities, Resources, Technical beliefs, Administrative policies and procedures, and project costs and Personalities (they are in order of most common to least common).

You recently awarded a contract to one of the vendors after rigorous negotiation. You realize that you have missed out on a few important clauses that you wanted to include in the contract. You decide to modify the contract and include 'time is of the essence' and 'retainage' clauses. How should you proceed in this case? A. You should proceed with a contract change control system at your end B. You should inform the seller about the change through a formal written communication C. You should have an urgent meeting with the seller to discuss the change D. It is too late to make any changes in the contract as it is legally binding and cannot be modified once signed

Correct Option: A EXPLANATION The only way to modify a contract is through a formal, written change request. This change request then follows the formal contract change control process. Contract change control system is a tool and technique in the Control Procurements process that defines the process by which procurements can be modified and includes changed procedures, forms, dispute resolution processes, necessary paperwork, required authorizations, tracking systems, and other items.

Name the project constraints defined by PMI®? A. Scope, Quality, Schedule, Budget, Resources, and Risk B. Quality, Procurement, Schedule, Budget, Resources, and Risk C. Scope, Quality, Communication, Budget, Resources, and Risk D. Scope, Quality, Schedule, Budget, Communication, and Risk

Correct Option: A EXPLANATION The project constraints defined by PMI are Scope, Quality, Schedule, Budget, Resources and Risk. Refer PMBOK® Guide - Sixth Edition Page 542.

In defining a project, which of the following can be identified as problems? A. The project goals may not be agreeable to all the parties B. The plan was "too loose," thus allowing priorities to change C. Low turnover of project personnel D. Too much communication between the client and the project personnel

Correct Option: A EXPLANATION The project goals may not be agreeable to all the parties. Conflicts in the goal itself account greatly for the problems in defining the project.

A project manager and his team have finished creating the Work Breakdown Structure (WBS) and the Work Breakdown Structure dictionary. The project manager then prepares a detailed and itemized documentation of all the schedule activities that are part of a particular project. What should the Project Manager do NEXT? A. Create a network diagram for the project B. Determine quality standards, processes, and metrics C. Determine high-level project assumptions and constraints D. Conduct a project progress meeting

Correct Option: A EXPLANATION The project manager has created a WBS, a WBS dictionary, and an activity list in the planning stage. The next step would be to create a network diagram for the project. Quality standards and metrics can be identified once the project schedule and budget are determined. Option (c) is done as part of project initiation and is completed much earlier. Option (d) is done when the project plan is executed.

You are a project manager currently finding all of the risks on a project. As a part of this activity, you would like to know the risk attitude and organization policies and procedures for risk management. Which of the following should you refer for this purpose? A. Enterprise environmental factors B. Stakeholder register C. Risk management plan D. Project documents

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

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

Correct Option: A EXPLANATION The project manager is purchasing a commodity (coal) and the evaluation criterion should be the lowest cost. The other factors are more applicable when the buyer is buying something intangible like services.

A project team has created a comprehensive list of schedule activities that are required on the project, along with other details like activity codes and activity descriptions. They have also sequenced them using logical relationships, leads, lags, and constraints. What should the project team do NEXT? A. Estimate the type and quantities of resources required to perform each activity B. Estimate the duration of each activity using one of the estimation techniques C. Create a project schedule which is acceptable and can serve as a baseline to track project progress D. Decompose these project work packages into more manageable components

Correct Option: A EXPLANATION The project team has completed activities of the define activities and sequence activities processes. The next activity would be to estimate the types and quantities of resources required to perform each activity as part of the estimate activity resources process. For more information, please refer to Estimate Activity Resources, PMBOK® Sixth Edition, page 320.

You are the Project Manager for the Moon project. As part of quality management, you have listed the cost of quality, both for conformance and non-conformance. Which of the following is NOT an attribute of the cost of non-conformance? A. Safety measures B. Downtime C. Loss of customers D. Rework

Correct Option: A EXPLANATION The question is about the factors attributing to the cost of conformance (not an attribute to the cost of non-conformance). Downtime, loss of customers, and rework are factors attributing to the cost of non-conformance, while safety measures attributes to the cost of conformance.

You are in the process of making a cost estimate for a large prestigious project. You decide to use the Three Point Estimation technique with Triangular Distribution. Based on your analysis and understanding, you are confident that the project would be completed with a total cost of $108,000. You also estimate that a best-case estimate would be $90000, while a worst-case scenario would result in the costs incurred to shoot up to $138000. What would the Three point Cost estimate be using Triangular Distribution? A. $112000 B. $110000 C. $28000 D. None of the above

Correct Option: A EXPLANATION The question states the use of Three point estimate using triangular distribution. The formula for this estimation technique is a + b + c /3, where a = Most Likely estimate, b = Estimate based on analysis of the Best-case scenario, and c = Estimate based on analysis of the Worst-case scenario. So, the Three point estimate using Triangular distribution is 108000 + 90000 + 138000 / 3 = 336000/3 = $ 112000.

You are the Project Manager of an ongoing project involving 50 employees of your company and 10 subcontractors. You want to know who is assigned to what task. Where should you look for this information? A. Responsibility Assignment Matrix B. Pareto Chart C. Project Organization Chart D. Resource Histogram

Correct Option: A EXPLANATION The responsibility assignment matrix shows the project resources assigned to each work package. Refer PMBOK® Guide - Sixth Edition, page 317.

Recently, your organization received resumes for the post of Technical Lead. The HR department has shortlisted certain resumes and wants you to take the interview. While reviewing the resume of one candidate, you see a discrepancy in the number of years that person attended college. What should you do? A. Report this discrepancy to Human Resources B. Refuse to consider the candidate for the position C. Ask the candidate to clarify the information D. Let it remain as the candidate has relevant experience

Correct Option: A EXPLANATION The resume has been sent to you by the HR department, so you need to report the discrepancy to the HR department rather than clarifying with the candidate directly. Refusing the assignment immediately should not be done without clarifying the matter. The reason for the discrepancy needs to be understood in order to make the right decision.

Which of the following types of contracts has the highest risk for the buyer? A. Cost plus fixed fee - CPFF B. Time and Material C. Firm Fixed Price Contract - FFP D. Fixed Price Incentive Fee Contracts - FPIF

Correct Option: A EXPLANATION The riskiest for the buyer among the options stated above is Cost plus fixed fee. Its a cost-reimbursable type of contract in which total costs are unknown, so there is an element of risk involved as the total scope of work is not clear. Time and material have medium risk from the perspective of the buyer and are typically used for smaller dollar amounts. Of the options, the fixed price options are the least risky for the buyer since the cost will not change no matter what for the buyer.

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: A. Integrator B. Leader C. Communicator D. Differentiator

Correct Option: A EXPLANATION 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.

A key responsibility of the project manager is to ensure proper assimilation of the project management processes and coordinate the process phases through the project management cycle. This ensures that all areas of the project come together to deliver the project to a successful conclusion. This involves balancing the basic aspects of scope, cost, and schedule, in addition to managing quality, communication, and customer satisfaction. The role of a project manager can be best described as: A. Integrator B. Leader C. Communicator D. Differentiator

Correct Option: A EXPLANATION The role of a project manager is to combine all the above options. However, the one that is most critical to project success is that of an integrator. A project manager is expected to integrate the project management processes and coordinate the process phases through the project management cycle to ensure that all areas of the project come together to deliver a successful conclusion. Integration involves not only pulling up all aspects of project management like scope, cost, schedule, quality, and communication for your project needs, but also working with other departments like legal, human resources, training, contract administration, and information technology which are impacted by your project.

Which of the following are the outputs of the Plan Scope Management process? A. Scope management plan and requirement management plan B. Requirements document and requirements traceability matrix C. Project scope statement and scope baseline D. WBS and WBS dictionary

Correct Option: A EXPLANATION The scope management plan and requirements management plan are the outputs of the Plan Scope Management process.

When is the stakeholder's influence in the project MAXIMUM? A. At the beginning B. During the project execution C. During the testing phase D. At the project closure

Correct Option: A EXPLANATION The stakeholder's influences are highest at the beginning of the project, since the ability to influence the final characteristics of the project without significantly impacting the cost is highest.

You are trying to measure how diverse the population is in your data set. First, you find the mean by taking the average of all data points, and then you calculate the average of how far each individual point is from that mean. You are using: A. Standard deviation B. Statistical sampling C. Mutual exclusivity D. Normal distribution

Correct Option: A EXPLANATION The standard deviation measures how diverse the population is in the data set. It is calculated by finding out the mean and then calculating the average of the distance of each data point from the mean.

You are managing a large IT project when a severe cost overrun causes a major concern to the key stakeholders and sponsor. You schedule an urgent meeting to discuss the root cause of the concern and illustrate the corrective and preventive actions you are planning to take. You are also planning to inform the audience in the meeting that the project is ahead of schedule and that most of the major deliverables are already completed and accepted by the stakeholders. What kind of communication does this meeting represent? A. Informal verbal B. Formal written C. Informal written D. Formal verbal

Correct Option: A EXPLANATION The subject matter and topics discussed in the meeting may be important, but meetings are considered informal verbal.

Which of the following is the top source of conflict in a project? A. Schedule B. Project priorities C. Administrative procedures D. Personality

Correct Option: A EXPLANATION 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.

What is the topmost source of conflict in a project? A. Schedule B. Project priorities C. Administrative procedures D. Personality

Correct Option: A EXPLANATION The top-ranking sources of conflict are schedules. Scheduling is probably one of the toughest obligations of most project managers. Next on the list are project priorities. Project Managers need to attend to the projects of the organization. Sometimes when conflict arises, some projects are given more attention and importance than others. Third on the list is a manpower resource. Lack of individuals to work on a certain project may cause pressure. When people start to feel the intensity of pressure, they also start cramming and become less motivated to work on it. Technical conflict and administrative procedures come next on the list. Finally, cost objectives and personality conflicts complete the list of the seven sources of conflict.

You are the Project Manager of a new business center construction project. The project sponsor wants to know the cost forecast of the project at completion. The project has a total budget of $100,000 and CPI of 0.90. The project has spent $40,000 so far. How much more money needs to be spent on the project? A. 71111 B. 43110 C. 68230 D. 81100

Correct Option: A EXPLANATION The total budget is $100,00 and CPI is 0.90. According to the earned value technique, the EAC (Estimate At Completion) would be $100,000/9= $111,111. $40,000 has already been spent, so additional money required is $111,111-$40,000=$71,111.

As a manager in an organization that believes in the Theory X style of management, which of the following do you think describes correctly the assumptions of this theory? A. Employees are inherently lazy, dislike work, and will avoid work if they can B. Employees are motivated and enjoy doing their work C. Employees want to do well at work D. Employees are trustworthy and are motivated by doing a good job

Correct Option: A EXPLANATION Theory X assumes employees cannot be trusted and will only work if rewarded or under threat and coercion. This theory does not consider employees to work on their own. So, the correct option is A. The other options consider an employee to be self-motivated and self-starter, which is not what Theory X is based on.

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? A. Terminate the existing contract and negotiate a new one with the seller B. Capture all the change requests, along with their current status, and follow the contract change control system C. Terminate the existing contract and sign a similar one based on the same terms and conditions as the earlier one D. Seek advice from the senior management of your organization

Correct Option: A EXPLANATION There are strong reasons for the Project Manager to terminate the existing contract and 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.

Your firm awarded a cost reimbursable contract to a pharmaceutical company for some research-related activity. Over time, many changes have taken place in the project, and it is difficult to keep track of the status of the change requests. What is the BEST alternative for the project manager in this case? A. Terminate the existing contract and negotiate a new one with the seller B. Capture all the change requests, along with their current status and follow the contract change control system C. Terminate the existing contract and sign a similar one based on the same terms and conditions as the earlier one D. Seek advice from the senior management of your organization

Correct Option: A EXPLANATION There are strong reasons for the project manager to terminate the existing contract and renegotiate the terms and conditions. The earlier contract was cost reimbursable and the project manager had limited information on the contract scope of work. It may not be true now since some work has been done and the project manager would be in a better position to negotiate. Since there are too many change requests with no clarity on how many of them would be approved, it is difficult for a project manager to continue work. Hence, the best option for a project manager in this case is (a).

A firm providing outsourced product development facilities wants to implement a new business process which aims to improve customer satisfaction and retention. It has identified a task team with an objective to introduce and train the employees on the new process and improvise until the customer satisfaction index increases by 15%. What can this entire exercise be best classified as? A. Project B. Operation C. Program D. Portfolios

Correct Option: A EXPLANATION This is a project as this initiative fulfills all the characteristics of a project. A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of a project indicates a definite beginning and end. The end is achieved when project objectives are achieved (here an increase in customer satisfaction index by 15%). Please refer to Introduction to Understand the Difference in Approach of a Project, Program, or a Portfolio, PMBOK® Guide - Sixth Edition, Glossary, page 542.

Your company has bagged a number of government contracts dealing with setting up infrastructure. This includes setting up roads and bridges. This is a very big and prestigious project, so your company wants to ensure everything is planned well in advance. You are the project manager of this project. Considering its importance, you and your team come up with a list of risks. One of the subject matter experts indicates that during the months of July and August, the construction work of the bridge across the river would need to stop on account of past history of flooding of the river. You agree with the expert and plan the schedule accordingly. What strategy did you just apply? A. Accept B. Exploit C. Mitigate D. Transfer

Correct Option: A EXPLANATION This is an example of Risk acceptance strategy as there is nothing you can do about situations not in your control. Exploit is meant for positive situations, while risk mitigation is where you have a strategy to either reduce the risk impact or probability. Neither is transfer correct as the question does not state that someone else will be responsible for handling the risk.

You are responsible for managing a project that deals with laying out a freeway connecting two major port cities. Progress in the past has been smooth, but lately in the past few months, you have observed a schedule and budget overrun. You decide to hold a meeting with your team members. On discussions, you realize team members went ahead and made changes at the behest of the client requests on site. You are pretty sure the changes were not a part of the project scope statement. This is an example of: A. Scope Creep B. Gold Plating C. Integrated Change Control D. Fast Tracking

Correct Option: A EXPLANATION This is an example of Scope Creep. Integrated change control deals with formally approving or rejecting changes before they are implemented, so it is not the correct answer. Fast tracking is a schedule compression technique, so it too is not the correct answer. While Gold Plating is related to change in scope it is generally done intentionally or knowingly for some strategic purpose. Scope creep relates to uncontrolled changes in product or projects scope and is often due to client interference.

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? A. 496 B. 992 C. 424 D. 32

Correct Option: A EXPLANATION This is directly based on the formula n*( n-1 )/2. If n is the number of stakeholders in the project, the total possible communication channels = n*( n-1 )/2. The project has 25 team members, 3 team leads, 3 support team members, and the Project Manager. That makes it 32 people and 496 possible communication channels.

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. In addition, there are 3 members from supporting groups working part-time on the project. How many communication channels are possible? A. 496 B. 992 C. 424 D. 32

Correct Option: A EXPLANATION This is directly based on the formula n*(n-1 )/2. If n is the number of stakeholders in the project, the total possible communication channels = n*(n-1)/2. The project has 25 team members, 3 team leads, 3 support team members, and the project manager (you). That makes 32 people and 496 possible communication channels.

You are a PMP trainer, and your organization has scheduled you to give training at the organization where your spouse works. Your organization is not aware of this situation. Per your organization's deal, you need to teach one of the project management software tools to 18 people who have been scheduled for this training. Your spouse's manager knows you, so they request you to allow an additional five people to attend your training. Another five people would add a revenue of $50,000, but you agree to let them attend the class as it is requested by your spouse's manager. Which of the following is true in this scenario? A. This is an example of conflict of interest B. This is not a problem as it may help your spouse get some benefits during the appraisal process C. You can always justify that you were trying to build a good marketing relationship with the customer D. You should go to the management and show how well you have presented your organization's image and should ask for a promotion based on this

Correct Option: A EXPLANATION This is surely a conflict of interest as you are favoring your spouse's organization at the cost of your organization's business. Per PMI, you have to ensure that a conflict of interest does not interfere with your professional judgment and disclose circumstances that could be interpreted as a conflict of interest.

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

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

You are in charge of managing a software development project that is related to simulations for driving racing cars. In one of your team meetings, it is revealed that a lot of issues have been reported in the air tunnel modelling module. On deeper analysis, it is found that many of the issues could have been prevented had a simple code review checklist been used. You prepare a code review checklist and ensure the code is reviewed per the checklist. This is a good example of: A. Corrective Action B. Preventive Action C. Defect Repair D. Quality Control

Correct Option: A EXPLANATION This question is meant to test your understanding of the difference between corrective action and preventive action. Defect repair might sound tempting, but it is only applicable for the issues found in the current delivery. This is also not about Quality Control, so that leaves you with only two options: Corrective or Preventive actions. Corrective actions are always preceded by nonconformity, while preventive actions are never preceded by nonconformity. In this case, nonconformity in the form of a lot of issues during Quality Assurance were reported. The root cause was identified to be the need of a standard checklist which was later used. Preventive action is always taken proactively. In the question stated there is no demonstration of any proactive steps taken and hence this is not an example of Preventive action.

You are a project manager and in charge of a seminar and training session with approximately 2,000-2,500 employees attending. You have rented a hall for the seminar; however, you are unsure exactly how many people will attend. Moreover, the number of tables required will change depending on attendance. The cost of the furniture should be considered as: A. Variable cost B. Direct cost C. Fixed cost D. Transient cost

Correct Option: A EXPLANATION This should be considered as variable cost as the cost will vary depending on the number of attendees.

Which of the following subsidiary plans maintains stakeholder relationships to receive continued support and manage expectations? A. Stakeholder management plan B. Communications management plan C. Human resource management plan D. Project management plan

Correct Option: A EXPLANATION This task has been added in the latest examination content outline. Maintain stakeholder relationships by following the stakeholder management plan to receive continued support and manage expectations.

A project manager is in the process of evaluating and prioritizing risks on the project by calculating the Risk Priority Number (RPN) for the risks. Which of the following factors will a Risk Priority Number consider? A. Probability, Impact, and timeframe B. Probability, impact, and owner C. Probability, impact, and cost D. Probability, impact, and schedule

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

A Project Manager performs earned value analysis and finds the following results: AC = 220,000, PV=250,000, EV = 220,000. Help her to identify the CV. A. CV = 0 B. CV = 30,000 C. CV = -30,000 D. CV = 1

Correct Option: A EXPLANATION To evaluate CV, we use the formula CV = EV - AC = 0.

As a manager, you would like to get the status on funds for the remaining work. Which of the following measurements will give you this information? A. To-Complete Performance Index B. Earned Value Technique Performance C. Variance Analysis D. Trend Analysis

Correct Option: A EXPLANATION To-Complete Performance Index (TCPI) is the calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal. The formula to calculate TCPI is Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-AC), where AC is Actual Cost, EV is Earned Value, EAC is Estimate at Completion, and BAC is Budget at Completion.

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? A. To-Complete Performance Index B. Earned Value Technique Performance C. Variance Analysis D. Trend Analysis

Correct Option: A EXPLANATION To-Complete Performance Index (TCPI) is the calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal. The formula to calculate TCPI is Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-AC), where AC is the Actual Cost, EV is the Earned Value, EAC is Estimate at Completion, and BAC is Budget at Completion.

Which of the following statements is true about control charts ? A. Special causes are easier to predict and handle than common causes B. Common causes are easier to predict and handle than special causes C. A process is stable if it has only special causes D. None of the above

Correct Option: A EXPLANATION 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.

Which of the following is a hygiene factor according to Hertzberg's Motivation Theory? A. Good relationships with co-workers and managers B. Self actualization C. Recognition from peers D. Neat and clean office space

Correct Option: A EXPLANATION Understanding what motivates a team member is important because few people are motivated by just money or challenging assignments. Hertzberg found that the factors causing job satisfaction (and presumably motivation) were different from those causing job dissatisfaction. He developed the motivation hygiene theory to explain these results. He called the satisfiers motivators and the dissatisfiers hygiene factors. He used the term "hygiene" in the sense that they are considered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not provide satisfaction.

You are a project manager of Software Product Company. After a person is hired, you come to know that many of this person's ideas were developed by a competitor company. Which of the following is the best action in this case? A. Accept the new ideas B. Ignore the ideas because it may be a violation of the code of conduct C. Ask the person to sign NDA D. Tell the person that he should not mention that the ideas came from another company

Correct Option: A EXPLANATION Unless the employee has signed the NDA with his previous organization, there is no obligation for him not to share knowledge that was gained while working for the competitor.

Which of the following best describes Vroom's Expectancy theory? A. Employees will put in efforts dependent on expectancy, valence, and instrumentality B. Employee motivation is not achievable C. Hygiene factors will ensure that job dissatisfaction does not occur; however, it does not ensure job satisfaction D. People have needs starting with Physiological Needs and ending with self-actualization

Correct Option: A EXPLANATION Vroom's Expectancy theory is based on the idea that people believe there are relationships between the effort they put in at work, the performance reviews/ratings they are credited for the effort, and the rewards they receive from their effort and performance review ratings. So, people will be motivated if they believe that hard work and effort will lead to good performance reviews and good performance reviews will lead to desired rewards. This theory consists of three key elements: Expectancy - Perception of an employee of how much and what amount of effort will lead to a desirable performance rating. Instrumentality - Perception or expectation that a good performance rating would translate into a hefty salary hike. Valence - Preference of an employee for a certain reward. Option B is clearly unrelated to this theory, so it is not the correct answer. Option C is related to Herzberg's Hygiene theory, so it too is not the correct answer. Option D is about Maslow's Theory of Hierarchical needs, so it's not the correct answer.

What is the 100% rule in the Work Breakdown Structure creation? A. The total work at lowest level adds up to the higher levels, so no work is left out and no extra work is completed B. 80% of the problems can be attributed to 20% of the causes C. WBS must be detailed enough to cover 100% of the work since the beginning of the project D. WBS must contain 100% deliverables, both internal and external

Correct Option: A EXPLANATION WBS should be both exhaustive and complete to capture only the work required to be completed and nothing more. Refer PMBOK® Guide - Sixth Edition Project Scope Management, page 156.

Which of the following is NOT an advantage of obtaining approval for the project charter from the sponsor and the customer? A. Preparation of the project plan is done during this period B. The project charter ensures commitment and acceptance of the sponsor and the customer C. The project charter declares the Project Manager D. The project charter formalizes the authority assigned to the Project Manager

Correct Option: A EXPLANATION When the project charter is approved by the sponsor and/or customer, the Project Manager is formally authorized to manage the project. It indicates that the project will have the support of the sponsor and customer and that the project will gain commitment and acceptance from them. Options B, C, and D are all advantages.

Your team members have sent you their weekly updates on the deliverables they are working on. While reviewing updates from the team members, you find out that the CPI = 1.1 and SPI = 1. What should you do next with the results of your analysis? A. Distribute the results to project stakeholders as per your communications management plan. B. Since the project is on track, you do not have to do anything at this time. C. Find out where you can spend the money that was saved. D. Instruct the team members to improve their time.

Correct Option: A EXPLANATION When the project manager ascertains the current project status, it should be communicated to the project stakeholders as per the communications management plan.

You are the Project Manager of a large system integration project, and you are looking for a subcontractor to do certain aspects of the work. Your boss comes up with a recommendation for a vendor who has worked on many successful projects with your company. What should be your primary concern in such a scenario? A. Does working with this vendor violate any of the company laws? B. Is the vendor costlier than other vendors? C. Is the vendor qualified to do such Work? D. The contract Terms and Conditions

Correct Option: A EXPLANATION Whenever you have to subcontract any work to any vendor and you get a recommendation, the first thing you should do is to ensure that no applicable company or government rules are violated. Violating such rules is unethical, and a certified Project Manager is not expected to violate any rules.

You have been managing a software application project to automate the accounting system for your client. Your team has completed work as specified in the contract statement of work. You get a call from the buyer that he is disappointed with the result, even though he admits that the project team has met the terms and conditions of the contract. In this situation, the contract is considered to be: A. Complete B. Waived C. Closed D. Null and Void

Correct Option: A EXPLANATION While the buyer may have had something they did not like, if the terms of the contract are complete, objectives are met, and project is complete according to agreement the contract is complete. Anything done for the customer would be a service related issue and would be outside the original scope.

Henry, a project manager, utilizes different conflict resolution techniques to resolve conflicts in his project. He created an open environment so that his team members feel free to discuss their concerns and issues. He is also focused on resolving issues rather than fixing the personalities of his team members, and he pays more attention to the present than the past. Which of the following conflict resolution techniques will lead to the least sustaining positive result? A. Withdrawing or avoiding B. Forcing C. Confronting or problem-solving D. Compromising

Correct Option: A EXPLANATION Withdrawing or avoiding is the technique of retreating from conflict and avoiding or postponing resolution. This technique leads to the least sustaining positive results.

Which of the following is NOT a tool or technique of "monitor and control risks"? A. Gathering information about how the work is being performed B. Bringing in an outside party to review your risk response strategies C. Revisiting your risk register to review and reassess risks D. Using Earned Value analysis to find variances that point to potential project problems

Correct Option: A EXPLANATION Work performance information is an input to the process. It needs to be gathered BEFORE you start monitoring and controlling your risks.

Performance improvements include all, BUT: A. Improvements in amount of overtime worked B. Improvements in individual skills C. Improvements in team behavior D. Improvements in team capabilities

Correct Option: A EXPLANATION Working overtime is an indication of plan variance and not performance improvement. Options B, C, and D are examples of improvements that are expected as a result of good project execution.

You are managing a software application project to develop an online PMP exam simulator to assist students to practice exam questions in similar real life environment. The team has completed design work, received approval from the technical review team, and initiated coding work. When your management asked what you currently expect the TOTAL project to cost, you assured that the rest of the job will be done as per budget. Which of the following formulas will you use to get the most accurate estimate at the completion (EAC)? A. EAC = AC+(BAC-EV) B. EAC = AC+BOTTOM-UP ETC C. EAC = (BAC'EV)/CPI*SPI D. EAC = BAC/CPI

Correct Option: A EXPLANATION You are assuming that the rest of the job will be done as per budget; all you need to do is take the remaining work (BAC-EV) and add funds spend, AC.

You are overseeing a custom software development project to implement an accounting and financial system for one of your clients. Currently, you are in the process of obtaining the formal acceptance of the completed project scope and associated deliverable from the sponsor, customers, and other stakeholder. This process is closely related to: A. Control quality B. Management stakeholder engagement C. Perform manage quality D. Monitor risks

Correct Option: A EXPLANATION You are in the Validate Scope process, which is closely related to the Control Quality process. Both the Control Quality and Validate Scope processes can be performed simultaneously, but Control Quality is usually performed prior to Validate Scope. Control Quality verifies correctness of the work, whereas Validates Scope confirms completeness. Control Quality is focused on measuring specific project results against quality specifications and standards, whereas Validate Scope is mainly focused on obtaining acceptance of the product from the sponsor, customers, and others.

Legitimate power is based on the subordinate's perception that the leader has a right to exercise influence because of the leader's: A. Role or position within the organization B. Expertise and knowledge C. Personal characteristics and personality D. Ability to punish or reward

Correct Option: A EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

The effect where the average individual weight that people pull in a group decreases as the size of the group increases, found by Ringelmann (1913), is an example of: A. Production blocking B. Motivation C. Individual capacity D. Coordination

Correct Option: A EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

You are overseeing a twenty-mile railway construction project. You are supposed to spend $10,000 per mile of railway construction and complete the project today, exactly forty weeks from the start of the project. You found out that only 75 percent of the work has been completed. What is your budget at completion? A. $2,00,000 B. $1,50,000 C. $3,00,000 D. $4,00,000

Correct Option: A EXPLANATION You have 20 miles to complete at a rate of $10,000/mile. Your budget at completion is 20*10,000 = $200,000.

As a manager on a project, you have to ensure that the project delivers within the scheduled timelines with minimal rework and customer delight. For some time now, the project work is proceeding smoothly with a CPI and SPI a perfect 1. One of your team members approaches you and indicates that she might possibly need a long vacation on personal grounds. She indicates this could possibly occur in two months from now. You look up the schedule and finds that this team member happens to be scheduled to execute activities that are on the critical path and her absence in two months' time would cause a delay in schedule. You decide to take some action and ask the team member to start regular knowledge transfers to a couple of trainees. Though the trainees would be relatively inexperienced, they would more than make up for it with two people rather than one person to perform these tasks should this team member need to go on leave. What did you just do? A. Mitigate the risk B.Avoid the risk C. Transfer the risk D. Exploit the risk

Correct Option: A EXPLANATION You have mitigated the risk, where by asking for the trainees to be trained, you have created a Risk response strategy. Should this team member go on leave, the trainees would execute the task. So, you have not avoided the risk. Again, there is no question of exploiting the risk as this is not a positive risk. This is not a case of Risk transfer either, so the correct answer is Risk Mitigation.

While assessing the performance of your team members, you found that some of them are not strong enough to handle the tasks assigned. You will : A. Communicate the improvement needs and establish a performance review and monitoring schedule B. Assign double the work and tell them to report the progress at the beginning and end of the day C. Return the team members to the functional department and warn the functional head D. Wait for them to fail so that you can prove your point and in the meantime start hiring additional resources

Correct Option: A EXPLANATION You need to communicate the improvement needs and establish a performance review and monitoring schedule. This is a very specific situation where internally one would be expected to prove his/her point in such circumstances

You are approaching the end of your project and are asked to release the resources so that they can be assigned to other projects. Before releasing the resources, you want to make sure that you have completed certain necessary actions. Which of the following is the correct order of actions that you should take during the Closing process? A. Get formal acceptances, write lessons learned, release the team, and close the contract. B. Get formal acceptances, release the team, write lessons learned, and close the contract. C. Write lessons learned, release the team, get formal acceptances, and close the contract. D. Release the team, get formal acceptances, close the contract, and write lessons learned.

Correct Option: A EXPLANATION You should not release the team until the lessons learned are documented and added to the organizational process assets as you need the team's help with the lessons learned. Most contracts have payment terms that allow for some period of time before full payment is required. Thus, the last thing you should do on the project is close the contract.

You are responsible for delivering a few expensive pieces of equipment to a hospital in a foreign country. As per the agreement, your company is responsible for moving the equipment all the way to the nineteenth floor of the client's premises. Your local contact informs you that you need to pay a certain fee to the lift operator for coordinating the movement of the equipment through the elevator to the specific floor at night. What should you do in this situation? A. Pay the fee B. Have a discussion with the customer and express your concern about the bribe C. Consider the fee a bribe and refuse to pay it D. Hire a local subcontractor to arrange the deliver

Correct Option: A EXPLANATION You should pay the fee since the fee has a valid purpose and should not be considered a bribe.

A Project Manager has to discuss project progress and track status with the project team. Which of the following would be the MOST relevant format for this purpose? A. Milestone Chart B. Bar Chart C. WBS D. Schedule Baseline

Correct Option: B EXPLANATION 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 the activities that have been completed. Also, people assigned to each task can be represented. Thus, Project Managers can efficiently use bar charts to track project progress and track status with project team. Milestone charts are similar to bar charts, but only specify the scheduled start or completion of major deliverables and key external interfaces. They are used for senior management reporting. A network diagram is a graphical representation of the logical relationships among the project schedule activities. A control chart indicates if the measurements taken over a period of time are within the limits or not.

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? A. All the stakeholders will be happy with Tom B. This will ensure that the project aligns with the business needs C. The Project Sponsor will be happy D. Tom has to do this as it is defined in the organizational policies

Correct Option: B EXPLANATION 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.

Ashley, a senior project manager, recently took over a project to produce a safe and effective drug from another project manager who just left the company. Ashley was surprised to find out that there was no change control board to review, approve, or deny a change request for the project. Upon further investigation, she found that there was no organizational change control board to manage changes for the entire organization. What should Ashley do in this situation? A. Carry on with the change request without a change control board B. Establish a change control board for her project C. Make all the decisions about the requested changes herself with the help of the team members D. Ask the sponsor to approve or deny the change requests

Correct Option: B EXPLANATION A change control board (CCB) consists stakeholders, managers, project team members, senior management, and other people, and it is responsible for reviewing, approving, or denying change requests. Some organizations have permanent CCB staffed by full-time employees to manage changes for the entire organization, not only for the project. The project manager should consider establishing a CCB for the project if the organization does not have one.

A pharmaceutical company wants to launch a new over-the-counter medication for flu in the U.S. market. The project manager is identifying project communication constraints. Which of the following is NOT a valid constraint? A. Getting an FDA approval before producing or selling the medicine B. The key person responsible for communicating the information on the project may not be available through the entire project C. The milestone meeting should be attended by all the major key stakeholders D. The project has teams working in different geographical locations and time shifts

Correct Option: B EXPLANATION A communication constraint is usually derived from specific legislation or regulation (option a), organizational policies (option c), or a project constraint (option d) which limits the project's options during communication management. However, option (b) is an uncertain event or risk in the project which needs to be addressed through risk management.

A contract type where the seller is reimbursed for all allowable costs for performing the contract work and receives a predetermined incentive fee based on achieving certain performance incentives is: A. Cost Plus Fixed Fee Contract B. Cost Plus Incentive Fee Contract C. Cost Plus Award Fee Contract D. Fixed Price Incentive Fee Contract

Correct Option: B EXPLANATION A contract type where the seller is reimbursed for all allowable costs for performing the contract work and receives a predetermined incentive fee based on achieving a certain performance incentive is "cost plus incentive fee" contract. It helps protect buyer interests as seller has good incentive to keep costs down. Please refer to PMBOK® Guide - Sixth Edition Project Procurement Management page 472

Which of the following is a defect? A. A mistake made by a team member on the job B. A project management plan that does not meet its requirements C. A change that the team needs to make in how it does the work D. A change request that's been rejected by the change control board

Correct Option: B EXPLANATION A defect is an imperfection or deficiency in a project component where the component does not meet its requirements or specifications and needs to be either repaired or replaced. Of all the options listed, Option B, a project management plan that does not meet its requirements, is a defect.

You are the project manager for a construction company. You are currently working on a project for building a new dam across a river. A recent change in a law governing ecological preservation will impact your project and change your project scope. As a project manager what should you do? A. Proceed as planned, and ignore the change in the law B. Create a documented change request C. Consult with the project sponsor and the stakeholders D. Stop all project work until the issue is resolved

Correct Option: B EXPLANATION A formal, documented change request is the best course of action for a change request stemming from a law or regulation. Option A is incorrect, as the law or regulation will likely override any existing project implementation. Option C is incorrect, as the project manager and the stakeholder can do little by consulting rather than complying with the law in terms of putting through a change management request.

A friend of yours approaches you seeking advice. She indicates she has offers from two organizations. Her role in one organization is that of a project Coordinator, while in the other organization, her role is that of a Project expediter. She is not quite clear of the difference between the two roles and seeks your advice. Which of the following statements is true? A. There is no difference between the two B. Project Expediter has no authority and cannot take decisions. Project coordinator has some authority and decision-making ability C. Project coordinator has no authority and cannot take decisions. Project Expediter has some authority and decision-making ability D. Project expediters are found in projectized organizations, and Project coordinators are found in Functional organizations

Correct Option: B EXPLANATION A project expediter has no authority or decision-making ability. A project coordinator has some amount of authority and some amount of decision-making ability.

What is the most powerful role in a projectized organization? A. The Resource Manager B. The Project Manager C. The Functional Manager D. The Team

Correct Option: B EXPLANATION A projectized organization is organized by projects, so the Project Manager has the maximum power in this type of organization.

A Project Manager has submitted a formal document that describes the procurement item in sufficient detail. This document allows prospective sellers to determine if they are capable of providing the product and details methodology and results that will be provided to the buyer. What is this called? A. Invitation for Bid B. Request for Proposal C. Request for Quotation D. Contract Statement of Work

Correct Option: B EXPLANATION A request for proposal (referred to as an RFP) is an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. An RFP requests a price but also a detailed proposal on how the work will be accomplished, who will do it, company experiences, etc. Option (a) 'Invitation for bid' is in general similar to an RFP. Option (c) 'Requests for quotation' requests a price quote per item or hour.

While planning human resources for a data center project you are overseeing, you used a graphical and hierarchical structure of the identified resources arranged by resource category (such as labor, material, equipment, and supplies) and type (such as expertise level, grade, and experience). This hierarchical chart is also helpful in tracking project costs and can be aligned with the organization's accounting system. You are using a: A. Work breakdown structure B. Resource breakdown structure C. Cost breakdown structure D. Human resource cost chart

Correct Option: B EXPLANATION A resource breakdown structure looks like a typical organizational chart but is organized by types of resources. RBS can help track project cost as it ties to the organization's accounting system. For instance, you may have junior, mid-level, and senior QA testers working on your project. These testers have an average salary recorded in the organization's accounting system, which can be used to calculate the cost of these resources.

You are good at reviewing and critiquing vendor contracts on your projects. Before closing the project, your supervisor asks you to develop a checklist of topics which need to be discussed with a vendor. Your list may have all of the following EXCEPT: A. Invoices and payment receipts B. Risk log C. Approved change requests D. Inspection reports

Correct Option: B EXPLANATION A risk log is the least likely thing on the checklist. All of the other options are directly concerned with contract closure. A risk log will be of use during project execution, but when you are closing the project, risks probably have no significance for the project except lessons learned.

During which project management process group is a rough order of magnitude estimate created? A. Executing B. Initiating C. Monitoring and Control D. Planning

Correct Option: B EXPLANATION A rough order of magnitude estimate refers to a very high-level estimate. This is generally done during the project initiation phase when very limited information is available about the project.

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? A. Iterative relationship B. Sequential relationship C. Overlapping relationship D. Common relationship

Correct Option: B EXPLANATION 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.

John is the project manager of a new product development project. His team is getting the project deliverables accepted per the specified project acceptance criteria. Why does the team need acceptance criteria for the project's final deliverables? A. To complete project records B. To ensure customer satisfaction C. To know what to create D. To abide by the project manager's rule

Correct Option: B EXPLANATION Acceptance criteria defines the process and criteria for accepting completed deliverables. It helps in ensuring customer satisfaction. Project records (Option A) are completed as part of the closure activity, and they can be done whether deliverable acceptance criteria are specified or not. Product specifications (Option C) tell what to create, and acceptance criteria helps to establish whether the deliverables are meeting the specified product specifications or not. Option D is wrong as there is no such project management rule.

According to McClelland's Achievement Motivation theory, individuals who work best when cooperating with others and working in a team, seek to maintain good relationships and approval rather than recognition, and perform well in a customer-facing team position have a need for ________. A. Power B. Affiliation or association C. Achievement D. Self-actualization

Correct Option: B EXPLANATION According to McClelland's Achievement Motivation theory, individuals who work best when cooperating with others and working in a team, seek to maintain good relationships and approval rather than recognition, and perform well in customer-facing team positions have a need for affiliation or association. People with a need for achievement should be given projects that are challenging but reachable. These people may prefer to work alone and also like recognition. People who like to organize and influence others have a need for power.

You are overseeing a construction project to build identical custom houses. Your initial estimate suggests that each of the houses will take approximately two months to complete at a cost of $50,000. The sponsor strongly disagrees with your estimate. What is a reason for this? A. You have not considered the law of diminishing returns B. You have not considered the learning curve C. You cannot estimate the time and cost until you complete one house D. The estimates are way too high

Correct Option: B EXPLANATION According to the learning curve theory, when a large number of items are produced repetitively, productivity will increase but at a diminishing rate. Learning curve data indicates that as work is repeated, the time required to complete the work is reduced, but the rate of improvement decreases. For instance, installing carpets in the fiftieth room in a construction project will take less time than it did in the first room due to increased efficiency as workers become more efficient with the installation procedure.

Which statement is correct about human resource management plan? A. HR plan specified how resources will be utilized B. HR plan specifies how resource will be assigned C. HR plan specifies how communication flows D. HR plan specifies how Stakeholder management happens

Correct Option: B EXPLANATION According to the new examination content outline, "assigned" replaces "utilized." Option (c) and (d) are part of the communication and stakeholder management plans respectively.

While monitoring and controlling the projects, why is it necessary to manage changes to the project by following the change management plan? A. To satisfy the customer B. To align project goals with business needs C. To satisfy project requirements D. To satisfy the sponsor

Correct Option: B EXPLANATION According to the new examination content outline, following the change management plan ensures that project goals remain aligned with business needs.

A project is following a life cycle where requirements are defined in a backlog and the project team delivers the backlog items based on the priorities of the project sponsor in two-week iterations. What type of project life cycle is the team following? A. Rolling Wave B. Agile C. Waterfall D. Scaled Agile Framework

Correct Option: B EXPLANATION Agile projects leverage a prioritized backlog and deliver the project in a series of short, timeboxed iterations. There are many varieties of agile techniques, but this question has provided enough information to classify the project life cycle as Agile.

Which one of the following is the last step of project closing? A. Archive Project Documents B. Measure customer satisfaction at the end of the project C. Client appreciates your product D. Lessons learned are documented

Correct Option: B EXPLANATION 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.

You are trying to partner with a firm in the Middle East. This is the first time you will be doing a business partnership in the Middle East. You want to know about the cultural aspects of the country and get some guidelines on doing business as well. Which would be the best document to refer to? A. Project archives from earlier projects B. Organization policies and procedures C. Cultural overview from government website D. PMI®

Correct Option: B EXPLANATION All the other documents would provide some insight; however, you are entering a business liaison with a firm in a foreign country. It is important to first read and understand your organizational policies on doing business in a foreign land. Many organizations also have in-house departments that provide cultural training and language support. Options (a) and (c) could also provide some useful information, but they would be partial and unstructured. Option (d) provides valuable guidelines to do ethical business, but it is generic information and not specific to an organization.

A new project manager has just been assigned to a project that is in progress. The project is two weeks behind schedule and the members are about to be distributed to another project. Based on original time estimates that are provided by the functional manager, what is the initial step the project manager should take? A. The project manager should first revise the Gantt chart with new timelines B. The project manager should check the project plan for contingencies concerning resources and talk to the functional manager C. The project manager should initially contact the steering committee and work with a new team D. The project manager should first show sympathy with the current team and delay decision making for another week

Correct Option: B EXPLANATION All the other options may further delay the project which is already late. Therefore, (b) is the best option.

During the planning phase of your project, your project team has discovered another method to complete a part of the project scope. This method is more secure, but will be an additional cost to the client. This is an example of : A. Risk assessment B. Alternatives generation C. Alternative selection D. Product analysis

Correct Option: B EXPLANATION Alternatives generation is a planning technique used to generate different approaches to execute and perform the work of a project.

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: A. Tom Pareto Principle B. 80/20 Rule C. Root Cause Analysis D. Why's Principle

Correct Option: B EXPLANATION 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.

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? A. Request for Quotation B. Request for Proposal C. Invitation for Bid D. Bidder conference invitation

Correct Option: B EXPLANATION An RFP requests for a detailed proposal.

An assembly line in a car manufacturing plant produces 250 components in one shift. The QA randomly picks 10 of them for quality checking. This is an example of: A. Quality Audit B. Inspection C. Process Control D. Process Analysis

Correct Option: B EXPLANATION An inspection is, most generally, an organized examination or formal evaluation exercise. It involves measuring and testing certain characteristics of an activity. The results are usually compared to specified requirements and standards to determine whether the activity meets the targets.

There is a change request for your project. You documented the change and sent it to the change control board (CCB) for approval. What's the next step in this process? A. Establish whether Change is required or not B. The members on the CCB use expert judgment to accept or reject the change C. Analyze the impact of the change request with your team members D. Call the CCB and advise them about whether they should approve or reject the change

Correct Option: B EXPLANATION As a Project Manager, you can only create change requests when needed and submit them to the change control board for approval. Accepting or rejecting the change is decided by the change control board.

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? A. Escalate to your functional Manager B. Provide the report C. Set up a meeting with the Project Manager to discuss the issue D. Ignore the request and work on other important tasks

Correct Option: B EXPLANATION 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.

A project team is working on initiating a project. Which of the following options is NOT true about this situation? A. The Sponsor is developing the project charter B. The Project Manager is developing the project charter C. The Project manager is participating in the development of the project charter D. The Sponsor and the Project Manager together are developing the project charter

Correct Option: B EXPLANATION 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.

In a negotiated cost plus incentive fee (SPIF) contract, the following figures were finalized: a target cost of $355,000, a target fee of $45,000, and a sharing ratio of 75/25. If the actual cost of the project is $320,000, what will be the final fee to the seller? A. $36,250 B. $8,750 C. $35,000 D. $45,000

Correct Option: B EXPLANATION As the cost of the project is lower than expected, the seller will receive their $45,000 fee plus $25% of the savings between $355,000 and $325,000 ($25,000 x 25% = $7,500). $45,000 + $7,500 = $52,500.

Your twenty-mile railway construction project is not going well. You were supposed to complete the project today, exactly forty weeks from the start of the project. You found out that only 75 percent of the work is completed. Based on this status, approximately when would you expect the project to be completed? A. 20 weeks B. 10 weeks C. 15 weeks D. 5 weeks

Correct Option: B EXPLANATION Assuming the same progress has already been experienced, the project would take 10 weeks or 25% of the original 40-week estimate.

If EV = 50, PV = 60, AC = 55, and the current cost performance is likely to continue into the future, what is the likely variation in the overall cost at the end of the project? A. The question does not provide sufficient information to come to a conclusion B. 0.1 C. 0.2 D. -0.1

Correct Option: B EXPLANATION Based on the EV and AC values, it seems that there is a 10% escalation in the cost. Given that this trend is likely to continue in the future, the project will also end up with a 10% cost escalation.

As a project manager, you understand the importance of identifying all relevant stakeholders, their interest and influence, and their needs and expectations. You have been assigned to handle a large construction project. You decide to do a thorough stakeholder analysis, and you identify Laura and Sean. Based on your interactions and analysis, you know that both Sean and Laura are low in the pecking order and so they do not wield any significant authority or power. However, where it differs is in their interest in the project. Laura has a lot of interest, while Sean is disinterested. You decide to plot them in a Power/Interest grid to help determine how you would manage these stakeholders. Which of the following is the best approach to handle these two stakeholders? A. Both Sean and Laura should be kept informed. B. Sean should be monitored, and Laura should be kept informed. C. Both Sean and Laura should be monitored. D. Sean should be kept informed, and Laura should be monitored.

Correct Option: B EXPLANATION Both Sean and Laura do not wield a lot of power and authority. However, the differentiator seems to be their level of interest. While Sean is disinterested, Laura has a high level of interest in the project. Stakeholders who have a high level of interest but who wield insignificant authority or power should be kept informed-in this case Laura. Stakeholders who have a low level of interest and who wield insignificant authority or power should be monitored-in this case Sean.

You are in charge of a project that is running behind schedule. Your lead architect approaches you and indicates that should introduce a change so that the project could possibly catch up on lost time. What should be the first thing you should do? A. Its a great suggestion that can bring the project back on schedule, so go ahead and implement change. B. Ascertain the impact of the change on your cost and scope, and then write a change request and get a formal approval C. Write a change request, and get a formal approval before making any changes D. Flatly refuse to make any changes

Correct Option: B EXPLANATION Both options of refusing to make the change outright or making the change immediately without analyzing are incorrect, so clearly options A and D are not the right choices. The question asks about what you should do first; so though writing a change request and getting an approval is logical, even better is to first ascertain the impact of the change. You already know that the change can reduce the schedule, but you should also find the impact of this change on your other constraints, which are scope and cost. Once you have analyzed the impact of this change, you can submit a change request and seek approval. Hence, option B is the BEST course of action.

You have been assigned to create a diagram that will demonstrate the logical relationships that exist between activities. You are also asked to display how long the project activities will take. Which of the following methods will you utilize to achieve this goal? A. Pareto chart B. CPM C. Check sheet D. PDM

Correct Option: B EXPLANATION CPM is a technique of schedule analysis that evaluates the activity duration, logical relationships, dependency, leads, lags, assumptions, and constraints to determine the float of each activity and the overall schedule. This method identifies the critical path with the least flexibility and the highest risk so that it can be managed appropriately. The critical path duration is the longest path in the network diagram and the shortest amount of time project will take to complete.

A project team is analyzing a major, critical defect to determine the root cause. In order to do this, the team considered various factors linked to the defect and grouped them into categories such as Machine, Method, Material, and Manpower. Which of the following tools of quality is the team using? A. Histogram B. Cause and Effect Diagram C. Control chart D. Flowchart

Correct Option: B EXPLANATION Cause and effect diagram, also called Ishikawa diagram or fishbone diagram, is used to determine the root cause of a problem by identifying and grouping its potential causes. Please refer to PMBOK® Guide - Sixth Edition Project Quality Management, page 293 for more details.

In addition to Work Performance Information, which of the following is an output of the process 'monitor communications' in Communication Management? A. Budget Forecast B. Change Request C. Work Performance Measurements D. Communication Management Plan

Correct Option: B EXPLANATION Change request is an output of 'monitor communications' process, in addition to performance information. These change requests are processed through Integrated Change Control process as recommended corrective actions. The corrective measures help bring the expected future performance of the project in line with the project management plan and/or preventive actions. This reduces the probability of incurring a negative project performance in the future. Please Refer PMBOK® Guide - Sixth Edition page 393, monitor communications: Outputs.

Company expenses such as auditing costs, supervision, office supplies, building rent, and maintenance are elements of which of the following ? A. Capital budgeting process B. Overhead rates C. Contracts and administration costing system D. Fringe benefits package

Correct Option: B EXPLANATION Company expenses, such as auditing costs, supervision, office supplies, building rent, and maintenance are not specific to a project, but to all the projects of the company. They are an example of the overhead cost.

You are managing a project that has teams located in different parts of the world. While the advantage of colocation is beneficial, the team structure or locations cannot be changed. Being an experienced manager, you realize that lack of a proper communication channel can quickly lead to chaos. What would your choice of communication be? A. Formal and Verbal B. Formal and Written C. Informal and Written D. Informal and Verbal

Correct Option: B EXPLANATION Considering cross-located teams and difference in cultures, the best choice of communication in this case would be formal and written.

Your sponsor mentioned that the project must be completed within six months and should not exceed $50,000. You should consider this as a: A. Project assumption B. Project constraint C. Stakeholder expectation D. Project boundary

Correct Option: B EXPLANATION Constraints are restrictions such as limitations on time, budget, scope, quality, schedule, resource, and technology a project faces. An imposed deadline and budget are examples of constraints.

A university has contacted you to help it in its research. They have asked you to provide them with some of the client data from your files. What should you do? A. Release the information but remove all references to the client's name B. Contact your client and seek permission to disclose the information C. Disclose the information D. None of the above

Correct Option: B EXPLANATION Contact your client and seek permission to disclose the information. Never disclose the information without the permission of the owner of the information. Per the professional responsibility and ethics, you should maintain the confidentiality of the information.

Which of the following statements are true? A. Contract closure and administrative closure both involve quality assurance activities B. Contract closure and administrative closure both involve product verification C. Contract closure and administrative closure both involve benefit cost analysis D. Contract closure and administrative closure both involve project selection

Correct Option: B EXPLANATION Contract closure and administrative closure both involve product verification.

A Project Manager is defining the contract, terms and conditions, and negotiations with vendors. Which of the following techniques is the Project Manager working on? A. Configuration management B. Contract management C. Contract types and selection criteria D. Vendor management

Correct Option: B EXPLANATION Contract management involves defining the contract, terms and conditions, and negotiations with vendors. Vendor management involves selecting the best sellers according to the source selection criteria. Contract types and selection criteria deal with selection of different types of contracts, like fixed price, cost reimbursable, time and material, etc. This will be applicable if outsourcing is done. Selection criteria are developed and used to rate or score seller proposals and can be objective or subjective. Configuration management is a collection of procedures used to track project artifacts and monitor and control project artifacts.

You are a project manager in a manufacturing company. You want to analyze the output of a production line which manufactures piston rings. You also want to determine whether the variations in the jobs are inherent to the process or if the process needs adjustment. Which tool would be MOST useful? A. Statistical sampling B. Control charts C. Pareto charts D. Trend Analysis

Correct Option: B EXPLANATION Control charts are graphical displays of the results over time of a process. They are used to determine if the process is "in control" or needs adjustment. Option (a) Statistical sampling is the process of selecting elements of a population for either descriptive or inferential purposes and is not a tool.

In your organization, a project management team has subcontracted work to a service company. The process of ensuring that this service company's performance meets contractual requirements is called: A. Plan Procurement Management B. Control Procurements C. Close Procurements D. Staffing Management Plan

Correct Option: B EXPLANATION Control procurements is the process of managing procurement relationships, monitoring contract performance, and making changes and/or corrections as needed.

As a Project Manager, you have been asked to assist the contract manager in drafting the contract of a large project with limited scope clarity. What type of contract would you suggest, so that your organization does not face any financial losses? A. Time and Material B. Cost Plus Fixed Fee C. Firm Fixed Fee D. Cost Plus Percentage of Cost

Correct Option: B EXPLANATION Cost Plus Fixed Fee contract is suitable for a large project with limited scope clarity. Please note that a time and material contract is best suited for smaller projects. Refer PMBOK® Guide - Sixth Edition, page 471 for different types of contracts.

Your project has the following information based on Earned Value Analysis. Its Earned Value (EV) is $1000, Actual Cost(AC) is $850, and Planned Value(PV) is $1050. Which of the following is TRUE about your project? A. Your project is over budget and behind schedule B. Your project is under budget and behind schedule C. Your project is over budget and ahead of schedule D. Your project is under budget and ahead of schedule

Correct Option: B EXPLANATION Cost Variance = EV-AC = $1000-$850 =$ 150 is positive and Schedule Variance = EV-PV = $1000 - $1050 =-$50 is negative. The project is under budget and behind schedule.

Project performance reviews using earned value management would typically incorporate information from all of the following EXCEPT: A. Variance Analysis B. Cost Benefit Analysis C. Trend Analysis D. Earned Value Technique

Correct Option: B EXPLANATION Cost benefit analysis is a technique that compares positive factors or benefits with negative ones to determine the net result of doing the action. It is a popular technique for project selection method but will not be useful during the project performance review.

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? A. 2000 B. -2000 C. 16000 D. -6000

Correct Option: B EXPLANATION 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

You have replaced a project manager on a project that is already in the execution phase. The project is behind schedule, and you have been specifically brought in to ensure the project meets its schedule. You decide to review the schedule network diagram created by the earlier project manager and realize that the project is 3 weeks behind schedule. After reviewing the activities and the network diagram, you decide to Crash the schedule. This means you: A. Decrease the scope of the project after discussing with the sponsors B. Add additional resources to the activities on the Critical path C. Perform activities in parallel to decrease the schedule D. Discuss with the sponsors and explain how it is not going to be possible to meet the schedule

Correct Option: B EXPLANATION Crashing is a technique used to shorten the schedule by adding resources. Options A and D are clearly not correct, and Option C is an example of Fast Tracking.

You have taken over as a project manager of a complex and technically challenging project. Your team is from diverse cultures and lacks bonding. You want the team to participate and take ownership of the project activities from day one, as well as understand the big picture of the project. Which of the following activities would be most helpful? A. Use colocation to help the team bond better, which in turn would maximize productivity B. Create Work Breakdown Structure (WBS) C. Develop responsibility assignment matrix to describe roles and responsibilities of every team member D. Conduct knowledge sessions where each member appraise the team about his culture

Correct Option: B EXPLANATION Create Work Breakdown Structure (WBS) and WBS dictionary with the team. As a project manager, you want the team to take ownership, as well as understand how their individual project activities affect the overall project deliverable (the big picture). Also, you want the team to develop bonding. All these objectives are met when the team gets involved in creating the WBS and the WBS dictionary. Option (a) may not always be possible due to physical constraints on the project. Option (d) has limited utility but option (b) is the best choice as it fulfills multiple project objectives as described.

Customer satisfaction should be measured at the end of the project to maintain long-term relationships. Which of the following is NOT always an aspect of customer satisfaction? A. The product meets its stated and unstated requirements B. The project is profitable C. The product is high quality D. The customer's needs are met

Correct Option: B EXPLANATION Customers can be satisfied even when the project is not profitable. Customer satisfaction is not always about money. It could be about making sure that the people who are paying for the end product are happy with what they get.

A project team is in the process of creating the Work Breakdown Structure (WBS) for the project deliverables as well as defining activities to be performed to produce the deliverables. What is a common technique it can use for this purpose? A. Rolling wave planning B. Decomposition C. Precedence diagramming method (PDM) D. Alternative analysis

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

Your team is in its second month of development. You are managing a software development project for a banking product. In one of the team meetings, a debate arises if defects found during Quality control need to undergo change control. Some team members are convinced that all defects should undergo change control, while the others are convinced that defects need not undergo change control. Which of the following statements are untrue? A. Defects to deliverables need to undergo change control B. Defects to deliverables need not undergo change control C. Corrective actions need to undergo change control D. Preventive actions need to undergo change control

Correct Option: B EXPLANATION Defects to deliverables, corrective actions, and preventive actions need to undergo change control. So all the above statements are true except option B.

You are a project manager managing a software project for your firm. While acquiring the project team, you ask the resource manager to assign the test engineers in the beginning of the project as it would help them gain project insight critical for effective testing. Which kind of project dependency is this an example of? A. Mandatory Dependency B. Discretionary dependency C. External dependency D. Customer dependency

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

A customer has been consistently late with approvals on design documentation. George, the project manager, has raised the subject in the past, but the practice of delayed approval has not changed. George has been documenting the delays. Which conflict resolution technique is he following? A. Collaborating B. Withdrawal C. Smoothing D. Compromising

Correct Option: B EXPLANATION Documenting the delays is not an attempt to solve the problem. This demonstrates avoidance or withdrawal as the Project Manager's response to the situation. Collaborating involves attempting to solve the problem for deriving an extent of satisfaction to the parties involved in the issue. The situation described here does not indicate any such attempt.

Your client has terminated your project before it has been completed. Which of the following is true? A. You must stop all work and release the team immediately B. You must work with the team to document the lessons learned C. You must keep the team working on the project to give your senior management time to talk to the client D. You must update the project management plan to reflect this change

Correct Option: B EXPLANATION Even if a project is shut down before the work is completed, you still need to document the lessons learned and add them to the organizational process assets.

What is the key role of a Project Sponsor in a project? A. Helps in identifying key project risks B. Helps in preventing unnecessary changes to the project objectives C. Helps in identifying some key project activities D. Shares lessons learnt from the previous project

Correct Option: B EXPLANATION Even though the sponsor may help to identify some key risks and share lessons learned from previous projects, the sponsor's role is to ensure that there are no unnecessary changes made to the project objectives.

You are currently working in the Direct and Manage Project Work process to complete the work defined in the project management plan to satisfy the project specifications and objectives. Which of the following is NOT an output of the Direct and Manage Project Work process? A. Deliverables B. Final products, service, or result transition C. Change requests D. Work performance data

Correct Option: B EXPLANATION Final product, service, or result transition are outputs of the Close Project or Phase process, not the Direct and Manage Project Work process.

A software development project has been awarded to one of the many vendors. Your company and the vendor have agreed to build this project using the Waterfall Methodology. You decide to check with the progress regarding when development will start. The vendor informs you that the actual development can only start after the completion of design. Which type of relationship best describes the dependency between design and actual development? A. Finish-to-Finish B. Finish-to-Start C. Start-to-Start D. Start-to-Finish

Correct Option: B EXPLANATION Finish-to-Start means that the Successor Activity cannot start without the Predecessor activity being completed. In this case, the Design is the Predecessor activity and Development is the Successor Activity. So, here Development (Successor Activity) cannot start without completion of Design (Predecessor Activity).

A project team is working on the network diagram of a project and wants to determine the float of the project activity. Which of the following is the correct formula? A. Late finish-early finish (LF-EF) B. Late finish-early finish (LF-EF) or Late start - Early start (LS-ES) C. Early start - Late finish (ES-LF) D. Late finish-late start (LF-LS)

Correct Option: B EXPLANATION Float is calculated by subtracting either the early finish (EF) from the late finish (LF) or the early start (ES) from the late start (LS). That is, Float for an activity = LS-ES or LF-EF.

You are managing a software application project to develop an online PMP simulator budgeted for $90,000 to assist students to practice exam questions in similar real life environment. The team has completed design work, received approval from technical review team, and initiated coding work. When asked by management what you currently expect the project to cost, you think that that the costs you have incurred till now are typical for the rest of the project. While reviewing the current status of the project, you found that AC = $30,000 and EV = $35,000. What is your estimate at completion (EAC)? A. $85,000 B. $77,856 C. $90,000 D. $60,000

Correct Option: B EXPLANATION If CPI or past results are typical or expected to continue, the correct EAC formula is EAC = BAC/CPI. In this case, BAC = $90,000 CPI =EV/AC = $35,000/ $30,000 = 1.16 EAC = $90,000/ 1.16 + $77,586

You are managing the installation of a new software product. The product has to be installed in 1000 client systems one by one. While your installation team does the installation, the quality team analyzes process metric measurements and adds the data points to a control chart. When you examine the control chart, you discover that the process is out of control and some immediate action needs to be taken. What is noticed on the control chart? A. There were two points that were more than 100% away from the mean. B. At least seven consecutive measurements were below or above the mean C. All the measurements were within the upper and lower control limits D. There were a lot of variations in the measurement.

Correct Option: B EXPLANATION If seven consecutive measurements are below or above the mean, the process is out of control. This is a statistical principle.

Which type of relationship is often used in Precedence Diagramming Method (PDM)? A. Finish-to-Finish B. Finish-to-Start C. Start-to-Start D. Start-to-Finish

Correct Option: B EXPLANATION In Finish-to-Start relationship, Successor Activity cannot happen till Predecessor Activity is completed.

You are managing a project and cannot get enough attention for your project. Resources are working on more than one project at the same time and their priorities keep changing. You are most likely working in what form of organization? A. Matrix B. Functional C. Expeditor D. Coordinator

Correct Option: B EXPLANATION In a functional organization, the project does not get enough attention. The project manager has little or no authority, and the functional manager has more authority.

Which of the following is NOT true about a weak matrix organization? A. Communication will be more complex B. The team members may not always have a home C. The team members may get directions from multiple people D. Team members may not report to the Project Manager

Correct Option: B EXPLANATION In a matrix organization, communication will be more complex, the team members will likely get directions from within their functions as well as from the Project Manager, and the team members may not report to the Project Manager. The team members not having a home is a challenge in a projectile organization matrix.

A Project Manager is working in a manufacturing company with the centralized contracting department. Who would have the final authority to change the contract in this case? A. Project Manager B. Contract Manager C. Sponsor D. Customer

Correct Option: B EXPLANATION In an organization with centralized contracting, there would usually be another person who controls the contract, called a contract manager or contract administrator. He is the only one with the authority to change the contract. He also serves as the point of contact for customers on contractual matters. He acts as a contractual middleman between company employees and customers to ensure timely review, approval, and reconciliation of variations.

In the middle of a project, you identify a risk that was not identified during the risk identification process. What should you do in this case? A. Do a detailed analysis on why this risk was not identified earlier B. Analyze the risk C. Ignore this risk, as risk identification is over D. Escalate the matter to the quality team so that they can come up with a new risk identification process

Correct Option: B EXPLANATION In every question, use the basic concept that you need to show proactiveness and also get more information before taking any action. In this case, ignoring the risk is not an option. You need to be proactive. When you identify a new risk, you should not ignore it. You need to work on what action needs to be taken. This can be achieved by getting more information about the risk itself.

Your project is in the final stages of testing, and the team is interacting with the customer on a daily basis to update him on the project status and incorporate his feedback. Which of the following is the most critical process to be followed in this scenario? A. Control Quality B. Control Scope C. Manage Communications D. Control Risks

Correct Option: B EXPLANATION In this case, based on customer feedbacks, frequent changes are expected to be made by the team. When a change is presented, a part of considering the change involves additional planning. The project manager and the team must examine how the change affects the project work and knowledge areas. Control Scope ensures the project scope is protected from unnecessary changes and all eligible changes are done using the scope change control system. Option (a) Perform Quality Control is more focused on ensuring conformance to documented standards and is not the correct choice.

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? A. Control Quality B. Control Scope C. Manage Communications D. Control Risks

Correct Option: B EXPLANATION 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.

Your project is in a critical phase. You notice one of the team members comes in late to office and leaves early. This is clearly impacting delivery. You decide to discuss the details with the concerned team member to better understand the details. On discussion, you find no specific reasons, so you explain the necessity and criticality of the project, expecting the team member to improve. However, next week, your lead engineer reports about inadequate time being spent by the same person in office. What would be the best choice of communication in this case? A. Informal and verbal B. Formal and written C. Informal and written D. Formal and verbal

Correct Option: B EXPLANATION In this case, you have already tried out the option of discussing with the team member once, which is an example of informal verbal. Clearly, that has not worked, so it calls for a more strict reprimand. Hence, the correct form of communication would be a formal written communication.

Which process group recognizes that a project or phase should begin and commits this to the organization? A. Monitoring process B. Initiating process C. Planning process D. Scoping process

Correct Option: B EXPLANATION Initiating process group recognizes that the project or phase should begin and commits this to the organization.

Which of the following is TRUE about the request for bid (RFB) or an invitation for bid (IFB)? A. Buyers request all potential sellers for the details of how work will be performed B. Buyers request all potential sellers to submit a total price bid for the work to be performed C. Buyers request all potential sellers to submit a price quote per item, hour, foot or other unit of measure D. Buyers request all potential sellers to submit a detailed statement of work from the buyer

Correct Option: B EXPLANATION Invitation for bid (IFB)/request for bid (RFB): Request from a buyer to all potential sellers to submit a total price bid for work to be performed. Request for proposal (RFP): Buyer's request to all potential sellers for the details of how work will be performed. Request for quotation (RFQ): Buyer's request to all potential sellers for a price quote per item, hour, foot or other unit of measure.

You are executing a project in a foreign country where it's customary to pay the police for additional security cover. In another country, this might be considered bribery. You and your team members require the additional cover. What would you do? A. Do not pay to the police as it is bribe B. Pay the police because it's the local custom and cannot be classified as bribe C. Ask for direction from your senior management D. Find out if there is any budget for such payment and act accordingly

Correct Option: B EXPLANATION It's very important to understand the difference between what is a government fee and what is a bribe. As a certified PMP®, you should say no to a bribe, but not to government fees. In this case, it is customary to pay for additional security, so you should go ahead and pay.

Which of the following is NOT an example of a facilitated workshop? A. Joint Application Development (JAD) B. Just in Time (JIT) C. Quality Function Deployment (QFD) D. Voice of the Customer (VOC)

Correct Option: B EXPLANATION Just in Time is an approach to improve process overheads by reducing in-process inventory and associated carrying costs. All the other options are examples of facilitated workshops or requirements workshops. These are focused sessions to bring together key stakeholders in the project to define product requirements. Refer PMBOK® Guide - Sixth Edition Project Scope Management page 145.

Which of the following is an example of Lead? A. Pillars for a structure can be started 7 days after the foundation to allow for curing B. Test lab preparation can start 5 days before a product is made available for test C. Both test planning and product development can start simultaneously after the design is finalized D. Crash tests cannot be carried out until a working final model is made available

Correct Option: B EXPLANATION Lead means that the successor activity can start in advance of the predecessor activity.

Which one of the following is NOT an input in the Conduct Procurements process? A. Qualified seller list B. Make-or-buy analysis C. Teaming agreements D. Seller proposals

Correct Option: B EXPLANATION Make-or-buy decision is the input in the conduct Procurements process, not make-or-buy analysis. Make-or-buy analysis refers to determining whether a product can be produced in a cost effective manner in-house or whether it should be purchased, leased, or rented. While performing this analysis, we must consider indirect as well as direct costs, availability in addition to related risk, schedule, etc. Make-or-buy decisions document the decisions and justification regarding what project products, services, or results will either be acquired or developed by the project team.

You are responsible for the complete makeover of a shopping mall, which involves civil work and painting. After going through the details, you have come up with the cost estimates which have been approved to arrive at the cost baseline. Work is now in progress, and you and senior management are happy with the work. Suddenly, you realize the ceiling repair work was not factored in the estimates though it was very much a part of the scope. You decide to make use of Contingency reserves, but your senior manager advises you to make use of the Management reserve. What is the correct action? A. Making use of both the Management Reserve and the Contingency Reserve B. Making use of Management Reserve C. Making use of Contingency Reserve D. None of the above

Correct Option: B EXPLANATION Management reserve is meant for unknown unknowns and is part of the scope of the project. The question clearly states that the work is in scope. Contingency reserves are for known unknowns, which is not the case here. The correct answer is Management Reserve.

A senior technology manager in the organization wants to know the project status with respect to major deliverables and key external interfaces. Which format should the project manager use in his performance report to capture this graphically? A. Project Schedule Network Diagram B. Milestone Chart C. Bar Chart D. S curve

Correct Option: B EXPLANATION Milestone charts are most suitable as they capture project status with respect to important milestone deliveries. Option (a) can also be applicable, but it is more detailed and not the best choice.

Your team members have created a requirement document, a scope statement document, and a work breakdown structure. They have identified twenty work packages and completed WBS dictionary. Some of these team members were also involved in creating the business case and conducting the feasibility study at the early stage of the project. Which of the following items will the team members work on now? A. Help the project manager to develop the schedule B. Create the detailed activity list C. Create the network diagram D. Identify the sequence of the activities

Correct Option: B EXPLANATION Once the WBS is created with all the work packages, the team members should work on decomposing the work packages to create the detailed activity list. Network diagram and activity sequencing can be performed only after the activity list is created.

You are managing a project to set up a brand new play area for the community. You and your team have been working as per plan and things are moving smoothly. Suddenly, one of the stakeholders indicates that the play area must also include a sand pit. This was not originally planned for, so you analyze the impact on the cost, schedule, and scope. You then submit the change request to the Change control board for their approval .You have immediately received an approval. What should your next step be? A. Get the work done immediately and start executing B. Update the impacted baselines - scope, cost, and schedule C. Update the work performance reports and share them with stakeholders D. Set up a meeting with the change control board

Correct Option: B EXPLANATION Once you have created the change request and submitted for approval, you don't need to set up a separate meeting with the change control board unless asked for. Work performance reports will be shared as per agreed frequency. However, this is irrelevant to the question. You might be tempted to jump in and start work immediately, but first, the impacted baselines should be updated. In this case, all the three baselines have to be updated. This is necessary to ensure that performance information is tracked against the new baselines and not the old ones.

You were conducting the project post-mortem meeting for one of your recently completed projects. It was clear in the meeting that some of the customers were not fully satisfied with the project outcome. Your sponsor specifically asks you about the measures taken to ensure customer satisfaction. Which of your subsidiary plans would you refer him to? A. Risk Management Plan B. Quality Management Plan C. Scope Management Plan D. Communication Management Plan

Correct Option: B EXPLANATION One of the aims of planning quality in the project is to ensure that the project meets all of the stated requirements of the customer. If all the customer requirements are met, there is no reason why the customer should not be happy. However, if the customer is still unhappy, the reason needs to be further investigated.

Which of the following is NOT true regarding starting a project without a formal approved project charter? A. There is a risk of constant change B. There is no risk of greater number of changes and disruption C. Managing expectations of different stakeholders can be an increased challenge D. The project manager will be undermined since the project manager would lack formal authority

Correct Option: B EXPLANATION Options A, C, and D correctly state the disadvantages of starting a project without a formal approved charter. These are the very reasons why a project should not be started without an approved charter. The correct answer to the question is option B since it incorrectly states that there is no risk of increased changes without an approved project charter.

You and your team have just created a schedule network diagram. You have come up with the estimates and have defined the durations and subsequently have identified the Critical Path. You now decide to do a "Backward Pass" through the Schedule Network Diagram. What would you be calculating? A. The Early Start and Early Finish for each activity B. The Late Start and Late Finish for each activity C. The duration of paths other than the critical path D. The duration of the critical path

Correct Option: B EXPLANATION Options C and D are incorrect as the Backward Pass is not used to calculate the duration. In fact, the critical path is calculated based on duration. Option A talks about Early Start and Early Finish, which are calculated using "Forward Pass." Using "Backward Pass," we calculate the Late Start and Late Finish of all the activities in the network diagram.

Your company has been tasked with providing estimates for a road construction project. You have data available related to costs per square feet. You now need to provide an estimate of the cost of the project based on this data. What estimation technique is most applicable in this scenario? A. Top-down Estimating B. Parametric Estimating C. Bottom-up Estimating D. Analogous Estimation

Correct Option: B EXPLANATION Parametric Estimation is most applicable in this scenario as the cost per unit is readily available. Parametric estimation uses the relationship between variables to determine cost or duration. It calculates the cost or duration of the unit and also determines the number of units required. This helps in calculating the cost/duration of the project.

The estimating technique that uses the statistical relationship between the historical data and other variables to calculate an estimate for an activity is called: A. Analogous Estimating B. Parametric Estimating C. Three Point Estimating D. Monte Carlo technique

Correct Option: B EXPLANATION 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.

The estimating technique that uses the statistical relationship between the historical data and other variables to calculate an estimate for an activity is called: A. Analogous estimating B. Parametric estimating C. Three-point estimating D. Monte Carlo technique

Correct Option: B EXPLANATION Parametric estimating primarily refers to an estimation technique which utilizes the statistical relationship that exists between a series of historical data and a delineated list of other variables. Some examples of these variables include square footage on a construction project and the number of lines of code that exist in a software application. This information is then implemented to calculate and demonstrate an estimate for the entity's activity parameters.

Ashley orders batteries for her project from a new supplier who appears to offer the lowest cost. After delivery of the batteries, the sales representative calls Ashley to thank her for the order. She also sends her an expensive laptop as a thank you gift for her order. What should Ashley do? A. Accept the gift. It did not influence her decision to purchase the batteries B. Refuse the gift to avoid the appearance of impropriety C. Report the batteries company to the police for a case on bribery D. Ensure the gift becomes a company asset and not a personal asset

Correct Option: B EXPLANATION Per PMI's ethical standards, Ashley should refuse to accept the gift to avoid a case of impropriety.

Which of the following statements is correct regarding project management plan? A. Present it only to key stakeholders B. Present it only to key relevant stakeholders C. Don't present anything as the stakeholders are part of project management plan development D. Present to the customer

Correct Option: B EXPLANATION Per the new examination content outline, key stakeholders, if required, is replaced with relevant stakeholders. Project manager needs to identify those relevant stakeholders.

Which process is MOST closely associated with continuous process improvement? A. Perform Qualitative Risk Analysis B. Perform manage quality C. Control Quality D. Plan Quality Management

Correct Option: B EXPLANATION Perform manage quality is the process of determining if the project activities comply with organizational and project policies, standards, processes, and procedures. This process is primarily concerned with overall process improvement and does not deal with inspecting the product for quality or measuring defects. The primary focus is on steadily improving the processes and activities undertaken to achieve quality. The key functionalities in this process include: ' Identify ineffective and inefficient activities or processes used on the project. ' Perform continuous improvement as appropriate. ' Perform quality audit to determine if project activities comply with organization and project policies, processes, and procedures. ' Identify required improvements, gaps, and shortcomings in the processes. ' Identify and correct deficiencies. ' Recommend changes and corrective actions to integrated change control.

You have recently been assigned as a project manager for a new and highly complex project to send a satellite into space. There are several stakeholders in the project, and you are working on communications plan to identify the information and communication needs of the people involved. You do this by determining what needs to be communicated, when, to whom, with what method, in which format, and how frequently. It is extremely important that you develop your communications plan _____. A. Evenly throughout the project life cycle B. At the earliest stage of the project C. On completion of the project plan D. During execution

Correct Option: B EXPLANATION Plan communications is included in the planning process, which is generally completed prior to executing. Updates to the project plan, including the communications management plan, will occur during the entire project life cycle.

A manager who manages a collection of projects grouped together to facilitate effective management to meet strategic business objectives is called a: A. Program Manager B. Portfolio Manager C. Project Manager D. Stakeholder

Correct Option: B EXPLANATION 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.

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: A. Differences in Opinion B. Probable delay in the next delivery C. Pending Root cause Analysis D. Delay in receiving feedback from the customer

Correct Option: B EXPLANATION 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.

As a project manager, you decide to create an issue log which captures the issue description, owner, and target date for issue closure. All of the following are common examples of issues on the project EXCEPT: A. Differences in opinion B. Probable delay in the next delivery C. Pending Root Cause Analysis D. Delay in receiving feedback from the customer

Correct Option: B EXPLANATION Probable delay in the next delivery represents a project risk and not an issue as the event is uncertain and may or may not happen in future.

Leo supplies PCB to Ahoy Electricals Inc. A contract has been finalized with Ahoy Electricals Inc. and now the organization is conducting the procurement audit and updating the project records. Which process does this scenario refer to? A. Close Procurements B. Control Procurements C. Close Project or Phase D. Develop Project Management Plan

Correct Option: B EXPLANATION Procurement audit is a technique of the control procurements process. The purpose of the procurement audit is to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project or on other projects within the performing organization. PMBOK® Guide - Sixth Edition has deprecated the Close Procurements process and its administrative activities are now part of Control Procurements.

While in the control procurements process, you are meeting with your seller to inspect the seller's progress to deliver the project scope and quality within cost and on schedule as compared to the contract. Your objective is to identify the performance progress or failures, noncompliance, and areas where performance is a problem. Which of the following are you performing? A. Performance reporting B. Procurement performance reviews C. Inspections and audits D. Claims administration

Correct Option: B EXPLANATION Procurement performance review is a structured review that consists of seller-prepared documentation, buyer inspection, and a quality audit of the seller's progress to deliver project scope and quality within cost and on schedule as compared to the contract. The objective is to identify performance progress or failures, noncompliance, and areas where performance is a problem. Inspections and audits are activities mainly focused on the product itself and its conformance to specification. Performance reporting is an excellent tool that provides management with information about how effectively the seller is meeting contractual objectives. This report can produce earned values, schedule and cost performance index, trend analysis, etc. The payment system is usually handled by the accounts payable system of the buyer organization and helps avoid duplicate payments, ensures invoices and payments match up, and ensures that the right amount has been invoiced for the appropriate deliverables at the right time.

Which of the following statements is NOT true about a product lifecycle? A. It lasts from conception of a new product to its withdrawal B. A product can spawn a single project in its life C. The five stages of each product lifecycle are product development, introduction, growth, maturity, and decline D. It focuses on managing properties of product from company's business point of view

Correct Option: B EXPLANATION Product Lifecycle Management (PLM) is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal. PLM integrates people, data, processes, and business systems to provide a product information backbone for companies. The five stages of each product lifecycle are product development, introduction, growth, maturity, and decline. A product can spawn or require many projects over its life. For example, in an automobile industry, a project in conception could be to analyze the market competition and customer requirements during maturity to upgrade the model.

The previous project manager managed your project without much project organization. There is a lack of management control and there are clearly no defined project deliverables. Which of the following would be the best choice for getting your project better organized? A. Develop specific work plans for each phase of the project B. Adopt a project lifecycle approach to the project C. Develop lessons learned for each phase D. Develop a description of the product of the project

Correct Option: B EXPLANATION Project Life Cycle (PLC) is the foundation of project management control. It would be the first thing set before embarking upon the actions given in the other options.

How is operational work different from project work? A. Operational work has a unique product or service as output B. Operational work is ongoing, whereas project work is a one-time endeavor C. Operational work is a one-time endeavor, whereas project work is ongoing D. There is no difference

Correct Option: B EXPLANATION Projects are created with some objectives and have a definite start and end date. They are one-time activities. An operation is ongoing work. An example of operational work is manufacturing of standard products.

An international project consists of 150 project team members around the world. Each project team will be upgrading a piece of software in different facilities. The project manager needs to address the quality of the overall delivery. Which is the most suitable quality planning tool? A. Work Breakdown Structure B. Quality Checklists C. PND D. WBS Dictionary

Correct Option: B EXPLANATION Quality Checklists are simple and effective quality management tools that the project manager can use to ensure the team completes the work with the required quality.

While performing the earned value calculations for your project, you realize that you have exhausted your project's budget, but the project work has not finished. You are directed by senior management to route the existing work as an essential change feature while discussing with the client how to claim additional funding. What should you do? A. Follow instructions B. Refuse to follow their instructions and if necessary, leave the project C. Do not do anything D. Tell the client everything truthfully and tell them to file a case against your organization

Correct Option: B EXPLANATION Refuse to follow their instructions, and if necessary, leave the project. Per PMI's ethical standards, you should be truthful with your customer in all situations.

As a project manager for the FLR project, you recently added a new member to your project team. This new team member was hired from a competitor, has offered to share confidential information about projects from the previous company. This information will obviously be of great importance to you and for your organization's future business. What should you do? A. Accept the information and agree to keep it confidential between you and the new hire B. Review the condition of employment with the new hire and advise to reconsider the offer of sharing information C. Review the information and accept only the information that may have a direct impact on the project's financial status D. Ignore the offer to share and move forward with the project

Correct Option: B EXPLANATION Review the condition of employment with the new hire and advise to reconsider the offer. Options b and c are quite close to be the correct answer, but option b appears more relevant since it is from the organization's perspective and not just from the project's perspective.

One of your hardware vendors sends you an e-mail stating that due to severe bad weather, she will not be able to deliver the networking equipment on time. You succeed to respond to this risk by leasing the required equipment from a local company until yours arrives. Which of the following statements is TRUE? A. This is risk avoidance B. This is risk mitigation C. This is risk acceptance D This is risk exploitation

Correct Option: B EXPLANATION Risk mitigation simply means a reduction in the probability and/or impact of an adverse risk event to an acceptable threshold. Leasing the equipment reduces the consequence of the threat in this specific situation.

You decided to use a technique called rolling wave planning in your web-based insurance and tax payment application project. Which of the following may be your key reason for selecting this technique? A. To prioritize project activities B. To achieve the appropriate level of detail in each work package at the right time. C. To sequence project activities D. To estimate the duration of project activities

Correct Option: B EXPLANATION Rolling wave planning takes the progressive elaboration approach and plans current/near term work in great detail, while future work is planned in a more abstract and less detailed way.

A project is ahead of schedule when: A. CPI > 1 B. SPI > 1 C. CPI and SPI > 1 D. SPI less than 1

Correct Option: B EXPLANATION SPI = EV / PV. If the EV is greater than PV, then SPI > 1, which means the project is ahead of schedule.

You are responsible for a project with high risks particularly during the early phases. Your sponsor has asked for performance reports on a monthly basis. At the end of the first month, you report a CPI greater than 1 and also the SPI greater than 1. What would this mean? A. The project is behind schedule and over budget B. The project is ahead of schedule and under budget C. The project is ahead of schedule but over budget D. The project is behind schedule but under budget

Correct Option: B EXPLANATION SPI greater than 1 indicates the project is ahead of schedule, while a value less than 1 indicates the project is behind schedule. CPI value greater than 1 indicates project is under budget, while a value less than 1 indicates the project is over budget.

As a project manager of a project, you have just completed Schedule network diagram. Which of the following schedule management activities have you completed? A. Estimate Activity Resources B. Sequence Activities C. Estimate Activity Durations D. Develop Schedule

Correct Option: B EXPLANATION Schedule network diagram is an output of Sequence Activities.

You are managing an accounting project when a new CFO is hired at your company. He will be affected by all of the accounting projects in your company. What's the BEST thing for you to do? A. Show him the Project Charter so that he knows that you are in charge of the project B. Work with him to understand the current requirements and determine if he has new ones to add to the project C. Keep working on the project and get his feedback when he can review the finished product D. Add him to the communications plan

Correct Option: B EXPLANATION Since the CFO is affected by your project, that means he's a stakeholder. The best thing you can do in this situation is get the new stakeholder's opinion incorporated into current and future projects.

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: A. Explain your company policy and politely refuse to accept any gifts B. Discuss this situation with your Project Sponsor or legal department C. Accept the gift and keep it confidential so that there is no loss of face for your organization D. Take a break from project work to go on a small vacation during the New Year

Correct Option: B EXPLANATION Since the company policy forbids the Project Manager from accepting any gifts, the Project Manager should consult the Project Sponsor and legal department.

You are working at a customer location in a foreign country where it is customary to exchange gifts during their New Year celebrations. Your company forbids you from accepting any form of gifts from your customer, but you have a strong feeling that if you refuse to accept and reciprocate the gesture, it can severely affect your relationship with the customer. In this case, it is BEST to: A. Politely refuse to accept any gifts explaining your company policy B. Discuss this situation with your project sponsor or legal department C. Accept the gift and keep it confidential so that there is no loss of face for your organization D. Take a break from the project work to go on a small vacation during local New Year time

Correct Option: B EXPLANATION Since the company policy forbids the project manager from accepting any form of gifts, he should consult his project sponsor and legal department.

You are managing a project, Your customer, Henry, comes to you and says that he has run out of money and cannot afford to pay for the project. What would you do in this case? A. Remove some resources so that the project gets delayed and the customer gets more time to pay B. Enter administrative closure C. Ask management for guidance D. Stop all work immediately

Correct Option: B EXPLANATION Since the customer has specifically clarified that he has run out of money, you should first enter into administrative closure. Remember, PMI® expects certified Project Managers to follow the right process always, even in cases when the customer has run out of money.

You created a change control board (CCB) for your project since there is no centralized one in your organization. You also want to follow a robust integrated change control process in your project. Which of the following is not a primary goal for performing the integrated change control process? A.Prevent unnecessary changes in your project B. Deny changes whenever possible C. Evaluate the possible impacts of changes in our project D. Manage changes as they occur

Correct Option: B EXPLANATION Some changes in the project are inevitable. A project manager should make sure that the change requests are evaluated and presented to the CCB for review. The project manager should not have the attitude to deny changes whenever possible. The focus of the Project manager should be to prevent unnecessary changes, evaluate the impacts, and manage changes as necessary.

You are a project manager with a financial firm that has multinational dealings. You feel the financial meltdown in one of the client countries could affect your project adversely, so you want to hedge your risks. Although, the probability of occurrence of the event is low, you are advised to play it safe. In terms of risk attitude, your organization could BEST be described as: A. Risk Seeker B. Risk Averse C. Risk Neutral D. Risk Mitigator

Correct Option: B EXPLANATION Someone who does not want to take risk is called risk averse and the project manager seems to be part of such an organization. Option (c) risk neutral describes a person or an organization which is indifferent to the risk. Option (a) risk seeker suggests an aptitude to take risks with an opportunity for higher returns. Option (d) risk mitigation is a risk response strategy and is an invalid choice. These behaviors are best described by the utility function U(x), where x represents the value that might be received in money or goods.

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: A. Risk Seeker B. Risk Averse C. Risk Neutral D. Risk Mitigator

Correct Option: B EXPLANATION 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.

A project manager is in the Acquire project team process and is trying to secure the best possible resources to build a project team for carrying out the project activities efficiently. What will be the output of this process? A. Resource management plan B. Project staff assignments C. Team performance assessments D. Change requests

Correct Option: B EXPLANATION Staff assignments will define how the resources obtained will be assigned.

You are overseeing the implementation of a new computer structure at the local hospital. You are currently identifying all the internal and external stakeholders who have an interest in your project and can positively or negatively impact your project. While identifying the stakeholders, you realize that stakeholder identification is A. The responsibility of the project sponsor B. To be carried out throughout the project life cycle C. To be completed in the initial stage of the project life cycle D. To be focused only on stakeholders who will contribute positively to your project

Correct Option: B EXPLANATION Stakeholder identification will continue throughout the project life cycle. As the project proceeds through each phase, additional stakeholders may be involved while others will be released. Stakeholder identification is conducted primarily by the project management team, but some stakeholders may be identified in the project charter. Stakeholders may include people and organizations that may be affected either negatively or positively by the project outcome.

Which of the following is NOT true about a project life cycle? A. Cost and staffing levels are low at the start, but they peak as the work is carried out, and they drop rapidly as the project draws to a close B. Stakeholder influences are stronger toward the end of the project C. Risk and Uncertainty are greatest at the start of the project D. Cost of changes increases as the project approaches completion

Correct Option: B EXPLANATION Stakeholder influences are the stronger at the beginning of the project.

Which of the following is TRUE about stakeholders? A. Only the stakeholders who can positively impact the project should be listed in the stakeholder register. B. Stakeholder identification is a continuous and sometimes strenuous process C. Change requests from the stakeholders with the most influence should be given the highest priority D. Stakeholders should be given extras in order to meet and exceed expectations

Correct Option: B EXPLANATION Stakeholders are identified throughout the life of the project. While attempts are made to identify all stakeholders early in the effort, realistically stakeholders will be identified throughout the entire lifecycle.

While supervising a construction project, a project manager notices that for a construction process, standard deviation (SD) associated with the product variation is 0.7 inches and SD associated with measurement variation is 0.5 inches. What is the total standard deviation here? A. 1.2 B. 0.86 C. 0.49 D. 0.25

Correct Option: B EXPLANATION Standard deviation (SD)=-0/6 Variance=(00/6)*2. We can see that variance is the square of standard deviation, so if we take the square root of variance, we will also get the standard deviation. We also know that total SD cannot be calculated by adding up the SD of two processes. We need to add the variances and then take the square root of the sum to get the SD. In this case, the SD for product variation is 0.7 inches and the SD for measurement variation is 0.5 inches. 0.7*0.7=0.49 and 0.5*0.5=0.25. So, total SD is the square root of (0.49 + 0.25) =0.86.

You are a Project Manager explaining the correct application of standards and regulations to your team. Which of the following statements is true regarding standards and regulations? A. Standards are mandatory while regulations are not mandatory B. Standards are not mandatory, but regulations are mandatory C. Standards often begin as guidelines that are not mandatory. With later widespread adoption, they can become de facto regulations D. Standards and regulations are part of Enterprise environmental factors that the project management team need to plan for the project

Correct Option: B EXPLANATION Standards are not mandatory

You have been sending project status reports to your customer every Monday morning. The project status report is an example of: A. Informal Verbal Communication B. Formal Written Communication C. Informal written Communication D. Formal Verbal Communication

Correct Option: B EXPLANATION Status reports are shared with various stakeholders. Status reports are ideal for highlighting key project issues on a regular basis. They are an example of formal written communication. They also help in maintaining a communication record for future reference.

You discover that one of your team members is telling people that he is PMP certified. You thought he had not taken the test yet. What should you do? A. Have him removed from the project B. Talk to him in person and attempt to clarify the status C. Ignore it D. Tell other team members that he is not being honest about this

Correct Option: B EXPLANATION Talk to him in person and attempt to clarify the status. Option A should not be considered unless being a PMP certified professional is a prerequisite for the project. Ignoring the misrepresentation by your team member (option C) will be unethical. Telling other team members (option D) will negatively influence his image and will not resolve the issue.

A cost reimbursable contract has an estimated cost of $15,000. If the seller beats the cost, the saving will be shared as follows:75% to the buyer and 25% to the seller. If the actual costs come in at $12,000, what is the final price? A. 12500 B. 12750 C. 12250 D. 12000

Correct Option: B EXPLANATION Target price = $15,000, Actual cost = $12,000, and Sharing ratio = 75/25. Actual cost to buyer = $12000 + ($15,0000-$12,000)*25% = $12,750.

According to the diagram, what is the earliest date Task H can start? simTest A. 11 B. 12 C. 20 D. 25

Correct Option: B EXPLANATION Task H has 2 predecessors, namely Task G and Task X. Task G (EF) - 11; Task X (EF) - 12. Task H will take the larger of the 2 predecessors, hence Task H (ES) - 12.

A contract is an entire formal agreement between two parties and it is the principle endeavor of procurement management. Which of the following is NOT true about contracts? A. Contracts are legally binding and backed by the court system in most countries B. A contract cannot be terminated at any time by the buyer for a cause or convenience C. A contract should help reduce project risks D. A contract is legally binding unless it is in violation of applicable law

Correct Option: B EXPLANATION Termination for convenience is a contract clause that permits the buyer to terminate a contract at any time for a cause or convenience. Usually, there will be specific conditions associated with the execution of this clause.

During negotiations, the seller tells you that he wants to work with you, but if he does not have a signed contract by the next day, he will not be able to obtain the equipment needed to meet your due date. In view of this, which of the following should you issue? A. Contract B. Letter of Intent C. Change Order D. Agenda

Correct Option: B EXPLANATION The "letter of intent" is an expression of intention and can be used to start the work.

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? A. Enhancement of professional skills by learning project management and technical skills B. Contribution to project management knowledge base by virtue of vast personal experience C. Capturing professional stint in autobiography purely as a retrospection exercise D. Informing others about project management principles and helping the profession grow

Correct Option: B EXPLANATION The Project Manager is adding his lessons learned and best practices to the project management knowledge base.

A project manager in an MNC corporation is in the process of collecting, organizing, and disseminating information on how project resources are being used to complete project objectives. In addition, he is collecting information on cost, schedule, and level of quality. He is also going through the influence of risks on project objectives. Which process is the project manager in? A. Direct and Manage Project Work B. Manage Communications C. Earned Value Technique D. Monitor and Control Project work

Correct Option: B EXPLANATION The Project Manager is in the process of monitor communications as a part of communication management. It is the process of collecting and distributing performance information including status reports, progress measurements, and forecasts. For more information on the process, refer to Monitor Communications, page 388, PMBOK® Guide Sixth Edition.

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? A. Use colocation to help team bond better which in turn would maximize productivity B. Create Work Breakdown Structure (WBS) C. Develop Responsibility Assignment Matrix to describe roles and responsibilities of every team member D. Conduct knowledge sessions where each member appraise the team about his culture

Correct Option: B EXPLANATION 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.

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? A. Project Statement of Work B. Project Charter C. Project Management Plan D. Organizational Process Assets

Correct Option: B EXPLANATION 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.

Which of the following statements is true? A. Cost and staffing levels are high at the start B. The ability to influence the final characteristics of the product without impacting the cost is highest at the start C. Uncertainty is the least at the start of the project D. Stakeholder influences increase over the life of the project

Correct Option: B EXPLANATION 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.

One of your project managers, Mary, reports that her project has hit a roadblock. You are surprised since just the previous week, on reviewing the project, everything seemed to be on track. She explains that a team member has identified a problem that was never envisioned in the risk identification process. Based on the analysis, the impact would be on the cost to rectify the issue. What would be the best course of action? A. Add this risk with its impact and probability to the Risk register B. Use the Management reserve to correct the issue C. Use the Contingency reserve to correct the issue D. Schedule a meeting with stakeholders and explain the problem

Correct Option: B EXPLANATION The best course of immediate action on identifying a risk is to add it to the risk register along with its probability and impact. That is applicable for risks and not issues. In this case, the risk has already occurred. It is no longer a risk; its a reality, an issue. While scheduling a meeting is an option, its not the best choice. Being a project manager, you are empowered and calling up meetings every time you run into issues would not be looked upon favorably. The correct answer is using the management reserve which is meant for unknown risks. Contingency reserves are meant to be used for known risks.

You are a project manager for a project. While reviewing the cost estimates for the project, you notice that one of the cost estimates for an element in the WBS is 20% higher than the previous project for a very similar work. What should you do next? A. Accept the estimate B. Ask the person responsible about the difference C. Ignore it D. Reduce the estimate

Correct Option: B EXPLANATION The best option is to ask the person responsible about the difference and create the most accurate estimate that is practical.

Your company policy allows you to gift customers within certain limit. By mistake, you have given a gift to the customer's representative that is beyond the limit mentioned in your company policy. What should you do? A. Forget it and don't tell anyone. B. Contact your company's senior management and ask for assistance. C. Ask your customer to return the gift. D. Ask your customer to give you a gift which has the same cost.

Correct Option: B EXPLANATION The best option is to contact your company's senior management and ask for assistance.

You have recently joined a new construction company, and you find out your employer is violating the construction permit issued by the local city government. What should you do? A. Inform the city authority of the violation B. Talk to your employer to find out if they are aware they are breaking the law C. Complain to the legal department of the company D. Do nothing as you are new in the organization

Correct Option: B EXPLANATION The best option is to first talk to your employer to discuss your findings and know their perspective. It would also help you verify your observation.

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? A. Inform the city authority of the violation B. Talk to your employer to find out if they are aware that they are breaking the law C. Complain to the legal department of the company D. Do nothing as you are new to the organization

Correct Option: B EXPLANATION The best option is to first talk to your employer to discuss your findings and know their perspective. It would also help you verify your observation.

Your organization wants to build a new web-based HR management system. You are the Project Manager from the IT team, and the HR manager of the organization is expected to assign two of his team members to work on this project as functional experts. However, the HR manager assigns team members who do not have a good reputation for being knowledgeable. As a Project Manager, what should you do? A. Meet the HR manager's boss and explain your concerns to him/her B. Schedule a meeting with the HR manager and ask why he assigned those members to this project and share your concern regarding their competence C. Escalate the issue to the IT head D. Try to find out who the good HR team members are and request them to be a part of your project

Correct Option: B EXPLANATION The best way to deal with this is to first meet the concerned person and convey your viewpoint. Only if there is no satisfactory action should you look at escalating the matter.

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? A. Compromising B. Collaborating C. Forcing D. Smoothing

Correct Option: B EXPLANATION 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.

You are in charge of a software project, and you are almost 40% complete. The project stakeholders want a performance report till date. You had planned to use Earned Value Management methodology. You come up with the following numbers: EV = 300 AC = 100 PV = 150 BAC = 600 ETC 300. You and your team are very confident of continuing at the same rate as till now. The project has not faced any major issues and you and your team's confidence level is high that the project would complete without any hiccups. Based on this information, what would be the EAC for the project? A. 400 B. 200 C. 400 D. 106

Correct Option: B EXPLANATION The correct answer is B. The question states that issues or lack of them experienced in the project are expected to continue. So here, the past performance is expected to continue. So, the formula: EAC = BAC / CPI. CPI = EV / AC = 300 / 100 = 3 EAC = 600 / 3 = 200.

Out of the following, who is not a QUALITY guru, i.e., one who has stated a theory on quality? A. Joseph M. Juran B. Merby U. Crosmy C. Edwards Deming D. Kaoru Ishikawa

Correct Option: B EXPLANATION The correct name is Merby U. Crosmy.

The cost baseline is displayed as an S-curve because of the way project spending occurs. This S-curve indicates that: A. The bulk of the project cost is spent during the initiating and the closing phases B. The cost starts off low, accelerates throughout the later phases of the project, and gradually slows down during the closing C. The project cost is directly proportional to the size of the project D. Projects run in a cycle

Correct Option: B EXPLANATION The cost baseline is a time-phased budget used to monitor, measure, and control cost performance during the project. It is developed by summarizing costs over time and is usually displayed in the form of an S-curve. This suggests that the cost starts off low, accelerates throughout the later phases of the project, and gradually slows down during the closing.

Which of the following statements is INCORRECT about the critical path method? A. It helps a project manager determine where it is best to focus his project management efforts B. It considers resource limitations to derive a more realistic schedule C. It helps to determine which activities have float and can be delayed without delaying the project D. It calculates and determines the shortest time to complete the project

Correct Option: B EXPLANATION The critical path method calculates theoretical early start and finish dates along with late start and finish dates for all activities without regard to any resource limitations. In fact, the critical path method is a schedule network analysis technique which modifies the project schedule to account for limited resources.

Which of the following is NOT an appropriate reason to provide additional training to the members of your project team? A. The team's overtime is beyond acceptable limits B. The feedback about your team members from other Project Managers C. The inclusion of a new technology in the project D. Project deliverables not meeting the performance standards

Correct Option: B EXPLANATION The feedback provided to you by other project managers about your team members will not give you the information about the gaps in the team's skillsets and the work allocated to them. Hence, it is not an appropriate reason to provide team members with additional training based on feedback from other Project Managers.

You are a project manager working in a weak matrix organization. Your project is in the execution stage when the functional manager informs you that he will be pulling out a few critical resources. How should you respond to this situation? A. Inform the senior management, bringing out the detrimental effects on the project in a matrix environment B. Refer to the resource histogram of the project to evaluate the impact on the project C. Renegotiate the terms and conditions with functional manager to allocate the new resources D. Create options and work around by reassigning the work packages to the remaining team

Correct Option: B EXPLANATION The first step for any project manager in the event of change is to assess the impact of the change. The resource histogram is used to show the usage of resources individually or by groups over time to analyze the impact of change on a project, especially the triple constraints. Option (a) is a reactive approach and would do nothing to solve the problem. Option(c) should come much later after exploring all the alternatives. Option(d) is not recommended as a good project manager is expected to use resource leveling during project planning for the optimal use of resources. Any arbitrary reassignment would overload the existing team members resulting in poor quality and a further delay in the schedule.

An activity has an Early Start (ES) on day 5 and Late Start (LS) on day 10, an Early Finish (EF) on day 20 and Late Finish (LF) on day 25. What can be said about this activity? A. The activity is not progressing at all B. The activity is not on a critical path C. Not enough information to tell anything about the activity D. The activity is on critical path

Correct Option: B EXPLANATION The formula to calculate float is LS-ES or LF-EF. This activity has a float of 5 days. Generally, if an activity has float, it is not on the critical path. Since there is no other information provided, Option B is the best answer. There is absolutely no information about the activity progress, so nothing can be said about Option D.

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? A. The company should get an FDA approval before producing or selling the medicine B. The key person responsible for communicating the information on the project may not be available through the entire project C. The milestone meeting should be attended by all the major key stakeholders D. The project has teams working in different geographical locations and time shifts

Correct Option: B EXPLANATION 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.

One of the high-performing team members from a support group wants to move on to the technical team as she finds that work more challenging. As a Project Manager, you know that she is a valuable resource and moving her out of the support group can affect group performance. You decide to give her a hike in salary. However, the employee is still unhappy and dissatisfied. This is an example of _______ theory A. Maslow's B. Herzberg's C. McGregor's D. Expectancy

Correct Option: B EXPLANATION The motivation-hygiene theory was developed by Frederick Herzberg, a psychologist who found that job satisfaction and job dissatisfaction acted independently of each other. This two-factor theory states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. The two-factor theory distinguishes between Motivators (e.g., challenging work, recognition, responsibility) that give positive satisfaction and arise from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth, and Hygiene factors (e.g. status, job security, salary, and fringe benefits) that do not give positive satisfaction, although dissatisfaction results from their absence. These are extrinsic to the work itself and include aspects such as company policies, supervisory practices, or wages/salary. Essentially, hygiene factors are needed to ensure that an employee is satisfied. Motivation factors are needed to motivate an employee to higher performance. In this question, the Project Manager has only changed the hygiene factors without any change in the motivation factors. Thus, the employee remains unhappy and dissatisfied.

You are a project manager for a major systems integration project. The quality department personnel discusses with you about conducting a quality audit of your project. The team, already under pressure to complete the project within demanding deadlines, objects to the audit. You explain to the team that the purpose of a quality audit is: A. Part of an ISO 9000 investigation B. To identify lessons learned that can improve performance on project C. To check if customer is following quality process D. To check accuracy of costs submitted by the team

Correct Option: B EXPLANATION The objective of quality audit is to identify inefficient, ineffective policies and procedures used in the project. An audit can identify the lessons learned and thereby improve the performance of the project. Option A states the organizational quality policy that may not necessarily hold true for the project. Option C is incorrect since a quality audit is not conducted for the customer's organization's processes. Correctness of the cost estimations, as stated in Option D can be ascertained in the Control Quality process.

Your organization has enough resources only to work on one of two potential projects and decides to use the net present value (NPV) to assess and select the best project for the organization. Project Alpha has an NPV of $45,000 and Project Beta has an NPV of $60,000. Project Alpha will take 3 years to complete and Project Beta will take 4 years. What will be the opportunity cost of the project chosen? A. $60,000 B. $45,000 C. $25,000 D. $1,05,000

Correct Option: B EXPLANATION The opportunity cost reflects the cost of the foregone solution. By selecting Project Beta, which has a higher NPV, you are foregoing the opportunity to complete Project Alpha of $45,000.

Which of the following project management tools is best suited to calculate the maximum time that a project will take to be completed? A. Flowchart B. Network Diagram C. Earned Value Technique D. WBS

Correct Option: B EXPLANATION The other 3 options will not give information about the critical path, and without critical path information we will not be able to calculate the longest time period for a project.

Which of the following is a disadvantage of a projectized organization? A. Efficient Project Organization B. No home after project completion C. Loyalty to the Project D. Better Communication

Correct Option: B EXPLANATION The other three options are advantages of a projectized organization. Since projectized organizations are organized by project, they are efficient in terms of project organization. Also, there is loyalty to the project, and communication during project is good. In a functional organization, team members work on projects in addition to their regular functional work, and they get confused about priorities.

As a buyer, the best possible outcome of a negotiation process is: A. For the buyer to get the best possible price B. For both parties to get the best possible deal C. To get a watertight guarantee on timely delivery D. To get a guarantee for best quality

Correct Option: B EXPLANATION The outcome of negotiations is to work out a fair deal.

The payback period needs to be calculated for your project that will be completed in 3 years. The internal rate of return (IRR) is 7% and the annual savings expected are $500K per year. The total cost of the project is $3,000K. What is the payback period? A. 3 years B. 6 years C. 7.5 years D. 12 years

Correct Option: B EXPLANATION The payback period states how soon the project can recover its investment. In this project, $3000/$500=6 years, which is the period for the project to recover its cost.

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? A. Initiation B. Planning C. Execution D. Monitor and Control

Correct Option: B EXPLANATION 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.

The Project Manager could not get an approval for his project's charter. His boss has instructed that the project begin immediately or the project deadlines will not be achieved. Which of the following should the Project Manager do? A. Set up an integrated change control process B. Push to get the charter signed C. Perform an impact analysis D. Start work on only the critical path tasks

Correct Option: B EXPLANATION The project charter should be approved as it involves approval for finances, resources, and timelines which should be available to the Project Manager to avoid any discrepancies in the project deliverables

You have been assigned as a project manager for a project expected to last five months. The project has a budget of $450,000 and should be implemented in three different departments in your organization. While reviewing the status of the project after two months, you find that the project is 35 percent complete. Which of the following statements is TRUE about your project? A. Your project is on schedule B. Your project is behind schedule C. Your project is ahead of schedule D. You cannot determine if your project is behind or ahead of schedule from the information given.

Correct Option: B EXPLANATION The project is 5 months long, so you are scheduled to complete 20 percent of the work every month. We know PV=BAC*planned % complete After two months, the planned value (PV) should be $450,000*40% = $180,000 We know EV=BAC*actual % complete After two months, you completed 35% of the work, so the earned value (EV) is $450,000*35%=$157,500 We know SPI=EV/AC=157,000/180,000=.875

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

Correct Option: B EXPLANATION The project manager is participating in the development of project charter using the statement of work to understand the product requirements and descriptions. The output of this process is a project charter. Once approved, it formally initiates the project. A project charter documents the high-level project description and business needs of the project, along with the current understanding of the customer's needs, risks, and the name of the sponsor.

After working as a project manager for more than 25 years, you want to share your learning and best practices to your industry. You do this by writing articles in international journals and giving interviews to share your experience. This act can be BEST described as: A. Enhancement of professional skills by learning project management and technical skills B. Contribution to the project management knowledge base by virtue of vast personal experience C. Capturing professional stint in autobiography purely from retrospection exercise D. Informing others about project management principles and helping profession grow

Correct Option: B EXPLANATION The project manager is sharing his lessons learned and best practices along with contributing to the project management knowledge base.

You are in the final stages of negotiation with a seller to provide a medical device for your research lab. When the pricing is almost finalized, you mention that it is mandatory that the device carry an approval from the FDA USA (Food and Drug Administration). Which technique in negotiation are you using? A. Fair and reasonable B. Fait accompli C. Lying D. Extreme demand

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

The performing organization has an air travel policy that specifies a particular airline be used for certain destinations. However, the project manager has a frequent flier program with another airline which also flies to the particular destination that he is required to travel to. What should the Project Manager do? A. Make his own travel arrangements B. Travel by the company approved airline Secure an approval for travel by his preferred airline Get the organization to make an arrangement with the airline of his choice

Correct Option: B EXPLANATION The project manager must travel by the company approved airline. One should adhere to the policies of the organization. Making policy changes is the prerogative of the organization. While the project manager can provide inputs on constraints or available alternatives, the decisions made by the organization would be binding to all who are a part of the organization.

During an emergency project review meeting, the project manager learns about the current funding problems from the sponsor of the project. Which of the following would be the best recourse for the project manager under these circumstances? A. Inform the senior management of the impending risks B. Submit a change request to reduce the scope of work and initiate closure C. Submit change request to extend the schedule and to allow for improvement in funds' situation of the sponsor D. Continue with work, as planned

Correct Option: B EXPLANATION The project manager needs to submit change request to reduce the scope of work and initiate closure. Business ethics dictate that deliverables that are closer to the milestone payments should be completed and should enter closure to protect the interests of both the sponsor and the performing organization.

During the executing stage of a project to develop a cashiering application for a retail customer, a senior stakeholder requested that you slightly modify the project scope to incorporate an additional feature. What will be your first course of action? A. Submit the change request to the change control board for its approval or rejection B. Document the change request as per the project scope management plan C. Perform an impact analysis on all project objectives such as scope, time, cost, quality, risk, and others D. Deny the request since it is too late in the project life cycle to incorporate any new change

Correct Option: B EXPLANATION The project manager should document the change request as per the project scope management plan and then submit the change request to the change control board once the impact analysis is completed. The change control board will either approve or deny the request.

Workarounds, or unplanned responses to emerging risks that were previously unidentified or accepted, are determined during _______. A. Plan Risk Management process B. Monitor Risks process C. Plan Risk Responses process D. Perform Quantitative Risk Analysis process

Correct Option: B EXPLANATION The project must be in the Monitor Risks process if risks have occurred. Workarounds are unplanned responses developed to deal with the occurrence of unanticipated risk events that were not included in the risk register.

You are managing a project that has one year duration. During the middle of the project, it is found that the quality of the project is not as planned or expected. Who is responsible for this situation? A. Project champion B. Project team C. Stakeholders D. Customers

Correct Option: B EXPLANATION The project team (the individuals completing the project work) is responsible for the quality of the project deliverables. Option A is incorrect; the project champion may review the work, but the responsibility to meet the quality does not lie with him/her.

You are in a very happy state today as you have completed all the deliverables. This was a complex project involving a lot of challenges, but with good management and a motivated team, things have been completed successfully. What should you do next as a project manager? A. Perform Quality Control B. Update lessons learned C. Verify scope D. Disband the team

Correct Option: B EXPLANATION The question is looking for details related to the closing process group. Scope verification is performed during the monitoring and controlling process group. So is the case with Perform Quality Control. One of the most important things to do during project closure is to create the lessons learned prior to disbanding the team.

Rather than using Triangular Distribution while doing Three Point Estimation, you choose to use Beta Distribution. Based on your analysis and understanding, you are confident that the project would be completed with a total cost of $108,000. You also estimate that a best case would be $90000, while a worst-case scenario would result in the costs incurred to shoot up to $138000. What would the Three Point Cost estimate be when using Beta Distribution? A. $1,12,000 B. $1,10,000 C. $1,01,000 D. None of the above

Correct Option: B EXPLANATION The question states that you should do Three Point Estimation using Beta Distribution. The formula for this estimation technique is 4a + b + c / 6, where a = Most Likely Estimate, b = Estimate based on Best-case scenario, and c = Estimate based on Worst-case scenario. So, the Three Point Estimate using Beta distribution is (4 *108000) + 90000 + 138000 / 6 = 660000/6 = $ 110000.

You are executing a project for an overseas customer. There are multiple stakeholders at the customer's end; however, your point of contact has not introduced you to the manager who is supposed to run an event at the customer's end and may have some requirements for your project. If you do address his requirement, he might ask for a change in the project. There is also a possibility that the change control board will approve the change. What should you do? A. Nothing, as your customer contact point has not formally introduced you to this stakeholder B. Schedule a meeting with this stakeholder to understand his requirements C. Add this issue as a potential project risk and address it at the appropriate time D. Call your boss for guidance on this matter

Correct Option: B EXPLANATION The questions says that there is a stakeholder who has a requirement for your project, and it's most likely going to be approved by the change control board. As a proactive Project Manager, you should take the initiative to meet the customer and understand his requirement. If you do not meet the customer, you will not be proactively addressing the potential issues.

The project scope baseline consists of: A. The scope management plan, the scope statement, and the WBS dictionary B. The scope statement, the WBS, and the WBS dictionary C. The scope management plan, the WBS, and the WBS dictionary D. The scope management plan, the scope statement, and the WBS

Correct Option: B EXPLANATION The scope baseline is the approved version of the scope statement, WBS, and its associated WBS dictionary.

James is the operations manager and has contracted an outside firm to develop a new billing system for his project. Overall, he is satisfied with their performance, but in some meetings, he feels they are going beyond the scope of the project as originally defined. It's a time and materials contract that is signed with this outside firm. James wants to be sure that only the work that is defined in the project scope is what gets done. Which project documentation should he ask the Project Manager for? A. Minutes of the kickoff meeting where the project scope was discussed B. The scope statement, work breakdown structure (WBS) C. Project charter D. Organizational process assets

Correct Option: B EXPLANATION The scope statement, work breakdown structure (WBS), WBS dictionary, and any approved changes should be asked for. Scope baseline (project scope statement, WBS, WBS dictionary) is primarily going to state the agreed upon project scope. Any approved changes during the project lifecycle may add to the baseline scope.

A popular Japanese technique which advocates continuous small improvements involving everyone from top management to the lowest level in the organization is called _____. A. Ishikawa B. Kaizen C. Deming cycle D. Total Quality Management

Correct Option: B EXPLANATION The term (which stands for improvement" in Japanese) refers to a philosophy or practice focusing on continuous improvement in manufacturing activities and business activities in general. When used in the business sense and applied to the workplace

An organization aims to increase performance by aligning goals and subordinate objectives on all the projects running throughout the organization. For this purpose, the project manager gets strong inputs to identify their project objectives, time lines for completion, and so on. The organization then periodically evaluates the project with respect to these objectives and takes corrective actions when necessary. What is this management philosophy called? A. Total Quality Management B. Management by Objective C. OPM3 D. Capability maturity Model

Correct Option: B EXPLANATION The term Management by Objective was made popular by Peter Drucker in his 1954 book The Practice of Management." Management by Objective is a systematic and organized approach that allows the management to focus on achievable goals and to attain the best possible results from available resources. The principle behind Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding of the aims

Which of the following are the MOST important to derive the total funding requirements and periodic funding requirements of the project? A. Management Reserve and Contingency Reserve B. Cost Baseline and Management Reserve C. Funding Limit Reconciliation D. Project Budget and Contingency Reserve

Correct Option: B EXPLANATION 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 - Sixth Edition Project Cost Management page 254 for more details.

What are the two closing procedures in a project lifecycle known as? A. Contract close out and verify Scope B. Contract closeout and administrative closure C. Project closure and product verification D. Project closure and lessons learned

Correct Option: B EXPLANATION 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.

After completing the schedule network analysis, you find out that your project schedule is taking too long and you also find that you cannot change your network diagram. In such cases, in order to get the project completed faster, what option do you have? A. Nothing can be done B. Crash the project C. Perform resource leveling D. Fast track the project

Correct Option: B EXPLANATION There are two ways to do schedule compression: fast tracking and crashing. As the question clearly says that the network diagram cannot change, fast tracking is not possible, and you can solve the problem only by crashing the project. Also, resource leveling is not a schedule compression technique.

You are a Project Manager who manages a large software project. It has a month-long design phase in which the team would be preparing the design documents for independent project modules. The activity review for these modules can begin 15 days after starting the design phase. The 15 days' difference between the start of the design phase and the start of the review activity shows _____ between the two activities. A. Lead B. Lag C. External dependency D. Mandatory dependency

Correct Option: B EXPLANATION There is a lag of 15 days between the activities. If the second activity starts, when the first activity is running, this situation is called Lead. After the first activity completes, if there is a delay or wait period before the second activity starts, it is called a lag.

There was a prescheduled project status review meeting and one of your team leads sent the report to you an hour before the meeting. You find many issues in the report. What would you do? A. Let him present the report and ridicule him in front of everyone to teach him a lesson B. Postpone the meeting and ask him to fix the issues C. Do nothing. Just wait and see what happens. D. Cancel the meeting and prepare the report yourself

Correct Option: B EXPLANATION There is no point in wasting everyone's time. Also, it's not a good idea to scold a team member in front of others. Remember, you need to respect everyone, including your subordinates

A project manager is visualizing, analyzing, and solving the complexity of a problem to make the decision of selecting a project. Which of the following techniques is he using? A. Interpersonal skill B. Analytical skill C. Business acumen D. Benefit realization

Correct Option: B EXPLANATION This is an analytical skill. Benefit realization is a set of processes defined to ensure project deliverables are in alignment with organizational strategies and are creating value. Business acumen is the quickness and keenness of a person to understand the business situation and make decisions accordingly. Interpersonal skill is the ability to establish and maintain relationships with other people. These techniques are newly added in the examination content outline.

A Project Manager defines a personal plan for his career and professional development every year. As a part of this plan, he goes through his project experiences and lessons learned and decides on the training needs to help him excel as a Project Manager and contribute to his organization. In this scenario, the Project Manager is: A. Contributing to the Project Management knowledge base B. Enhancing his Personal Professional Competence C. Helping his organization through his project success D. Putting the project's need before his own and making decisions in the best interest of the project

Correct Option: B EXPLANATION This is an example of a Project Manager working on enhancing his skill(s)

A project manager on an e-learning project is using free downloadable tutorials via the Internet to reach out to large audiences. What is this communication method called? A. Interactive Communication B. Pull Communication C. Push Communication D. Personal communication

Correct Option: B EXPLANATION This is an example of a pull communication method which is used for large volumes of information or for large audiences and requires recipients to access the communication content at their own discretion. To make it easier to remember, think of pull communication as the receiver pulling information at his discretion. For more information, please refer to Communication Methods, page 374, PMBOK® Guide Sixth Edition.

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: A. Interactive Communication B. Pull Communication C. Push Communication D. Personal communication

Correct Option: B EXPLANATION This is an example of a pull communication method which is used for large volumes of information or for large audiences 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 - Sixth Edition, Project Communication Management, page 374.

To facilitate, measure, and control quality, you have been asked to use the seven basic quality tools, also known as 7 QC tools. Identify them. A. Cause and effect diagrams, Flowcharts, Check sheets, Pareto diagrams, Histograms, Control Charts, Sequence Diagrams B. Cause and effect diagrams, Flowcharts, Check sheets, Pareto diagrams, Histograms, Control Charts, Scatter Diagrams C. Activity diagrams, Flowcharts, Check sheets, Pareto diagrams, Histograms, Control Charts, Sequence Diagrams D. Cause and effect diagrams, Monte Carlo analysis, Check sheets, Pareto diagrams, Histograms, Control Charts, Scatter Diagrams

Correct Option: B EXPLANATION This is the only correct answer.

As a project manager, you are worried about the continuous bad performance of one of the team members. You have spoken to him over coffee, but there seems to be no improvement. What is the MOST suitable way to communicate your dissatisfaction? A. Formal verbal B. Formal written C. Informal written D. Informal verbal

Correct Option: B EXPLANATION This is the second notice to the team member for poor performance, and it should be given in a formal written manner.

You and your team are planning out the work to be done. You break up the work into discrete work packages. To ensure that each work package has all the necessary details, you and your team decide to write down detailed information for each work package such as Statement of work, details of the work package, and who will be the responsible individual for the work package. Where would you store this information? A. Approved Project Scope Statement B. WBS Dictionary C. WBS D. Project Management Plan

Correct Option: B EXPLANATION This is where this information is stored.

You are in charge of managing a software development project which is related to simulations for driving racing cars. In one of your team meetings, it has been revealed that a lot of issues have been reported in the air tunnel modelling module. On deeper analysis, it is found that many of the issues could have been prevented had a simple code review checklist been used. You decide to mandate usage of the code review checklist for all subsequent deliveries to ensure other deliveries are less issue prone. This is a good example of : A. Corrective Action B. Preventive Action C. Defect Repair D. Quality Control

Correct Option: B EXPLANATION This question is meant to test your understanding of the difference between corrective action and preventive action. Defect repair might sound tempting, but it is only applicable for the issues found for the current delivery. Here, the question also states some additional steps being mandated (code review for all subsequent deliveries). This is also not about Quality Control, so that leaves us with only two options - Corrective or Preventive actions. Corrective actions are always preceded by nonconformity, while preventive action is never preceded by nonconformity. In this case, nonconformity in the form of a lot of issues during Quality Assurance was reported. The root cause was identified to be the need of a standard checklist which was then used. This would have been a case of Corrective action had no other actions been taken other than usage of the code review checklist for the current delivery. In addition, a decision was taken to use the checklist for all subsequent deliveries to ensure the same issues did not occur. Preventive action is always taken proactively. Here, mandating usage of code review checklist for other deliveries is a demonstration of proactive steps taken. Hence, this is an example of Preventive action.

Which of the following is NOT TRUE for stakeholders? A. Stakeholders can be customers, sponsors, and the performing organization B. Stakeholders cannot exert influence over the project, its deliverables, or team members C. Stakeholder identification is a continuous process D. A project can be perceived as having both positive and negative results by the stakeholders

Correct Option: B EXPLANATION This statement is wrong as stakeholders can exert influence over the project, its deliverables, and team members.

Which of the following subsidiary plans manages the flow of information to keep stakeholders engaged and informed? A. Stakeholder management plan B. Communications management plan C. Human resource management plan D. Project management plan

Correct Option: B EXPLANATION This task has been added in the latest examination content outline. Manage the flow of information by following the communications plan to keep stakeholders engaged and informed.

A Project Manager is encountering too many problems on his project. He wants to identify the root cause of the problems so that he can focus his attention on those causes. Which of the following tools should he use? A. Histogram B. Fishbone Diagram C. Control Chart D. Pareto Chart

Correct Option: B EXPLANATION This will help him understand the root cause of the defect by plotting all of the possible reasons for the defect. The fishbone diagram is also called an Ishikawa diagram. This is one of the quality control tools.

The primary communication skill the Project Manager will use when working with the functional manager is: A. Problem Solving B. Negotiation C. Team Building D. Public Relations

Correct Option: B EXPLANATION To work with the functional manager, the best communication skill that the Project Manager should exercise is negotiation. The Project Manager may have to negotiate with the functional manager for human resources, schedules, and deadlines.

An organization has recently started outsourcing work to a low-cost, high-value engineering center located in a different country. According to you, which is the BIGGEST value addition a Project Manager can provide to the team? A. An introduction to the applicable laws in the country B. An exposure to cultural differences C. Communication management Plan D. Competency in speaking foreign language

Correct Option: B EXPLANATION Today's project team operates in a global environment characterized by cultural diversity. Only those Project Managers who realize that cultural differences are a resource to be fully utilized can survive in the international project business. Although other options are beneficial, exposure to cultural differences is critical and the biggest value addition to a project's success.

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: A. Specification limits B. Control limits C. Pareto charts D. Tolerances

Correct Option: B EXPLANATION Tolerances or specification limits are customer-specified limitations. These limits are meant for the purpose of controlling the process. Hence, they are control limits.

Which of the following is NOT a technique of managing the project team? A. Observation and conversation B. Training C. Conflict Management D. Project Performance Appraisals

Correct Option: B EXPLANATION Training is a technique to develop the project team. You are expected to know the inputs, outputs, and tools and techniques of each of the 49 project management processes.

Joshua is the Project Manager of a new telecom project. Soon after the project started, he realized that his team has not estimated enough for R&D on the project. Joshua prepared a change request to add the extra work in the project scope statement and updated the project schedule to reflect the change. The change request was approved by the change control board. What should be his next step? A. Start the work as it's approved by the Change Control Board B. Update the Scope and Schedule baselines to reflect the approved changes C. Perform Scope Verification again D. Perform Risk Identification to identify any Risk in the newly added work

Correct Option: B EXPLANATION Update the Scope and Schedule baselines to reflect the approved changes. Although the plan has been approved by the change control board, the first thing you should do is update the scope and schedule baseline

George is a project manager and has to hire many new team members for a new project. He creates an RFP and requests HR staffing companies to respond to it, so that he can select the right HR partner for his project. His wife also runs an HR staffing organization and wants to respond to this RFP. What should George do? A. Leave his position as a project manager B. Update his selection board about his wife also being one of the bidders and request them to treat her proposal objectively like any other proposal C. Suggest the rate that his wife can put in the proposal, so that she wins the contract D. Ask his wife not to respond to this RFP as it may create a possible conflict of interest

Correct Option: B EXPLANATION Update the selection board about his wife being one of the bidders and request them to treat her proposal objectively like any other proposal. This is a common occurrence in real life. In such cases, the best option is to let the selection committee know that his wife is also a bidder. If the selection committee has any objections, they can reject the bid, but if she runs a reputed staffing company, why not let her submit her bid?

As a project manager, you and your team are mainly focused on finding a less costly way to do the same work and on achieving more out of the project in every possible way to increase the bottom line, decrease costs, improve quality, and optimize the schedule without reducing or impacting the scope. Which of the following techniques are you most likely using? A. Benchmarking B. Value analysis C. Life cycle costing D. Reserve analysis

Correct Option: B EXPLANATION Value analysis is also referred to as 'value engineering' or 'value methodology.' It is the technique of finding a less costly way to do the same work and of achieving more out of the project in every possible way to increase the bottom line, decrease costs, improve quality, and optimize the schedule without reducing or impacting the scope.

You will be making $10,000 in a two-year project. The cost of capital is 10 percent and the initial investment is $6000. You have another project that has a net present value of $9500. If you compare the net present value, which project should you select? A. The first project B. The second project C. Neither one D. Cannot be determined

Correct Option: B EXPLANATION We know PV=FV/(1+r)*n, Initial cost=$6,000, and interest rate=10 percent. So, present value for the first project is $10,000/(1+.1)*2=$9,009. The other project has a bigger NPV of $9,500. So, we should select the second project.

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: A. Brainstorming B. Benchmarking C. Statistical sampling D. Design of Experiments

Correct Option: B EXPLANATION 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.

You are in charge of a project for the electrical layout of a five-star hotel. You see this as a very simple project as you and your team have a lot of experience executing similar projects. As a result, your organization has a wealth of Organizational Process assets. You have worked out the exact details of the work involved and have a very detailed WBS with granular-level activities defined. You decide to employ the services of a contractor for laying out of the cable trays. What kind of a contract would be the best choice? A. Cost-reimbursable contract B. Fixed-price contract C. T and M contract D. None of the above

Correct Option: B EXPLANATION When as a buyer you are clear of the scope and statement of work, the contract choice should be Fixed-price. In this type of contract, if scope is clearly defined, then almost all the risk lies with the seller. Here, the buyer is smug with the confidence of having had experience in executing similar projects in the past and has also broken down WBS into detailed activities. So, scope is clear and the correct answer is option B.

You are working on a crucial project. You realize that you may miss the due date of the project. What do you do? A. Change the due date B. Evaluate options to meet the due date C. Ask your manager for guidance in such cases D. Remove the due date discussion in all stakeholder communication

Correct Option: B EXPLANATION When you know that you are going to miss the due date, the right thing to do is to look at options to meet the due date. Only when you cannot find any options should you change the due date and inform all of the stakeholders. It is unethical to not to communicate the due date.

The key difference between Work performance data and Work performance Measurement is: A. There are no differences B. Work performance data is the "as of now" status of deliverables, while Work performance measurement is a comparison between planned vs. actuals C. Work performance measurement is the "as of now" status of deliverables while Work performance data is a comparison between planned Vs actuals D. Work performance data forms the planned objectives

Correct Option: B EXPLANATION Work performance data is a key output of "Direct and Manage Project Work." The key difference between the two is that the Work performance data consists of raw observations and measurements DURING activities being performed. It is the "as of now" status, while Work performance measurements are used to compare actual performance against what was planned.

Brainstorming is an example of which group task type (Steiner (1972))? A. Optimization B. Additive C. Conjunctive D. Disjunctive

Correct Option: B EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

Judy is in a company board meeting where the task is to generate as many ideas as possible to promote a new cleaning product. During the meeting, she hears an idea from another group member about television advertising, which makes her focus on ideas related to that. As a result, she fails to come up with ideas about another category, which she may have done had she been in an individual situation. What effect prevented Judy from generating ideas on the alternative category in the group situation, which she would normally have been able to do in the individual situation? A. Motivation Loss B. Cognitive restriction C. Cognitive stimulation D. Individual capability gain

Correct Option: B EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

What is the formula for ROI? A. Cost of investment - Gain from investment B. (Gain from investment - cost of investment)/ cost of investment C. Gain from investment/cost of investment D. Cost of investment/Gain from investment

Correct Option: B EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

When considering the level of potential performance of a party of climbers, which of the four learning processes within group collaborative settings places importance on each climber's pre-tour physical and mental training? A. Individual-to-individual (I-I) B. Group-level learning (G-G) transfer C. Group-to-individual-in-group (G-IG) D. Group-to-individual (G-I)

Correct Option: B EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

As a manager on a project, you have to ensure that the project delivers within the scheduled timelines with minimal rework and customer delight. For some time now, the project work is proceeding smoothly with a CPI and SPI a perfect 1. One of your team members approaches you and indicates the possible need of a long vacation on personal grounds, and this could possibly occur two months from now. You look up the schedule and finds that this team member is scheduled to execute activities that are on the critical path and the team member's absence in two months' time would cause a delay in schedule. You decide to take some action and reschedule task allocation to ensure that this team member is not planned to work on any of the critical path activities. What did you just do? A. Mitigate the risk B. Avoid the risk C. Transfer the risk D. Exploit the risk

Correct Option: B EXPLANATION You have avoided the risk. By interchanging the tasks, you have ensured that the resource who could go on a long vacation does not work on critical path activities. There is no question of exploiting the risk as this is not a positive risk. This is not a case of risk mitigation since you have neither created a backup plan nor come up with an alternate strategy.

You recently completed the SOW detailing the specifications and other requirements for an expensive item you would like to purchase for one of your projects. While working on the SOW, you identified some of the source selection criteria, terms and conditions, and the contract type that you want to use. Also, you put together some documents to solicit proposals from potential vendors. What tools and techniques will you use in the next process? A. Market research, make-or-buy analysis, and expert judgement B. Bidder conference, proposal evaluation techniques, and independent estimates C. Procurement audits, procurement negotiations, and records management system D. Contract change control system, procurement performance reviews, and claim administration.

Correct Option: B EXPLANATION You just finished the Plan Procurement Management process and should be moving to the next process of Conduct Procurements. In Conduct Procurements process, you should be obtaining and evaluating seller responses, selecting a seller, and awarding a contract. The tools and techniques you will be using in Conduct Procurement process are bidder conference, proposal evaluation techniques, and independent estimates.

Your company's quality assurance department has performed a quality audit on your project. They have found that your team has implemented something inefficiently that could lead to defects. What is the NEXT thing that should happen on your project? A. You work with the quality department to implement a change to the way your team does their work B. You document recommended corrective actions and submit them to the change control board C. You add the results of the audit to the lessons learned D. You meet with the manager of the quality assurance department to figure out the root cause of the problem

Correct Option: B EXPLANATION You should document recommended corrective actions and submit them to the change control board. Quality audits happen when the company reviews your project to see if you are following its processes. The idea is to figure out if there are ways to improve project process and reduce defects.

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? A. You should continue to determine the best solution and ask the team to implement it B. You should let the team explore the best alternatives amongst themselves while you facilitate and support them. C. You should invite ideas from everyone in the team to arrive at the best solution D. You should make a decision based on consensus from majority of the team

Correct Option: B EXPLANATION 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.

Your friend, Joe, who works as a project manager in a pharmaceutical company meets you over dinner. You see a drastic change in his temperament compared with when you last met him. He seems dejected and complains that in his present organization, as a project manager, he has almost no authority and hardly any decision-making ability. Which kind of organizational structure does your friend work in? A. A Product organization B. A Functional Organizational Structure C. A Strong Matrix Organizational Structure D. A Projectized Organizational Structure

Correct Option: B EXPLANATION Your friend works in a Functional Organizational Structure. In such an organizational structure, all the power and authority reside with the Functional Manager. Such organizations are hierarchical in nature, where each employee has one clear superior. People are grouped by specialties (Functional) such as Mechanical, Accounts, Marketing, etc. These departments work independently of each other. So, the correct answer is option B - Functional Organization.

You have never managed a project before. Recently, you are asked to plan a new project. During the planning, which of the following would you rely on to improve your chances of success? A. Your management skills B. Historical records C. Your previous training D. Responsibility charts

Correct Option: B EXPLANATION Your management skills are not yet proven. It is not clear what you have been trained on. Responsibility charts may tell you your responsibility, but nothing beyond that. It is best to rely on historical records to find out how similar projects were done earlier.

You presented your project cost estimates to the sponsor, and she is upset about the inaccuracy of the estimates and demands that the estimates be as accurate as possible. Which of the following techniques will help you most in the situation? A. An order of magnitude estimate B. A heuristic estimate C. A bottom-up estimate D. A top-down estimate

Correct Option: C EXPLANATION A bottom-up estimate is the most time-consuming and generally the most accurate estimate. In this technique, one estimate per activity is received from the team members. This estimate can be based on expert judgment, historical information, or an educated guess. A rough order of magnitude is an approximate estimate (-25 percent to 75 percent) made without detailed data. It is used during the formative stages for initial evaluation of a project's feasibility. A heuristic estimate is based on rule of thumb, such as the 80/20 rule. A top-down estimate is usually given to the project manager from management or the sponsor. This type of estimate measures the project parameters such as budget, size, complexity, and duration based on the parameters of a previous similar project and historical information. It is usually done during an early phase of the project when not much information is available; thus, it is less accurate even though it is less costly and less time-consuming.

You have a signed contract with one of your major vendors. The vendor recently informed you that they can no longer deliver equipment on the agreed due date. This will cause a major disaster in your project since you will have to wait at least three months for the vendor to deliver the equipment. You know that there is another vendor who can deliver the equipment for a small increase in costs. What will be your best course of action? A. Sue the vendor B. Terminate the contract stating that is for convenience C. Terminate the contract with the vendor for defaulting D. Give the vendor a time extension

Correct Option: C EXPLANATION A contract can be terminated for a convenience by the buyer. In this case, seller's failure to deliver the equipment on time will drastically impact the project. So, the contract can be terminated with the vendor for defaulting.

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 ? A. Formal Written mail B. Informal chat with the team C. Face-to-face-meeting D. Informal written mail

Correct Option: C EXPLANATION 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.

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 the project manager on the project. The project manager wants to communicate with the team to clarify their doubts. What is the BEST form of communication for addressing this problem? A. Formal written mail B. Informal chat with the team C. Face-to-face meeting D. Informal written mail

Correct Option: C EXPLANATION A face-to-face meeting is ideal for project communication. It would give the project manager an avenue to understand the reasons for discontent in the team members and clarify their doubts. Face-to-face meetings have an added advantage of being accompanied with non-verbal (body movements and physical mannerisms) and paralingual (pitch and tone of voice) elements which are important for effective communication.

You have recently joined a new organization where there are many problems with project management. Projects are not completed on time. You have been assigned to help the senior management of the organization to understand these problems. Which of the following reports should you create? A. Bar Chart B. Detailed Cost Estimate C. Milestone Report D. Gantt Chart

Correct Option: C EXPLANATION A milestone report has summary details about the project. Detailed Cost Estimate is not relevant to the question because the current problem that the senior management is facing is with projects not being completed on time. A Gantt Chart is created to communicate the project's schedule with the team.

A contract is a promise to do or not to do something in exchange for some form of consideration. A negotiated contract is one where both parties agree on the basis of the principal considerations of: A. The period of performance and the specifications for the project B. How the work will be performed, at what time, and for what price C. The services to be rendered by one party and the price to be paid by the other party D. Who will perform the work and who will pay for the work

Correct Option: C EXPLANATION A negotiated contract is on the basis of the services to be rendered by one party and the price to be paid by the other party. A contract has three parts: an offer, an acceptance, and the consideration to be paid in return for the service the seller delivers.

As part of a joint venture, a project manager working with another company needs to share some confidential information related to intellectual property rights. She wants to know the person responsible for authorizing the release of this confidential information. Which project document should she refer? A. Organizational Breakdown Structure B. Project Charter C. Project Communication Management Plan D. Stakeholder Management Plan

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

You are managing a complex and critical project. There have been a lot of efforts to train and make the team technically competitive during the process. The project is in the final testing stage when a senior resource comes to discuss his plans of continuing his education and leaving this assignment. He would require a positive recommendation from you to fulfill admission requirements. What should you do? A. Tell him that you wouldn't recommend him as he has broken your trust by leaving the project before closure B. Immediately ask the functional manager to remove him from the project and give him a bad recommendation C. Discuss and plan his smooth exit which would least affect the project schedule D. Compliment him on his decision and suggest him to leave the project whenever he likes as you would handle his additional responsibilities

Correct Option: C EXPLANATION A project manager should take steps to minimize the impact of any change on the project, especially one that can affect the triple constraints. Option (d) is wrong, and it sets a bad example and increases project risk.

A project manager in a warehousing company is mapping resources required for a project, along with the number of hours that will be required during the project. Which tool would be most suitable for this purpose? A. Gantt or Bar Chart B. Responsibility Assignment Matrix C. Resource Histogram D. Resource Breakdown Structure

Correct Option: C EXPLANATION A resource histogram can be used to show the usage of resources individually or by groups over time. Option (a) Gantt or Bar Chart illustrates a project schedule by capturing start and finish dates, as well as the expected duration of a project. Option (b) Responsibility Assignment Matrix maps specific resources against work packages from the WBS and would not indicate timelines. Option (d) Resource Breakdown Structure (RBS) is a standardized list of personnel resources related by function and arranged in a hierarchical structure and would not be helpful.

Ashely, a senior project manager, recently took over a project to produce a safe and effective drug from another project manager who just left the company. Ashley was surprised to find there was no change control board or change control process established for the project. Why is it important to have a robust change control for any project to be successful? A. It will ensure that only stakeholders with significant authority can submit change requests. B. It will minimize the number of changes in the project. C. It will ensure that only necessary changes are considered and implemented. D. It will maintain the record of all changes for budget tracking purposes.

Correct Option: C EXPLANATION A robust change control process will ensure that only the necessary changes are considered and implemented. A change control process cannot help with the number of changes that will be requested in the project as the number of changes depend on how well defined the scope of the project is. Again, all stakeholders, regardless of their authority, should be able to submit change requests.

While overseeing the development of a new wireless media streaming device, you notice that your team members are having significant difficulties resolving an issue that they have discovered during unit testing. After working on the issue for a week, the team members identify a number of possible causes for the issue and narrow them down to two main causes. You ask the team members to determine if there is any interdependency between these two causes that would necessitate further action. Which of the following tools would be the BEST to use in this situation? A. Histogram B. Flow chart C. Scatter diagram D. SWOT analysis

Correct Option: C EXPLANATION A scatter diagram is a tool and technique used in quality management processes to analyze two characteristics of a process and see if there is any interdependency between them. Based on the outcome of the scatter diagram, appropriate actions can be taken to improve quality.

Which of the following would most likely result in a change request? A. An overall SV of 230 B. An overall CV of 50 C. A short delay of a critical path activity D. A major delay of a non-critical path activity

Correct Option: C EXPLANATION A short delay of a critical path activity will result in an overall delay of the project duration, so a change request should be created. A major delay of a non-critical path activity may not have any impact on the overall project duration. A project manager can use the contingency reserve to deal with the cost and schedule variance. Fast tracking and crashing methods can also be used to deal with schedule variance.

Which of the following best describes the assumptions made by Herzberg's Hygiene theory? A. Employees are basically lazy and need to be monitored B. Hygiene factors help avoid job dissatisfaction and lead to motivated employees C. Hygiene factors help avoid job dissatisfaction; their absence could create dissatisfaction, but they will not lead to motivated employees D. Job content factors have no influence in keeping people happy on the job and motivated.

Correct Option: C EXPLANATION According to Herzberg's Hygiene theory, certain factors termed "Hygiene factors" exist. Their absence can lead to dissatisfaction. So, to avoid dissatisfaction, they must be present. However, these "Hygiene factors" will not directly lead to employee satisfaction; they would only avoid dissatisfaction. Option A is clearly unrelated, and Option B is incorrect since Hygiene factors do not contribute to employee motivation. Option C is correct. Herzberg's theory also states that what motivates employees is the Job content. Hence, Option D is incorrect since it states the opposite.

As an employee, working conditions, salary, status, and job security matter a lot to you, just like they do to your other coworkers. However, you feel that you will be more motivated and will contribute more if you are rewarded for your contribution to a project and given the opportunity to grow professionally. Which motivational theory does this refer to? A. McGregor's TheoryX and TheoryY B. Maslow's Hierarchy of Needs C. Herzberg's Motivation-Hygiene Theory D. Dr.William Ouchi's TheoryZ

Correct Option: C EXPLANATION According to Herzberg, destroying hygiene factors such as working conditions, salary, status, and security can destroy motivation, but improving them under most circumstances will not improve motivation. Hygiene factors are not sufficient to motivate people, and motivating agents provide the best positive reinforcement. Motivating people is best done by rewarding them and letting them grow.

Which of the following is NOT true about project closing? A. Distribute the final project report, including information related to project closure, project variances, and any issues, to provide the final project status to all stakeholders B. Archive project documents and material in order to retain organizational knowledge and comply with statutory requirements C. Close the project and let the Project Manager maintain ownership for the entire project D. Measure customer satisfaction at the end of the project by capturing customer feedback in order to assist in project evaluation and enhance customer relationships

Correct Option: C EXPLANATION According to PMI's closing task, the ownership of deliverables should be transferred to the assigned stakeholders in accordance with the project plan in order to facilitate project closure. All of the other options are obviously true and need to be done during closing.

You have signed a contract with a customer and started the process of collecting requirements when the customer asks you to add a feature which is not in the scope of the contract. What should you do in this case? A. Politely refuse the customer stating that you can no longer honor additional changes as the contract is already signed B. Add the feature in the project scope as the customer should be happy and the project has anyways just started C. Ask the customer to write a formal change request and follow the contract change control system D. Terminate the contract and prepare another one as it is just the beginning of the project and you already find many information missing

Correct Option: C EXPLANATION After signing the contract, the only way to change it is by following the contract change control system.

As a project manager, you have managed several projects in your organization. You notice that not all the projects are given the proper support and importance from higher management. You also notice that projects get terminated while they are in progress due to other higher-priority projects in the organization. You will be managing an IT project soon and want to make sure that your project will get the required support from the organization. What will be your best course of action? A. Make sure that the project meets the personal objectives of the sponsor B. Communicate the project details and benefits to higher management on a regular basis C. Align your project with strategic organizational objectives and goals D. Justify that your project should be the highest-priority project in the organization

Correct Option: C EXPLANATION Aligning the project with strategic objectives will assist in both managing the effort as well as ensuring that benefits of the project are valuable to the organization.

A Project Manager is in the 'Control Procurements' process when his sponsor asks him to terminate the contract. What should the Project Manager do NEXT? A. Revisit the Proposal Evaluation technique to understand issues with the seller B. Update Records Management System C. Proceed with Procurement Audit D. Arrange Vendor conferences to invite new proposals to the contract

Correct Option: C EXPLANATION All contracts must go through formal closure regardless of whether they were finished successfully or terminated. As a part of the closure procedure, a procurement audit should be done to review procurement processes, from planning purchases to contracting administration and identifying success and failure.

You are listing down the possible reasons that can cause scope change in your project. Which one of the following will NOT be a valid reason for scope change? A. Customer has changed the specifications for the deliverables B. Change in government regulations C. Change in the estimation approach from top down to bottom up D. A change in the design as new technology needs to be implemented

Correct Option: C EXPLANATION All of the options stated above will have impact on the scope, but change in the estimation approach from top down to bottom up (Option C) will not have any impact on the change to the scope.

Which of the following is NOT an example of the cost of quality? A. Training team members on effective ways to look for product defects B. Reviewing all the product requirements to ensure that everything is developed C. Assigning two team members to work on product development D. Testing the product for defects

Correct Option: C EXPLANATION All of the other options come under the cost of quality. Refer PMBOK® Guide - Sixth Edition, page 274, for more information on cost of quality.

You have to ensure that appropriate tools and techniques are used for performing the process of monitor and control risks. Which one of the following is NOT a tool and technique for this process? A. Risk Reassessment B. Risk Audits C. Risk Register D. Technical Performance Measurement

Correct Option: C EXPLANATION All of the stated options are tools and techniques for the "monitor and control risks" process while risk register is an input to this process.

Which of the following statements is false regarding Risk Management? A. All identified risks are maintained in the Risk Register. B. Risk prioritization occurs in Qualitative Risk Analysis. C. Risk prioritization occurs in Quantitative Risk Analysis. D. Low-priority risks are maintained in a Watch List.

Correct Option: C EXPLANATION All of the statements are true except the statement regarding Quantitative Risk Analysis. Quantitative Risk analysis does not deal with prioritizing risks. The prioritization occurs in the Qualitative Risk Analysis process. Quantitative Risk Analysis deals with assigning numeric values to risks.

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? A. Raise a change request form and send it for approval to the change control board B. Look for alternative options including schedule compression techniques like crashing and fast tracking C. Analyze the impact of the change on project quality objectives and quality planning D. Update the project management plans and other project documents including project baselines

Correct Option: C EXPLANATION 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.

You are managing a project that is in its first month of execution. In one of the meetings, the key stakeholder asks for some changes to be made in the ongoing work. The stakeholder is asking for the changes to be implemented immediately. You realize that the changes being asked for will need the Project Management Plan and the Scope baseline, which have already been baselined, to be updated. As a Project manager, which is the best course of action? A. Make the changes as they are being asked for by a key stakeholder B. Analyze the impact of the changes on triple constraints C. Generate a change request and submit it to Integrated change control D. Refuse to make the changes as it is a deviation from approved Scope

Correct Option: C EXPLANATION Any changes being asked for or requested to any approved plan need to be formally reviewed by the Change Control Board. Option A is not the correct answer as no changes should be made without a formal approval from CCB. Option B sounds like the best choice, but the question states the impact of the change on the scope, and so the analysis of impact analysis on "triple constraints," is already done. So, though option B is the best choice, it is already taken care of. Option D is clearly incorrect as any project is bound to have changes and the very purpose of change control is to ensure changes are governed and controlled in a systematic manner.

You are the Project Manager of a project that has just closed a contract with one of the suppliers. You need to communicate the status of the contract to your stakeholders. What kind of communication method would you use for this communication? A. Formal Verbal B. Informal Verbal C. Formal Written D. Informal Written

Correct Option: C EXPLANATION Any contractual matter has long-term implications, so well-documented and formal written communication is best suited for this purpose.

A Project Manager notices that the seller has discontinued sending the weekly status report, which is part of their contract. The Project Manager understands that the seller is under tremendous pressure to meet the next milestone deliverables and has been otherwise communicating the project status periodically. What should the Project Manager do in this scenario? A. Ignore the incident as the seller is updating him about the project status periodically B. Give the seller time until next milestone delivery and then bring up the issue informally C. Send a formal, written communication regarding the issue of irregular status reports D. Terminate the project contract

Correct Option: C EXPLANATION Any deviation from the contract is a breach, and the project manager must respond by issuing a letter that formally notifies the seller about the breach. If the Project Manager doesn't send an official notice of breach, his company could lose their right to claim breach later. Option (D), termination is too harsh a reaction and not called for in this situation.

The trustworthiness of a message to its receivers is based on their level of trust in the communicator. This is an example of _______. A. Encoding B. Decoding C. Noise D. Medium

Correct Option: C EXPLANATION Anything that interferes with the meaning of a message is considered noise or communication blocker. Source credibility, or the credibility of a message to its receivers, may be influenced by receivers' level of trust in the communication.

You are the project manager for a large Project. You are currently busy with approximating the number of work periods required to complete individual activities with estimated resources. Which of the following inputs do you need for this? A. Activity List B. Activity resource requirements C. Resource Breakdown structure D. All of the above

Correct Option: C EXPLANATION Approximating the number of work periods required to complete individual activities with estimated resources is done in Estimate Activity Duration process. Activity List, Activity resource requirements, and Resource Breakdown structure are inputs of Estimate Activity Duration process.

You are the Project Manager of a new complex software development project. Your team is facing major issues with software design. One of your team members, Susan, says that her friend, who is working in another company, uses a third party software for designing similar projects and that the software helped them to reduce their project timeline by at least 20%. You are running short of time and want to do everything you can to get the project back on track; however, your project does not have the budget to buy any third party software. Your team member says she can get a copy of the software from a friend and use it on the project. As a Project Manager, what would you do? A. Use a ready-made software to speed up the Project B. Ask Susan to use the software and not tell anyone about it C. Inform the team member about copyright policies and strictly tell her that the project cannot use unlicensed software D. Accept the fact that your project is delayed and look for other ways to speed up the project

Correct Option: C EXPLANATION As a certified Project Manager, you are supposed to respect copyright laws and should not use unlicensed copies even if the project gets delayed.

Five process groups are by no means completely linear, and they interact and overlap with each other. Which two process groups do not usually overlap unless a project is cancelled or terminated? A. Planning and closing B. Planning and executing C. Initiating and closing D. Executing and monitoring and controlling

Correct Option: C EXPLANATION As a project is refined, iterative process groups might be revised several times throughout the project life cycle as more information becomes available. Some planning must take place, then some executing, then some monitoring and controlling, followed by further planning, further executing, and so on. Initiating and closing process groups are separated by the other three groups, and the only time they will overlap when a project is canceled or terminated.

You have replaced an earlier project manager in a project .The earlier project manager has left the organization and you are now responsible for the project. On reviewing the project management plan you are disturbed because a number of procurement contracts have been signed off and they all turn out to be Cost plus fixed fee types of contracts. Why are you worried? A. All the risk is now with the seller B. Contracts should always be T and M C. Seller has no motivation to control cost and cost could spiral D. Contracts should always be Fixed Price

Correct Option: C EXPLANATION As a project manager, you indeed have a reason to be worried if your project has already been signed off on Cost Plus Fee type of contracts. In such contracts, you, the buyer, needs to pay the seller for all the costs and also an agreed percentage of the cost. As a result, there is no motivation on the seller to control the costs; in fact, it is in the interest of the seller to increase the costs. It is not necessary that all projects should always be T and M or Fixed Price. Option A is clearly wrong since all the risks are, in fact, with the buyer and not the seller.

You are in charge of a large software development project. As a part of the project schedule, it was planned to complete two core components by the end of October. You are now in August, and you realize that the project is falling behind schedule. You do a quick review and decide that the schedule can be met by adding additional staff to the activities on the critical path. This is an example of: A. Fast Tracking B. Resource Levelling C. Crashing D. Scope Creep

Correct Option: C EXPLANATION As the project is falling behind schedule and deliveries cannot be impacted, the manager has chosen to add additional resources to activities on the critical path. This is an example of Crashing. NOTE that crashing may result in increased risk and rework.

As a Project Manager, you are assigned to a project that will be outsourced. The next step is to organize a formal bidding process and select the vendor for the project. You own stock in one of the vendor companies that participated in the bidding process. What is the BEST course of action for you? A. Select the vendor company in which you own stock B. Keep the information to yourself C. Tell your manager and remove yourself from the vendor selection committee D. Ask other members of the selection committee to select your vendor company

Correct Option: C EXPLANATION As you own stock in one of the vendor companies that participated in the bidding process, the best of course of action is to tell your manager and remove yourself from the vendor selection committee.

You are the Project Manager of the ABC project which has an allocated budget of $550,000. You have completed 80% of the work with an expenditure of $480,000 against your plan of 90%. What is the cost performance index? A. 0.88 B. 0.8 C. 0.916 D. 1.09

Correct Option: C EXPLANATION BAC=$550,000, AC = $480,000 and EV(80% of $550,000) = $440,000. Hence CPI = EV/AC = 440,000/480,000 =0.916.

You are sent by your company to execute a project in a foreign country. All of your equipment is detained at the airport, and the airport authority asks for a fee to release the equipment. You are also losing time on your project. What would you do? A. Don't pay as it's a bribe B. Pay and get the money from management reserve C. Establish whether such payment is legal in that company D. Ask your boss for the next step

Correct Option: C EXPLANATION Before jumping the gun, establish whether the airport is asking for a fee or a bribe. If it's a bribe, don't pay. If it's an airport usage fee, go ahead and pay.

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? A. Cost Benefit Analysis B. Value Engineering C. Benchmarking D. Process Analysis

Correct Option: C EXPLANATION Benchmarking is a management tool through which a plan for evaluation, measurement, and improvement is implemented. It is the process of comparing the business processes and performance metrics including cost, cycle time, productivity, and/or quality 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 - Sixth Edition Project Quality Management page 281 for more details.

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, preferably the best-in-class firms to understand their best practices. You also compare industry standards for performance metrics including cost, cycle time, productivity, and quality to come up with your own product metrics. Which of the following activities are you doing? A. Cost Benefit Analysis B. Value Engineering C. Benchmarking D. Process Analysis

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

A Project Manager has used a popular cost estimating model to come up with cost estimates for his upcoming project. However, the sponsor asks him to add 15% to the total cost estimate as the customer always negotiates and asks the prices to be reduced by 10% to 15%. What is the BEST option for the Project Manager? A. Do as the sponsor says as she is your senior and project sponsor B. Recalculate the cost estimates using a more suitable technique and check the difference between the estimates C. Provide the sponsor with details on cost estimation and suggest that she share this with the customer D. Refuse to make any changes or increase the estimated cost

Correct Option: C EXPLANATION Both option (a) and (d) are wrong because they are evasive responses to the situation and do not help to improve it. Option (b) may not solve the problem as there is no reason to believe that the Project Manager's current estimates are flawed. The fact that customer asks to reduce cost by 10 % indicates that he does not trust the seller to quote a fair price. Option (c) provides the customer with the details on estimating the model and cost breakup to help build trust with the customer and negotiate a fair price.

Chris is the Project Manager of a new software development project. He finds a major issue with the project requirement management process, and can find a trend of requirement-related defects. He is using an Ishikawa diagram to come up with the root cause of the trend and to make recommendations to avoid problems in the future. What process is he implementing? A. Plan Quality Management B. Identify Risks C. Manage Quality D. Control Quality

Correct Option: C EXPLANATION Cause and effect diagram or Ishikawa diagram is one of the tools used in the manage quality process.

One of your clients did not approve a major component that your team has just completed and requested several changes. You consider the component to be fully completed as per the specifications. It also meets all of the required quality criteria. You were unable to come up with an agreement on the appropriate compensation for the changes the client was asking for. Both of you have been handling the disputes in accordance with the resolution procedures outlined in the contract. You are currently involved in: A. Procurement negotiations B. Procurement audits C. Claims administration D. Procurement performance review

Correct Option: C EXPLANATION Claim administration is a technique in the Control Procurements process that documents, monitors, and manages disputed changes when the buyer and seller disagree on scope, the impact of changes, or the interpretation'

You strongly disagree with the customer interpretation of a clause in the contract. The customer submitted a change request and demanded that two new deliverables be implemented as per the contract immediately. You think that the customer is being unreasonable and that her demand is unrealistic. What will be the best course of action to resolve the situation? A. Have an urgent meeting with the customer and explain the implications of accepting such a request on schedule and cost B. Ignore the customer's request and continue with your project work as planned C. Document the dispute and refer to claims administration D. Accept the customer's demand as the customer is always right

Correct Option: C EXPLANATION Claims administration or handling of claims is one of the most frequent activities in the Control procurements process. Claims, disputes, or appeals are requested when the buyer and seller disagree on the scope, the impact of changes, or the interpretation of some terms and conditions in the contract. All these claims should be documented, processed, monitored, and managed in accordance with the contract terms throughout the contract life cycle. It is desirable to resolve the disputes though negotiation, but unresolved claims may require escalation to dispute resolution procedures, such as arbitration or litigation, established in the contract.

A project team working on an important project was suddenly informed by the customer that the budget for the project was revoked and the customer can no longer make payments. What should the project manager do? A. Calculate the penalty for abnormal closure and send an invoice to the customer B. Release the team for other billable projects C. Enter into closure processes D. Inform senior management in your organization and await their directions

Correct Option: C EXPLANATION Closure processes will need to be invoked regardless of any other action that might be taken subsequently. Hence option C is the best answer.

The swiftest and most effective communication occurs among people who have: A. Advanced professional degrees B. Dissimilar interests C. Common points of view D. The ability to reduce perception barriers

Correct Option: C EXPLANATION Communication proves to be the swiftest and the most effective when people with common viewpoints communicate.

A pharmaceutical company recently terminated a research project as it no longer seems commercially viable for the company. What is the FIRST step the Project Manager should take? A. Release the team members B. Document the lessons learned C. Conduct Scope Verification D. Discuss with the senior manager the reason for abrupt project termination

Correct Option: C EXPLANATION Conduct Scope Verification. In the event of project termination, the project manager should do scope verification to determine the extent of completion of the project. In this case, scope verification is measured against the deliverables to the point of the project cancellation. Options (a) and (b) can be done later.

The common term for an authorized time-phased budget, which includes the Budget at Completion (BAC), used to measure cost performance, and displayed in the form of an S-curve is: A. Earned Value B. Cost Performance Index C. Cost Baseline D. Project Budget

Correct Option: C EXPLANATION Cost Baseline provides a yardstick against which you can measure cost performance. Please refer PMBOK® Guide - Sixth Edition, Cost Baseline page 254 for the definition of cost baseline.

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? A. Project is under budget and behind schedule B. Project is over budget and behind schedule C. Project is under budget and ahead of schedule D. Project is over budget and ahead of schedule

Correct Option: C EXPLANATION 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.

As part of project stage review, you are presenting project performance reports to the stakeholders. The reports show both cost and schedule variances are positive for the project. What does it indicate about the current project status? A. The project is under budget and behind schedule B. The project is over budget and behind schedule C. The project is under budget and ahead of schedule D. The project is over budget and ahead of schedule

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

Your sponsor is not happy with the cost estimate you submitted for a construction project. The sponsor suggested that you come up with an exceptionally accurate cost estimate at your earliest convenience. What will be your best course of action in this situation? A. Use the historical information from a similar project and make adjustments for known differences B. Use a rule of thumb estimate C. Perform a cost aggregation for raw materials and labor for each activity in the WBS D. Use the three-point estimate technique

Correct Option: C EXPLANATION Cost aggregation describes the bottom-up estimate, which will provide the most accurate estimate in this case. Other estimates, such as heuristic and analogous estimates are very quick but are not very accurate. Three-point estimate is also not the best option in this scenario.

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

Correct Option: C EXPLANATION Creation of a cogent lessons learned documentation is an important part of the closure process, and it should not be bypassed. The project manager should make a reasonable request to the team members to accomplish this in letter and spirit.

The flexibility or total float in a schedule is measured by subtracting the early dates from the late dates. Which one of the following will help you identify the flexibility in your schedule? A. Precedence diagramming method B. Resource leveling C. Critical path method (CPM) D. Parametric estimating

Correct Option: C EXPLANATION Critical path method (CPM) is a technique of schedule analysis that considers activity durations, logical relationships, dependencies, leads, lags, assumptions, and constraints to determine the float of each activity and the overall schedule. This method identifies the critical path with the least flexibility and the highest risk so that it can be managed appropriately.

Decomposition is best described as: A. Creating control accounts B. Creating work packages C. Breaking down deliverables into smaller work packages so that they can be better planned D. Planning and scheduling of work packages

Correct Option: C EXPLANATION Decomposition deals with breaking down deliverables into small discrete work packages that can be planned better. It also helps prevent work from slipping through the cracks and gives the project team a better picture of the work involved.

Your project involves the construction of a flyover that is estimated to cost $1.5 Million. It has to be completed in 2.5 years. The project involves a new technology on which neither the project resources nor you have worked in the past. As a project manager, you have done the best estimation, but some of the activities based on the new technology have shown negative slack during the execution process. If you do not complete these activities on time, the project finish date will get delayed. The sponsor informs you that the deadline has to be met, even though the project cost may be overrun. Out of the following, which will NOT assist you in achieving your deadline? A. You crash the project by adding more resources B. You define Start-to-Start and Finish-to-Finish dependencies among the task C. You define more Finish-to-Start dependencies D. Negotiate with the customer about reducing the scope

Correct Option: C EXPLANATION Defining more Finish-to-Start dependencies implies introducing more serial dependencies. This will not assist you in achieving your project deadline. All the other options will help you to achieve the deadline by crashing (option A) or fast tracking (option B) or reducing the scope (option D).

You have been assigned to a project that deals with developing a software product for the BFSI domain. You and your team are building the schedule network diagram. While sequencing activities, one of the team members, who is an Architect, indicates that rather than interacting with the database on every activity, you should introduce an activity which would cache the data. The team member argues that this will improve performance and hence this activity should be introduced in the sequence prior to the other activities that deal with database interaction. What kind of a dependency is this? A. This is an example of Mandatory Dependency B. This is an example of External Dependency C. This is an example of Discretionary Dependency or Soft Logic D. This is an example of Hard Logic

Correct Option: C EXPLANATION Discretionary Dependency is also known as Soft Logic or Preferred Logic or Preferential Logic. Note that this is not a mandatory dependency as it is not a "Must Have" but more a "Should have." Discretionary dependency decisions are usually based on best practices and business knowledge. In this case, a Software architect can be assumed to be an expert in his field.

On your current project, you have a good number of subcontractors. You are eager to work with many of them. However, one of them has consistently submitted expensive change orders every week. Now, when you are closing the project what should you do? A. Use earned value analysis B. Fire the subcontractor who has submitted too many change orders C. Conduct procurement audit D. Conduct subcontractor pattern match

Correct Option: C EXPLANATION Earned value analysis will help in monitoring and control, but not now. Firing the subcontractor may not be correct. It is only procurement audit which will help you show what has gone wrong. A procurement audit is a technique used to close the contract and check the procurement process. Please refer to PMBOK® Guide Sixth Edition, page 494 and 714.

Raymond has developed a business case for a new project, but the return on investment (ROI) is negative. His manager has asked him to change the forecast to show a positive 10%, so the project can get approved. What should Raymond do? A. Change the forecast to get the positive ROI, and demonstrate loyalty B. Refuse to modify the data, and risk losing his position C. Explain that the ROI might not be the only consideration for the approval of the project, and ask his manager to focus on the strategic nature of the project rather than changing the ROI D. Modify the data, as his manager requested, and add a disclaimer to the report that he disagrees

Correct Option: C EXPLANATION Explain that the ROI might not be the only consideration for the approval of the project, and ask his manager to focus on the strategic nature of the project rather than changing the ROI. ROI is one of the parameters, but a project could bring in more direct and indirect benefits to the organization such as a new domain expertise, acquiring a good image for the organization, and improvement in people skill level.

You remind your manager about your great contribution in a couple of projects and ask him to recommend you for a 10 percent salary increase. The manager mentions that management decided to give all the employees performing above average a 5% salary increase; thus, there is no need to discuss this topic any further. This is an example of: A. Good guy/bad guy B. Personal insult C. Fait accompli D. Missing man

Correct Option: C EXPLANATION Fait accompli is a negotiation tactic of using rules/laws, decisions already made, etc. as mandatory to avoid any further discussion. Personal insults is a negotiation tactic of attacking an individual. Good guy/ bad guy is a negotiation tactic of making one person helpful to the other party, while making another person very difficult to work with during negotiation. Missing man is a negotiation tactic of using a missing individual who has the power to everything.

In negotiations, what is a fait accompli tactic? A. Making personal attacks that could be downright insulting B. Playing the role of a good guy and bad guy in a team C. Claiming an issue has already been decided and therefore cannot be changed C. Hiding or partially disclosing information

Correct Option: C EXPLANATION Fait accompli literally means an accomplished fact, an action that is completed before those affected by it are in a position to query or reverse it. It is a technique used during negotiation.

A Project Manager wants to qualify for the PMP examination. However, while going through the eligibility criteria, he finds that he falls short of the required experience by a small margin. He discusses this with a certified PMP professional and mentions that he is planning to lie about his experience as it is a very small margin. The PMP professional is not convinced and warns him that he should not provide false information at any point during the PMI Certification Program as it can result in: A. Revocation of your PMI membership B. Revocation of your PMP certification C. Both of the above are true D. No impact

Correct Option: C EXPLANATION Falsification of any information directly or indirectly related to all aspects of the PMI Certification Program can result in both revocation of PMI Membership and PMP Certification of a candidate.

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? A. 0 days B. 4 days C. 2 days D. -3 days

Correct Option: C EXPLANATION 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).

A project activity has values for the earliest and latest it can start, along with the earliest and latest it can be completed. Activity A has a Late Start (LS) of 5 days and a Late Finish (LF) of 10 days. It also has an Early Start (ES) of 3 days and an Early Finish (EF) of 8 days. What is the float of activity A? A. 0 days B. 4 days C. 2 days D. -3 days

Correct Option: C EXPLANATION Float for an activity can be calculated using one of the two formulas LS-ES and LF - EF. In this case, float = 5-3 or 10- 8 or 2 days. Remember, float (or slack) is the amount of time a task on a project can be delayed without causing a delay to subsequent tasks (free float) or the project completion date (total float).

A Project Manager is preparing for the next milestone release when he realizes that he has missed an important feature in the project requirements plan. If implemented, this feature would take at least one person a week of effort. What should he do to address this? A. Discuss the change with Customer and seek his approval B. Evaluate the impact of change on triple constraint C. Look for alternatives to reduce the impact of change D. Raise a change request to address the change through change control process

Correct Option: C EXPLANATION For any change in the project, the first thing a Project Manager should do is evaluate the impact of change on the project. Since the question states that this change will require the effort of one person for a week, this analysis has already been done. The next step is to create options, including crashing, fast tracking, etc., to reduce the impact of the change.

Product analysis is done during the development of: A. Project Charter B. Project Management Plan C. Project Scope Statement D. Project Schedule

Correct Option: C EXPLANATION For projects that have a product as a deliverable, as opposed to a service or a result, product analysis is an effective tool.

You are a firm believer in process, and you want to follow the best practices on your project right from the beginning. You understand the importance of having a formal kick-off meeting to launch the project with all your key stakeholders (including the customer). However, you are worried about the behavior of some of your team members. In the last internal meeting, there was utter chaos with the speaker shouting to be heard while others kept talking amongst themselves ignoring the speaker. What is the BEST strategy to use to avoid this situation in the kick-off meeting? A. Set objectives of the kick off meeting clearly, so that all the attendees are aware of the meeting agenda B. Ensure that only key stakeholders are invited to avoid inviting disinterested people who wouldn't listen to the speaker C. Communicate ground rules and ensure they are followed in all the meetings D. Meet the troublemakers in the team and communicate to them the importance of meetings for project success. Warn them of disciplinary action if they don't oblige.

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

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

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

You have a large complex project to deliver, and you are evaluating different motivational strategies to motivate your team to get the job done. You subscribe to the belief that to get things done and to motivate staff, they must be rewarded with monetary rewards. You believe that by rewarding employees they would get motivated. Which of the following motivational theories are you applying? A. Herzberg's hygiene theory B. Maslow's theory of hierarchy of needs C. Expectancy theory D. Theory of coercion

Correct Option: C EXPLANATION Herzberg's hygiene theory states that it is the job content that motivates staff. So in this case, Option A is not the correct answer. Maslow's theory of hierarchy of needs indicates the levels of needs starting with Physiological needs and ending with Self-Actualization, so Option B is not correct as well. Vroom's Expectancy theory states that employees can be motivated by altering the person's effort-to-performance expectancy, performance-to-reward expectancy, and reward valences. So, Option C is correct. Option D is clearly incorrect as the question does not indicate any imposed mandates or threats which would fall under Theory X style of management.

You are in charge of constructing a high-rise residential building. After creating a Network diagram, you have identified the Critical Path. Work has started, but suddenly due to inclement weather, plinth work has got delayed. This plinth work activity was on the critical path. As a manager driving this project, would you be worried and why? A. No - It will not matter if the Plinth work is delayed. B. No - Activities on the critical path do not impact the schedule C. Yes - Any delay of activities on the critical path would lead to a delay of the entire project D. Yes - you will now have to relay this bad news to the client

Correct Option: C EXPLANATION If activities on the critical path are delayed, it can lead to a delay in the entire Project. Hence, options A and B are incorrect. Option D is a very subjective answer, and nowhere does the problem state how the stakeholders would take the news. So, the best answer is option C.

You are a Project Manager, and your team recently encountered a major change in the project. This change was evaluated for its impact on the triple constraints and went for approval to the Change Control Board (CCB). The CCB, which is comprised of important stakeholders of the project, approved the change. The project documents were updated through the configuration management system. What should the project team do NEXT? A. Explore options to reduce the effect of change B. Adjust the project management plan and baselines C. Notify the stakeholders affected by the change D. Prevent the root cause of change

Correct Option: C EXPLANATION If you know the process of making changes step-by-step, you can answer this question correctly. Since change has already been updated through configuration management, Options (a), (b), and (d) have been addressed. Option (d) would have been explored as soon as the change was found. Option (a) would have been done as a part of evaluating the impact of the change on triple constraints, and option (b) would have been done as a part of updating documents through configuration management system. However, it is also important to notify stakeholders affected by the change, which is the only thing remaining.

You are the Project Manager of a new portal development project. You want to integrate your portal with one of the online payment gateways, but you have been experiencing major issues in receiving payment. The remote support from the payment gateway company is not of much help. Your team suggests getting one of their engineers online so that you can speed up the work. However, this will increase the project costs, which have not been budgeted. According to your team, there is no other option at this stage. What should you do? A. Motivate your team members to solve the problem and integrate with this payment gateway B. Ask your senior management to help you make the decision C. Create a change request to ask for an engineer from the payment gateway company and present this to the change control board for approval D. Look for another gateway provider

Correct Option: C EXPLANATION If you look at the question, there is a problem in the project, and the project team has not been able to find a solution. In this case, the only option left is to create a change request and ask for additional money to get the problem fixed.

In multiphase projects are planned by developing phases that are performed sequentially to ensure proper control of the project and attain the desired product, service, or result. In some cases, it is necessary to accelerate the project life cycle by overlapping project phases. Which of the following is NOT true about this kind of overlapping relationship? A. This technique can be applied as a schedule compression technique called ' fast-tracking.' B. This kind of relationship may increase project risk and the potential for conflicts. A subsequent phase can progress before accurate information is available from the previous phase. C. In this kind of relationship, a phase is planned at a given time; planning for a subsequent phase is carried out as work progresses on the current phase or deliverables. D. This kind of relationship can reduce the ability to develop long-term planning, but it is suitable in an undefined, uncertain, and rapidly changing environment.

Correct Option: C EXPLANATION In iterative relationships, a phase is planned at a given time. Planning for a subsequent phase is carried out as work progresses on the current phase or deliverables. In overlapping relationships, the successor phase can start prior to the completion of the predecessor phase. This approach can be applied as a schedule compression technique called 'fast-tracking.' This kind of relationship may increase project risk and the potential for conflicts as a subsequent phase progresses before the accurate information is available form the previous phase. This kind of relationship can reduce the ability to develop long-term planning, but it is very suitable in an undefined, uncertain, and rapidly changing environment.

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? A. Capture the risk in the Risk Register B. Ignore the risk as nothing can be done to avoid it C. Actively accept the risk and allocate time and cost reserve in contingency fund D. Proceed with Risk Response Strategy to counter the risk

Correct Option: C EXPLANATION In this situation, the Project Manager has no information on the timing, anticipated frequency, or impact of the expected rough weather. 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.

A project manager working on a construction project identifies a risk of heavy storms in the coming months which might affect the construction activity. However, he doesn't have any reliable information on the weather forecast or the severity of the storm. In this, case what is the BEST the Project Manager can do? A. Capture the Risk in the Risk Register B. Ignore the Risk as nothing can be done to avoid it C. Actively accept the risk and allocate time and cost reserves in the contingency fund D. Proceed with Risk Response Strategy to counter the Risk

Correct Option: C EXPLANATION In this situation, the project manager has no information on the timing, anticipated frequency, or impact of the expected rough weather. Hence, option (d) will not give any valuable information. The best option is (c) to accept the risk, but plan a contingency reserve in terms of cost and time in case the risk occurs. Option (a) and (b) are passive approaches and are not recommended for a good project manager who should always be proactive in his approach towards risk management.

You have just started a new project as a Project Manager. A couple of stakeholders with whom you have worked in the past come to you raising concerns about the utility of the new project management package being used and the way project changes would be logged. What should you do? A. Assure the stakeholders that you will keep them engaged in the Project and that the new software will not in any way impact their functioning B. Since they are friends, conduct an informal training session C. Inform the Project Management Office about the stakeholders' concerns D. Supply with training material on the new Project Management Software

Correct Option: C EXPLANATION Inform the Project Management Office; they control the project management procedures and tools. In directing stakeholders to the PMO, the Project Manager is referring them to the right authority.

You are the project manager for an IT project located in the UK, and your project team includes people from Australia, Netherlands, Singapore, and India. You are working on a software development project. When the project is 75 percent complete, your sponsor decides to close the project and move the team to a new project of strategic importance. Which type of closing does this refer to? A. Starvation B. Extinction C. Integration D. Addition

Correct Option: C EXPLANATION Integration implies that if a project is closed due to any reasons, then the activities stated in the closing process should be performed. In case of starvation (option A), a project is closed because resources are cut from the project and are no longer available for the project. In case of addition (option D), a project is closed because projects are evolved into ongoing operations. In case of Extinction (option B) project is completed and is accepted by the stakeholders.

There is an issue with one of the manufacturing processes that is used to create the required parts for routers and switches that your company produces. What should you use to identify the cause of this issue and the effect it may have on your project? A. Continuous improvement B. Histogram C. Ishikawa diagram D. Flow chart

Correct Option: C EXPLANATION Ishikawa diagram or cause and effect diagram is a tool used to systematically identify and present all the possible causes and sub-causes of a particular problem in a graphical format. It can help in quality control by identifying the causes that contribute to a specific quality problem. Cause and effect diagrams are particularly useful for identifying the causes of risks

Which of the following is the BEST thing to do to complete a project three weeks ahead of schedule? A. Inform the customer that the critical path does not allow early completion B. Motivate the team to work hard and look for the status update the following month C. Meet the team and look for options for crashing or fast tracking the critical path D. Consult Project Sponsor

Correct Option: C EXPLANATION It is always important to understand what best can be done before going ahead with any other tasks.

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

Correct Option: C EXPLANATION It is important to analyze the impact of change on not only the triple constraints, but also on the quality. The Project Manager needs to determine whether the quality objectives and quality planning needs to be modified to address the changes. Option (b) is already addressed as part of assessing the impact on the triple constraints.

The supplier to your project is refused access by the security staff of your company to certain locations that are required for executing the assignment. As a project manager you should: A. Let the supplier sort out the security related issues B. Remind the supplier that it is their responsibility to provide timely delivery C. Contact your security department and try to sort out the matter D. Bring the work back in-house

Correct Option: C EXPLANATION It is your responsibility to make sure that the supplier has all the facilities and accesses needed to get the work done

By the rule of seven, a process is said to be out of control if a run of seven samples is found on one side of the process mean. What is the probability that a run of seven occurs on either side of the mean due to random variation? A. 2% B. 3.50% C. 1.56% D. 2.73%

Correct Option: C EXPLANATION Let the first sample be on any one side of the mean. The probability that the subsequent sample is on the same side is A, the probability that the third sample is on the same side is again 1/2 A, and so on. The probability for the seventh sample on the same side is also A. Therefore the probability that all the six subsequent points are on the same side as the first is 1/2A * 1/2A * 1/2A * 1/2A * 1/2A * 1/2A = 1/64 = 0.0156 => 1.56%.

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 a rough order of magnitude. While presenting it to your sponsor and stakeholders, one of the stakeholders asks if you have also done life cycle costing of the project. What is your BEST response as a credible Project Manager? A. Project cost estimating is primarily concerned with the cost of resources needed to complete the project and need not consider any other costs B. Since it is the initial stage of the project, cost details required for Life Cycle costing of the project are not available and hence it is not relevant C. Lifecycle costing provides the lowest long-term cost of ownership and should be used as a management decision tool D. Lifecycle costing should be done by the project sponsor as it impacts long-term business decisions

Correct Option: C EXPLANATION Life cycle costing provides the lowest long term cost of ownership and should be used as a management decision tool. Project cost management is primarily concerned with the cost of resources needed to complete the project. (Option [a] is partly true.) Project cost management should also consider the effect of project decisions on the subsequent recurring cost of using, maintaining, and supporting the project. The lifecycle costing analysis can be used to assist management in the decision-making process where there is a choice of options. Lifecycle costing is looking at the cost of the whole life of the product, not just the cost of the project.

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? A. Project Cost estimating is primarily concerned with cost of the resources needed to complete the project and needn't consider any other costs B. 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 C. Lifecycle costing provides the lowest long-term cost of ownership and should be used as a management decision tool, in case of alternatives D. Lifecycle costing should be done by the Project Sponsor as it impacts long-term business decisions

Correct Option: C EXPLANATION 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.

Your organization is working on several critical projects, and none of them are going well. Higher management has decided to adopt the Kaizen approach to improve the performance of all the projects. You have been assigned as a project manager to apply this approach throughout the organization. What kind of service are you involved in? A. Quality plan B. Quality control C. Manage quality D. Quality inspection

Correct Option: C EXPLANATION Manage Quality is a process to determine if the project activities are complying with organizational and project policies, standards, processes, and procedures. This process is primarily concerned with overall process improvement and does not deal with inspecting the product for quality or measuring defects. The primary focus is on steadily improving the processes and activities undertaken to achieve quality.

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: A. Functional Organization B. Projectized Organization C. Composite Organization D. Balanced Matrix Organization

Correct Option: C EXPLANATION Many times, even a fundamentally functional organization may create a special project team to handle a critical project. This may have many characteristics of a project team in a projectized organization. The team may include full-time staff from different functional departments, may develop its own set of operating procedures, and may operate outside the standard, formalized reporting structure.

Tom always delivers his projects on time and within budget. He believes that his success can be explained by the fact that he makes all of the project decisions himself and then enforces those decisions with an iron hand. His management style is best described by: A. Force Field Theory B. Expectation Theory C. McGregor's Theory X D. McGregor's Theory Y

Correct Option: C EXPLANATION McGregor's Theory X asserts that the average person dislikes work inherently and that effective management lies in threats, intimidation, and minimal involvement of the individual in work decisions.

Which of the following is NOT a tool used in the perform qualitative risk analysis process? A. Probability and Impact Matrix B. Risk Prioritization C. Monte Carlo Simulation D. Root cause identification

Correct Option: C EXPLANATION 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.

Which are the four components of the Kano model that are used in prioritizing the Agile project requirements? A. Prioritizer, Delighters, Timely, Lately B. Must, Should, Could, Won't C. Must haves, dissatisfiers, satisfiers, and delighters D. Dissatisfiers, satisfiers, delighters, Sadists

Correct Option: C EXPLANATION Must haves, dissatisfiers, satisfiers, and delighters. This is a dummy question. You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

In which of the following procurement management processes is negotiated settlement used as a tool and technique? A. Plan procurement management B. Conduct procurements C. Control procurements D. Close Project

Correct Option: C EXPLANATION Negotiated settlement is used as a tool and technique in the Close Procurements process. The key objective of negotiated settlement is the settlement of all outstanding issues, claims, and disputes, if possible.

What is the name of PMI's organization maturity model for project management? A. CMMI B. Six Sigma C. OPM3 D. Just in Time (JIT)

Correct Option: C EXPLANATION OPM3 was published by the Project Management Institute Incorporated (PMI). It provides a method for organizations to understand their organizational project management processes and measure their capabilities in preparation for improvement.

Which of the following is NOT an element of the project charter? A. The product description or a reference to this document B. The business need that the project was undertaken to address C. Work package descriptions D. The formal authorization to apply organizational resources to project activities

Correct Option: C EXPLANATION Of all the options listed, Option C, work package descriptions, is not an element of the project charter. It is an element of the Work Breakdown Structure (WBS).

Which of the following is an input to the "identify stakeholders" process? A. Stakeholder Register B. Expert Judgement C. Procurement Documents D. Stakeholder Management Strategy

Correct Option: C EXPLANATION Of the stated options, "Procurement documents" is an input to the "Identify Stakeholders" process. Stakeholder register and Stakeholder management strategy are outputs from the "Identify Stakeholders" process. Expert Judgment is a tool and technique for this process. For more information on this process, refer to page 507 of PMBOK® Guide - Sixth Edition.

Which of the following is NOT an exit criterion? A. Lessons learned B. Customer sign-off C. Stakeholder analysis D. Regulatory Inspections

Correct Option: C EXPLANATION Of the stated options, all are criteria for exit except for stakeholder analysis, which is an activity in the initiating process group.

You are working for a healthcare facility and are overseeing the implementation of a new computer infrastructure and office automation project at the local hospital. You made all the efforts to ensure that a rigorous test was done and scope was validated prior to any major release in the project. Recently, you made the final delivery to the customer and communicated the successful news to all relevant members of the project. You were surprised when customer called to inform you that he was not very happy with the release as it did not support one of his key functionalities and demanded that the feature be added as soon as possible. What should you do first in this kind of situation? A. Estimate the time, cost, and resources required to add the feature as specified by the customer B. Have an urgent meeting with the sponsor to discuss the customer's concern C. Inform the customer that the project has been delivered and closed, and that any addition will be treated as a new project D. Perform root cause analysis on how the scope validation and testing procedures missed the key requirement

Correct Option: C EXPLANATION Once the project scope has been completed and validated and final delivery has been made, the project is considered completed. Any kind of disputes should be resolved in favor of the customers as much as possible, but the project manager should also be aware that customers are not always right and should resist in this sort of situation. Once the project is completed, any addition to the project should be considered a new project, and detailed impact analysis should be carried out.

Which of the following options best describes Achievement Theory of Motivation? A. Employees given a reward are most likely to be motivated B. People cannot be trusted and must be governed and monitored regularly to ensure tasks get done C. People are motivated by achievement , power, and affiliation D. Employees will put in an effort in direct proportion to the perceived review and reward

Correct Option: C EXPLANATION Option A and Option D are related to Expectancy theory; Option B is related to Theory X style of management. So, these options are not the correct answers. Option C is the correct answer. The Achievement Theory of Motivation states there are three types of motivational needs: need for achievement, need for authority and power, and need for affiliation. As per this theory, a strong "affiliation motivation" undermines a manager's objectivity because of his need to be liked, and this affects a manager's decision-making capability. A strong "authority motivation" will produce a determined work ethic and commitment to the organization. Such people are attracted to the leadership role, though they may not possess the required flexibility and people-centered skills. People with strong "achievement motivation" make the best leaders although there can be a tendency to demand too much of their staff in the belief that they are all similarly and highly achievement-focused and results-driven, which of course most people are not. As per this theory, achievement-motivated individuals set goals which they can influence with their effort and ability, and as such the goal is considered to be achievable. This determined results-driven approach is almost invariably present in the character make-up of all successful business people and entrepreneurs. Achievement is more important than material or financial reward. Achieving the aim or task gives greater personal satisfaction than receiving praise or recognition. Financial reward is regarded as a measurement of success, not an end in itself. Security is not prime motivator nor is status. Feedback is essential because it enables measurement of success, not for reasons of praise or recognition (the implication here is that feedback must be reliable, quantifiable, and factual). Achievement-motivated people constantly seek improvements and ways of doing things better.

You are managing a project that is scheduled to run for an entire year. Things were looking good after the first two months. However, due to some mistakes made by the construction crew at the end of the third month, you realize that the expected work to be completed at this stage is not complete. As a result, the project is behind schedule and is also over budget. However, there are stiff penalties in the contract if the project is not complete within the stipulated timelines. Your senior management as a result has committed to additional staff to the project if required. What would be the Estimate at Completion for this project? A. EAC = BAC/CPI B. EAC = AC + BAC - EV C. EAC = AC + (BAC - EV/(CPI * SPI ) D. EAC = AC + Bottom-up Estimate

Correct Option: C EXPLANATION Option A is to be used if past CPI is expected to continue. Option B is to be used if future work is going to be performed at the planned rate. Option C is to be used if deadlines must be met and both CPI and SPI influence remaining work. Here, the project must be completed within stipulated timelines. Option D is to be used when the initial plan is no longer valid, which is not the case here.

You are part of a Quality Assurance team and have scheduled a Quality Audit for one of the projects. What would not be a goal or objective of performing this audit? A. To identify if all the good and best practices are being implemented B. To identify all gaps , non-conformity, and shortcomings C. To identify the root cause of the Quality issues

Correct Option: C EXPLANATION Option A, B, and C are the objectives or goals of this exercise. The purpose of the audit is to identify what is working well and what is missing, but never to find root cause of issues, which is done in Process analysis. Since the question is asking what is not a goal or objective of performing a Quality Audit, option D is the correct answer.

In one of your projects, a team member, John, informs you that he works on user interface development, which is a very creative activity. He cannot estimate the time required to complete the activity. However, as a Project Manager, you need the activity's estimates. You decide to use the past data, i.e., the number of hours spent by him and the number of user interfaces designed by him in those hours. Which estimation technique are you using? A. Heuristics B. Analogous Estimation C. Parametric Estimation D. Three Point Estimation

Correct Option: C EXPLANATION Parametric estimation is the technique of using a parameter to generate estimates. In this case, the Project Manager is using the parameter of the number of interfaces produced per hour to do the estimation.

For the monthly status meeting with the project's key stakeholders, you have prepared your project report using earned value calculations. Your project shows a CPI<1 and SPI<1 and you are worried that the stakeholders may be unhappy with the project performance. One of your friends suggests you alter the data, so you form a near perfect performance curve. What should you do? A. Follow your friend's suggestion B. Take a leave that day and ask one of your team members to attend the meeting C. Provide true information about the project performance and explain the reasons D. Provide true information about the project performance and put the entire blame on one of your team members in the meeting

Correct Option: C EXPLANATION Per the PMI's professional responsibility guidelines, you should provide accurate and truthful representations in your reports.

Which contract types would entail the MOST cost risk for the buyer? A. Cost Plus Fixed Fee B. Cost Plus Incentive Fee C. Cost plus percentage of cost D. Cost Plus Award Fee

Correct Option: C EXPLANATION Please refer to their definitions to understand what each of them mean. Cost plus fixed fee contracts pay a predetermined fee that was agreed upon at the time of contract formation. In a cost-plus-incentive fee contract, a larger fee is awarded for contracts which meet or exceed performance targets including cost savings. Cost plus award fee contracts pay a fee based upon the contractor's work performance. In some contracts, the fee is determined subjectively by an awards fee board, whereas in others, the fee is based upon objective performance metrics. Cost plus percentage of cost contracts pay a fee that rises as the contractor's costs rise. Since this contract type provides no incentive for the contractor to control costs, it is rarely utilized and is most risky for the buyer.

Your PMO stipulates that plurality support is the minimum level of support for any major decision in a project. You disagree with a block of supporters on a plan to purchase a piece of expensive equipment for your project. This block is larger than any other in your team even though it is only 45 percent of the total team. What should you do in this kind of situation? A. Have an urgent meeting with the sponsor. B. Insist that any major decision should be supported by more than 50 percent of the team C. Do nothing as PMO permits decisions to be made by a plurality rather than a majority D. Ask PMO to reevaluate their policy

Correct Option: C EXPLANATION Plurality is a group decision making technique where a decision is based on the largest block in a group even if a majority is not achieved. As PMO permits plurality, you have no option but to agree with the largest block in a group. Asking PMO to reevaluate their policy will not resolve the problem immediately.

Which of the following statements is true regarding Procurement Documents? A. These are the response documents provided by the seller to the buyer B. It is the formal agreed contract between the buyer and the seller C. It is used to solicit proposals from sellers and contains details of expected services or work to be done D. Describes how product or services will be acquired externally and the type of contract to be administered

Correct Option: C EXPLANATION Procurement documents are used to solicit responses from sellers. As such, it contains sufficient information regarding the work in the form of Procurement statement of work. Option A is incorrect since this document serves as an input for sellers to provide response and it is not the response of the seller. This is not the contract as we are still looking for prospective sellers. Option D is wrong since it is the Procurement Management plan which determines how product or services will be acquired externally and the type of contract to be administered.

You are overseeing a project to build a robot, which will operate on electricity as well as solar power. The robot should have face and voice recognition capability; it should help the owner with daily household activities and keep him company. The robot should be able to learn from various experiences, develop its memory, and gradually make more complex decisions on its own. In which of the following documents should this information be captured? A. Project scope B. Scope baseline C. Product scope D. Requirements traceability matrix

Correct Option: C EXPLANATION Product scope describes the features, functions, and physical characteristics that characterize a product, service, or result. On the other hand, project scope describes the work needed to deliver a product, service, or result with the specified features and functions. Product scope may include subsidiary components, and project scope results in a single product, service, or result. Product scope completion, measured against the product requirements to determine successful fulfillment and project scope completion, is measured against the project plan, project scope statement, work breakdown structure (WBS), WBS dictionary, and other elements.

You are a project manager in the IT industry. You have been asked to perform a cost benefit analysis for two proposed projects. Project A costs $2.4 million with potential benefits of $12 million and future operating costs of $3 million. Project B costs $2.8 million with potential benefits of $14 million and future operating costs of $2 million. Which project should you recommend? A. Project A, as the cost to implement is cheaper than project B B. Project A, as the potential benefits plus the future operating costs are less in value than the same calculation for Project B C. Project B, as the potential benefits minus the implementation and future operating costs are greater in value than the same calculation for Project A D. Project B, as the potential benefits minus the costs to implement are greater in value than the same calculation for Project A

Correct Option: C EXPLANATION Project B, as the potential benefits minus the implementation and future operating costs are greater in value than the same calculation for Project A. Project B's cost benefit analysis is $9.2 million benefit to the company compared to $6.6 million for Project A. Cost-benefit analysis takes into consideration the initial costs to implement and future operating costs.

You are managing a software development project in the banking domain. Things have been proceeding as per plan, but with the economic meltdown, the client has had to abruptly shut down the project due to lack of funds to source the projects any longer. As a Project manager, what is the next thing to do? A. Free up project resources so that they can be utilized on other tasks B. As there are very few tasks remaining, get those completed C. Ensure all project closure procedures are followed and lessons learned are updated D. Publish work performance reports for the project

Correct Option: C EXPLANATION Project closure procedures must be followed. They must be followed irrespective of whether the project was successfully completed or if it was terminated. We always follow closure procedures. So in this case, the Project Manager should choose option C.

Tom is a project manager who is trying to understand different project selection method and different parameters like PV, NPV, IRR, etc., different types of costs and the earned value techniques. Which of the following technique/skill/knowledge is he working on? A. Lessons learned management techniques B. DIKW model C. Project finance principles D. Benefit analysis

Correct Option: C EXPLANATION Project finance principles help in understanding different project selection methods and different parameters like PV, NPV, IRR, etc., different types of costs and the earned value techniques. Lessons learned management techniques refer to the knowledge gained during a project which shows how project events were addressed or should be addressed in the future with the purpose of improving future performance. DIKW is Data-Information-Knowledge-Wisdom and comes under knowledge management. Benefit analysis helps in justifying the business case. It results in taking the decision to start and/or continue the project or not. These techniques are newly added in the examination content outline.

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? A. Kick-off meeting B. Pull Communication C. Push Communication D. Communication model

Correct Option: C EXPLANATION 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 - Sixth Edition, Project Communication Management, page 374.

A project manager shares project performance through status reports via email to all the stakeholders of the project. Which of the following techniques is the PM using? A. Kick-off meeting B. Pull Communication C. Push Communication D. Communication model

Correct Option: C EXPLANATION Push communication is sending information to specific recipients who need to know the information. This ensures that the information is distributed but does not actually certify that it reached or was understood by the intended audience. Push communication examples include letters and press releases. For more information, refer to Communication Methods, page 374, PMBOK® Guide Sixth Edition.

You are a project manager and your team is preparing for the internal quality audit cycle. You feel that the team is a little apprehensive about the audit process, so you decide to give them an overview of the process. Which of the following is INCORRECT about quality audits? A. Quality audits are used to identify all the best practices implemented in a project B. Quality audits help to share best practices in a project with other projects in the organization C. Quality audits aim to assess project team effectiveness and suggest improvements D. Quality audits help to improve process implementation

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

You are a project manager struggling with your communication skills. You like to keep to yourself unless prompted for your input. On the other hand, Steve is highly regarded by everyone and very well liked. You consider Steve to be your role model as he is capable of getting others to see his way on many issues. What type of power does Steve possess? A. Expert power B. Reward power C. Referent power D. Legitimate power

Correct Option: C EXPLANATION Reference power is based on referring to someone in a higher position to leverage some of the superior's power. This power is also based on the charismatic personality of the project manager and the respect that a person engenders.

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? A. Reduce Scope B. Extend Working Hours C. Resource Leveling D. Schedule Compression

Correct Option: C EXPLANATION 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.

A project manager is in the project planning phase. He is creating a plan to describe how human resource requirement on the project would be met and using a bar chart tool called resource histogram for charting this requirement. However, he notices that some of the individual bars on the resource histogram extend beyond the maximum allowed hours. What should the project manager do to correct this? A. Reduce Scope B. Extend Working Hours C. Do Resource Leveling D. Schedule Compression

Correct Option: C EXPLANATION Resource leveling is required whenever individual bars on the resource histogram extend beyond the maximum allowed hours. Resource leveling can be done by either adding more resources or modifying the schedule. Option (a) reducing scope or (b) extending working hours would be detrimental to the project's success and is not recommended. Option (d) schedule compression, which can be done through either crashing or fast tracking, would not necessarily be helpful in the current situation. Specific bars are showing an overflow. This can be best tackled using resource leveling.

While managing an ERP solution implementation project, you realize that you are not utilizing your resources evenly in the project. You find out that you are using almost all of your resources in some work weeks and hardly using any in some other work weeks. You consider moving around some of the activities and resources so that you can utilize your resources evenly throughout the project life cycle. Which of the following techniques would you use? A. Fast tracking B. Crashing C. Resource leveling D. Critical chain

Correct Option: C EXPLANATION Resource leveling is used to produce a resource-limited schedule by letting the schedule slip and cost increase in order to deal with a limited amount of resources, resource availability, and other resource constraints. It can be used when shared or critically required resources are only available at certain times in limited quantities or when resources have been over-allocated. You may have several peaks and valleys in your resource histogram. In order to level the resources, evenly utilize them as much as possible, or keep resource usage at a constant level; you can move some of activities from the week when you are using a lot of resources to a week when you are hardly using any.

You are a project manager on a software development project. You have outsourced a component of your product to a third-party vendor which is due to be delivered next week. You found out that the delivery of the component may be delayed due to political unrest in the vendor's location. What is the BEST you can do in this situation? A. Report to your senior manager about probable delay along with details on the current political situation at vendor's place B. Communicate to the vendor that any possible delay would attract a fine and affect future payments C. Revisit your project schedule and look at alternatives to reduce the impact of the delay D. Since there is no official communication from the vendor, use wait and watch policy

Correct Option: C EXPLANATION Revisit your project schedule and look at alternatives to reduce the impact of the delay. This question can be tricky as it does not clearly state whether the project manager received a formal communication of the delay from the vendor. However, since a project manager should proactively look for any event that may delay project schedule, option (c) is the best alternative. Option (b) is harsh, especially in a situation which is beyond the vendor's control (political unrest in the country).

You are an IT project manager working on several networking and software development projects. It is becoming increasingly difficult for you to keep track of the latest trends in your field as technology is continuously changing. You would love to try the latest technology and tools available. However, your organization has advised you to play it safe. In the last three years, the organization has not invested in new technology and won't adapt to anything that is not well tested and used by others in the industry. In terms of risk attitude, your organization can be best described as: A. Risk seeker B. Risk Neutral C. Risk Averse D. Risk Lover

Correct Option: C EXPLANATION Risk averse is someone who does not want to take risks, and the project manager seems to be part of such an organization. Risk neutral describes a person or an organization indifferent to risk. Risk seeker suggests an aptitude to take risks with an opportunity for higher returns. Risk lover is a made-up term.

As a part of the Executive Management team, you have a number of project managers reporting to you. One of the project managers has reported the data for their project that has got you worried regarding the health of the project. EV = $ 300000, PV = $ 550000, AC = $ 200000. You are worried since, as per your calculations, the project is behind schedule. However, the Project Manager disagrees and feels the project is ahead of schedule. What is the correct interpretation of the data? A. Both you and the project manager are incorrect B. Both you and the project manager are correct as interpretation is very subjective C. You are correct as the project is behind schedule D. The Project Manager is correct as the project is ahead of schedule

Correct Option: C EXPLANATION SPI = EV / PV = 300000/550000 = less than 1. An SPI less than 1 indicates the project is behind schedule.

A stakeholder register contains stakeholder classification, identification, and assessment information. It also points out challenges related to working with the stakeholders as well as the project manager's impression of their knowledge, skills, capabilities, and attitude. Which of the following is TRUE regarding the stakeholder register? A. It should be accessible to all the team members and stakeholders B. It should be accessible only to the sponsor C. A project manager may publish it with other project documentation or keep it in reserve for personal use only D. It should be accessible only by the PMO

Correct Option: C EXPLANATION Since a stakeholder register contains sensitive information, a project manager may publish it with other project documentation or keep it in reserve for personal use only.

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? A. The Project Manager B. The Project Sponsor C. Functional Managers D. Customer

Correct Option: C EXPLANATION 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.

As a Project Manager, you have instructed your project team to update the organizational process assets, including the "lessons learned" database and risk management template of future projects, based on project audit findings. You are in _______ process of project management. A. Control Procurements B. Close Contracts C. Monitor Risks D. Perform Quality Assurance

Correct Option: C EXPLANATION Since the lessons learned are based on audit findings, you are definitely in the "monitor risks" phase. Also, remember that "lessons learned" could be a continuous activity done throughout the project execution and not necessarily at the end of the project. Refer PMBOK® Guide - Sixth Edition, Monitor Risks, Page 455

You have been managing a top-secret government project, which has been progressing as planned until recently. Suddenly, one of your team members calls and informs you that the project has encountered an unexpected major problem that was not included in the risk register. What should be your first course of action? A. Take corrective and preventive actions B. Update the risk management plan C. Create a workaround D. Create a fallback plan

Correct Option: C EXPLANATION Since the problem has occurred, the first thing you should do as project manager is address the risk by creating a workaround. Once the issue is addressed, you may need to reevaluate your risk identification process, look for unexpected effects of the problem, inform management, update the risk management plan, create a fallback plan, and take corrective and preventative actions.

You have been managing a top-secret government project, which has been progressing as planned until last night. Suddenly, one of your team members calls and informs you that an unexpected major problem has occurred that is not included in the risk register. The problem will now cost the project an additional amount. What will be your first course of action? A. Accept the risk B. Update the risk management plan C. Use the management reserves D. Have an urgent meeting with the stakeholder

Correct Option: C EXPLANATION Since the problem has occurred, you should address the risk first. You accept the risk when you have no other option. As a project manager, you would use your available reserves in this kind of situation. The contingency reserves are for 'known unknowns'; thus, you use them to pay for risks that you've planned for. You may need to use the management reserves as they are for 'unknown unknowns' or problems that you did not plan for but showed up anyway. Once the issue is addressed, you may need to reevaluate your risk identification process. Look for unexpected effects of the problem, inform management, update the risk management plan, create a fallback plan, and take corrective and preventive actions.

A customer who is in the latter part of the project execution wants to add scope to the project. The project manager discusses this change with the customer and raises a written change request. He then evaluates if this change can be addressed through project reserves and explores alternatives. The project manager finds that this addition would result in missing the next milestone delivery of the project. What should the project manager do NEXT? A. Evaluate the impact of the change on other factors of triple constraint-cost and time B. Perform integrated change control C. Get an approval from the Change Control Board D. Update the project baseline and inform the customer

Correct Option: C EXPLANATION Since the project affects the milestone deliverable, it is best to gain approval from the Change Control Board. The board will have the responsibility to review change requests to determine if additional analysis is warranted. They can also approve or reject project changes. The change control board can include the project sponsor, customer, experts, and others besides the project manager.

A customer, in the later part of project execution, wants to add scope to the project. Tom, the project manager, discusses this change with the customer and raises a written change request. He then evaluates if this change can be addressed through project reserves and explores alternatives. He finds that this addition would result in missing the next milestone delivery. What should he do NEXT? A. Evaluate the impact of the change on other factors of triple constraint - cost and time B. Perform Integrated Change Control C. Get an approval from the Change Control Board D. Update the project baseline and inform the customer

Correct Option: C EXPLANATION Since the project affects the milestone deliverables, it is best to gain approval from the change control board. The board would have the responsibility to review change requests to determine if additional analysis is warranted. Perform integrated change control is the process to evaluate the impact analysis and approve or reject the change request. Change control board is a group of people who will take the decision to approve or reject the change request. Change control tool will be used to carry out change control.

Which of the following is NOT an output of the Conduct Procurements process? A. Procurement contract award B. Selected sellers C. Source selection criteria D. Resource calendars

Correct Option: C EXPLANATION Source selection criteria are not an output of the Conduct Procurements process. They are an output of the Plan Procurement Management process. They are developed and used to provide sellers with an understanding of the buyers' need and to help them decide whether to bid or make a proposal on the project. Later on, it also helps to evaluate sellers by rating or scoring them.

You are concerned about the inspection process of micro satellites. The manufacturing is going for the production of new micro satellites. Each satellite takes about three days to manufacture and costs US $125,000. The satellites are so small that inspection would destroy them. Under these circumstances, what should you do? A. Outsource the inspection to another firm with more expertise B. Evaluate the attributes of the population C. Inspect a sample of the satellites D. Decrease the costs of quality

Correct Option: C EXPLANATION Statistical sampling or sample testing is the best way to extrapolate the results. It involves choosing part of a population of interest for inspection.

A company recently launched a digital instrument in the market which was completely unsuccessful. The company has incurred huge costs in the development of the product including intellectual property, research and development, and patents. All this cost would be termed as _____. A. Opportunity cost B. Depreciation C. Sunk Cost D. Internal Rate of Return

Correct Option: C EXPLANATION Sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Examples of sunk costs are the cost of a seat on an airplane to the airline. The cost of an airline seat is primarily fixed and sunk (as long as one assumes the flight was going to take place regardless of whether the seat was sold) with a small portion attributed to variable costs. It makes sense for the airline to develop a pricing structure designed to maximize the revenue of the aircraft during a flight.

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? A. Before contract closure B. Before awarding the contract C. As part of project status review D. In case of nonconformance by seller

Correct Option: C EXPLANATION The Project Manager is doing a procurement performance review as part of the 'control 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 - Sixth Edition Project Procurement Management page 492.

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? A. Determine Resource Requirement for each activity in the project B. Use techniques like Critical Path method and What-if Analysis to calculate optimum duration of the project C. Use this approved schedule duration as a baseline and start tracking the project D. Create a Network diagram of the project using one of the diagramming methods

Correct Option: C EXPLANATION The Project Manager is in the 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.

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? A. Stakeholder Register B. Stakeholder Management Strategy C. Requirements Documentation D. Issue Log

Correct Option: C EXPLANATION 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.

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? A. Hire additional resources and brief them about the project B. Inform the customer that this deadline can't be met C. Discuss the situation with the team and give them the choice to willingly work overtime D. Send an official mail, making it compulsory for the team to work over the weekends

Correct Option: C EXPLANATION The Project Manager should explore all the options to avoid delay in the project. In this case, there might be some team members willing to work over the weekends, and the Manager can re-plan the schedule once their availability is confirmed.

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? A. Tell her that you wouldn't recommend her as she has broken your trust by leaving the project before closure B. Immediately ask the Functional Manager to remove her from the project and give her a bad recommendation C. Discuss and plan her exit so that it would have the least impact on the project schedule D. Compliment Janice on her decision and suggest that she can leave the project whenever she likes as you would handle her additional responsibilities

Correct Option: C EXPLANATION 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.

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? A. Planning B. Executing C. Monitor and Control D. Quality Audit

Correct Option: C EXPLANATION 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.

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? A. The senior management didn't approve the project charter B. The project team didn't have required technical expertise C. The project sponsor failed to support the project D. The project contract was not signed off by the customer

Correct Option: C EXPLANATION The answer to this question can be reached by the process of elimination. Since the project is already initiated and is in the planning stage 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.

You are a project manager on a highly visible and critical project in your company. This project was initiated with much fanfare, and you have some of the best technical experts as a part of the project team. You are in the planning process and detailing the scope of the project when you hear that the project is being terminated. What could be the MOST likely cause for this step? A. Senior management didn't approve the project charter B. The project team did not have the required technical expertise C. The project sponsor failed to support the project D. The project contract was not signed off by the customer

Correct Option: C EXPLANATION The answer to this question can be reached by the process of elimination. Since the project is already initiated and is in the planning stage, option (a) and (d) can't be true. There is no evidence to believe option (b). The most probable explanation could be failure to support the project by the sponsor. The term sponsor, by definition, suggests financial responsibility. This sponsor is thought to own the project and is considered responsible for ensuring its success. He is also typically the one who proposes the project in the first place and whose business unit reaps its benefits.

You are overseeing a large data center project and have requested bids from several vendors to procure numerous networking devices such as routers, switches, firewalls, PCs, servers, etc. You decide to go for the lowest bidder since all the bidders are offering devices from the same manufacturer. Senior management suggests that you conduct a bidder conference prior to selecting a specific seller. Which of the following mandatory standards in the PMI code of ethics and professional conduct will the bidder conference satisfy? A. Respect B. Honesty C. Fairness D. Responsibility

Correct Option: C EXPLANATION The bidder conference is also called the contractor conference, vendor conference, or pre-bid conference. It is intended to assure that no seller receives preferential treatment and that all sellers have a clear, common understanding of the procurement (such as technical requirements, contractual requirements) process. The key objective is to provide all potential contractors with the information they need to determine if they would like to continue with the contracting process. The bidder conference will ensure the mandatory standard of fairness in the PMI code of ethics and professional conduct by making the opportunity equally available to all qualified vendors.

You are managing a project, and based on risk identification, you feel very confident that the project should run smoothly. The next day the lead architect indicates a risk which was not envisioned. He indicates a 10% possibility of the risk occurring and the effort involved in choosing an alternate path worth 2000 USD. The side effect of alternate path implementation is that a lot of testing efforts would get reduced worth 4500 USD and the possibility being 30%. What would be the EMV? A. ($200) B. $1,350 C. $1,150 D. $1,550

Correct Option: C EXPLANATION The correct answer is $1150. In the case of the rework effort, the EMV is -$200. The EMV of the side effect is $1350. So, the total EMV is $1150.

You are a project manager managing a project with limited resources. Which schedule network analysis technique would be most useful to modify the project schedule for limited resources? A. Critical Path Method B. Fast Tracking C. Critical Chain Method D. Crashing

Correct Option: C EXPLANATION The critical chain method is a schedule network analysis technique that modifies the project schedule to account for limited resources. In the critical chain method, the project schedule network diagram is built initially using duration estimates and dependencies. Since the resources are a constraint, the resource availability is entered next and the resource limited schedule result is determined. Hence, the critical chain method is a network analysis technique used when project resources are constrained. For more information, refer to Schedule Network Analysis, page 209, PMBOK® Guide Sixth Edition.

You are examining the network paths for your project. Path A's duration is: 1-2-3-5-8 A. Path B's duration is 1-3-5-6-7 B. Path C C. Path B D. Path A

Correct Option: C EXPLANATION The duration of Path A is 19, the duration of Path B is 22, the duration of Path C is 21, and the duration of Path D is 21. Therefore, Path B (answer C) is the critical path since it's the longest path on the project.

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? A. Initiation B. Planning C. Execution D. Monitor and Control

Correct Option: C EXPLANATION The executing process group involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan.

After a huge effort, the project team has finally determined the specifications for a major scope change to be made in the project. In light of this, what should the Project Manager do FIRST? A. Look for other changes B. Gain sign off on this change C. Calculate the risks associated with the project D. Start execution of the project

Correct Option: C EXPLANATION The first step that the Project Manager should do is to find out the impact of the change, in terms of risk management.

Take the values from the Image. In case there is no change in the schedule of individual activities, what will be the float on Task G? simTest A. 0 days B. 8 days C. 9 days D. 1 day

Correct Option: C EXPLANATION The float for Task G is 9 days. Task G (LS) - Task G (ES) = 10-1= 9.

A project manager wants to determine the variance for an activity estimate using the three-point estimate with the following data: Pessimistic=14, Optimistic=2, and Realistic=5. What is the variance? A. Five B. Two C. Four D. Not enough information

Correct Option: C EXPLANATION The formula for variance = [( Pessimistic-Optimistic)/6] squared. The answer is 4

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? A. 5 B. 2 C. 4 D. Not enough information

Correct Option: C EXPLANATION The formula for variance = [( Pessimistic-Optimistic)/6]squared. The answer is 4.

Project A has an Internal Rate of Return (IRR) of 20%, Project B has an IRR of 12%, Project C has an IRR of 22%, and Project D has an IRR of 10%. Which of these would be the BEST project? A. Project A B. Project B C. Project C D. Project D

Correct Option: C EXPLANATION The higher the IRR, the greater the financial return. Since Project C has the highest IRR among the stated projects, Project C is the best.

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? A. Project Manager B. Project Sponsor C. Functional Manager D. Customer

Correct Option: C EXPLANATION The issue requires functional expertise and hence the Functional Managers are best able to assist in this matter.

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: A. Correct because it helps to get team buy- in and its commitment to the change B. Correct as brainstorming technique helps to bring out creative ideas to solve the problem C. Incorrect as lot of time and effort of the project team are spent on decisions which could be singularly made by the Project Manager D. Incorrect as not all the solutions coming of a brainstorming session can be implemented, resulting in disappointment in the team

Correct Option: C EXPLANATION 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.

A project manager likes to involve his team in all the decision-making processes. Whenever there are issues which require an urgent decision, he calls the team to work out a solution together. This approach of the project manager is: A. Correct, as it helps to get team buy- in as well as their commitment to the change B. Correct, as brainstorming technique helps to bring out creative ideas to solve the problem C. Incorrect, as lot of time and effort will be expended by the project team on decisions which could be singularly made by the project manager D. Incorrect, as all the solutions from a brainstorming session cannot be implemented resulting in disappointment in the team

Correct Option: C EXPLANATION The key words here are involve his team on all of the decision-making processes." It is important for the project manager to involve his project team to work out solutions to critical project issues; however

The knowledge that the team and stakeholders gain by performing the project is known as: A. Team development B. Best practices C. Lessons learned D. Cumulative intellectual property

Correct Option: C EXPLANATION The lessons learned may be converted to best practices by an authority outside the project. Team development pertains less to knowledge and more to soft skills.

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. A module gets audited more frequently because it has maximum issues B. A module may get audited more because it is the most critical C. Modules to be audited are picked up based on the quality management plan D. Next time, make sure that all modules get audited at the same frequency

Correct Option: C EXPLANATION The logic for selecting modules for audit should be outlined in the quality management plan and should be followed.

You were asked to sit as an observer on another project's status review meeting. You observed that everyone present in the meeting was talking at the same time about different issues. The whole meeting was chaotic. What do you think was not done? A. There were cultural issues as people of different backgrounds were attending the meeting B. The right people were not invited for the meeting C. The meeting agenda and ground rules were not set D. The Project Manager was ineffective

Correct Option: C EXPLANATION The meeting agenda and ground rules need to be set for all meetings to avoid situations like the one mentioned in this question.

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 completed the final version of lesson learned in the corporate database. Which of the following is a critical activity that the project manager should complete before formally closing the project? A. Confirm that all the requirements in the project are met B. Ensure that all project management processes are complete C. Obtain formal sign-off for the project from the customer D. Index and archive the project records

Correct Option: C EXPLANATION The most important part of project closure is getting formal sign-off from the customer. As it indicates, the customer considers the project completed and accepts the completed project. Formal sign-off in a contracting situation constitutes legal acceptance.

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? A. Confirm that all the requirements in the project are met B. Ensure that all project management processes are complete C. Obtain formal sign-off of the project from the customer D. Index and archive the project records

Correct Option: C EXPLANATION 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.

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? A. Start managing project as you gain more insight into day to day responsibilities B. Meet with the project team to understand open issues in the project C. Conduct a meeting with the customer to understand his concern over project progress D. Improve project schedule and cost control measure so that SPI and CPI reaches above 1.5

Correct Option: C EXPLANATION 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.

Which of the following statements is FALSE concerning a project management office (PMO)? A. It can be responsible for the direct management of projects and program. B. It is an organizational body responsible for establishing and maintaining templates, policies, procedures, best practices, and standards for project management methodologies. C. In order to be managed together, the various projects supported by a PMO should be related. D. It conducts periodic project audits to monitor compliance with project management standards.

Correct Option: C EXPLANATION The nature and structure of a PMO depends on the needs of the organization it supports. The projects supported by a PMO may not be related other than being managed together.

A project is in the final stage of testing when it receives a major change request from the customer. This would delay the final delivery of the project by 2 weeks. What should the Project Manager do NEXT? A. Create a change request and go through the change management process B. Evaluate the impact of the change C. Communicate the implication of the change to the customer D. Adjust the project management plan and baseline

Correct Option: C EXPLANATION The next step is to communicate the impact of the change on the final delivery to the customer and get his approval, especially because it affects the final delivery date of the project. Options (a) and (b) are already completed by the team as they have already assessed the impact of the delay on schedule. Option (d) will come after customer approval.

The process of communicating and working with the stakeholders to meet their expectations, address issues, and foster appropriate stakeholder engagement in project activities throughout project lifecycle is called ____________. A. Plan Stakeholder Management B. Identify Stakeholders C. Manage Stakeholder Engagement D. Control Stakeholder Engagement

Correct Option: C EXPLANATION The process of communicating and working with the stakeholders to meet their expectations, address issues, and foster appropriate stakeholder engagement in project activities throughout project lifecycle is called Manage Stakeholder Engagement.

You are a project manager working for the healthcare system and have been tasked with overseeing the implementation of a new network infrastructure at the local hospital. A month into the project, you have finished creating the project charter and identifying the key stakeholders. You are about to move to the planning process group when the hospital authority requests that you provide them with the budget and the cost baseline. Your best response should be: Inform them that cost is a project secret and cannot be shared Hand over the project charter to them for the details about the budget and the cost baseline Inform them that the budget and the cost baseline will be finalized during the planning process group Inform them that there is no need to worry about the budget and the cost baseline for a small project

Correct Option: C EXPLANATION The project charter may contain the high-level budget but not the detailed cost estimates. You should inform the hospital authority that they have to wait as the project budget and the cost baseline will be finalized and accepted in the planning process group.

Paul, a project manager, has just been assigned a new project from the oil and gas domain. He has been provided the project scope. Recently, he passed the PMP® exam and wants to apply his project management knowledge to his project to avoid schedule delays and cost overruns as much as possible. What is the FIRST thing that Paul should do? A. Create a project plan using the WBS B. Form a team to create the procurement plan C. Confirm that all the stakeholders have provided their inputs to the scope of work D. Create a network diagram

Correct Option: C EXPLANATION The project manager has to ensure that all of the stakeholders needs, wants, and expectations have been fully captured as part of the project scope, so that his project will be successful.

A project manager is in the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create an approved project schedule. What should the project manager do NEXT? A. Determine resource requirement for each activity in the project B. Use techniques like Critical Path method and What-if Analysis to calculate optimum duration of the project C. Use the approved schedule duration as a baseline and start tracking the project D. Create a network diagram of the project using one of the diagramming methods

Correct Option: C EXPLANATION The project manager is in the "develop schedule" process and has already derived an approved project schedule. This implies option (a), (b), and (d) are already completed as part of the processes estimate activity resources, develop schedule, and sequence activities. The next step would be to treat this estimate as a schedule baseline and start tracking the project as part of the control schedule process.

Your project has faced some unforeseen issues that have caused a delay in your project. However, the project is very critical for the company, and it has to meet the scheduled deadline. To meet the deadline, your team would have to work over the weekends for next two weeks. You know that many of the team members will have some personal commitments and it will be very difficult for them to work for seven consecutive days. What is the BEST option for you? A. Hire additional resources and brief them about the project B. Inform the customer that this deadline can't be met C. Discuss the situation with the team and give them the choice to willingly work overtime D. Send an official mail making it compulsory for the team to come and work over the weekends

Correct Option: C EXPLANATION The project manager should explore all the options to avoid delay in the project. In this case, there might be some team members willing to work over the weekends, and the manager can reschedule once their availability is confirmed to minimize the schedule delay.

Which of the following best describes the role of a project sponsor? A. Project Sponsor is responsible for managing the project B. Project Sponsor is responsible for managing the quality of deliverables C. Project Sponsor is responsible for providing funding for the project D. Project Sponsor is responsible for identifying key stakeholders

Correct Option: C EXPLANATION The project sponsor is not responsible for managing the project nor the quality of deliverables; it is the role of the project manager. While the sponsor can aid in identifying key stakeholders, the key area a sponsor plays a part in is providing funding. The sponsor provides funding directly or indirectly and is responsible for approving or denying the budget. The project sponsor is also generally the one who approves the Project Charter, but that is not mentioned in the question.

While working with your client on the final acceptance of the application, you are delighted to find out that the application exceeded the performance criteria specified in the requirement specification approved by the client. You implemented several features that were not in the project scope to exceed the client's expectation. What can you conclude about the project performance? A. The project was a success as it provided features beyond the customer's expectation without any cost and schedule impact B. The project was a success as it exceeded the customer's specified performance criteria C. The project was unsuccessful as it has been gold plated D. The project was a success as it made the client very happy.

Correct Option: C EXPLANATION The project was unsuccessful as was gold plated. You should always focus on meeting and exceeding customer expectations by delivering the features and functionalities as per the requirement specification approved by the clients. Gold plating or giving extra to the clients should be avoided.

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. A. Project A: NPV $ 50,000, to be completed in 3 years B. Project B: NPV $ 40,000, to be completed in 2 years C. Project C: NPV $ 70,000, to be completed in 9 years D. Project A: NPV $ 60,000, to be completed in 1 year

Correct Option: C EXPLANATION The project with 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.

You are a Project Manager for a big project, and quality is a top priority. You have devoted a lot of the project time to the creation of the quality management plan. What is the advantage of the quality management plan? A. Prevents defects from reaching the customers B. Guarantees improvement in project quality C. Provides a systematic approach to meet the project's quality goals D. Conforms to customers' testing methodology

Correct Option: C EXPLANATION The purpose of quality management plan is to provide an approach to meet the project's quality goals. Preventing defects from reaching customers is the responsibility of Quality control. The plan does not guarantee project quality. Conformance to customers' testing methodology may not be incorporated in the project quality plan. Refer PMBOK® Guide - Sixth Edition page 271

You are in charge of managing a software development project that is related to simulations for driving racing cars. During Quality Assurance, a number of issues have been reported in the air tunnel modelling module. On deeper analysis, it is found that many of the issues were due to not understanding the requirements clearly, and now additional time would be expended to fix the issues identified. This is a good example of: A. Corrective Action B. Preventive Action C. Defect Repair D Quality Assurance

Correct Option: C EXPLANATION The question is intended to cause a confusion between preventive and corrective action. However, the question does not state any example of any steps taken proactively, so Preventive Action is not the right answer. If we were to consider Corrective action, it is a future response to the defect repair process or the correction so that the cause of error or non-conformity will not occur again, which the above question does not state. So, this is not an example of Corrective action. The question does not state anything other than reporting defects, which is Quality Control. So, option D is not the right answer. Here, the straightforward answer is option C Defect repair.

You have been assigned to manage a project that deals with setting up a railway line connecting two cities. The project is complex with a lot of contracting involved. You and experts in your organization are evaluating if the rail line alignment machinery should be purchased outright or if it would be better to lease. The cost of leasing the equipment is $1200 per day, while the cost of an outright purchase is $96000 and a daily cost of $200. The duration of laying out the railway lines is scheduled to be an activity duration of 150 days. Should you purchase the machinery or lease it? Which option would be more economical? A. Lease the machinery as it will be cheaper by 84000 USD B. Purchase the machinery as its usage beyond the 80th day would be more cost effective if purchased rather than leased C. Purchase the machinery as its usage beyond the 96th day would be more cost effective if purchased rather than leased D. Lease the machinery as it will be cheaper by 36000 USD.

Correct Option: C EXPLANATION The question is looking for a simple mathematical formula. Do not get flustered by all the numbers. The activity duration is 150 Days. So, cost of leasing is 150 * 1200 = 180000, while cost of an outright purchase is 96000 + 200 * 150 = 96000 + 30000 = 126000 USD. So, definitely leasing is not cheaper and purchasing the machinery is the better option. Now which is the breakeven point of a purchase? On the 96th day of usage of the machinery, the cost of purchase incurred is 115200 $, which is exactly the cost incurred if it were leased. So, 96th day is the breakeven point and hence the correct answer is option C. Take a breather; relax and digest the details. They are not as hard as they look.

You have been assigned as the Project Manager of a development project. The WBS has been completed and the activity sequencing has also been done. The activity duration estimate has also been received by each of the team members. What should be the next step in the project? A. Get cost estimate of each activity B. Create WBS dictionary C. Compress schedule D. Finalize schedule

Correct Option: C EXPLANATION The question mentions that activities have been identified and sequenced. The duration estimate has also been received. Before going ahead and finalizing the schedule, you should look at compressing the schedule to optimize it. Option C is related to the WBS, and that's done before activities are sequenced. Option D is done once the schedule is finalized.

A project team is working on a risk response strategy by evaluating every risk and coming up with suitable response strategies. However, one particular risk with a negative impact cannot be avoided or mitigated. Furthermore, there is no way to transfer risk by outsourcing or buying insurance. What is the best the team can do about the risk? A. Treat it as a secondary risk and update it in the Risk Register B. Share the risk by allocating ownership to a third party C. Accept the risk and put it in the watch list D. Revisit the Risk Response Strategy

Correct Option: C EXPLANATION The question suggests that the team has already explored all the alternatives, so option (d) would not provide any further solution. In this case, the best strategy is to accept the risk and, if possible, plan for a contingency to be implemented if risk occurs. Option (b) is a strategy for positive risks or opportunities. Option (a) is not true, as secondary risk is an outcome of implementing a risk response strategy.

A key stakeholder from the quality department wants to know more on how the process tailoring was done on the project by the project team. Additionally, he would like to know the rationale for selecting the process, its implementation-level details, and how it will be used to manage the interdependencies. Which document should the Project Manager suggest him to refer? A. Project Statement of Work B. Project Scope Statement C. Project Management Plan D. Work performance Information

Correct Option: C EXPLANATION The results of the process tailoring by project team are captured in the project management plan, along with all the other required information.

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? A. Project Statement of Work B. Project Scope Statement C. Project Management Plan D. Work performance Information

Correct Option: C EXPLANATION 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.

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? A. Give the candidate the job, but insist on good performance B. Ask the candidate to apply somewhere else C. Declare your position and excuse yourself from the selection process D. Do nothing and go with the panel decision

Correct Option: C EXPLANATION The right thing to do is to declare your personal interest and excuse yourself from the selection process.

A project team is in the process of tracking risks and control. The risk control actions defined by the mitigation and contingency plans is being implemented in accordance with the details of those plans. Who is responsible for implementing these actions? A. Project manager B. Project team C. Risk owner D. Risk manager

Correct Option: C EXPLANATION The risk owner for a particular risk is responsible for implementing the actions defined by the mitigation and contingency plan in risk management. A risk owner for a risk is identified during the planning stage of risk management, and he helps to assess the risk, produce probability, and impact information. He also develops risk mitigation and contingency plans, provides status data for respective risk issues, and assists in evaluating risk control action effectiveness. The risk owner also documents threshold criteria of high and medium risks and supports identification of new risks.

Of the following types of contracts, which has the highest risk for the seller? A. Cost plus fixed fee - CPFF B. Time and Material - T and M C. Firm Fixed Price Contract - FFP D. Cost plus Incentive fee - CPIF

Correct Option: C EXPLANATION The riskiest for the seller among the options stated is Firm Fixed Price Contract, FFP. Its a Fixed price contract in which total costs are fixed. The scope of work is clearly defined and stated. Cost-reimbursable contracts are the least risky for the seller since the costs are not fixed and paid at actuals. Time and material have medium risk from the perspective of the buyer and seller and are typically used for smaller dollar amounts.

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 ? A. 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 B. Give them more challenging assignments so that they fail and you have a reason to expel them from the team C. Assess their current weak areas and provide more focused training with regular feedback D. Talk to them and give them a warning that this is their last chance to perform in the project

Correct Option: C EXPLANATION The role of a Project Manager is also that of a leader. The question seems to suggest 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.

As a project manager, you have a large team reporting to you with two members working on a particular technology for the first time. You had apprehensions in the beginning of the project that they would not be able to contribute as much due to the technical complexity of the project. However, you spent time and gave them the required training. During the assessment, you find some areas which still require improvement. What should be your next plan? A. Discuss this with the functional manager asking him to assign these resources to some other project as you have already spent enough effort on them B. Give them more challenging assignments so that they fail and you have reasons to expel them from the team C. Assess their current weak areas, and provide more focused training with regular feedback D. Call them in your chamber and give them a warning that this is their last chance to perform in the project

Correct Option: C EXPLANATION The role of a project manager is also that of a leader. The question seems to suggest improvement in the team's performance after training and that a more focused approach gives much better results. Option (a) would be good if the project manager suggests the members move to a project which matches their skillset. Since this is not the case, the best option is (c).

A new stakeholder has recently been identified for your project. He will be helping team members with data validation and other testing. The stakeholder asks the project manager about the scheduling methodology and tools that will be used in the schedule development. He would also like to know about schedule change control procedures, reporting formats, and frequencies. Which of the following documents may the project manager refer him to? A. Project charter B. Stakeholder register C. Schedule management plan D. Schedule baseline

Correct Option: C EXPLANATION The schedule management plan defines how the project schedule will be planned, developed, managed, executed, and controlled throughout the project life cycle. It serves as guidance for the scheduling process and defines the roles and responsibilities for stakeholders, along with scheduling methodologies, tools, schedule change control procedures, reporting formats, and frequencies.

You have to fast track your project to meet the schedule deadline, so you decide to use your current software development vendor to develop the e-learning content instead of going through the process of issuing the RFP and looking for the right vendor. What is the main concern in this scenario? A. Signing the Contract B. Too much dependence on the same vendor C. The qualification of the vendor D. Violation of the organization's code of conduct

Correct Option: C EXPLANATION The software solution vendor might not be the right vendor to work on e-learning content.

As part of stakeholder analysis, one of the steps involves identifying the potential impact or support each stakeholder could generate, so you need to prioritize the stakeholders to ensure adequate effort to communicate and manage their expectations. Out of the following, which is NOT the classification model available to assist in performing stakeholder analysis? A. Power/Interest Grid B. Power/Influence Grid C. Influence/Interest Grid D. Salience Model

Correct Option: C EXPLANATION There are 4 models available to assist in performing stakeholder analysis: Power/Interest Grid, Power/Influence Grid, Influence/Impact Grid, and Salience Model. Please refer to PMBOK® Guide - Sixth Edition Page 512.

You are managing a healthcare project which requires compliance to certain FDA standards. This is part of the product acceptance criteria stated by the customer. You and your team have studied the requirements and have created a plan to implement the deliverables with the required level of quality. This process is called: A. Quality Control B. Quality Assurance C. Plan Quality Management D. Process Improvement Plan

Correct Option: C EXPLANATION These activities are part of the Plan Quality Management process. It involves identifying the quality standards that are relevant to the project and determining how to meet them.

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

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

As a project manager of a construction project, you are inviting requests for proposal from eligible vendors. While going through the list, you find the name of your friend and ex-colleague from university. He was a methodical and sharp student who excelled in his subjects. What should you do? A. Give him the contract as you are quite sure he would do a good job B. Give him some inputs on how your organization awards the contract to improve his chances C. Steer yourself away from the bidding process and inform your sponsor D. Keep silent and continue with the procurement process

Correct Option: C EXPLANATION This is a situation of conflict of interest. The best option for the project manager is to discuss with his project sponsor and disassociate himself from the process.

You are out for lunch with a fellow project manager. She is in charge of a project that deals with laying out electrical cables across two towns. As you understand the plan of the layout, you realize that the cabling would cover a neighborhood with a history of criminal problems. You advise your fellow team manager that it would be prudent to insure the copper cables through a theft insurance. You also advise her regarding which insurance companies would give her the best insurance covers against theft. Which risk response strategy did you just adopt? A. Risk mitigation B. Risk avoidance C. Risk transfer D. Risk acceptance

Correct Option: C EXPLANATION This is an example of Risk transfer where you have advised your fellow manager to insure against theft through insurance. Note that this does not eliminate the risk rather the risk is simply to be borne by the insurance company. It is also worthwhile to note that the transfer of negative risks comes with a premium to be paid to the party responsible for handling the risk. In this case the insurance company would need to be paid a premium for bearing this risk.

Measuring project performance using appropriate tools and techniques in order to identify and quantify variances and corrective actions is part of _______ process group. A. Planning B. Executing C. Monitoring and Controlling D. Closing

Correct Option: C EXPLANATION This is part of M&C. This task is slightly changed from the previous examination content outline. Earlier, in addition to the task mentioned, it was necessary to inform stakeholders. Now, informing stakeholders is not necessary as this is part of "executing" stage.

During an informal gathering with stakeholders of the project, the Project Manager overhears one stakeholder expressing dissatisfaction over the project's progress reporting and communication. How should the Project Manager respond? A. Ignore the incident as the stakeholder was not directly and formally addressing the Project Manager B. Call a meeting of all the stakeholders to address their concerns about the project C. Meet face-to-face with the complaining stakeholder to understand his concern and update it in the issue log D. Confront the stakeholder and ask him why he never approached you if he was dissatisfied with project reporting

Correct Option: C EXPLANATION This is the best approach to resolve the problem proactively. Even if the Project Manager is not able to immediately solve the issue, tracking it through the issue log would show his commitment and build trust. Option (a) is not advisable as the Project Manager is expected to proactively look for and avoid any issues in the project. Option (b) may not be applicable as there is no indication that many stakeholders have similar concerns. Option (d) will do nothing to resolve problem at hand.

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? A. Report to your senior Manager about probable delay, along with details on the current political situation at vendor's place B. Communicate to the vendor that any possible delay would attract a fine and affect future payments C. Revisit your project schedule and look at alternatives to reduce the impact of the delay D. Since there is no official communication from the vendor, you need to use the "wait and watch" policy

Correct Option: C EXPLANATION 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).

You and your team have worked hard and successfully delivered a project. The customer is happy with the deliverables, and overall everyone is happy with how the project was delivered. You have written up the performance reviews of each individual in the project team. As a Project Manager, you know that the team will get disbanded and in the next project, you may not get the same team members who so successfully delivered the current project. What kind of Organization Structure does this represent? A. Weak Matrix B. Balanced Matrix C. Projectized D. Functional

Correct Option: C EXPLANATION This represents a Projectized Organization structure. In a Projectized organization, teams are disbanded at the end of the project. In a Functional organization, teams report to the Functional manager and are never disbanded. They continue in their own departments and continue to report to the Functional Manager. A weak matrix organization is very similar to a Functional Organization, and role of Project Manager is limited. In a balanced matrix organization, staff reports to a Project manager and a Functional Manager. In the question, there is no mention of a functional manager, so Balanced Matrix is also not the correct option.

You are a project manager who is assigned to take over a project from another project manager who is leaving the company. The old project manager tells you that he had to constantly push the team to perform so that the project is on schedule. What is your first step as the new project manager? A. Tell the team your objectives B. Check risk status C. Determine a management strategy D. Check cost performance

Correct Option: C EXPLANATION This would be the best course of action to start with. There seems to have been some issues with the management style and priorities of the previous project manager. You need to determine the management strategy which will provide the balance between activity and people. The other options may follow once you have thought through the management strategy.

A control chart measures the results of processes over time, displays them in a graph format, and measures variances to determine whether process variances are in control or out of control. The upper and lower control limits are usually set as: A. +-1 Sigma ' 68.26 percent of the occurrences will fall within 1 sigma from the mean B. +-2 Sigma ' 94.46 percent of the occurrences will fall within 2 sigma from the mean C. +-3 Sigma ' 99.73 percent of the occurrences will fall within 3 sigma from the mean D. +-6 Sigma ' 99.99985 percent of the occurrences will fall within 6 sigma from the mean

Correct Option: C EXPLANATION Upper and lower control limits are usually set as +-3 Sigma. 97.73 percent occurrences will fall within 3 sigma from the mean.

Validate scope is the process of formalizing acceptance of the completed project deliverables. When should this process be done? A. At the beginning of the project B. During the Planning processes C. At the end of each phase of the project D. At the end of the project

Correct Option: C EXPLANATION Validate scope is a monitoring and controlling process which is performed at the end of each phase of the project to achieve the formal acceptance of the completed project deliverables.

John has been promoted to a Project Manager from his technical post and has also been assigned a small sized project. He is very excited about managing and delivering this project. The management has asked Midas, who has more than 15 years of project management expertise, to mentor him. Midas has asked John to create the work breakdown structure. Which of the following should Midas tell John while explaining why the WBS should be used? A. To show the activities on the project and their sequence B. To show the functional managers the work of each project team member C. To assist in communicating with the customer D. To show when each milestone is being met

Correct Option: C EXPLANATION WBS graphically displays the work to be done on the project. It can also be shared with the customer to confirm understanding and to fine-tune the project and product scope.

As a project manager, you want a detailed cost estimation developed for your project. Which techniques are you most likely to use? A. Analogous estimating B. Expert Judgment C. Bottom up estimating D. Numerical estimating

Correct Option: C EXPLANATION When a schedule activity cannot be estimated with a reasonable degree of confidence, the work within the schedule activity is decomposed into detail. Bottom-up estimating is the detailed method of performing such estimations. Option A, analogous estimation and option B, expert judgment, are the techniques used when there is not enough time to do a detailed estimation. There is no such technique called numerical estimating (option D).

You are conducting a procurement performance review of the seller's progress to deliver the project. It is a structured review consisting of seller-prepared documentation, buyer inspection, and a quality audit of the seller's progress to deliver project scope and quality within cost and on schedule as compared to the contract. Your objective is to identify performance progress or failure, noncompliance, and areas where performance is a problem. You are working on ________ process at this time. A. Plan Procurements B. Conduct procurements C. Control Procurements D. Close Procurements

Correct Option: C EXPLANATION You are performing a procurement performance review as part of the Control Procurements process. It is a structured review of the seller's progress to deliver project scope and quality within cost and on schedule, as compared to the contract.

Which of the following is NOT a step involved in the Agile version of model-driven development (AMDD)? A. Identify the high level scope B. Identify an architectural vision C. Identify the low level scope D. Identify initial "requirements stack"

Correct Option: C EXPLANATION You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

You are in charge of developing a new product for an organization. Your quality metrics are based on the 17th percentile of the last three products developed. This is an example of: A. Statistical Sampling B. Metrics C. Benchmarking D. Operational definitions

Correct Option: C EXPLANATION You have a reference defined as the 17th percentile of each of the last 3 products, so this is an example of benchmarking.

You need to provide estimates for activities on the project. You and your team discuss and conclude that as detailed information is not yet available, the best option would be to use Parametric Estimates. Which of the following is used to create Parametric Estimates? A. Critical Path Method B. One Time Estimate C. Regression Analysis and Learning Curve D. Monte Carlo Analysis

Correct Option: C EXPLANATION You have mitigated the risk. By asking for the trainees to be trained, you have created a Risk response strategy. Should this team member go on leave, the trainees would execute the task. So, you have not avoided the risk. Again, there is no question of exploiting the risk as this is not a positive risk. This is not a case of Risk avoidance either, so the correct answer is Risk Mitigation.

While reviewing a deliverable due today to the customer, you noticed a technical defect. Upon further inspection, you realize that even though the deliverable fails to meet the project quality standards, it fully satisfies the contractual requirements. You are aware that the customer does not have the domain knowledge and technical expertise to notice the defect. The team member responsible for this deliverable tells you that fixing the defect will be time consuming and superfluous. What is your best course of action? A. Contact the customer immediately and inform them that the deliverable will be late due to some unavoidable consequences. B. Make sure that the issue is captured in the lessons learned so that future projects can benefit from this C. Have a discussion with the customer about the issue with the deliverable D.Do not mention anything and get formal acceptance from the customer

Correct Option: C EXPLANATION You should have a discussion with the customer about any issue with the deliverable so that a mutual solution can be identified. Capturing the issue in the lessons learned will not solve the current problem. Issuing the deliverable as is and getting the formal acceptance will not serve the best interests of the customer.

One of your team members comes to you and proposes a change in the project that can reduce the project schedule by 3 months. As a Project Manager, what should you do? A. Advise the team member to just focus on his work B. Thank the team member and go ahead with the change C. Analyze the impact of the change on the other triple constraints D. Tell him that you cannot implement the change as the project deadline has already been communicated to the Customer

Correct Option: C EXPLANATION You should not go ahead and implement a suggestion just because the schedule is reduced by 3 months. The best thing to do in such scenarios is to analyze the impact on the other triple constraints. It's quite possible that the cost may increase.

James, a project manager, is explaining to his team the importance and usage of the Gantt chart and Milestone chart. One of the team members is asked to create a summary of the lecture delivered by James. Help the team member choose the correct statement. A. A Gantt chart depicts what was planned against what actually occurred B. A Gantt chart depicts the work in the project against the work that has been completed C. A Gantt chart depicts the work in the project against each resource's calendar D. A Gantt chart depicts the work in the project against a calendar

Correct Option: D EXPLANATION A Gantt chart depicts the work in the project against a calendar. A Gantt chart is a bar chart that represents the duration of activities against a calendar. The lengths of the bars represent the length of activities, while the order of the bars represent the order of activities on the project. Options A and B are incorrect as they provide descriptions of a tracking Gantt. Option C is incorrect as this does not describe a Gantt chart.

A project manager is going through the defect report for the bugs reported during the testing cycle of a software project. The report has information on the severity of the bugs, origin of the bugs, and possible resolution. Now the project manager wants to prioritize the bug fixing activity by evaluating the most frequent reasons for the defects. Which tools should be used for this purpose? A. Control chart B. Fishbone diagram C. Scatter diagram D. Pareto chart

Correct Option: D EXPLANATION A Pareto chart works on the Pareto principal that states 80% of problems usually stem from 20% of the causes. Pareto charts can be used for defect analysis by arranging defects data so that the few vital factors that are causing most of the problems reveal themselves. Focusing on improvement efforts of these few vital factors will have a greater impact and be more cost-effective than undirected efforts.

A project is terminated unexpectedly by the sponsor midway during the execution phase. What should the Project Manager do FIRST? A. Update the process and templates based on lessons learned B. Create and Distribute the final report of project performance C. Analyze and document success and effectiveness of the project D. Perform scope verification to verify level of completion

Correct Option: D EXPLANATION A Project Manager should first perform the project scope verification process to establish and document the level and extent of project completion. Options (A), (B), and (C) follow later.

Which of the following is NOT true about the goal and objective of a bidding conference? A. All questions are submitted in writing and issued to sellers as an addendum to the procurement document so that all sellers respond to the same scope of work B. There is no collusion among sellers and/or buying agents C. Sellers do not save questions for later private meetings in order to gain a competitive advantage D. The seller who is best capable of performing the project work is selected

Correct Option: D EXPLANATION A bidder conference is an open dialogue dealing with questions and clarifications around a RFP. Selecting a seller is done through an internal process after proposals are submitted to the RFP.

An activity that does NOT require work or time and is inserted simply to show dependency between activities is called: A. Milestone Activity B. Critical Activity C. Hammock Activity D. Dummy Activity

Correct Option: D EXPLANATION A dummy activity is usually used in the Arrow Diagramming Method (ADM) and is inserted simply to show dependency between activities and does not require work or time. A Hammock Activity is a schedule or project planning term for a grouping of subtasks that 'hangs' between two end dates. For example, subtasks that are not related in the hierarchical sense of a Work Breakdown Structure or subtasks that are not related in a logical sense of a dependency, where one subtask must wait for another.

You are having an issue with one of the manufacturing processes used to create the required parts for routers and switch that your company produces. Due to this major quality problem, only 15 percent of the parts manufactured have been within the control limits set by the manage quality team. Higher management asks you to review the process activities to determine where the process went wrong. Which type of diagram should use? A. Control chart B. Pareto chart C. Scatter diagram D. Flow chart

Correct Option: D EXPLANATION A flowchart is a graphical representation of a process to help analyze how problems occur and to identify potential process improvement opportunities. There are many styles, but all flowcharts show activities, decision points, the order of processing, points of complexity, and interrelationships between elements in the process.

What is the duration of a milestone? A. Average of the activity before and after the milestone B. Twice the project duration C. Project duration D. Zero duration

Correct Option: D EXPLANATION A milestone is defined as an activity with zero duration. Milestones are used on the project schedule to show completion of a set of activities and for reporting purposes. For example, all requirements-related activities can be grouped, and once all of them are completed, you can say that the requirement milestone has been achieved.

At the end of the project, the quality control team goes through a series of tests and answers a series of questions before the product can be approved for release. What input is being used here? A. Fishbone Diagram B. Pareto Chart C. Control Charts D. Quality Checklists

Correct Option: D EXPLANATION A pre-release quality checklist is being used to verify if the product is release worthy.

It is important to realize that stakeholders play a major role in project success. Which of the following is NOT necessary to ensure that stakeholders' expectations are managed properly throughout the life of a project? A. Build trust with the stakeholders B. Resolve conflicts among the stakeholders C. Actively listen to the stakeholders' concerns D. Convey ground rules to the stakeholders

Correct Option: D EXPLANATION A project manager should actively listen to the stakeholders' concerns, resolve conflicts among the stakeholders, and build trust. The project manager should convey the ground rules to the team members, not to the stakeholders.

Steve is a project manager for a power company and is currently supervising a solar panel installation project for a local real estate builder. The project has around fifteen team members and eighteen internal and external stakeholders. One of the team leads sends Steve a status report of his team's deliverables where he indicates that a major component is completed. Steve is convinced that the team lead is not fully honest in his communication and the major component is far from being completed. Steve is about to have a meeting with the key stakeholders on the project status. What is the best course of action for Steve in this kind of situation? A. Ask the team under the lead to explain the cause of discrepancy B. Challenge the team lead about the validity of the report C. Attend the status meeting with stakeholders and not mention anything about the major component D. Inform the stakeholder that you will need a little more time to verify the information about the component and will follow up with him shortly

Correct Option: D EXPLANATION A project manager should always be truthful in communications and should provide accurate information in a timely manner. A project manager should not deceive others or make misleading or false statements. Steve should inform the stakeholder that he needs a little more time to verify the information about the major component and will follow up with him shortly when he has an accurate update.

A project in a large construction company is in chaos. It has already reached the execution phase. The project team is not clear on who oversees the project. Who is the key person responsible for giving clarity to the team? A. Project manger B. Functional manager C. Customer D. Project sponsor

Correct Option: D EXPLANATION A project sponsor is the one who designates the project manager in the project charter and authorizes a project manager to use resources for the project. Therefore, he is the one who needs to provide clarity to the team about the project manager in case there is confusion.

Which of the following statements is FALSE about qualified sellers list in a project? A. It is a list of preapproved or prequalified prospective sellers interested in and capable of doing contract services for the organization. B. It is a part of the project management plan C. It is a list of prescreened sellers D. It is a tool in the Conduct Procurement process

Correct Option: D EXPLANATION A qualified sellers list is a list of preapproved or prequalified prospective sellers interested and capable of doing the contract services for the organization. Prequalified sellers for a project are entered into the procurement management plan, which is a part of the project management plan, as an output of the plan Procurement process. The qualified seller list is used as an input in the Conduct Procurement process, not as a tool and technique.

A project manager working on implementing WIMAX connectivity in a rural area has to deploy several network devices and set up POPs to house those devices. She performed a cost-benefit analysis and was concerned about the high cost of nonconformance as a result of not following the proper quality procedures in the project. What should the project manager do? A. Look for benchmarks B. Allocate additional budget to deal with the situation C. Utilize the existing reserves money to deal with her situation D. Perform a quality audit

Correct Option: D EXPLANATION A quality audit is a scheduled or random structured review performed by internal or third-party auditors to determine whether quality management activities comply with organizational and project processes, policies, and procedures. It ascertains inefficient and ineffective activities and processes used in the project as well as lessons learned, such as gaps and best practices, that can improve the performance of the current project or future ones. A quality audit to correct any deficiencies in the quality processes should result in a reduced cost of quality and an increase in stakeholders' acceptance of the product.

While working on a construction project, you need to find out if any of your team members are available to work during the coming weekend. Which of the following documents will help you MOST in this situation? A. Project team directory B. Responsibility assignment matrix (RAM) chart C. Resource breakdown structure (RBS) D. Resource calendar

Correct Option: D EXPLANATION A resource calendar shows who is and who is not available to work during any given time period. The resource calendar may consider attributes such as experience, skill level, expertise, capabilities, and geographical locations for human resources to identify the best resources and their availability. A project team directory includes information about the team members such as name, contact details, role, and functional area. A responsibility assignment matrix is a chart that cross-references team members with the activities or work packages they are to accomplish. One example of a RAM is a RACI (Responsible, Accountable, Consult, and Inform) chart, which can be used to ensure clear divisions of roles and responsibilities. A resource breakdown structure (RBS) is a graphical and hierarchical structure of the identified resources arranged by resource category (such as labor, material, equipment, and supplies) and type (such as expertise level, grade, and experience).

You notice that you are not utilizing your resources evenly in the project. You want to apply resource leveling by moving some of your activities from a week when you are using a lot of resources to a week when you are hardly using any. Which of the following tools and techniques would be a good choice in this situation? A. Network diagram B. Responsibility assignment matrix C. Organizational breakdown structure D. Resource histogram

Correct Option: D EXPLANATION A resource histogram is a graphic display that can be used to track resources when shared or critically required resources are only available at certain times, in limited quantities, or when resources have been over-allocated. You may have several peaks and valleys in your resource histogram in the stated situation. In order to level the resources, evenly utilize them as much as possible. To keep resource usage at a constant level, you can move some of your activities from the week when you are using a lot of resources to a week when you are hardly using any.

A project manager wants to present a project performance report to his management which captures project results over the last 3 years to see if the performance is improving or deteriorating. Which of the following reports should he use? A. Earned Value B. Status Report C. Forecasting Report D. Trend Report

Correct Option: D EXPLANATION A trend report would capture this information. Option (a) Earned Value integrates scope, cost, and schedule measures to assess current project performance. Option (b) Status Reports describe where the project is currently based on the performance measurement baseline. Option (c) Forecasting Report is used to predict future project status and performance.

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? A. Earned Value B. Status Report C. Forecasting Report D. Trend Report

Correct Option: D EXPLANATION A trend report would capture this information. Option A, earned value, integrates scope, cost, and schedule measures to assess current project performance. Option B, status reports, 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.

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. A. Corrective actions B. Preventive actions C. Approved changes D. Approved changes and corrective actions

Correct Option: D EXPLANATION According to new examination content outline, implement approved changes and corrective actions. Earlier, you only had to implement corrective actions.

Which of the following statements is true? Pick the best answer. A. The customer approves the project charter B. The project manager develops the project charter C. Both sponsor and customer approvals are required for the project charter D. Obtain sponsor approval

Correct Option: D EXPLANATION According to the new examination content outline, approval from the customer is removed. Only the sponsor's approval is required. Option (a), (b), and (c) are not correct.

Why is verification and validation of the deliverables required? A. To satisfy the customer requirements B. To satisfy the sponsor requirements C. To satisfy the senior management requirements D. To meet the business needs and project requirements

Correct Option: D EXPLANATION 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.

During a brainstorming session, your team members came up with several ideas and later on ranked and prioritized them using the nominal group technique. Which of the following techniques will you use to sort these ideas into groups by similarity for review and analysis? A. Delphi technique B. Mind mapping C. Group decision making technique D. Affinity diagram

Correct Option: D EXPLANATION Affinity diagram is a technique in which the ideas generated from other requirements gathering techniques are sorted into groups by similarity. Each group of requirements is then given a title. This sorting makes it easier to see additional scope (or risks) that have not been identified.

Which of the following is NOT true about affinity diagrams? A. Also known as KJ method B. Helps to synthesize large amounts of data by finding relationships between ideas C. Aids in solving a problem or analyzing a situation D. Are Schedule Management tools

Correct Option: D EXPLANATION Affinity diagrams are not Schedule Management tools. Affinity diagrams aid in solving a problem or analyzing a situation. They are also known as the KJ method after its developer Kawakita Jiro. An affinity diagram helps to synthesize large amounts of data by finding relationships between ideas. The information is then gradually structured from the bottom up into meaningful groups. This allows you to clearly "see" what you have, so you can begin your analysis or come to a decision.

You have scheduled regular weekly team meetings with project team members. Things have been going according to plan and there have been no variances till date with respect to the work performance baselines. A site engineer reports that he had to perform a couple of corrective actions, but they were not logged. As a Project Manager, what should you do? A. Reprimand the team member for not documenting the corrective action B. Reprimand the team member and ensure the corrective action is reverted C. Do nothing D. Document the corrective actions performed in the historical records

Correct Option: D EXPLANATION All changes, including corrective actions, preventive actions, and defect repair, must undergo change control prior to the change being made. It is also necessary to document the corrective and preventive actions taken in historical data as this can serve as a good input for subsequent projects. Reprimanding the team member and allowing uncontrolled changes to happen are a recipe for disaster in project management.

George, a project manager, has recently earned his PMP certification and is planning project quality standards with his team. Which of the following quality planning tools will NOT be required to plan for his project? A. Matrix diagrams B. Benchmarking C. Cost Benefit Analysis D. Scope Baseline

Correct Option: D EXPLANATION All the above mentioned options except option (d), Scope baseline, are tools and techniques for planning quality. Scope baseline is an input to this process. For more details, please refer to page 277, PMBOK® Guide - Sixth Edition, section Additional Quality Planning Tools.

You know that the success of your project will be determined by how well you manage risks. You know that identifying risks upfront can help you be better prepared with risk response strategies. So, you decide to identify risks by taking help of experts. You have identified some experts, and rather than calling them to your office, you send them questionnaires. You promise them complete anonymity so that they give unhindered responses. What information gathering technique are you adopting? A. Brainstorming B. Root Cause Identification C. SWOT analysis D. Delphi Technique

Correct Option: D EXPLANATION All the four options listed above are information gathering techniques, but the correct answer is Delphi Technique. This is a form of information gathering technique where inputs from experts is solicited anonymously without gathering them together.

Which of the following activities is not performed as a part of Project Closure? A. Ensuring all the deliverables meet contract requirements B. Creating lessons learned and updating Organizational Process Assets C. Formal acceptance D. Verifying scope

Correct Option: D EXPLANATION All the options except "verifying scope" are performed during project closure. Ensuring deliverables meet contract requirements and formal acceptance are key activities of project closure. Capturing lessons learned is also a very important activity performed during project closure. However, verifying scope is not performed during project closure. It belongs to the Monitoring and Controlling process group.

Which of the following statements is not true regarding Scope Verification? A. Consists of conducting inspections, reviews, and audits B. Used to determine if results conform to requirements C. Used to get formal sign off from clients D. Used to determine schedule variance

Correct Option: D EXPLANATION All the options except Option D are true regarding scope verification. This process can also be done at the end of each project phase in the project lifecycle. So, the correct answer is option D since scope verification has nothing to do with schedule variance.

Which of the following statements is NOT true regarding differences between administrative closure and contract closure? A. Contract closure is performed before administrative closure B. Administrative closure is not complete without Contract closure C. Administrative closure is done only once per phase or once for the project, while Procurement closure can be done as many times as needed depending on the number of contracts D. Lessons learned is performed only during administrative closure

Correct Option: D EXPLANATION All the options except Option D correctly state the differences between administrative and contract closure. Option D is not true since in both forms of closure, lessons learned are documented and updated to the Organizational Process Assets (OPA).

Which of following statements is false regarding the project scope statement? A. It describes the project's deliverables and the work required to create these deliverables. B. Project scope statement is expanded from the Preliminary Project Scope Statement. C. It defines what is in scope and what is not in scope. D. It defines the project's product acceptance criteria.

Correct Option: D EXPLANATION All the options except option D are true regarding the project scope statement. The acceptance criteria are not defined in the Project Scope Statement, rather they are taken care of in the Scope verification process.

A Project Manager is in the planning stage and is evaluating risks in the project. He wants to improve the project's chances of success by evaluating all possible risks. As a part of risk management planning and identification, he has used a standard questionnaire to identify risks and has identified about 20 risks in the project. What should he do before moving to the next process, "qualitative risk analysis"? A. Prioritize risk by determining each risk's probability and impact B. Update project management plan and other project documents based on inputs from these risks C. Communicate the status of identified risks to stakeholders D. Continue to identify more risks using other tools and techniques

Correct Option: D EXPLANATION Although surveys were used, other tools and techniques need to be applied to identify risks. It is also not clear whether all stakeholders were involved in the risk Identification process. Option (b) and (c) are not valid as the risk identification process is not yet completed, and Option (a) is part of 'perform quantitative risk analysis' process.

A project manager is in the final closure phase of the project. Which of the following should the project manager do FIRST as part of the project closure activity? A. Get formal sign-off from the customer to confirm customer acceptance of final deliverable B. Measure customer satisfaction as a key performance indicator of the project's success C. Hand off completed project deliverables to operations and management D. Measure project scope against the project management plan

Correct Option: D EXPLANATION As a part of the project closure activity, a project manager should first review all prior information from the previous phase, closure, to ensure all work is completed and the project has met its objectives. Since project scope is measured against the project management plan, the project manager will review the document to ensure completion before considering the project closed. Option (a) would come next followed by option (b).

Which of the following is NOT true about Motivator-Hygiene theory? A. Hygiene factors are not sufficient to motivate people, and motivating agents provide the best positive reinforcement. B. Hygiene factors can destroy motivation, but improving them under most circumstances will not improve motivation. C. Motivating people is best done by rewarding people and letting them grow. D. Improving hygiene factors will certainly improve motivation.

Correct Option: D EXPLANATION As per Herzberg's Motivator-Hygiene theory, hygiene factors are not sufficient to motivate people, and motivating agents provide the best positive reinforcement. Hygiene factors can destroy motivation, but improving them under most circumstances will not improve motivation.

John is managing a project. The project is about three-fourths done when the site engineer reports that due to inherent complexities in a certain task, the deliverables would get delayed. This would involve additional analysis and then implementation. He requests that this new work, which was not envisioned earlier, be added to the scope and also the time required be added to the schedule. You and the site engineer have analyzed the impact of this change to cost and have written up a change request and requested approval from change control board. Just today, you have received approval from the change control board. What should be the immediate course of action? A. Start work immediately B. Ascertain the impact of this change to scope, schedule, and cost before making any change C. Perform Quality Assurance D. Make sure that the scope baseline and schedule baseline are updated to reflect the approved change before implementing the change

Correct Option: D EXPLANATION As the change has been approved, you should always update the baseline (in this case, the scope and schedule baseline) before implementing the change. This will ensure that you track performance against the new scope and schedule, and not against the old benchmarks.

While overseeing a new smartphone application development project, you notice that your team members are measuring the quality of an item on a pass/fail basis. Which of the following methods are the team members using? A. Mutual exclusivity B. Statistical independence C. Normal distribution D. Attribute sampling

Correct Option: D EXPLANATION Attribute sampling is a method of measuring quality that involves observing the presence (or absence) of some characteristics (attributes) in each of the units under consideration to determine whether to accept a lot, reject it, or inspect another lot.

While overseeing a software engineering project, you find that one of the subcontractors failed to deliver on the last three projects. Upon further investigation, you learn that there are several complaints filed against this subcontractor and that they have a very bad reputation in the market. Realizing that is it too big a risk, you terminate the contract with the subcontractor and instead hire a couple of individuals to work on the components. Which risk response strategy did you use in this situation? A. Accept B. Transfer C. Mitigate D. Avoid

Correct Option: D EXPLANATION Avoid is the elimination of the threat by eliminating the cause or changing the project management plan. Here, you utilized the avoid strategy by terminating the contract with the subcontractor to eliminate the threat to your project.

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? A. Assess the corrective actions on the issue register B. Determine the next steps for unresolved issues C. Use appropriate tools and techniques in order to minimize the impact on project schedule, cost, and resources D. Review the issue and determine if the issue should be avoided, mitigated, transferred, or accepted

Correct Option: D EXPLANATION 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.

As a project manager, you understand the importance of identifying all relevant stakeholders, their interest and influence, and their needs and expectations. You have been assigned to handle a large construction project. You decide to do a thorough stakeholder analysis, and you identify Bob and Kelly. Based on your interactions and analysis, you know that Bob wields a lot of authority and also has a huge interest in the project. Kelly too wields a lot of power but is largely uninterested. You decide to plot them in a Power/Interest grid to help determine how you would manage these stakeholders. Which of the following is the best approach to handle these two stakeholders? A. Both Bob and Kelly should be Managed closely. B. Both Bob and Kelly should be Kept satisfied. C. Kelly should be monitored, while Bob should be Kept satisfied. D. Kelly should be kept satisfied, while Bob should be Managed closely.

Correct Option: D EXPLANATION Both Bob and Kelly have power and authority. However the differentiator seems to be their level of interest. While Kelly is disinterested, Bob has a high level of interest in the project. Stakeholders who have a high level of interest and who wield a lot of authority or power should be Managed closely, in this case Bob. Stakeholders who have a low level of interest but who wield a lot of authority or power should be Kept satisfied, in this case Kelly.

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? A. Using existing assets B. Contingency planning C. Investing in new resources D. Brainstorming

Correct Option: D EXPLANATION 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.

You are working on a highly visible project for which it is critical to have accurate cost estimates. While reviewing cost estimates for the project, you notice that one of the WBS (Work Breakdown Structure) work packages is estimated at almost 25% higher than two other similar WBS work packages. What should you do in this case? A. Reduce the estimate but add an additional budget in management reserve B. Reduce the estimate but add an additional budget in contingency reserve C. Trust your team to come up with accurate estimates as they already had many team discussions D. Call the WBS owner to discuss the basis for estimating the work package

Correct Option: D EXPLANATION Call the WBS owner to discuss the basis for estimating the work package. It is always important for you as Project Manager to first understand the reason for deviation before taking an action.

You are heading a software development project team that has many new members working for the first time. You ensure that the team diligently gets its work products reviewed by an external reviewer and closes the defects before moving to the next stage. However, the last few review reports have captured a high numbers of defects, including many careless mistakes. According to you, what is the root cause of the problem? A. Since most of the team members are new and inexperienced, a high number of defects are expected B. The team has, in all probability, not completely understood the scope of the work C. The review is not efficient as most of the defects are not valid D. The team is not doing proper self-review before submitting the work

Correct Option: D EXPLANATION Careless mistakes creep in when proper self-review is not done by the team before submitting the work for external review. Options (a), (b) and (c) are possible, but there is not enough data to support them.

A Project Manager working on a critical deliverable encounters a major change that affects the schedule baseline and the next milestone deliverable. This change cannot be accommodated within the current project management plan. What is the BEST option for the Project Manager? A. Avoid the change as it gravely affects the project deadline B. Explore options to reduce the effect of change C. Communicate the implication of this change request to the customer D. Seek approval from change control board or project sponsor

Correct Option: D EXPLANATION Changes that affect the project management plan and performance baseline are generally not the responsibility of the Project Manager, and this situations needs approval from the change control board or project sponsor. Option(a) is not a wise move. The fact that the change cannot be accommodated within the current management plan proves that option (b) was completed. There is no data to support that this change request originated from the customer, so option (c) is not the best option. The change could have an internal origin. It is best to first seek approval from the project sponsor.

You have just finished negotiation on all terms and conditions of the contract with a selected vendor. As you and the vendor are fully satisfied with the outcome of the negotiation, you are working on a draft of the official letter of notification of the contract award. Which of the following processes are you in at this time? A. Plan procurements B. Procurement negotiation C. Close procurements D. Conduct procurements

Correct Option: D EXPLANATION Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding the procurement, usually in the form of a contract. Plan Procurements is the process of documenting project purchasing decisions, specifying the approach, defining selection criteria to identify potential sellers, and putting together a procurement management plan. Procurement negotiation is not a process but is a tool and technique used in the Conduct Procurements process. The Close Procurements process is mainly concerned with completing each project procurement.

You are overseeing a project to implement an online travel package reservation system that has 6 sponsors and 13 stakeholders. You want to make sure that your project stakeholders receive the correct version of the product. Which of the following plans will you use to specify how versioning information will be tracked? A. Quality management plan B. Scope management plan C. Change management plan D. Configuration management plan

Correct Option: D EXPLANATION Configuration management plan is a subset of the project management information system (PMIS) that describes the different versions and characteristics of the product, service, or result of the project and ensures accuracy and completeness of the description.

Procurement documentation is an input to the contract closure procedure. Which of the following is NOT included in this process? A. Technical documentation B. Warranties C. Payment record D. Contract closure procedure

Correct Option: D EXPLANATION Contract closure procedure is not included in the Procurement documentation process.

Which of the following is NOT a tool used in the "conduct procurements" process? A. Bidders Conference B. Independent Estimates C. Procurement Negotiation D. Contract Types

Correct Option: D EXPLANATION Contract types is a tool used in the "plan procurements" process.

As a project manager, you are expected to calculate the cost of Poor Quality. The project work is in progress. What costs would you consider? A. Cost of Hiring B. Prevention costs C. Appraisal costs D. External and Internal Failure costs

Correct Option: D EXPLANATION Cost of Hiring has nothing to do with cost of Poor Quality, so it is not the correct answer. Cost of Poor Quality is just another term for Failure Costs. Failure Cost is generally categorized into External and Internal Failure costs, so option D is correct. Prevention and Appraisal costs are costs of conformance, which are the costs incurred to avoid failures. Hence, these are not considered cost of Poor Quality.

In which form of contract will the cost risk lie with the seller? A. CPIF B. T and M C. CPAF D. FP

Correct Option: D EXPLANATION Cost risk lies with the seller in a Fixed price contract.

Your company has won a project to build a school playground with specific toys and a sandpit. The school has mandated that the project be completed before the school starts after holidays. You review the plan and see that the estimated completion date is nearly a month after the desired completion date. As resources are sparse, you do not have the option to add additional resources. However, you see that the sand pit work can start in parallel with the play kits being installed. Your analysis tells you that by performing these activities in parallel, the project would meet its schedule. This is an example of: A. Scope Creep B. Resource Levelling C. Crashing D. Fast Tracking

Correct Option: D EXPLANATION Crashing deals with adding additional resources, and is not an option here. Fast Tracking is a schedule compression technique by performing activities in parallel if they can be overlapped. Note that Fast Tracking may result in increased risk and rework.

Which of the following is typically NOT part of project closure? A. Get formal sign off from the customer to confirm customer acceptance of final deliverable B. Measure customer satisfaction as it is a key performance indicator of the project's success C. Hand off completed project deliverables to operations and management D. Use the findings of the project to plan future projects

Correct Option: D EXPLANATION Documenting lessons learned is part of closure, but applying those findings happens during the project planning (not closure) process.

A project has faced some unforeseen events that have affected its performance with respect to cost and schedule. However, they are not bound to continue in the future. What is the value of Estimate at Completion (EAC)? Here, BAC is Budget at completion, AC is Actual Cost, CPI is Cost Performance Index, and EV is earned Value. A. BAC/CPI B. AC + ETC C. AC + (BAC-EV)/CPI D. AC + (BAC-EV)

Correct Option: D EXPLANATION EAC = AC+ (BAC-EV) Actual-to-date plus remaining budget is used when the current variance is thought to be atypical of the future.

You are the project manager for a project that supplies water to various areas. Recent tests indicate that there are contaminants in the water. Upon inquiry, you are told there is an extremely low risk for causing any sickness. What should you do? A. Inform the public that a detailed examination has been ordered to determine the extent to which the problem exists B. Do nothing as the reports indicate low risk except for minor effects on small children and the elderly people C. Inform all the team members to keep the report extremely confidential D. Educate the public that there are chances of sickness for small children and elderly people, so they need to boil the water before they drink it and continue doing so until the problem is completely resolved by the project team

Correct Option: D EXPLANATION Educate the public that there are chances of sickness for small children and elderly people, so they need to boil the water before they drink it and continue doing so until the problem is completely resolved by the project team. The scenario explains the responsibility of the project manager who is taking the best interests of society, public safety, and the environment into account.

When do you mark a project as complete? A. Final payment has been received from the customer B. The Project is completed and the payment has been received C. Administrative closure is done and "lessons learned" are documented D. All project requirements mentioned in the contract are completed and the formal acceptance has been received from the customer

Correct Option: D EXPLANATION Even if the customer pays all of the money, you should not treat the project as completed unless you have a written acceptance letter from the customer.

At the annual general meeting, the CEO announced to the shareholders that the end date for the project that you are managing will be the end of next year. This happens to be 6 months earlier than the scheduled project end date. You approach the project sponsor with this information. He tells you that it is too late to speak to the CEO and rectify the mistake as the shareholders are expecting implementation by the announced date. As a Project Manager, how can you deliver the project deliverables by the earlier date? A. Crashing the project B. Asking the sponsor to get additional funds approved so that part of the project can be outsourced C. Utilizing your influence and negotiation skills to convince the project sponsor to persuade the CEO to announce a correction to the announcement D. Examining the project plan to identify if any of the phases can be fast-tracked and revise the project plan to reflect the compression of the schedule

Correct Option: D EXPLANATION Fast-tracking is the best option in this scenario, and the project manager has to examine the project plan to identify if any of the phases can be fast-tracked.

During the testing phase in the project, a senior manager, who is also an important stakeholder in the project, tells you that he no longer wishes to receive weekly status reports. Instead, he wants periodical project performance reports. What should your response be to his request? A. Make the manager understand that since he is a major stakeholder and the project is in a critical stage, status reports will be important to know project progress B. Continue to send him status reports to keep your project visibility high C. Follow communication management plan and send reports as decided earlier D. Follow his instructions and update project documents, including communication management plan, accordingly

Correct Option: D EXPLANATION Follow his instructions and update the project documents, including communication management plan, accordingly. This is part of the effective and efficient communication strategy, i.e., providing only information that is needed. Senior management may not be interested in every status report of the project. Refer PMBOK® Guide - Sixth Edition Chapter Project Communication Management page 359.

A network diagram drawing method that allows loops between activities is: A. Precedence Diagramming Method (PDM) B. Arrow Diagramming Method (ADM) C. Program Evaluation and Review technique (PERT) D. Graphical Evaluation and Review Technique (GERT)

Correct Option: D EXPLANATION Graphical Evaluation and Review Technique (GERT) is a network analysis technique that allows for conditional and probabilistic treatment of logical relationships, that is, some activities may not be performed. The drawing method allows loops between activities, for example, design may be followed by testing, which might require some redesign.

You head the engineering department in your company. Lately, you have observed that certain deliveries are missing the schedule. On closer scrutiny, you observe this to be occurring with a specific team member. You decide to discuss it out with the team member. Initially, the team member is reluctant to discuss but finally opens up and indicates that the cause of the delays is often different instructions coming in from you as well as the project manager. She indicates that at such times she is confused related to whose instructions to follow, thereby causing delays. What kind of an Organizational structure is this most likely to be? A. Functional B. Projectized C. Weak Matrix D. Balanced Matrix

Correct Option: D EXPLANATION Here the team member is being expected to follow instructions from both the Project Manager and the Functional Manager. This is never the case in a Functional or Projectized organization where the lines of authority are clearly defined. A weak matrix organization is more like a Functional Organization where the project manager has almost no authority. The scenario explained above is typical of a balanced matrix organization where power resides equally distributed between the functional and project manager.

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? A. Analyze the various alternatives and do a detailed impact analysis before proceeding with the change B. Update the change management form and send it to change control board for consideration C. Discuss the change and impact with the customer and seek his approval D. Ignore the change as it is gold plating and should be avoided

Correct Option: D EXPLANATION 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.

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? A. Change the contract and continue with your project work B. Accept the customer's demand as he is responsible for the project's success C. Talk to your Project Sponsor about the issue and the implications of accepting such a request on the schedule and cost of the project D. Document the dispute and refer to the claims administration

Correct Option: D EXPLANATION In case of conflicting claims, it is best to refer them to 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.

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

Correct Option: D EXPLANATION In case of conflicting claims, it is best to refer them to the claims administration. The claims administration resolves claims according to the contract's dispute resolution procedures when the buyer and seller cannot resolve a claim on their own. The claims administration documents, processes, monitors, and manages claims during the life of the contract, usually according to the contract terms.

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

Correct Option: D EXPLANATION In many projects a detailed description of a deliverable may not be available at the planning stage of the project. In this case, the best alternative is to wait until the deliverable is clarified, so that a detailed WBS (Work Breakdown Structure) can be created. This technique is called rolling wave planning.

A project manager assigned to an Information Technology project has a long and thorough discussion on a complex algorithm with a new team member. The project manager asks the person if he understood the algorithm and can put it in the document. The team member implies that he has understood. However, when the project manager goes through the document, he realizes that the member hasn't understood the algorithm and has resulted in an inefficient use of time. Who is responsible for this loss of time and how could it have been avoided? A. The project manager B. The team member C. The project manager D. The project manager; he should have ensured his message is clear and concise, along with confirming that team members truly understand the message

Correct Option: D EXPLANATION In the communication model, it's the sender's responsibility to make sure the message is clear and concise, so the recipient can receive it. The sender must also confirm that the recipient truly understands the message. In this scenario, the project manager is at fault. For more information, refer to Communications Model, page 371, PMBOK® Guide Sixth Edition.

Your management asked you to negotiate with the vendor to implement an extremely important component as soon as possible in order to avoid losing a significant market share. What advise should you give your management to include the situation in the contract? A. A force majeure clause B. A time is of the essence clause C. A retainage clause D. Incentives

Correct Option: D EXPLANATION Incentive is a bonus in addition to the agreed-upon price for exceeding time or cost objectives as specified in the contract. For the seller, the focus is on profit, and for buyers, the focus can be on a combination of cost, time, and performance. Incentives help bring the seller's objectives in line with those of the buyer. With an incentive, both the buyer and the seller work toward the same objective ' for instance, completing the project on time. In this specific situation, an incentive will be most effective. Force majeure is an allowable excuse for either party for not meeting contractual terms in case of occurrence of an event beyond their control such as storm, etc. Since the event is considered neither party's fault, usually the seller receives a time extension, and risk of loss is borne by the seller, which is usually covered by insurance. Time is of the essence indicates that delivery dates are extremely important and that any delay will be considered material breach. With a retainage clause, in order to ensure full completion, an amount of money, usually 5 to 10 percent is withheld from each payment and paid in full once the final work is completed.

Which of the following statements is TRUE regarding the initiating process group? A. Risk is lowest during the Initiating process group B. The project has the highest probability of project success during the Initiating process group C. The Project Manager and team are always identified as part of the Initiating process group D. Initiating process group includes the develop project charter and identify stakeholders process

Correct Option: D EXPLANATION 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.

As a project manager in a matrix project environment, you have limited control over team member selection. Which tools and techniques would NOT be helpful for the selection? A. Pre-assignment B. Acquisition C. Virtual Teams D. Interpersonal skills

Correct Option: D EXPLANATION Interpersonal skills cannot be used in a matrix project environment, where the project manager has limited control over team member selection.

While reviewing the stakeholder engagement assessment matrix, you notice that one of the important stakeholders is at an 'unaware' state at the moment and has no clue about what is going on in your project. As this stakeholder can contribute significantly to your project success, you decide to bring him to a "supportive" or "leading" state. Which of the following will help you to achieve your goal with this stakeholder? A. Send him regular reports on the project and its benefits B. Offer him a paid vacation in Hawaii in exchange for his support C. Assign top priorities to his expectations, concerns, and issues D. Involve him in some project activities

Correct Option: D EXPLANATION Involving the stakeholders in some project activities is a good way to bring them to a supportive or a leading state.

Which of the following is NOT true about issues in a project? A. An issue log is a document to record issues that require a solution B. An issue log helps monitor who is responsible for resolving specific issues by a target date C. There should be an owner assigned for each issue reported in the project D. Issues and risks mean the same

Correct Option: D EXPLANATION Issues and risks are not the same things. An issue is an obstacle that threatens project progress and can block the team from achieving its goals. Risk is an uncertain event or condition that may have positive or negative effect on the project's objective if it occurs.

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

Correct Option: D EXPLANATION It is important that a project manager consider written and well-documented change requests for the project.

A project team is working on defining and sequencing activities of a project. They have identified the predecessors and successors for all the major milestone activities. The team has also documented the detailed scope of work for each activity, so that there is no ambiguity. They are now applying lead, lag, and mandatory dependencies to obtain a realistic project schedule, so they can start tracking. What could be a major problem on this schedule? A. The project team should use one of the schedule compression techniques to optimize project schedule further B. The project team should have used a standardized network template to expedite the process of preparing project schedule network C. The project team need not include detailed scope of work at activity level as it can be changed later D. The project team should have identified predecessors and successors for each activity instead of just for the major milestone activities

Correct Option: D EXPLANATION It is important that every activity and milestone on the project be connected to at least one predecessor and one successor. If all these activities are not linked, it would be impossible to know the impact of a delayed activity on the subsequent linked activities, as well as the overall project schedule. Option (a) schedule compression techniques are only required when the project schedule needs to be further reduced without compromising on project scope or objectives. Option (b) could be useful, but it is not mandatory. Option (c) is incorrect.

A project team in a software project started with risk management planning and identified new risks. Next, it conducted qualitative risk analysis using a probability and impact matrix and thereafter completed the 'plan risk response' process. What is an important step that the team needs to complete before moving to risk monitoring and control? A. Evaluate risks quantitatively using any of the tools of Quantitative Risk Analysis B. Identify risk owners among stakeholder and project team C. Evaluate the amount of contingency time and cost reserve needed D. Communicate the status of identified risks and response strategy to stakeholders

Correct Option: D EXPLANATION It is important to communicate risks and strategies to stakeholders before moving to the next stage of the project. Option (b) and (c) are part of plan risk response and is already completed. Option (a), quantitative risk analysis, comes before risk response planning and would have been either addressed or skipped depending on project requirements.

Steve, a project manager, is overseeing a web-based accounting automation project that needs rigorous testing prior to implementation. The project is behind schedule, and customers are strongly opposed to an extension of the duration since it was delayed twice in the past. Steve's manager asks him to skip most of the volume and stress testing and instructs him to tell the customers that the testing was completed according to the approved specifications. What is Steve's best course of action in this situation? A. Skip the volume testing as suggested by his manager B. Only do a limited amount of volume testing to make sure that the system will function correctly C. Discuss the situation with the sponsor and seek advice D. Politely refuse to skip the volume testing

Correct Option: D EXPLANATION It is important to complete all aspects of the project, as agreed by specification, even if it means the project will be delayed. The project manager should maintain his integrity and make appropriate decisions in a situation where he has to deny the manager's request.

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? A. Explore communication tools available in the market and ask for quotations exclusively for your project instead of using the existing tool in the organization B. Use the most cost effective technique and explain its usage to everyone C. Use a combination of communication technologies D. Discuss these communication requirements and available options with stakeholders to seek their input

Correct Option: D EXPLANATION 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.

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

Correct Option: D EXPLANATION It is important to have effective communication media in this project, especially considering the team is in different geographical locations and communication requirements are complex. It is best to take input from the stakeholders of the project and understand their communication requirements before finalizing a technique.

A bidder conference is: A. An output of the Conduct Procurements process B. A method for selecting the best vendor for the project C. A technique to review the proposals from the vendors D. A tool and technique to provide all competing vendors with the same information about the project and bidding process

Correct Option: D EXPLANATION It is intended to assure that no seller receives preferential treatment and all sellers have a clear, common understanding of the procurement (technical requirements, contractual requirements, etc.) The key objective is to provide all potential contractors with the information they need to determine if they would like to continue or prebid conference.

While reviewing your project schedule, you realize that you have two pending activities that you need to complete as soon as possible. First, you set up the development server in the lab and then start coding. Upon further investigation, you find out that you must run the server for three days without failure before the coding starts. This is an example of A. Lead B. Crash C. Critical chain D. Lag

Correct Option: D EXPLANATION Lag is an inserted waiting time between activities. In this case, there is a three-day delay before we can start coding.

Documentation of lessons learned is important in any project and forms the main input to organizational process assets. In fact, continuous improvement of the project management process cannot occur without lessons learned. This process is completed by the project team and is BEST done: A. At the end of project completion stage before contract closure B. Whenever the project implements any corrective action as part of Audit closure C. As a part of corrective and preventive action, according to recommendations of the QA D. Throughout the project, and finalized during project phase closing

Correct Option: D EXPLANATION Lessons learned should be documented throughout the project execution and not at the end of the project. This would make the activity more efficient. Also, other projects can use inputs from lessons learned at the earliest.

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

Correct Option: D EXPLANATION Most of the organizations set up organization level baselines called Process Capability Baselines. A Process Capability Baseline (PCB) specifies what results to expect when processes are followed. By using a PCB, a project can predict at a gross level, the effort required at various stages, defect densities, overall quality, and productivity. In this case, the project manager is right to set the target values of his project metrics.

You have recently joined an organization's project management office. After reviewing the organizational assets, you realize that project managers have not routinely documented lessons learned for their projects. There are a few projects that are about to start. You decide to call up a meeting of all the project managers and explain the need of Lessons Learned. In order to get a buy-in from your managers, what would you focus on as the best use of this document? A. It helps the team to plan tasks B. It helps in performance reporting C. It will help the manager to better control the project D. The historical information can be used for other projects

Correct Option: D EXPLANATION Note that the question states that new projects are about to start and past lessons learned of projects could have served as good inputs for the other projects. Not having lessons learned handicaps the managers.

Which of the following is NOT an example of contributing to the project management knowledge base? A. Writing an article of project management best practices B. Writing a book on your experiences as a Project Manager and lessons learned C. Giving a session on Risk Management methodologies to fellow Project Managers D. Briefing a friend, an aspiring Project Manager about PMP® exam merits and PMI® organization

Correct Option: D EXPLANATION Option (D) is helpful but does not contribute to project management knowledge base like all the other activities.

A project team with CPI of 0.78 is looking for options to reduce cost. Which should be the BEST option to choose in this scenario? A. Reduce a test cycle in the System Testing phase B. Reduce scope by cutting down non-essential features C. Add more resources to expedite the schedule D. Revisit estimates and eliminate risks

Correct Option: D EXPLANATION Option (c) would not reduce cost. Options (a) and (b) would always have a negative effect as they compromise on quality or scope. Option (d) is the one with the minimum negative effect.

Your organization has recently been awarded a building construction project. One of your friends is the primary vendor for supplying construction material and offers you some personal rewards for influencing your company on this bid. You should: A. Accept the reward B. Ignore the conversation C. Call a press conference to expose the offer D. Refuse the offer and report the incident to your manager

Correct Option: D EXPLANATION Option A is a conflict of interest and unethical. Option C is overstated. Option D is the most ethical response and will also warn the manager about the unethical practices of this vendor.

Which activities deserve your immediate attention the most? A. AC=3000 EV=2900 B. PV=3000 EV=2900 C. AC=3000 EV=3200 D. EV=3000 AC=2400

Correct Option: D EXPLANATION Option a : AC=3000, EV=2900 : Looking at only these two values and assuming all others are as planned, work done is less and money spent is more, but is nominally more. Option b : PV=3000, EV=2900 : Looking at only these two values and assuming all others are as planned, work planned is nominally higher than work completed. Option c : AC=3000, EV=3200 : Looking at only these two values and assuming all others are as planned, work done is more and money spent is less. Option d : AC=2400, EV=3000 : Looking at only these two values and assuming all others are as planned, again work done is more and money spent is less. Compare CPI of options 'c' and 'd', which are CPI=1.06 and CPI=1.25 respectively. Since the CPI for option 'd' is higher, it is the correct answer.

You have just completed developing the Schedule Network Diagram for a project that deals with building supersonic state-of-the-art Jet planes. You have identified your critical path which includes building a wind tunnel. You see that in addition there is another path which deals with building the tail of the plane, whose duration is close to the critical path. You also notice considerable floats on the other paths. You now need to assign resources to the tasks. You have a few team members who are highly skilled and a team of resources who are relatively inexperienced. What would be the best course of action while assigning resources? A. It is irrelevant which resources are assigned to tasks B. Assign all the skilled resources to building the wind tunnel which is the critical path C, Assign the inexperienced staff to the task of building the wind tunnel D. Assign one half of the skilled resources to the task of building the wind tunnel and the other half to building the tail, and assign the less experienced staff to all the other tasks.

Correct Option: D EXPLANATION Options A and C are wrong. You should always ensure activities on the critical path do not get delayed. So, having the best equipped staff on critical path activities is important. Option B cannot be the BEST choice. If you assign all the experienced staff on building the wind tunnel, the critical path activities are taken care of but the question also states of a path which is near-critical-building of the tail. Not paying attention to this path by assigning inexperienced staff is not a good option. Among the choices, option D is the best fit, where you are paying attention to both the critical path and near-critical path by assigning your best and most skilled or experienced resources to the activities on both paths.

You are in charge of a project that deals with laying out a lavish 18-hole golf course. The project work is in progress. You also have a number of contractors working on the project. Being an experienced manager you know that communication is key to success of the project. You have identified 10 stakeholders with whom you need to communicate. Due to some internal and external organizational changes at the client's end, three new stakeholders have been added with whom you need to communicate. You also had to reduce one of the contractors with whom you were communicating. How many communication channels do you have now? A. 45 B. 78 C. 91 D. 66

Correct Option: D EXPLANATION Originally, you had 10 stakeholders to communicate with, so the number of communication channels was 10 * (10-1) /2 = 45. However, 3 new stakeholders got added, while 1 stakeholder got reduced. So, the total number of stakeholders = 10 + 3 -1 = 12 and hence the total number of communication channels is (12 * (12-1)) /2 = 66.

A project team is ahead of its schedule, and its SPI and CPI are currently 1.4 and 1.2 respectively. The Project Manager and the team are brainstorming about the scope of the next milestone delivery. They have found that including an additional feature would enhance the usability of the product and can be compressed in the current schedule. What should the project team do next? A. Add this feature in the next release as long as it doesn't affect the delivery date B. Go through the change management and analyze the impact of this additional feature C. Discuss it with the project sponsor D. Drop this feature as it is gold plating and the customer does not need it

Correct Option: D EXPLANATION PMI® does not recommend gold plating, and this additional feature is definitely not part of the requirement in the contract. Though it does not affect delivery, it may involve costs or additional risk, so option (a) is not justified. The best option would be to first evaluate the impact of this additional feature and then discuss it with the customer. Since that is not a choice, (d) is the best answer.

An estimate is required for a new project of an R&D nature, and it has been decided to create the estimates using WBS with an emphasis on accuracy of the estimates. Your project manager also indicates that sufficient time is being made available to provide the estimates. What would be the best estimation approach in this case? A. Parametric Estimation approach B. Analogous Estimation approach C. Top-down Approach D. Bottom-up Approach

Correct Option: D EXPLANATION Parametric and Analogous are clearly not the right choices. Being a new project, you do not have any historical data to rely on. So, Analogous estimation is not an option. You also don't have any data of costs per unit, so Parametric estimation is also not an option. Now between Top-down and Bottom-up, both these approaches use the WBS to come up with the estimates. With Top-down, we start with the high level and then drill down into the lower levels. Bottom-up estimates are more accurate compared with Top-down. Bottom-up is also a more expensive and time-consuming type of estimate. However, the question clearly indicates that time is not a concern. So, the correct answer is Bottom-up approach. Top-down approach is used only if we have enough historical information on the project, which is not true here.

While determining the funds needed for your project, you obtained historical information from previous projects to determine the price per square foot of carpeting and to calculate the cost of 20,000 square feet of carpeting that is required for this project. Which technique did you use to create the estimate? A. Analogous estimating B. Three-point estimating C. Heuristic estimating D. Parametric estimating

Correct Option: D EXPLANATION Parametric estimating is a technique that reviews historical data for statistical correlations. Variables are then used to estimate the costs in the current project. For example, if historical information identifies that the flooring installed in a similar project cost $1.50 per square foot, then the 20,000 square feet of flooring required for the new project would cost $30,000. Typically, this technique has been known to produce a high level of accuracy, but it will be costly due to the level of sophistication that is required to implement it. In most cases, the technique is performed when the performing organization conducts many similar projects, historical information is accurate, and the model used for the estimate is scalable.

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? A. Control chart B. Fishbone diagram C. Scatter diagram D. Pareto chart

Correct Option: D EXPLANATION 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.

A project manager overseeing an age verification online tool is in the Control Procurements process of ensuring that the seller's performance meets contractual requirements, ensuring that both seller and buyer meet their contractual obligations, and ensuring that the legal rights of both the buyer and seller are protected. Which of the following tools and techniques is not used in this process? A. Claims administration B. Procurement performance review C. Inspection and audits D. Procurement negotiation

Correct Option: D EXPLANATION Procurement negotiation is a tool and technique in the Conduct Procurements process, not in the Control Procurements process.

During the closing process, product verification is usually performed. Which of the following statements is true? A. Product verification is a method for quantifying qualitative data to minimize the effect of biases while selecting sellers B. Contract closure and manage stakeholders processes both perform product verification C. Product verification provides management with information on how effectively the seller is achieving the contractual objectives D. Product verification is used to verify that work was completed correctly and satisfactorily

Correct Option: D EXPLANATION Product verification is used to verify that work was completed correctly and satisfactorily. Product verification is a part of the closing project activities wherein the final end product or service is verified to assist the Project Manager and his team to go ahead with the closing activities.

As part of the project closure, a project team wants to collate the lessons learned to update the organization's knowledge base. These records should be updated in: A. Storage Room B. Database C. Project Performance Report D. Project Archive

Correct Option: D EXPLANATION Project archives could be a part of the centralized organization knowledge base, which includes the collated lessons learned from the earlier projects. Option (a) and (b) are generic and can also be used by IT, Administration, or Human Resource departments of the organization. Project performance reports, Option (c), are collected on live, undergoing projects.

One of the functional managers in your organization argues that operations and projects are the same and therefore require similar planning techniques. What would be your best argument to emphasize your view that the two are different? A. Resources consumed by operations are different than the resources consumed by projects B. Projects incur large expenses in comparison to operations C. Projects are done by combining the efforts of various departments while the operations are done only by one department D. Projects have a definite start and end date while operations do not

Correct Option: D EXPLANATION Projects have a definite start and end date while operations do not. Of the given answer choices, option D states the best answer. Projects always have a definite start and definite end while operations do not have a definite end.

A Project Manager is considering regulatory requirements such as government and industry standards, weather conditions, infrastructure, and economic factors that may impact the project outcome. Which of the following techniques is being used? A. Organizational and operational awareness B. Situational awareness C. Risk assessment techniques D. Regulatory and environmental impact assessment

Correct Option: D EXPLANATION Regulatory and environmental impact assessment considers regulatory requirements like government and industry standards, weather conditions, infrastructure, and economic factors that may impact the project outcome. Organizational and operational awareness is situational awareness based on organizational practices. Situational awareness is understanding what is happening around you with reference to different parameters. Risk assessment technique involves identifying the risk, understanding qualitative and quantitative analysis, and choosing different risk responses.

Tom is the Project Manager of a software project whose client is based in Brazil. The team is in the planning stage and is performing the processes of risk management. Tom has come to you for assistance in handling the response to identified and prioritized negative risks. Which of the following is not a strategy for handling negative risk? A. Avoid B. Transfer C. Mitigate D. Enhance

Correct Option: D EXPLANATION Risks can be broadly classified into two categories: positive risks that have a positive impact on the project and negative risks that have a negative impact on the project. In this case, the first three options are strategies to deal with negative risks. Option D is a strategy to deal with positive risks. If the risks have positive impact on the project, then enhance their impact.

Your organization was recently awarded a fixed price contract and also received a SOW. As a project manager for the project, which of the following components will you not expect to see in the SOW? A. Business need B. Project scope description or what is to be done C. How the project supports the strategic plan D. Market conditions

Correct Option: D EXPLANATION SOW is a narrative description of products, results or services to be supplied by the project, including the business need, product scope description or what is to be done, and how the project supports the strategic plan. It does not include market conditions or competitor information.

You decide to use a combination of tools and techniques to identify risks in your data center project. Which of the following tools is NOT used for risk identification? A. SWOT analysis B. Assumption analysis C. Brain storming D. RACI chart

Correct Option: D EXPLANATION SWOT analysis, assumption analysis, brainstorming'an information gathering technique'are used to identify risks in the project. RACI is a type of responsibility assignment matrix chart that can be used to ensure clear divisions of roles and responsibilities (RACI stands for responsible, accountable, consult, and inform).

You know that the success of your project will be determined by how well you manage risks. You know that identifying risks upfront can help you be better prepared with risk response strategies. You discuss and consult with other project managers in the company. One manager suggests usage of SWOT to identify risks. What would you do next as a part of this technique? A. Gather team members and experts together and discuss to identify risks B. Gather anonymous responses from experts and identify risks C. Perform root cause analysis to identify problems, their cause, and potential response D. Identify the Organization's strengths and weaknesses

Correct Option: D EXPLANATION SWOT involves identification of the strengths and weaknesses of the organization. This technique then identifies the threats due to organization's weakness as well as opportunities due to the organization's strengths. So, option D is the correct answer. The other three options are also risk identification techniques, but the question is specific to SWOT.

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? A. Refuse his suggestion as the project is already nearing completion and it's not possible to make any changes at this stage B. Do a root cause analysis with the team to determine how this design flaw could have been missed, and if there could be more potential problems with the design C. Proceed with the change and communicate the impact on project schedule and cost to the customer D. Use a schedule compression technique as part of integrated change control to investigate and minimize the adverse impact of the change

Correct Option: D EXPLANATION Schedule compression technique is useful not only during project planning to see if the desired completion date can be met, but also during integrated change control to look at the schedule impacts of changes to time, cost, scope, or risk. Option B 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.

A project team has just been provided a charter and has identified the stakeholders for a project. It is about to start planning. Which process is the most logical starting point for the planning activities? A. Defining activities B. Estimating costs C. Determining budget D. Planning scope management

Correct Option: D EXPLANATION Scope is usually the starting point for planning. Without knowing what is needed, it is hard to start with the other planning processes. So, the most logical starting point is the scope management planning process.

As a project manager, you understand the importance of effective communication with stakeholders. You want to present the project progress report to the stakeholders in the next project meeting. What should be your approach? A. Make the report concise, restricted to specific technical details of the project B. Prepare a verbose report, but filter the information to remove details C. Focus on specific stakeholders with whom there is good personal relation D. Research and understand the experience level and expectations of stakeholders

Correct Option: D EXPLANATION Since a project's success is heavily dependent on stakeholders' favorable acceptance of the project, it is important to have effective communication with stakeholders, especially during project meetings. For this purpose, the project manager should research and understand his stakeholders' expectations before presenting project progress reports.

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? A. Make the report concise and restricted to specific technical details of the project B. Prepare a verbose report but filter the information to remove details C. Focus on specific stakeholders with whom you have good personal relationships D. Research and understand the experience level and expectations of stakeholders

Correct Option: D EXPLANATION 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.

Your project is expected to be delayed by 6 days from the scheduled final delivery date. Your current CPI is 1.5, and the project risks are low. You also have many discretionary dependencies on the project. You don't have access to any more resources for the project. Which of the following would be the BEST alternative to bring the project back on schedule? A. Reduce the number of resources from an activity B. Complete activities that involve external dependencies first C. Remove a few activities from the project D. Complete some activities concurrently

Correct Option: D EXPLANATION Since the project has low risk and there are many discretionary dependencies, it is best to plan to do more activities concurrently. Option (a) wouldn't help in bringing the project back on schedule. Option (c) is not suggested as removing activities may affect the project negatively. Option (b) is not the best option as there is no rationale to believe that activities with external dependencies are in the critical path and that finishing them first would reduce project duration. Also, external activities, by definition, describe activities that are not in the control of Project Manager, and the Project Manager may not be authorized to finish them first.

A buyer and a seller sign a contract. They define a clear scope of work. The seller completes the work, but the buyer is not happy with the work. What happens in such a contract? A. Contract is void as the buyer is not happy with the work B. Contract is suspended in such cases C. Contract is incomplete as the customer is not happy with the work D. Contract is considered complete as the scope of work has been completed

Correct Option: D EXPLANATION Since the question says that buyer and seller get into a contract with a clear scope of work and the seller completed the scope of work, the contract should be marked as complete. However, if the buyer is not happy with the work, the contract will not be closed and the buyer and seller can decide upon additional work that might be required before closing the contract.

While creating the stakeholder register, you realize that some of the stakeholders can negatively impact your project. Which of the following elements should you NOT include in your stakeholder register? A. List of key expectations identified for each stakeholder B. Contact information of the stakeholders C. A rating of the stakeholders' impact and influence on the project D. A plan to increase support and minimize obstruction for each stakeholder

Correct Option: D EXPLANATION Stakeholder register contains all details related to the identified stakeholders including buy not limited to: ' Stakeholder classification: Internal/external, neutral/resistor/supporter, and others. ' Identification information: Name, title, location, organization, role in the project, position, and contact information. ' Assessment information: Key requirements and expectations, potential impact, importance, and influence on the project. Stakeholder management plan, an output of the Plan Stakeholder Engagement process, contains stakeholder management strategy. The stakeholder management strategy defines an approach to manage stakeholders throughout the entire project life cycle. It defines the strategies to increase the support of the stakeholders who can impact the project positively and minimize the negative impact or intentions of the stakeholders who can negatively impact the project.

A relatively new project manager, Linda, joins your company. You have assigned her to handle a project that deals with laying out of electrical cables. One day she informs you that some government body has been sending her a lot of queries related to the project and its layout. It seems that the government body was not considered a stakeholder by her. You decide to review the list of identified Stakeholders, so you ask her to provide you with the comprehensive list. Where should this information be found? A. Project Management Plan B. Stakeholder Management Plan C. Stakeholder Engagement Matrix D. Stakeholder Register

Correct Option: D EXPLANATION Stakeholder register contains details of stakeholders, such as name, location, etc. and their expectations, interest, and influence. It also provides information as to whether they are internal or external, supportive or in resistance, or neutral. So, the best source of information regarding stakeholders is the Stakeholder Register which is option D.

Which of the following is NOT true about the fundamental functionality of the Control Quality process? A. Implement approved changes to the quality baseline B. Recommend changes, corrective and preventive actions, and defect repairs to Integrated Change Control to eliminate noncompliance in the project deliverables C. Ensure the deliverables of the project comply with relevant quality standards D. Ensure project work is directed toward the completion of the defined scope

Correct Option: D EXPLANATION The Control Quality process is about monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results. Monitoring adherence to the project scope is addressed in the Control Scope process, not in the Control Quality process.

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: A. Doctrine of Waiver B. Privity C. Dispute Resolution D. Force Majeure

Correct Option: D EXPLANATION The Force Majeure clause protects both parties from liabilities due to unforeseen events on which nobody has control.

You are managing a project to build a new plant for a semiconductor company. You just found out that the entire site was badly affected by a severe tornado and your newly developed structures were destroyed. Your client demands that you continue work despite the disaster and refuses to take any responsibility for damage or allow you a time extension. You reviewed the contract and found a clause that states that you are not responsible for any more work. This is referred to as: A. An indemnification clause B. A mitigation clause C. An arbitration clause D. A force majeure clause

Correct Option: D EXPLANATION The Force majeure clause states that if a natural disaster such as fire, hurricane, freak electrical storm, or tornado occurs, the event will be an allowable cause for either party for not meeting contractual obligations, as the event is neither party's fault. These disasters are considered to be acts of God; in most cases, you should receive a time extension and the damage should be covered by insurance.

All of the following are functions of the project management office EXCEPT: A. Monitoring compliance with project management standards policies, procedures, and templates via project audits B. Coaching, mentoring, training, and oversight C. Managing shared resources across all projects administered by PMO D. Identifying and developing the organization's methodology, administrative practices, and rules

Correct Option: D EXPLANATION The PMO's role is to identify and develop the project management methodology, best practices, and standards.

A Project Manager is conducting a bidder conference to select the most suitable sellers. Which of the following tools will NOT be helpful? A. Independent Estimates B. Analytical Techniques C. Procurement Negotiations D. Make-or-Buy analysis

Correct Option: D EXPLANATION 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 - Sixth Edition Project Procurement Management page 487.

You have been assigned as the Project Manager of a project that is halfway through execution. You meet the customer and inform him that the project is within the time and budget estimates; however, the customer informs you that he is not happy with the performance of the project. What should you do first? A. Show the customer the performance of other similar projects B. Meet the Project Sponsor and explain the customer's concerns C. Inform the customer that there are no shortcomings from the project team D. Meet with the project team to understand what can be done

Correct Option: D EXPLANATION The answer depends upon the scenario. If you heard that the customer is unhappy from someone else, the best thing would be to meet the customer. In this case, the customer is letting you know that he is not happy. The best option is to meet with the project team and discuss the customer's concerns before doing anything else.

A project manager realizes that a lot of time and effort are spent by their team capturing the data during product testing. What is the best option to address the issue? A. Stop capturing the data as it doesn't add any value to the project activity B. Allocate a time at the end of the day to update all the data together C. Ask for an additional resource to capture project data D. Automate the data capturing process

Correct Option: D EXPLANATION The best alternative is the one which eliminates the root cause of the problem and prevents subsequent changes. Here the main problem is the inefficient use of team members' time in capturing the data. The best way to address this is to automate the data capturing process, thus reducing both time and effort. Option (b) could result in incorrect and incomplete data as it is not recorded at the time of capture. Option (a) and (c) suggest the project manager evades her responsibility to produce valid project data.

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? A. Stop capturing the data as it doesn't add any value to the project activity B. Allocate a time at the end of the day to update all the data together C. Ask for an additional resource to capture project data D. Automate the data capturing process

Correct Option: D EXPLANATION The best alternative is the one which eliminates the root cause of the problem and prevents subsequent changes. Here the main problem is the inefficient use of 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.

You have a team of project managers reporting to you. Recently a new manager who is relatively inexperienced has joined your team. Considering his level of experience, you assign him to a small project. Considering low complexity and few stakeholders involved, you envision the project to have no surprises or hiccups. You have identified the number of communication channels to be only 6. However, with increase in scope of work, two additional stakeholders who need to be communicated with join the team. You ask the manager to identify the number of communication channels now. The correct answer is: A. 6 B. 10 C. 8 D. 15

Correct Option: D EXPLANATION The correct answer is 15. Note that the question provides the initial number of communication channels as 6. This means the number of stakeholders are 4. With the addition of two more stakeholders, the number of stakeholders would increase to 6. So, the number of communication channels would be 15.

Which statements are NOT true regarding the cash flow analysis technique? A. The discounted cash flow technique compares cash inflows as a total, while NPV calculates cash inflows period by period and then totals the present value of each period B. The discounted cash flow technique and the NPV technique both take the time value of money into consideration C. NPV is the most conservative cash flow analysis technique and assumes reinvestment at the cost of capital D. The discounted cash flow technique may use future value and present value formulas to determine the value of the investment or return. It's the least precise of all of the cash flow calculations

Correct Option: D EXPLANATION The discounted cash flow technique may use future value and present value formulas to determine the value of the investment or return. It is the least precise of all of the cash flow calculations.

You hired a Project Manager to manage one of your construction projects. This Project Manager is joining an ongoing project and wants to know the current status of the project in terms of the schedule, i.e. whether the project is behind or ahead of the schedule. Which of the following tools and techniques should the Project Manager use? A. Critical Path Method B. Parametric Estimation Technique C. Project Management Software D. Earned Value Technique

Correct Option: D EXPLANATION The earned value technique is the best technique to find out how the project is progressing in terms of cost and schedule.

Which of the following is NOT true of decision trees? A. Clearly lay out the problem so that all options can be challenged B. Provide a framework to quantify the values of outcomes and the probabilities of achieving them C. Allow users to analyze the possible consequences of a decision fully D. Enable the finance department to obtain financial approval from the CFO

Correct Option: D EXPLANATION The financial approval required by the finance department may be dependent on multiple parameters, not only the result evaluated from the decision trees.

One of your subcontractors sends a costly New Year's gift to you. What should you do? A. Accept the Gift as it's a new year gift B. Reject the Gift C. Inform your manager and accept the gift D. Establish whether accepting such a gift is against your company's policy

Correct Option: D EXPLANATION The first step always is to identify what is right and what is wrong. If your company policy does not allow you to accept gifts, then do not accept it. If your company policy allows you to accept New Year's gifts, then accept it.

After an intermediate delivery was made, an important stakeholder from the customer organization expressed dissatisfaction with it. What should the project manager do? A. Inform management about the potential dissatisfaction B. Discuss with the team members about the best way to restore customer confidence C. Analyze the customer organization and determine if we can ignore this stakeholder D. Figure out why the stakeholder is dissatisfied

Correct Option: D EXPLANATION The first step should be to determine why there is a dissatisfaction. Then, the measures to restore confidence or the choice to ignore them can be taken.

Which of the following is NOT true about a contract? A. A contract should be formal B. A contract is a legally binding document C. A contract must be in writing D. Changes to a contract can be done by the buyer without consulting the seller

Correct Option: D EXPLANATION The first three options are key characteristics of the contract. Once a contract is signed, any changes to be made in the contract must be agreed upon between the buyer and the seller in writing, so that it can be legally binding.

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? A. Meet with the team to understand the impact B. Refuse the customer request C. Ask the team to voluntarily work extra hours to get the feature completed D. Inform senior management about the request

Correct Option: D EXPLANATION 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.

A project manager has invited key stakeholders and team members to the first meeting of the project. The agenda of the meeting is to outline the project goals and objectives, as well as project success criteria. The project manager also plans to discuss the individual roles and responsibilities, along with the commitments of the stakeholders. What is this activity known as? A. Project sign- off meeting B. Charter closure meeting C. Project launch meeting D. Project kick-off meeting

Correct Option: D EXPLANATION The kick-off meeting is done in the beginning of the project and then again before starting each new project phase. It has four main objectives: a) Publicly state the beginning of the project; b) Outline the project goals, as well as the individual roles and responsibilities of team members; c) Clarify the expectations of all parties; and (d) Get a commitment from all those who influence the project's outcome.

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? A. Project sign- off meeting B. Charter closure meeting C. Project launch meeting D. Project kick-off meeting

Correct Option: D EXPLANATION The kick-off meeting 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.

You are the sponsor of a project which has just kicked off. This is an ambitious project to build a top-of-the-line 18-hole golf course. Which of the following best describes your role as a sponsor? A. Manage changes to the project B. Create the Work Performance Baselines C. Publish Work Performance Reports D. Publish the approved Project charter

Correct Option: D EXPLANATION The main objective of the sponsor is to create and publish a formally approved project charter. While the sponsor can help assist in preventing and managing changes to the project, this is the project manager's job. Creating baselines and publishing work performance reports are also the job of the project manager.

You are managing a project that your company won after making a bid. The clients have negotiated long and hard and have driven a hard bargain. The project is scheduled to span over eight months, and you are in your fifth month of execution. You are extremely worried since you have about four more months of work remaining and the project is at the "Point of total assumption." What does this mean? A. As a seller, you are running behind schedule B. As a seller, you are ahead of schedule C. The project is going to have a cost overrun which will need to be negotiated with the client D. As a seller, all subsequent costs will have to be borne by you

Correct Option: D EXPLANATION The point of total assumption (PTA) is a point where cost overruns will cause a dollar for dollar decrease in profit for the seller. Hence, any subsequent cost will have to be borne by your company.

You are managing a construction project using a firm fixed price (FFP) contract. The contract is structured so that your company will be paid a fee of $85,000 to complete the work. There was a $15,000 overhead cost that your company had to cover. You're now three months into the project, and your costs have just exceeded $70,000. The project has now consumed the entire fee, and your company will now be forced to pay for all costs on the project from this point forward. What's the BEST way to describe this situation? A. The project has ceased to be a profit center for the company B. The Project Manager has overspent the budget C. The project is overdrawn D. The project has reached the point of total assumption

Correct Option: D EXPLANATION The point of total assumption is the point at which the seller assumes the costs. In a firm fixed price contract, this is the point where the costs have become so large that the seller basically runs out of money from the contract and has to start paying the costs himself.

A project manager is in the sequence activity process of identifying and documenting relationships among defined activities and arranging them in the order they must be performed. While in this process, the project manager decides to utilize a precedence diagramming method (PDM) for sequencing the activities. All of the following are true about the precedence diagramming method EXCEPT : A. This method creates a schematic display of sequential and logical relationships of project activities B. It usually shows dependencies and the order in which activities in a project must be performed C. It uses four types of dependency relationships, including finish-to-start D. This method uses activity-on-arrow (AOA) convention as arrows are used to represent activities and circles show dependencies

Correct Option: D EXPLANATION The precedence diagramming method (PDM) usually uses the activity-on-node (AON) convention where boxes/nodes are used to represent activities and arrows show dependencies.

The senior management asks a project manager to start working on a process improvement project to improve productivity. What should the project manager first ensure? A. A meeting with the functional manager is arranged to get resources B. A meeting with the stakeholders is arranged to establish requirements C. Work on the project plan needs to be initiated D. The project charter is made and signed off by the senior management thus authorizing the project manager to deploy organizational resources to complete the project

Correct Option: D EXPLANATION The project charter is made and signed off by the senior management thus authorizing the project manager to deploy organizational resources to complete the project. A project manager should ensure that the right project management practices are followed. A project needs a project charter to list the objectives of the project, the high-level deliverables, and empower the project manager to spend organizational resources. Professional responsibility requires the project manager to secure the authority necessary to manage the project successfully.

You are the Project Manager of an engineering project that is about to close. The customer asks for a major change. What would you do in this scenario? A. Discuss with the team to figure out the impact of the change B. Refuse the change request and proceed with closure C. Go ahead and accept the change D. Discuss the situation with your senior management

Correct Option: D EXPLANATION The project is nearly complete (about to close), and the impact of the change is known to be major. Therefore, you need to get direction from your management before responding to the customer.

As a project manager, you are determining the resource requirements for a project including human, equipment, and tool resources. Which of the following activities would NOT be a part of this process? A. Reviewing resource pool availability to check availability of critical resources B. Creating a resource breakdown structure to classify the identified resources by resource category and type C. Reviewing organizational policies on resource use D. Creating a company calendar identifying working and non-working days

Correct Option: D EXPLANATION The project manager is currently in the estimate activity resources process and the options (a), (b), and (c) would have an impact on the process. However, option (d) is not in the purview of the project manager and would not be part of the activities in the estimate activity resources process.

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

Correct Option: D EXPLANATION The project manager should only consider documented change requests. He should ensure that when the change is requested, the impact on the features and functions of the product are documented with change requests before the change is allowed to move through integrated change control. Options (b) and (c) would come later as part of the integrated change control process.

After awarding a contract to one of the sellers, you realize you have missed a clause for delay in the contract and want to modify it. How should you proceed? A. A contract is legally binding and cannot be changed once signed B. The project manager should inform the seller about the change in next meeting C. The project manager should inform the seller about the change through a formal written communication D. The project manager should proceed with the contract change control system on his end

Correct Option: D EXPLANATION The project manager should proceed with the contract change control system on his end.

You are a project manager who takes over a project midway. The project is in the execution phase. You would like to know more about project deliverables, the work required to complete those deliverables, project constraints, and assumptions. Which of the following documents would be MOST useful? A. Work Breakdown Structure (WBS) B. Requirements Documentation C. Activity List D. Project Scope Statement

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

A project team is working on defining and sequencing activities of a project. They have identified the predecessors and successors for all the major milestone activities. They have also documented the detailed scope of work for each activity so that there is no ambiguity. They are now applying lead, lag, and mandatory dependencies to obtain a realistic project schedule so they can start tracking the project. What could be a major problem on this schedule? A. The project team should use one of the schedule compression techniques to optimize project schedule further. B. The project team should have used a standardized network template to expedite the process of preparing project schedule network. C. The project team need not include detailed scope of work at activity level as it can be changed later. D. The project team should have identified predecessors and successors for each activity instead of just for the major milestone activities

Correct Option: D EXPLANATION The project team should have identified predecessors and successors for each activity instead of just for the major milestone activities. It is important that every activity and milestone on the project be connected to at least one predecessor and one successor. If all these activities are not linked, it would be impossible to know the impact of a delayed activity on the subsequent linked activities, as well as the overall project schedule. Option (a) schedule compression techniques are only required when the project schedule needs to be further reduced without compromising on project scope or objectives. Option (b) could be useful, but it is not mandatory. Option (c) is incorrect.

You are managing a project for constructing a bridge over a river. All the risks have been identified and the design phase is just completed. The team is in its second week of construction. One of the subject matter experts reports that there is a possibility of the monsoons to be heavier this year. She points out that the load-bearing plates earlier designed may have to be redesigned considering the additional water pressure expected because of additional rain water. What would be your best immediate course of action? A. Schedule an emergency meeting with all stakeholders to discuss this risk B. Mitigate risks by immediately redesigning the load-bearing plates C. Write up a change request and submit it to the Change Control Board for approval D. Update the Risk register to add this risk along with its probability and impact

Correct Option: D EXPLANATION The question is asking about the best immediate course of action. The first course of action should be to add this risk in the Risk register. The possible impact and risk probability should also be added. No other action should be performed prior to this. So, scheduling an emergency meeting, which might sound as the first thing to do, is not correct and neither is making any change to the design. Writing up a change request will only come after the risk is documented and its probability and impact accessed. So, the first course of action should be to update the Risk register.

You are the Project Manager of a new road construction project with a total budget of $500,000. During a status review meeting, you realized that your team has just completed 40% of the work when it should have completed 50% by now. The team has also spent $190,000 so far on the project. What's the best way to describe the project status? A. Too little information to come to a conclusion B. Project is behind schedule and below the budget C. Project is ahead of the schedule and below the budget D. Project is behind schedule, but within the budget

Correct Option: D EXPLANATION The question says that 50% the project should have been completed, but only 40% has been complete, i.e., it's behind schedule. Also, if only 40% of the work is completed, the project should have used $500,000*0.4= $200,000. As the question says that only $190,000 has been spent, the project is within budget. This problem can be solved using the earned value technique.

What action should a project manager FIRST take when an unidentified risk event occurs? A. Inform the customer of the possible consequences B. Inform the senior management of the possible consequences C. Redo the risk identification process to get prepared for other "known unknowns" D. Create a workaround

Correct Option: D EXPLANATION The right project management practice dictates that a workaround should be created as a response to an event. Options A and C, "inform the customer of the possible consequences" or "redo the risk identification process to get prepared for other known unknowns" are parts of reporting and not actions required to recover from the event. Option B, which states that "inform the senior management of the possible consequences" also needs to be implemented, but after fixing the response to the event for recovery.

A major stakeholder in a project wants to know his role and responsibility in the scheduling process of the project. He also wants to understand how the schedule baseline is established and which scheduling methodologies are used. Which of the following best provides the information? A. Project Management Plan B. Project Schedule Baseline C. Stakeholder Register D. Schedule Management Plan

Correct Option: D EXPLANATION The schedule management plan could be a subsidiary of the project management plan or an independent document that establishes how schedule management will be carried out in the project. It serves as guidance for the scheduling process and defines the roles and responsibilities of stakeholders in the process, along with scheduling methodologies and schedule and change control procedures.

The Project Manager has discovered that two team members have had a disagreement over the procurement of the project component. The Project Manager suggests that the team members compromise. The team members are also willing to resolve the conflict. Who should decide the best course of action? A. Sponsor B. Customer C. Project Manager D. Team members

Correct Option: D EXPLANATION The team members should resolve the issue on their own.

Your team has just bagged a software development project. The executive management is very pleased as this is a very prestigious project. However, you are a little worried considering the complex nature of the project. You decide to try and identify the possible risks. You get all relevant stakeholders together and conduct mammoth discussions. Together, you have come up with a number of risks. However, based on your experience, you still feel that not all the risks have been identified. You decide to set aside some budget for the risks that you have not identified but are sure you will encounter. Where does this budget come from? A. Cost Management Plan B. Cost Baseline C. Contingency Reserves D. Management Reserve

Correct Option: D EXPLANATION The type of risk here is an unknown risk. For known risks, risk responses can be proactively planned for. For the known risks, where we cannot plan proactively, we set aside a reserve called Contingency Reserves. For unknown risks, we set aside a Management Reserve. Cost management Plan deals with how you will manage costs on your project, and Cost baseline is the baselined cost expected to be expended on the project.

Steve, the project manager for an ERP implementation project, was asked by the client via a change request to delay the implementation of one of the modules by one week. What should Steve do first in this situation? A. Instruct the team member responsible for the module to delay the implementation as per the client's request B. Deny the request as it will delay the entire project C. Inform the sponsor about the change request D. Evaluate the impact of the requested change

Correct Option: D EXPLANATION The very first thing the project manager should do upon receiving a change request is to evaluate the impact to project objectives such as scope, time, cost, quality, risk, resources, and others. The change request should then be submitted to the change control board for approval or rejection. Instructing the team member and informing the sponsor about the requested change would not be done prior to evaluating the impact of the requested change. Also, the project manager should make every effort to prevent changers in the project as much as possible.

You are a project manager working with a diverse team in different locations. You have created work packages for your team and have assigned them to team members as part of planning. You are looking for a system which can be used to notify team members that they may begin working on appropriate work packages in the project. Which of the following tools can be helpful? A. Resource Histogram B. Configuration Management System C. Change Control System D. Work Authorization system

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

According to Theory Y style of management, which of the following is a correct assumption? A. Employees are inherently lazy and not motivated. B. Employees need to be closely supervised, and comprehensive systems of controls are to be developed. C. Employees are only interested in self-benefits and money. D. Employees are trustworthy and are motivated by doing a good job.

Correct Option: D EXPLANATION Theory Y believes positively about employees, and only option D reflects a positive attitude and belief. Option A, B, and C are not the correct answer as they are the opposite of belief in employees. They indicate lack of trust in an employee, which is not a correct assumption in the Theory Y style of management.

A multinational project team of 10 is in the late planning stage. Five people join the team from another geographical location to provide R and D support on the project. What do you think would be the BIGGEST challenge the project manager faces ? A. Team Building, as the teams are from different cultures and different ethnic backgrounds. Further, they work in virtual environment devoid of face-to-face, and personal interaction B. Risk Management, as the new team brings along additional risk since they join the project midway C. Schedule management, as the team works in different locations with different time zones and work hours D. Communication management, as communication becomes more complex with a significant increase in the number of potential communication channels

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

You are creating a network diagram for your project. Activity A (6 days) and Activity B (4 days) can start immediately. Activity C (5 days) can start after Activity B is complete. Activity D (4 days) and Activity F (2 days) can start after Activity A is complete. Activity E (4 days) can start after Activity C and Activity D are complete. Activity G (5 days) can start after Activity D and Activity F are complete. When Activity E and Activity G are completed, the project is done. What is the slack of Activity E? A. Two days B. Zero C. Four days D. One day

Correct Option: D EXPLANATION There are four possible paths on this network diagram. ADG (duration of 15 days) is the critical path with the longest duration. The other three are AFG (duration of 13 days), ADE (duration of 14 days), and BCE (duration of 13 days). Subtracting the length of ADE from the critical path (15-14) shows a difference of one day. This is the slack of Activity E.

As you have a lot of expertise in project management, many of your company's co-managers consult you for advice and inputs. One of your colleagues who is relatively inexperienced in managing projects wants to compare the project work and measure the deviations. Which document should he refer to? Choose the option that best answers the question. A. He should refer to the Project Management Plan B. He should refer to the Scope Management Plan C. He should refer to the Schedule Management Plan D. He should refer to the Performance Measurement Baseline

Correct Option: D EXPLANATION There are multiple options that seem correct; however, they are partially correct. The scope baseline and schedule baseline are not the only baselines against which project performance is measured, so options B and C are definitely not the best options. The project management plan contains details of all the baselines, but a more specific plan to refer to is the Performance Measurement Baseline. It contains details of the scope, schedule, and cost baseline, and it could also contain quality and technical parameters. While the project management plan includes the baselines, it is actually the Performance Measurement Baseline which is used for comparing performances, and the Performance Measurement Baseline is a part of the Project Management Plan.

John has participated in developing a project charter for his project. However, he is unable to get senior management to approve the charter. The senior management does not mind starting off the project without a charter. What should John do in such a situation? A. Begin work on the critical path activities of the project B. Wait for another project C. Add "unapproved charter" as a risk to the risk register D. Convey to the senior management the impact of proceeding without project approval

Correct Option: D EXPLANATION There can be serious repercussions if the project charter isn't approved. It is best to convey such repercussions and educate the management.

Your company has won a large project-administering funds for one of the fund houses. The project work has been going on smoothly and the customer has been praising the work done so far. The client has planned a visit the next month to go over the plans for the next phase of the project as well as to meet with the project team. Your senior management realizes that this client could potentially need additional capabilities in the derivatives segment. Your company has a strong exposure to this segment having executed numerous such projects. Your senior manager also invites key managers from the derivatives segment to showcase the organization's abilities in the derivatives vertical. What is this an example of? A. Mitigating the risk B. Avoiding the risk C. Transferring the risk D. Exploiting the risk

Correct Option: D EXPLANATION This is an example of exploiting the risk. The client is happy with the work progress, and there might also be an opportunity that the client could be interested in the derivatives segment. This opportunity could lead to more business. By inviting key managers from the derivatives segment, you are enhancing the possibility of generating additional revenue. Hence, this is an example of exploiting the risk. Note that this is a positive risk.

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? A. The purpose of configuration management is to maintain integrity of work product B. Configuration management includes configuration audits, configuration control, configuration status accounting, and configuration identification C. Configuration management focuses on establishing and maintaining consistency of a product's requirements D. Configuration management involves measuring project performance with baselines and taking corrective action when necessary

Correct Option: D EXPLANATION This is done as a part of the process 'monitor and control project work'. All the other statements describe the configuration management process.

A project manager working on an iterative model of the product development life cycle expects many changes during the course of the project. He wants to establish a robust configuration management and also make his team aware of the process. Which of the following statements is NOT true about configuration management? A. The purpose of configuration management is to maintain integrity of work product B. Configuration management includes configuration audits, configuration control, configuration status accounting, and configuration identification C. Configuration management focuses on establishing and maintaining consistency of a product's requirements D. Configuration management involves measuring project performance with baselines and taking corrective action when necessary

Correct Option: D EXPLANATION This is done as a part of the process monitor and control project work. All the other statements describe the configuration management process.

To which process group does the task "Control procurement activities according to the procurement plan, verify compliance with project objectives." belong to? A. Planning B. Closing C. Executing D. Monitoring and Controlling

Correct Option: D EXPLANATION This is part of Monitoring and Controlling the procurements within a project. Refer to PMBOK® Sixth Edition, page 629 for more information.

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? A. -50 percent to +100 percent B. -50 percent to +50 percent C. -10 percent to +25 percent D. -5 percent to +10 percent

Correct Option: D EXPLANATION 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.

You have received a number of seller responses for contracting work related to setting up office cubicles. One of the bids received happens to be from a very good friend of yours. You know she has done good work in the past. What should be the best course of action? A. Do nothing, and let the seller selection proceed B. Ensure that your friend gets the contract as she has done good work in the past C. Inform your company regarding the conflict of interest, and disqualify your friend D. Inform your company regarding the conflict of interest, and let selection of seller happen with no prejudice

Correct Option: D EXPLANATION This is the only correct answer.

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 current variances will continue in the future. Which of the following formulas should you use to calculate EAC? Here, AC is the Actual Cost, EV is the Earned Value, and PV is the Planned value. A. EAC = AC + ETC B. EAC= AC+ (BAC - EV) C. EAC = EV/PV D. EAC = BAC/ cumulative CPI

Correct Option: D EXPLANATION This method assumes current variances are typical of the future. The remaining work is assumed to be performed at the same cumulative cost performance index (CPI) as that incurred by the project to date.

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. A. EAC = AC + ETC B. EAC= AC+ (BAC - EV) C. EAC = EV/PV D. EAC = BAC/Cumulative CPI

Correct Option: D EXPLANATION 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.

Which of the following statements is not true regarding Contracts? A. Contracts are legally binding in nature B. Contracts obligate the buyer to provide compensation and the seller to provide some product or service in return C. By careful administration of terms and conditions, the buyer can transfer some of the risks to the seller D. Contracts undergo an approval process as any other plan

Correct Option: D EXPLANATION This question tests your knowledge of contracts and procurement. At the onset, all the answers seem to be correct with respect to contracts. A contract is legally binding in nature; its an agreement between the seller providing some service or product and the buyer compensating the seller. Some of the risks can indeed be transferred to the seller through terms and conditions. Due to the legal nature, contracts are subject to an intensive approval process, much more intense than other plans. Hence in the context of the question, option D is the right answer.

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? A. 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 B. Incorporate the requirements of the stakeholder and then take his approval C. Talk to your Project Sponsor about the issue and take his approval before taking any further action D. Explain to the stakeholder that although his suggestions were appreciated, it is not possible to address all of them in this release due to project constraints. You will revisit them at the next phase.

Correct Option: D EXPLANATION This should be addressed as part of "manage stakeholder engagement." A Project Manager should proactively work with stakeholders to manage their expectations, address concerns, and resolve issues. For more information,refer to PMBOK® Guide - Sixth Edition, Manage Stakeholder Engagement, Page 523

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

Correct Option: D EXPLANATION This should be addressed as part of the manage stakeholder expectations process. A project manager should proactively work with stakeholders to manage their expectations, address concerns, and resolve issues. For more information, refer to Manage Stakeholder Engagement, Page 523, PMBOK® Guide Sixth Edition.

A Project Manager is proactively managing the change through the scope control process. Which of the following should he be MOST worried about? A. Value Added Changes B. Errors and Omissions C. Risk Response D. Verbal communication from key stakeholders

Correct Option: D EXPLANATION Undocumented changes should never be allowed by the Project Manager. He should ensure that whenever a change is requested, the impact on 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.

A project manager is proactively managing a change through the scope control process. Which of the following should she be MOST worried about? A. Value Added Changes B. Errors and Omissions C. Risk Response D. Verbal communication from key stakeholders

Correct Option: D EXPLANATION Undocumented changes should never be allowed by the project manager. He should ensure that whenever a change is requested, the impact on the features and functions of the product (including that on triple constraints) is documented with a change request. Option (a) Value added changes describe changes in the scope that would provide benefits in terms of cost reduction, etc. Option (b) Errors and Omissions could be both in project scope and product scope. Option (c) Risk Response involves changes in the scope required to mitigate an identified risk. Of all the above events that would result in possible changes to the scope, option (d) verbal undocumented changes pose the maximum potential threat to a project.

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? A. Continue with the next deliverable as the project has to be finished on time B. Talk to the Senior Manager to discuss the customer concern and resolution C. Ensure that the next deliverables have the features that the customer specified and exceed his expectations D. Do a scope verification of this deliverable to check if it satisfies project objectives

Correct Option: D EXPLANATION Verifying the project scope includes reviewing deliverables to ensure that each is completed satisfactorily. If this is successful, it should provide customer satisfaction. Option C is gold plating, 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.

Your organization has outsourced a large portion of the activities of an ERP implementation project to a vendor. According to the contract, the vendor is supposed to review the design and code of any major component with the technical review group (TRG) of your organization. So far the vendor has completed and deployed three major components without the approval of the TRG team. As a project manager, what should you do in this situation? A. Terminate the contract immediately as the vendor has breached the contract B. Stop payment for the components that were deployed without approval C. Do not worry too much as the approval of the TRG is not that important D. Issue a default letter to the vendor

Correct Option: D EXPLANATION When the vendor is not following the instructions stated in the contract, the project manager should inform the vendor that they are in default. Without informing the vendor about the concern and what they are doing wrong, you cannot terminate the contract. You also cannot simply stop any payment.

One of your team members is not cooperative, and he has a reputation of getting into frequent problems with other team members. What should you do to handle this team member? A. Escalate the issue to your Senior Manager B. Ignore this team member C. Warn this team member a couple of times strictly D. Address this concern directly with the team member

Correct Option: D EXPLANATION Whenever there is an issue, you should address it as you are the Project Manager. In this case, there is an issue with the behavior of the team member, and the right thing to do is to bring up the issue directly with the team member.

In your current organization, from managing projects, you have graduated to portfolio management and have a number of project managers reporting to you. Your company has bagged a prestigious project, which is very similar to the one you had executed some years ago. You ask the current project manager to look up the lessons learned for the past project. Where would these be stored? A. Projects performance reports B. Projects status reports C. Projects record management system D. Organizational process assets

Correct Option: D EXPLANATION While all the options seem to be good choices, the best choice in this case would be Organizational Process Assets. Lessons learned are always a part of the Organizational process assets. It is such assets that enable an organization take informed decisions.

Over lunch, you meet a colleague who is managing a large turnover project for setting up a chemical plant. Your colleague is worried because the client is being unreasonable and asking for changes that will have a severe impact on the scope schedule and cost. The client is also not ready to absorb the additional impact on schedule and cost. She seeks your advice. What should she do? A. Refuse to budge and not make any changes B. Request her executive management to initiate legal action against the client C. Ultimately the customer is always right, so go ahead and make the changes and absorb the impact on cost, schedule, and scope D. Set up a meeting with the client to better understand the need of the changes being asked for

Correct Option: D EXPLANATION Why is the client being unreasonable? Why does the client want to make these changes? Obviously, your colleague is in a tough situation. However tough the problem is, a project manager must not act impulsively by seeking legal action or refuse or immediately start making the changes. When faced with a problem, a project manager should first try and find the root cause and not react. So, in this case, the best advice for your colleague would be to set up a discussion with the client and try to understand the needs of the client.