Project Management Exam 2 Fall 2021

Customer responsibilities on a project might include all of the following EXCEPT: A) Participate in status or kick-off meetings B) Perform the work of the project to achieve its objectives C) Review and accept project deliverables D) Advise on project requirements

B) Perform the work of the project to achieve its objectives

A collection of projects, programs, and operations managed as a group to achieve strategic objectives are called a: A) Life cycle B) Portfolio C) Project D) Subprogram

B) Portfolio

You have made the decision to control risk through planning on your current project and therefore conclude that your scope management approach should be: A) Adaptive B) Predictive C) Iterative D) Lean

B) Predictive

PBP >DPBP A) True B) False

B) False PBP <= DPBP

A business case typically contains information regarding the business need and a financial analysis. Which financial model divides the cash flow by the initial cash outlay? A) Payback Period (PP) B) Benefit-Cost Ratio (BCR) C) Net Present Value (NPV) D) Internal Rate of Return (IRR)

B) Benefit-Cost Ratio (BCR)

The document that includes the necessary information to determine whether a project is worth the required investment, and is used for decision making by upper management, is called the: A) Case Study B) Business Case C) Project Charter D) Project Scope Statement

B) Business Case

Rate of return is an incremental economic analysis method. A) True B) False

A) True

PV function can be used to conduct future worth analysis on MS Excel. A) True B) False

B) False

The amount of time a successor activity must wait after the completion of its predecessor activity is known as what? A) Lag B) Lead C) Resource leveling D) Float

A) Lag

Your current project has produced a requirements management plan. What is the purpose of this document? A) The requirements management plan documents how requirements will be analyzed, documented, and managed throughout the project. B) The requirements management plan describes how individual requirements meet the business need for the project. C) The requirements management plan links requirements to their origin and traces them throughout the project. D) The requirements management plan provides guidance on how project scope will be defined, documented, verified, managed, and controlled.

A) The requirements management plan documents how requirements will be analyzed, documented, and managed throughout the project.

In an Agile life cycle model _____: A) The team is self-directed B) Customer requirements are gathered early in the project C) Detailed planning precedes execution

A) The team is self-directed

Capital recovery is the annual net profit that an investment need to produce to be able to balance the annual equivalent of both the initial investment and other costs that occur during the life of an investment project. A) True B) False

A) True

Future worth analysis is not a popular corporate DCF method A) True B) False

A) True

In an agile project, customer representative (a.k.a. product owner) can have both executive and managerial-level duties A) True B) False

A) True

PMT function can be used to calculate capital recovery cost. A) True B) False

A) True

Scrum master in agile projects facilitates and leads; similar to but more empowering than traditional project manager. A) True B) False

A) True

The Midlands Company is eager to develop a project schedule. They have already completed the scope statement, work breakdown structure and schedule management plan. What is the next thing they should do in order to start creating a project schedule? A) sequence activities B) define activities C) nothing; they are ready to proceed D) estimate activity durations

B) define activities

A freelance project manager is brought in by Company X to lead a large, expensive project. This project manager has excellent leadership skills and a strong technical understanding of the project. In order for her to optimize every component of the Talent Triangle, what might be a good activity for the project manager at the start of her time with Company X? A) host an icebreaker for all team members B) familiarize herself with the long-term objectives of Company X C) send an email including her résumé to all SMEs to ensure they are aware of her technical background D) attend a seminar on advanced leadership techniques

B) familiarize herself with the long-term objectives of Company X

Which of the following is NOT a common method for organizing a WBS? A) free format B) web C) hierarchical D) indented outline

B) web

During WBS creation on a large, complex project, the product and project deliverables are broken down into progressively lower levels of detail. Once the WBS has been defined at the second or third level of detail, whose input is essential in order to break down the work further? A) internal stakeholders B) sponsor C) subject matter experts D) external stakeholders

C) subject matter experts

Which of these is NOT a component of a Project Scope Statement? A) project deliverables B) acceptance criteria C) summary budget D) project exclusions or boundaries

C) summary budget

The objective of present worth analysis is________ A) to find the net present equivalent of all positive cash flows B) to find the net present equivalent of all negative cash flows C) to find the net present equivalent of all cash flows at t=0. D) to find the net future equivalent of all cash flows at t=n.

C) to find the net present equivalent of all cash flows at t=0.

When would a predictive project life cycle be the preferred approach? A) when the product will be created through a series of repeated cycles B) when the environment is changing rapidly C) when the product to be delivered is well understood D) when the high level vision has been developed, but the product scope is not well defined

C) when the product to be delivered is well understood

Characteristics of an organizational culture can have a major impact on a project's success. All of these are attributes of an organizational culture EXCEPT: A) Code of conduct B) Risk tolerance C) Motivation and reward systems D) Financial control procedures

D) Financial control procedures

A production engineer started working for a glass mfg company at a salary of 85,000 in 2020. What will be in her retirement account by the end of 2060, if she starts putting 5% of her salary based on a time value of money 3%. Provide your answer to the nearest integer.

MS Excel formula annual retirement deposit = 85000x5%=4250. Thus, future value of 40 year deposits will be =FV(0.03,40,-4250) = $479,387

Group phenomena that evolve over time and include established approaches to initiating and planning projects, the acceptable means for getting the work done, and recognized decision-making authorities are referred to as: A) Project culture (norms) B) Roles and responsibilities C) Organization structures D) Vision and mission

A) Project culture (norms)

The team or function assigned responsibility for the centralized and coordinated management of projects within an organization is known as what? A) Project management office B) War room C) Program management office D) Project headquarters

A) Project management office

In an agile project, who decides who will perform the work for the next period's defined scope? A) Team members B) Product owner C) Project manager D) Scrum Master

A) Team members

What does the 100 percent rule refer to? A) The presence of all product and project work in the WBS with nothing left out and no extra work included B) The ratio of stakeholder engagement required for the project to move to the Executing phase C) The sum of quality tasks in a project together with the administrative tasks D) The ratio of requirements that need to be implemented for the project to be a success

A) The presence of all product and project work in the WBS with nothing left out and no extra work included

FV function does not take salvage value into account. A) True B) False

A) True Since salvage value cash flow is at the end of planning horizon, it should be manually added to the output of FV function. Thus, its not part of FV function.

As a project manager, which of the following situations would concern you the most? A) a one-day delay to an activity with 0 total float B) a two-day delay to a noncritical path activity with two predecessor activities C) realizing that an activity on your critical path only took two days instead of the four you assigned it using the PERT method D) a three-day delay on an activity with five days total float

A) a one-day delay to an activity with 0 total float

PMT function is primarily used for _________ analysis A) annual worth B) present worth C) future worth D) rate of return

A) annual worth

Pay back period determines how long it takes to fully recover an investment while considering the time value of money A) True B) False

B) False Discounted payback period determines how long it takes to fully recover an investment while considering the time value of money

The abbreviation of the MARR is maximum attractive rate of return. A) True B) False

B) False Minimum Attractive Rate of Return

NPER is the MS Excel function used to calculate the rate of return. A) True B) False

B) False NPER calculates payback period or discounted payback period.

PV function does not take salvage value into account on MS Excel. A) True B) False

B) False The (fv) section can be used to enter the salvage value in PV function on MS Excel.

The present, future, annual worth analyses may not yield the same conclusion at all times. A) True B) False

B) False They all should yield the same conclusion as a result of economic analysis

Characteristics of an organizational culture can have a major impact on a project's success. All of these are attributes of an organizational culture EXCEPT: A) Motivation and reward systems B) Financial control procedures C) Code of conduct D) Risk tolerance

B) Financial control procedures

A hierarchical organization where each employee has one clear superior and staff are grouped by areas of specialization and managed by a person with expertise in that area is known as a: A) Projectized organization B) Functional organization C) Weak matrix organization D) Composite organization

B) Functional organization

__________ analysis converts all cash flows to a single sum equivalent at the end of the planning horizon A) Future Value B) Future Worth C) Future Wealth D) Present Worth

B) Future Worth

How do you calculate Late Start, using the two-pass method? A) Duration-Early Start B) Late Finish-Duration C) Early Finish-Early Start D) Late Finish-Early Finish

B) Late Finish-Duration

____ organization structures can be classified as weak, balanced, or strong depending on the relative level of influence between the functional manager and the project manager: A) Traditional B) Matrix C) Projectized D) Silo

B) Matrix

You have made the decision to control risk through planning on your current project and therefore conclude that your scope management approach should be: A) Iterative B) Predictive C) Lean D) Adaptive

B) Predictive

Which project role provides resources or support for the project, promotes and protects the project at higher levels of management, and takes an active role in the project from the chartering stage through project closure? A) Project manager B) Project sponsor C) Project team member D) Functional manger

B) Project sponsor

Which PMBOK Guide Knowledge Area includes those processes required to ensure that the project includes all the work required, and only the work required to complete the project successfully? A) Quality management B) Scope management C) Risk management D) Cost management

B) Scope management

What is the best role for a project management office in an organization with a low level of project management maturity? A) Controlling B) Supportive C) Directive D) Enabling

B) Supportive

In an agile project, who decides who will perform the work for the next period's defined scope? A) Scrum Master B) Team members C) Project manager D) Product owner

B) Team members

What does the 100 percent rule refer to? A) The sum of quality tasks in a project together with the administrative tasks B) The presence of all product and project work in the WBS with nothing left out and no extra work included C) The ratio of requirements that need to be implemented for the project to be a success D) The ratio of stakeholder engagement required for the project to move to the Executing phase

B) The presence of all product and project work in the WBS with nothing left out and no extra work included

Your current project has produced a requirements management plan. What is the purpose of this document? A) The requirements management plan describes how individual requirements meet the business need for the project. B) The requirements management plan documents how requirements will be analyzed, documented, and managed throughout the project. C) The requirements management plan provides guidance on how project scope will be defined, documented, verified, managed, and controlled. D) The requirements management plan links requirements to their origin and traces them throughout the project.

B) The requirements management plan documents how requirements will be analyzed, documented, and managed throughout the project.

In order to be successful, the project team must be able to assess the needs of stakeholders and manage their expectations through effective communications. At the same time, they must balance competing demands among project scope, schedule, budget, risk, quality, and resources, which are also known as project ______ . A) deliverables B) constraints C) targets D) plan elements

B) constrains

The process of breaking the WBS into smaller and smaller deliverables is called: A) detailed specifications B) decomposition C) functional design D) value engineering

B) decomposition

The Bluestar Creative Agency is developing a new marketing campaign for a client. They have determined that the client's marketing plan must be completed before the graphic design can begin. This situation describes what type of dependency? A) start-to-start (SS) B) finish-to-start (FS) C) finish-to-finish (FF) D) start-to-finish (SF)

B) finish-to-start (FS)

Shared resources; cooperation; high-quality decisions; knowledge is retained; effective integration on project; flexible are typical advantages of _________ A) projectized organizations B) matrix organizations C) traditional organizations

B) matrix organizations

A "component of the project management plan that describes how the scope will be defined, developed, monitored, controlled and verified" is the _______. A) WBS Dictionary B) scope management plan C) requirements management plan D) project statement of work

B) scope management plan

The two traditional project management associate-level roles are different in each of the following ways EXCEPT __________ . A) degree of input contributed to project planning B) the person they report to C) ability to work within project constraints D) skill set

B) the person they report to

In adaptive life cycles (Change driven or Agile methods), ___________ . A) change control is very important B) the time and costs are fixed, but the scope is developed iteratively. C) the overall scope of the project is fixed, and the time and cost are developed incrementally. D) the overall cost is fixed, and the project scope and schedules are developed iteratively.

B) the time and costs are fixed, but the scope is developed iteratively.

Which of the following is a financial analysis tool that an organization may use to determine the cost-value of potential projects? A) Internal Rate of Return (IRR) B) Net Present Value (NPV) C) All of the above D) Payback Period (PP)

C) All of the above

The ___________ is the present worth of a perpetuity A) MARR B) Capital worth C) Capitalized worth D) IRR

C) Capitalized worth

Based on PMI's definition, which of these is a good example of a project? A) Using a checklist to perform quality control B) Manufacturing a standard commodity C) Designing and launching a new website D) Following policies and procedures for procuring an item

C) Designing and launching a new website

What is an advantage of using Monte Carlo analysis when estimating the duration for an activity? A It uses brainstorming techniques to reach a team consensus for the duration. B) It uses historical data from a similar activity or project to calculate the duration. C) It can provide a great deal of information about how activity times may vary. D) It is less costly and time consuming than other estimating techniques

C) It can provide a great deal of information about how activity times may vary.

Which of the following is NOT a characteristic of an activity? A) It has clear starting and ending points B) It is a distinct, scheduled portion of work performed during a project C) It is one of the deliverables at the lowest level of the WBS D) It is defined using a verb / noun format

C) It is one of the deliverables at the lowest level of the WBS

Projects may be undertaken as a result of any of the following strategic reasons except: A) Environmental considerations B) Market demand C) Need to keep workers busy during slow times D) Social need

C) Need to keep workers busy during slow times

Which of the following examples would not be considered an enterprise environmental factor? A) Political climate B) Government or industry standards or regulations C) Net present value of investment D) Organizational structure

C) Net present value of investment

Group phenomena that evolve over time and include established approaches to initiating and planning projects, the acceptable means for getting the work done, and recognized decision-making authorities are referred to as: A) Organization structures B) Vision and mission C) Project culture (norms) D) Roles and responsibilities

C) Project culture (norms)

A narrative description of products, services or results to be delivered by the project is a(n): A) Elevator pitch B) Business case C) Project statement of work D) Request for information

C) Project statement of work

If a successor activity cannot start until its predecessor activity has started, what sort of relationship is this? A) Start-to-finish B Finish-to-finish C) Start-to-start D) Finish-to-start

C) Start-to-start

A Gantt chart represents project schedule information in an easy-to-read, graphical format. Which of these is NOT a component of this type of Gantt chart? A) durations B) start and end dates C) budget data D) activities

C) budget data

Another term for "activity on node," the most commonly used technique for constructing a schedule model is _______ A) arrow diagramming method (ADM) B) activity on arrow (AOA) C) precedence diagramming method (PDM) D) activity attribute method (AAM)

C) precedence diagramming method (PDM)

Projects pass through a series of phases as they move from initiation to project closure. The names and the numbers of the phases can vary significantly depending on the organization, the type of application, industry, or technology employed. These phases create the framework for the project, and are referred to collectively as the ________ . A) project scope management B) project management information system (PMIS) C) project life cycle D) product life cycle

C) project life cycle

A grid that links product requirements from their origins (e.g. business reason needed, stakeholder who requested them) to the deliverables that satisfy them is referred to as a _______. A) stakeholder register B) network diagram C) requirements traceability matrix D) Gantt chart

C) requirements traceability matrix

A project portfolio is a useful storage medium that enables the project manager to consolidate all project information in a single, convenient location. A) True B) False

B) False

You are planning the schedule and come to an activity you are unfamiliar with. Your SMEs give you the following time estimates: most likely = 5 hours; optimistic = 2 hours; pessimistic = 14 hours. Using PERT, which activity duration do you use in your plan? A) 6 hours B) 5 hours C) 10 hours D) 2 hours

A) 6 hours (2+4x5+14)/6=6 hours

____________ analysis converts all cash flows to a uniform annual series over the planning horizon A) Annual worth B) Annual weight C) Future weight D) Future worth

A) Annual worth

PMI's Code of Ethics and Professional Conduct is a guide for project management practitioners that describes the expectations that they should hold for themselves and others. Which of these is not one of the desired behaviors and basic obligations referenced by the code of conduct? A) Authority B) Fairness C) Honesty D) Respect

A) Authority

The project sponsor's responsibilities during the executing stage include: A) Ensuring communications with key stakeholders B) Reviewing and signing the project charter C) Producing project status reports D) Signing off on the detailed project plan

A) Ensuring communications with key stakeholders

The internal and external environmental factors that both surround and influence, and sometimes constrain, a project are known as what? A) Enterprise environmental factors B) Enterprise organizational assets C) Environmental enterprise constraints D) Environmental process assets

A) Enterprise environmental factors

A hierarchical organization where each employee has one clear superior and staff are grouped by areas of specialization and managed by a person with expertise in that area is known as a: A) Functional organization B) Weak matrix organization C) Strong matrix organization D) Projectized organization

A) Functional organization

As you develop the project scope statement as the foundation for work your company is performing, you should: A) Include acceptance criteria to use as closure guidelines B) Ask the project team to list the major project milestones C) Use the resource traceability matrix in your data analysis D) Identify any new job seekers for open positions

A) Include acceptance criteria to use as closure guidelines

Which of the following statements about a work package is true? A) It is the lowest level of the WBS. B) It consists of a single activity. C) It requires the work of the entire project team. D) It is the responsibility of the project manager.

A) It is the lowest level of the WBS.

To be effective, a project manager needs to possess all of the following competencies, except _________ . A) authority - power or right granted by the organization B) performance - what project managers can accomplish while applying their project management knowledge C) personal effectiveness - attitudes, core personality traits, leadership D) knowledge of project term-7management - understanding of project management tools and techniques.

A) authority - power or right granted by the organization

The key output of the scope planning process is an approved version of the scope baseline. After this baseline is established, it can be referenced during project execution in order to: A) identify changes in scope that will go through formal change control procedures. B) communicate with stakeholders effectively. C) link requirements back to their origins. D) staff the project properly with the right skill sets.

A) identify changes in scope that will go through formal change control procedures.

The project scope baseline consists of the approved versions of three of the four documents listed below. Which of these documents is NOT included in the project scope baseline? A) project charter B) project scope statement C) work breakdown structure (WBS) D) WBS dictionary

A) project charter

In conducting economic analysis, we, engineers, should compare investment alternatives over _____ period of time A) the common B) the longest C) 10-years D) the shortest

A) the common

Slow communication and high resistance to interdisciplinary projects could be observed in _______ A) traditional organizations B) strong matrix organizations C) weak matrix organizations D) balanced matrix organizations

A) traditional organizations

An organization's vision often includes reference to its social, environmental, and economic health, collectively referred to as the: A) triple bottom line B) statement of work (SOW) C) business case D) net present value (NPV)

A) triple bottom line

All projects should be aligned with their organization's strategic plan, which includes the organization's vision, goals, and objectives. Which of these describes an organization's vision? A) Is SMART: specific, measurable, achievable, results-based, and time-specific. B) Conveys a larger sense of organizational purpose, and is both inspiring and guiding. C) Includes the organization's core purpose, core values, beliefs, culture, primary business, and primary customers. D) Describes short and long term results along with measures to determine if they have been achieved.

B) Conveys a larger sense of organizational purpose, and is both inspiring and guiding.

All of the following are true except: A) A program manager has the discretion to make trade-offs in regard to which projects to pursue. B) A portfolio may contain multiple programs and projects C) Projects have a finite timeline, while programs may exist as long as the parent organization does. D) A project manager has the discretion to make trade-offs in regard to which programs to pursue

D) A project manager has the discretion to make trade-offs in regard to which programs to pursue

Your organization has implemented best practices in project management processes. One function that has been set up is the project management office (PMO). What is the function of the PMO? A) Close project accounts at the end of the projects B) Provide hot-desk facilities for all project managers C) Provide standard stationery for project paperwork D) Coordinate the management of projects

D) Coordinate the management of projects

The Chief Projects Officer's or PMO's responsibilities might include: A) Promoting the project at the executive level of the organization B) Working with the team to create a project schedule and budget C) Signing the project charter D) Ensuring enough resources are available to perform the project

D) Ensuring enough resources are available to perform the project

All of the following are characteristics of a projectized organization EXCEPT: A) Coordination is the responsibility of project managers B) Decision making is streamlined C) Focus is on the customer D) Functional managers have the majority of authority

D) Functional managers have the majority of authority

All of the following are characteristics of a projectized organization EXCEPT: A) Focus is on the customer B) Coordination is the responsibility of project managers C) Decision making is streamlined D) Functional managers have the majority of authority

D) Functional managers have the majority of authority

As you develop the project scope statement as the foundation for work your company is performing, you should: A) Ask the project team to list the major project milestones B) Use the resource traceability matrix in your data analysis C) Identify any new job seekers for open positions D) Include acceptance criteria to use as closure guidelines

D) Include acceptance criteria to use as closure guidelines

____ organization structures can be classified as weak, balanced, or strong depending on the relative level of influence between the functional manager and the project manager: A) Silo B) Composite C) Projectized D) Matrix

D) Matrix

_____________ does not require interest rate calculations A) FW B) PW C) DPBP D) PBP

D) PBP Payback Period (PBP)

Customer responsibilities on a project might include all of the following EXCEPT: A) Advise on project requirements B) Review and accept project deliverables C) Participate in status or kick-off meetings D) Perform the work of the project to achieve its objectives

D) Perform the work of the project to achieve its objectives

Who is responsible for overall priority setting, project selection and prioritization, sponsor selection, general guidance, encouragement in a typical projectized organization? A) Portfolio manager B) PMO C) Sponsor D) Steering team

D) Steering team

In an Agile life cycle model _____: A) The scrum master controls the team B) Detailed planning precedes execution C) Customer requirements are gathered early in the project D) The team is self-directed

D) The team is self-directed

The __________________ best describe(s) why a project is being undertaken. A) subprojects B) statement of work C) source selection criteria D) business case

D) business case

The process where project deliverables and project work are subdivided into smaller and smaller pieces is called ______: A) plan scope management B) define scope C) collect requirements D) create WBS

D) create WBS

A critical path activity has ________ float during the planning process. A) negative B) the most C) positive D) zero

D) zero