PMP Exam Prep - Exam Prep Practice Test
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?
-5 percent to +10 percent Explanations: This is the definitive range derived during the latter part of the project when project information is available in sufficient detail. The estimate could become more refined to a range of -5 percent to +10 percent from the actual. This estimate is usually derived using the bottoms up estimation technique.
The optimistic time estimate for an activity is 11 days, pessimistic is 25 days, and most likely is 15 days. What is the expected time for this activity?
16 days Explanations: Expected time = (O + 4M + P)/6 = 16
What is the best time to engage in team building activities?
Throughout the project Explanations: Team building is an ongoing activity and must be planned throughout the project.
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?
18 to 22 days Explanations: The estimated duration for 5 testing cycles of 4 days each is 20 days. The correct estimation range is 18 to 22 days.
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?
2 days Explanations: Float for an activity can be calculated using any of the two formulae (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 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?
4 Explanations: The formula for variance = [(Pessimistic-Optimistic)/6]². The answer is 4.
You are managing a project with project teams in different geographical locations. There are approximately 25 team members in 3 different locations each being led by a team lead. Additionally, there are 3 members from a supporting group that are working part-time on the project. How many communication channels are possible in your project?
496 Explanations: This is directly based on the formula n*( n-1 )/2. If n is the number of stakeholders in the project, the total possible communication channels = n*( n-1 )/2. The project has 25 team members, 3 team leads, 3 support team members, and the Project Manager. That makes it 32 people and 496 possible communication channels. Please Refer PMBOK® Guide - Fifth Edition, Project Communications Management, PN 292.
As a Project Manager you are estimating the duration of your project activities using PERT technique (Program Evaluation and Review technique). For a particular project activity, your optimistic estimate is 41 days, pessimistic estimate is 89 days, and most Likely estimate is 60 days. What would be the expected duration and range of the estimate for this activity?
61.67 +/- 8.00 Explanations: PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely, given by the equation Expected Duration = [P + 4(ML) + O]/6. Range is +/- standard deviation = (P-O)/6, where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this method, the correct answers come out to be 61.67 days and range (+/-Standard Deviation) is 8.00.
Which of the following statements is NOT true about a product lifecycle?: - It starts with conception of a new product and ends with its withdrawal - A product can spawn a single project in its life - The five stages of each product lifecycle are product development, introduction, growth, maturity, and decline - It focuses on managing the properties of a product from a company's business point of view
A product can spawn a single project in its life. Explanations: A product can spawn a single project in its life. Product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal. PLM integrates people, data, processes, and business systems to provide a product information backbone for companies. The five stages of each product lifecycle are product development, introduction, growth, maturity, and decline. A product can spawn or require many projects over its life.
Which of the following statements about critical path is TRUE? - It is the shortest path from start to finish - All the activities on the critical path do not have any float - A project will have only one critical path - A critical path takes into consideration logical as well as resource dependencies
All the activities on the critical path do not have any float. Explanations: Critical path activities do not have any float. If any activity on the critical path is delayed, the completion of the project will be delayed by an equal amount. To determine the critical path, you have to add the amount of time estimated for the duration of each activity to the previous activity.
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?
Analyze the impact of the change on project quality objectives and quality planning Explanations: Analyze the impact of the change on project quality objectives and quality planning. It is important to analyze the impact of the change not only on the triple constraints but also on quality. The Project Manager needs to determine whether the quality objectives and quality planning need to be modified to address the changes. Option B is already addressed as part of assessing the impact on the triple constraints.
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?
Automate the data capturing process. Explanations: The best alternative is the one which eliminates the root cause of the problem and prevents subsequent changes. Here the main problem is the inefficient use of time and effort of team members in capturing the data. The best way to address this is to automate the process thus reducing both time and effort. Option B could result in incorrect and incomplete data because it's not recorded at the time of capturing. Whereas Options A and Option C suggest the Project Manager evades the responsibility of producing valid project data.
You are a Project Manager planning to launch a new product in the market. For this purpose, you are analyzing the existing products in the market to understand their best practices. You also compare industry standards for performance metrics including cost, cycle time, productivity, and quality to come up with your own product metrics. Which of the following activities are you doing? - Cost Benefit Analysis - Value Engineering - Benchmarking - Process Analysis
Benchmarking Explanations: Benchmarking is a management tool through which a plan for evaluation, measurement, and improvement is implemented. It is the process of comparing the business processes and performance metrics including cost, cycle time, productivity, and/or quality to another that is widely considered to be an industry standard benchmark or best practice. The objective of Benchmarking is to determine (1) what and where improvements are called for, (2) how other firms achieve their high performance levels, and (3) how to use this information to improve the firm's performance. Option D process analysis is a tool and technique of the quality assurance process which involves following steps in the quality improvement plan to identify needed improvements. Please refer PMBOK® Guide - Fifth Edition Project Quality Management PN 239 for more details.
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:
Benchmarking Explanations: What the Project Manager is trying to do is essentially look at the industry benchmark and make sure that the product is in line with it. This is the benchmarking technique.
In one of the project status meetings, two senior team members get into an argument regarding the introduction of a new tool to automate time sheet filling. Which of the following would provide you maximum insight on the conversation? - The content and timing of the conversation - The content and timing of the conversation and the communication technology used - Body Language and the words in the conversation - Body language and voice modulation including pitch and tone
Body language and voice modulation including pitch and tone. Explanations: Option D includes non-verbal and paralingual forms which are critical for effective communication and form more than 55% of all communication.
Which of the following is an output of the Direct and Manage project work process? - Project Charter updates - Work performance information - Approved change requests - Change requests
Change requests. Explanations: Change request is one of the outputs of this process.
Your software project is in the critical system testing stage when two of the senior members of the team come to you with a conflict on usage of the simulation software during testing. One senior member claims that the other person keeps the software engaged for almost all the working hours of the project. You decide to change their working schedules so that they no longer overlap. Which of the following techniques for conflict resolution are you using? - Compromising - Collaborating - Forcing - Smoothing
Collaborating Explanations: The collaborating or problem-solving approach is the best option as the PM is solving the project problem by taking out the overlapping of activities.
A Project Manager understands the information needs of important stakeholders and documents how they would be met. Which document is being prepared?
Communications management plan Explanations: Communications management plan contains details of how the communication needs of the project's stakeholders will be met.
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:
Composite Organization Explanations: Many times, even a fundamentally functional organization may create a special project team to handle a critical project. This may have many characteristics of a project team in a projectized organization. The team may include full-time staff from different functional departments, may develop its own set of operating procedures, and may operate outside the standard, formalized reporting structure.
Which of the following are the MOST important to derive the total funding requirements and periodic funding requirements of the project? - Management Reserve and Contingency Reserve - Cost Baseline and Management Reserve - Funding Limit Reconciliation - Project Budget and Contingency Reserve
Cost Baseline and Management Reserve Explanations: The total funds required in the project are those included in cost baseline, plus management reserve if any. Remember, the cost baseline includes contingency reserves because the cost baseline will include projected expenditures plus anticipated liabilities. Please refer to PMBOK® Guide - Fifth Edition Project Cost Management PN 206 for more details.
Project Manager John and his team have finished creating the Work Breakdown Structure (WBS) and Work Breakdown Structure dictionary. Then, he prepares a detailed and itemized documentation of all of the schedule activities that are part of the project. What should he do NEXT?
Create Network Diagram for the project. Explanations: The Project Manager has created a WBS, a WBS dictionary, and an activity list in the planning stage. The next step would be to create a network diagram for the project. Quality standards and metrics can be identified once project schedule and budget are determined. Option C is done as part of project initiation and is completed much earlier. Option D is done in the executing stage of the project.
You have taken over as a Project Manager of a complex and technically challenging project. To add to the problems, your team is from diverse cultures and lacks bonding. You want the team to participate and take ownership of the project activities, as well as understand the "big picture of the project." Which of the following activities would be most helpful? - Use colocation to help team bond better which in turn would maximize productivity - Create Work Breakdown Structure (WBS) - Develop Responsibility Assignment Matrix to describe roles and responsibilities of every team member - Conduct knowledge sessions where each member appraise the team about his culture
Create Work Breakdown Structure (WBS). Explanations: The Project Manager wants the team to take ownership as well as understand how its individual project activities affect the overall project deliverable (the big picture). The Project Manager also wants the team to develop bonding. All these objectives are met when the team gets involved in creating the Work Breakdown Structure (WBS) and WBS dictionary. Option A may not be always possible due to physical constraints in the project. Option D has limited utility, but Option B is the best choice as it fulfills multiple project objectives.
A Project Manager is facing many serious issues in his project to create an application for a hospital management system. The project's final deliverable is scheduled for two weeks from now. It needs to fulfill compliance with mandatory government health standards. In addition to that there are some changes required to improve performance which the Project Manager feels will make the customer happy. Amidst all of this, a senior test engineer asks the Project Manager for a long leave. Which is the most critical issue the Project Manager needs to address FIRST?
Ensure the product is compliant to government health standards. Explanations: Ensure the product is compliant with government health standards. This question exemplifies a typical scenario when a Project Manager needs to integrate information and prioritize the most critical issue. In this scenario, Option C is part of gold plating and is not actually required in the project. Option B can pose some trouble to the Project Manager. The question doesn't clearly establish whether the resource is leaving before or after the final delivery. There is no indication that his absence would adversely affect the project delivery. In this situation, the most important thing to focus on should be the compliance testing because it is a mandatory requirement on the project.
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?
Executing Explanations: The process being worked on is Acquire project team, which is part of the executing process group.
You are in the process of implementing approved changes, corrective actions, preventive action, and defect repairs in the project. In which of the following process groups are you in? - Initiation - Planning - Execution - Monitor and Control
Execution Explanations: The executing process group involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan.
Jenny is the Project Manager and is currently in the initiating process group. She understands that it is critical for project success to identify stakeholders early in the project. Therefore, she is in the process "identify stakeholders." Of the following, which INPUT may not be required? - Procurement documents - Project Charter - Expert Judgment - Enterprise environmental factors
Expert Judgment Explanations: Expert judgment is a tool and technique for the "identify stakeholders" process and is not an input.
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?
Explain to the stakeholder that although his suggestions were appreciated, it is not possible to address all of them in this release due to project constraints. You will revisit them at the next phase. Explanations: This should be addressed as part of "manage stakeholder expectations." A Project Manager should proactively work with stakeholders to manage their expectations, address concerns, and resolve issues. For more information, refer to PMBOK® Guide - Fifth Edition, Project Communication Management, PN 287.
In which form of contract will the cost risk lie with the seller?
FP Explanations: Cost risk lies with the seller in a Fixed price contract.
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?
Face-to-face-meeting Explanations: A face-to-face meeting is ideal for project communication. It gives the Project Manager an avenue to understand the reasons for discontent and clarify doubts. Face-to- face meetings have an added advantage of being accompanied with non-verbal (body movements and physical mannerisms) and paralingual (pitch and tone of voice) communication methods.
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?
Formal Written Explanations: As this is the second notice to the team member for poor performance, it should be communicated in a formal written manner.
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?
Functional Manager Explanations: The issue requires functional expertise and hence the Functional Managers are best able to assist in this matter.
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?
Functional Managers Explanations: Since nothing is given about the organization structure, we have to assume that it is a matrix or functional organization where the resources are owned by the functional managers, and they would provide and identify these resources.
Which of the following is a tool and technique for the Determine budget process?
Funding Limit Reconciliation. Explanations: Funding limit reconciliation is one of the techniques used in the Determine budget process. See Page 208 of the PMBOK® Guide - Fifth Edition.
You are managing a large project team that has some new members joining. You would like to take the entire team through the project schedule and update them on where the project stands with respect to the original plan. Which of the following charts would be most helpful for this purpose? - Gantt Chart - Milestone Chart - Work Breakdown structure - Schedule Baseline
Gantt Chart Explanations: A Gantt chart is a bar chart that shows the activities of a project, when each must take place, and how long each will take. As the project progresses, bars are shaded to show which activities have been completed. People assigned to each task also can be represented. This is the most effective tool to show the people assigned to the project where they are with respect to the original plan.
As a Project Manager for a pharmaceutical project, you are in the process of stakeholder analysis. You have identified both internal and external stakeholders. Which of the following will be least useful for determining how to engage them? - Using the Influence/Impact matrix - Correctly identifying the internal and external stakeholders - Determining and agreeing on the responsibilities of the internal and external stakeholders - Giving the stakeholders extra incentives to win them over to your side
Giving the stakeholders extra incentives to win them over to your side. Explanations: Giving extra incentives to stakeholders to win them over amounts to gold plating or (even worse) unethical practices, so it is not recommended.
A Project Manager is identifying relevant enterprise and environmental factors in a project. Which of the following is NOT a valid example? - Organizational culture and processes - Stakeholder risk tolerances - Employee performance review records - Historical lessons learned knowledge base
Historical lessons learned knowledge base. Explanations: These are parts of the corporate knowledge base in organizational process assets. The others are examples of enterprise and environmental factors and refer to both internal and external environmental factors that surround or influence project success either positively or negatively. To go through a list of examples for enterprise and environmental factors, refer to PMBOK® Guide - Fifth Edition Introduction PN 28.
All of the following are functions of the project management office EXCEPT: - Monitoring compliance with project management standards policies, procedures, and templates via project audits - Coaching, mentoring, training, and oversight - Managing shared resources across all projects administered by PMO - Identifying and developing the organization's methodology, administrative practices, and rules
Identifying and developing the organization's methodology, administrative practices, and rules Explanations: The PMO's role is to identify and develop the project management methodology, best practices, and standards.
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?
Ignore the change as it is gold plating and should be avoided. Explanations: Ignore the change as it is gold plating and should be avoided. This is an example of gold plating because this requirement is not actually part of the contract. Such additions are usually based on a perceived notion of what the customer would like rather than a specific requirement from the customer. Gold plating is defined in simple words as adding more to the system than is specified in the requirements. Gold plating can increase operation and maintenance costs and reduce quality as well.
A Project Manager likes to involve the project team in the decision-making process. Whenever there are issues which require urgent decisions, the Project Manager calls the team to work out a solution together. This approach is: - Correct because it helps to get team buy- in and its commitment to the change - Correct as brainstorming technique helps to bring out creative ideas to solve the problem - Incorrect as lot of time and effort of the project team are spent on decisions which could be singularly made by the Project Manager - Incorrect as not all the solutions coming of a brainstorming session can be implemented, resulting in disappointment in the team
Incorrect as lot of time and effort of the project team are spent on decisions which could be singularly made by the Project Manager Explanations: The key words here are "involve the project team in all the decision-making process." It is important for the Project Manager to involve the project team to work out solutions to critical project issues. However, this approach should be used judiciously as the amount of time spent in the meetings could lead to an inefficient use of the team's time. Furthermore, in many situations, meetings delay the decision making process due to internal conflicts.
A Project Manager has defined the key deliverables of the project based on the business and compliance requirements and is now identifying and documenting high-level risks, assumptions, and constraints based on current environment, historical data, and/or expert judgment to identify project limitations and propose an implementation approach. Which process group is the Project Manager in?
Initiating Explanations: It is during the initiating process group that you identify and document high-level risks, assumptions, and constraints to identify project limitations and thereafter propose an implementation approach.
Which of the following statements is TRUE regarding the initiating process group? - Risk is lowest during the Initiating process group - The project has the highest probability of project success during the Initiating process group - The Project Manager and team are always identified as part of the Initiating process group - Initiating process group includes the develop project charter and identify stakeholders' process
Initiating process group includes the develop project charter and identify stakeholders' process. Explanations:Initiating process group includes the develop project charter and identify stakeholders process. Option (a) specifies the risk involvement, and option (b) specifies probability of success.
The method of examining work or a product to determine whether it conforms to documented standards is called:
Inspection Explanations: Inspection is the examination of work or a product to determine whether it conforms to documented standards. It is also called peer reviews, review audits, or walkthroughs. Inspection can be done at any level in the project and can also be used to validate defect repairs.
A key responsibility of the Project Manager is to ensure the proper assimilation of the project management processes and coordinate the process phases through the project management cycle. The Project Manager also has to ensure that all areas of the project come together to successfully deliver the project. This involves balancing the basic aspects of scope, cost, and schedule in addition to managing quality, communication, customer satisfaction, etc. The role of the Project Manager can be best described as:
Integrator Explanations: The role of a Project Manager is the combination of all the options, but the one that is most critical to the project's success is that of an Integrator. As described in the question, a Project Manager is expected to integrate the project management processes and coordinate the process phases through the project management cycle to ensure that all areas of the project come together to successfully deliver the project. Integration involves pulling together all aspects of project management including scope, cost, schedule, quality, and communication in addition to working with other departments such as Legal, Human Resources, Training, Contract Administration, and Information Technology.
Which of the following would NOT be part of cost of conformance? - Prevention cost - Appraisal cost - Internal failure cost - Cost of training
Internal failure cost Explanations: Internal failure cost (including failure found by the project internally like rework and scrap) is not part of the cost of conformance. All the failure costs (including external failure costs) are referred to as the cost of poor quality. The cost of conformance denotes the money spent during the project to avoid failures. Please refer to PMBOK® Guide - Fifth Edition, Project Quality Management, PN 235 for more details.
Which of the following is the output of the process manage stakeholder engagements? - Issue Log - Stakeholder Management Plan - Communication Management Plan - Stakeholder Register
Issue Log Explanations: An Issue log is an output of the process manage stakeholder expectations.
Which of the following is NOT an input to the process Manage stakeholder engagements? - Stakeholder Management Plan - Communication Management Plan - Change Log - Issue Log
Issue Log Explanations: An issue log is the output of the process Manage stakeholder engagements. All the other options are inputs to the process.
Which of the following is the MOST appropriate statement to describe a Project Management Office? - It is the center of excellence for project management in an organization - It is a group of people working on project management activities for a project - PMO provides administrative support to Project Managers in an organization - It is a council that includes all the Project Managers in an organization
It is the center of excellence for project management in an organization. Explanations: A PMO is supposed to be the center of excellence for project management in an organization.
Which of the following is NOT true about the project charter? - It provides the Project Manager the authority to assign organization resources - It formally authorizes the project - It details the business justification of the project - It states what the project is, what the project will deliver, and how all the processes will be managed
It states what the project is, what the project will deliver, and how all the processes will be managed. Explanations: Project Charter provides the high-level project description and product characteristics. It authorizes the project and provides the Project Manager the authority to assign organization resources.
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?
Iterative relationship. Explanations: An iterative relationship is where one phase is planned at any given time and the planning for the next is carried out as work progresses on the current phase or deliverable.
Harry has been assigned the flyover construction project, and he is in the process of initiating the project. In order to meet the customer's project expectations based on the business and compliance requirements, which of the following should Harry define FIRST? - Key deliverables - Project schedule - Project Statement of Work - Product Statement of Work
Key deliverables Explanations: According to PMI's classification, the Project Manager should define the key deliverables of the project based on the business and compliance requirements to meet the customer's project expectations.
You are developing the project charter for the new project assigned to you. Which of the following is NOT a part of the enterprise environmental factors? - Lessons learned from previous projects - Work authorization system - Government and industry standards that affect your project - Knowledge of which departments in your company typically work on projects
Lessons learned from previous projects. Explanations: Lessons learned are part of the organizational process assets.
You are a Project Manager in the early phase of estimating the cost of the project. You use the analogous method of estimating and have come up with the rough order of magnitude. While presenting it to your sponsor and stakeholders, one of the stakeholders asks if you have also done lifecycle costing for the project. What is your BEST response? - Project Cost estimating is primarily concerned with cost of the resources needed to complete the project and needn't consider any other costs - Since it is the initial stage of the project, cost details required for lifecycle costing of the project are not available and hence it is not relevant - Lifecycle costing provides the lowest long-term cost of ownership and should be used as a management decision tool, in case of alternatives - Lifecycle costing should be done by the Project Sponsor as it impacts long-term business decisions
Lifecycle costing provides the lowest long-term cost of ownership and should be used as a management decision tool, in case of alternatives. Explanations: Lifecycle costing provides the lowest long-term cost of ownership and should be used as a management decision tool. Although project cost management is primarily concerned with the cost of the resources needed to complete the project (Option A, partly true), it should also consider the effect of project decisions on the subsequent recurring cost of using, maintaining, and supporting the project. Hence, lifecycle cost analysis can be used to assist management in the decision-making process. Lifecycle costing looks at the entire cost of the product, not just the cost of project.
A project is relying on a contractor to deliver a component. The contractor informs the Project Manager about the likelihood of a 3-week delay in the delivery date. What should the Project Manager do?
Meet with the team to discuss the issue. Explanations: The first thing to do is to understand the impact and find out how the impact can be contained. Only after this is done, can other steps be considered.
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?
Modules to be audited are picked up based on the quality management plan. Explanations: The logic for selecting modules for audit should be outlined in the quality management plan and should be followed.
Which of the following is NOT a tool used in the perform qualitative risk analysis process? - Probability and Impact Matrix - Risk Prioritization - Monte Carlo Simulation - Root cause identification
Monte Carlo Simulation Explanations: Monte Carlo Simulations are typically associated with the quantitative risk analysis process. It generates the output as a range instead of a fixed value and shows how likely the output value is to occur in the range.
An infrastructure company had an option of bidding for a toll highway project, with an NPV of $5 million, but they opted for bidding for a power plant project with an NPV of $6 million. $5 million represents the _________ for the company.
Opportunity cost Explanations: Opportunity cost is the cost of the opportunity that was foregone in choosing a different option.
The estimating technique that uses the statistical relationship between the historical data and other variables to calculate an estimate for an activity is called:
Parametric Estimating Explanations: Parametric estimating is an estimation technique which utilizes the statistical relationship between a series of historical data and a particular delineated list of other variables. Some examples of these variables include square footage in a construction project and the number of lines or codes that exist in a software application. This information is then implemented for the purpose of calculating and demonstrating an estimate for the activity parameters.
A Project Manager is going through the defect report reviewing the bugs reported during the testing cycle of a software project. The report has information on the severity of the bugs, origin of the bugs, and possible resolutions, along with the owner and reporter of the bugs. The Project Manager wants to prioritize the bug fixing activities by evaluating the three most frequent reasons for the defects. Which of the following tools should the Project Manager use? - Control chart - Fishbone diagram - Scatter diagram - Pareto chart
Pareto chart Explanations: Pareto charts works on the Pareto principal which states 80% of the problems usually stem from 20% of the causes. Pareto charts can be used for defect analysis by arranging defects data so that the few vital factors that are causing most of the problems reveal themselves. Concentrating improvement efforts on these few will have a greater impact and be more cost-effective than undirected efforts.
A Project Manager has derived quality metrics along with tolerance limits for his project. Which part of the quality management knowledge area is the Project Manager in?
Plan Quality Management Explanations: Quality metrics are determined as an output to the process plan quality, along with tolerance limits for each of them. A metric would give the actual value or the measurement of a project or product attribute, whereas a tolerance defines the allowable variations on the metrics. The selection of these metrics in a project would heavily depend on the type of the project and the objective of collecting the metrics.
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?
Planning Explanations: The planning process group consists of processes performed to establish the total scope of the effort, define the objectives, and develop the course of action required to attain those objectives. For this purpose, a Project Manager should include relevant stakeholders and explore all the aspects of scope, cost, time, risk, quality, etc. The result of this planning process group is the project management plan.
A manager who manages a collection of projects grouped together to facilitate effective management to meet strategic business objectives is called a:
Portfolio Manager Explanations: Portfolio refers to a collection of projects or programs grouped together to facilitate effective management to meet strategic business objectives, and the person managing it is called a Portfolio Manager. Portfolio management describes methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics like business objectives, technical strategy, goals, etc.
As a Project Manager you decide to create an issue log which captures issue description, owner, and the target date for issue closure. All of the following are common examples of issues in the project EXCEPT: - Differences in Opinion - Probable delay in the next delivery - Pending Root cause Analysis - Delay in receiving feedback from the customer
Probable delay in the next delivery Explanations: Probable delay in the next delivery represents a project risk and is not an issue as the event is uncertain. This may or may not happen in future.
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? - Project Management Plan - Quality Management Plan - Process Improvement Plan - Product Management Plan
Process Improvement Plan Explanations: While Option B describes how the project management team will implement the quality policy of their organization, the process improvement plan is more focused on enhancing the value of the process in a project. It includes determining process boundaries, process metrics, targets for improved performances, etc. Please refer PMBOK® Guide - Fifth Edition, Project Quality Management, PN 241 for more details.
You are working on a project to build a hybrid car which would run on both diesel and electricity. This car would have a 1000 cc engine and work on a regenerative braking system. It should be able to seat four passengers including a driver and comply with Euro 4 emission norms. In which of the following documents should this information be captured? - Product Scope - Project Scope - Scope baseline - Requirements Management Plan
Product Scope Explanations: If you got confused with project scope, remember that the above statements describe the features, functions, and requirements which are part of defining product scope. To differentiate project scope from product scope read through the definition of each. Product scope: the features and functions that characterize a product, service, or result. Project scope: the work that needs to be accomplished to deliver a product, service, or result with the specified features and functions. The product scope describes the function or service that will exist as a result of your project. The project scope, on the other hand, describes all the work to create the product scope. It includes only the required work to complete the project deliverable. Note: The completion of project scope is measured against the project management plan, the project scope statement and its associated Work Breakdown Structure (WBS), WBS dictionary, and scope baseline. Completion of product scope is measured against product features or requirements.
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 chipset's lifecycle begins in R and D, extends to manufacturing, and finally ends with phase out. This cycle is often referred to as:
Product lifecycle Explanations: A product lifecycle consists of generally sequential, non-overlapping product phases determined by the manufacturing and control need of the organization. For more details on product lifecycle, refer to PMBOK® Guide - Fifth Edition PN 38.
A project sponsor is studying the project contract and going through the narrative description of products and services to be supplied under contract. The project sponsor is also meeting key stakeholders and subject matter experts to evaluate whether the project is worth the required investment. Which of the following documents would be created as an output in the process? - Project Statement of Work - Project Charter - Project Management Plan - Organizational Process Assets
Project Charter Explanations: The Project sponsor is in the develop project charter process in the project integration management and is using the statement of work to understand the product requirements and descriptions. The output of this process is a project charter, which initiates the project once approved formally. A project charter documents high-level project descriptions and business needs of the project, along with a current understanding of the customer's needs, risks, name of the sponsor, and so on.
A Project Manager is documenting the normal process for escalating the issues on a project. Which document usually contains this information?
Project Communication management plan Explanations: A project communication management plan would capture the details of the escalation paths on a project.
A typical title for a Project Manager in a weak matrix structure is:
Project Coordinator Explanations: In a weak matrix organization, a Project Manager typically performs the coordination role.
A key stakeholder from the quality department wants to know more on how the process tailoring was done by the project team. Additionally, the stakeholder would like to know the rationale for selecting processes, their implementation level details, and how they will be used to manage the interdependencies. Which document should the Project Manager refer the stakeholder to?
Project Management Plan Explanations: The results of the process tailoring by the project team are captured in the project management plan, along with all the other information required by the stakeholder.
A Project Manager in an information technology project is discussing a complex algorithm with a new team member. After a long and thorough verbal discussion, the Project Manager asks if the team member understood the algorithm and can put it in the document. The team member implies that he has understood. However, when the Project Manager goes through the document, he realizes that the member didn't understand what was said thus resulting in an inefficient use of time and effort. Who is responsible for this loss of time, and how could it have been avoided? - Project Manager; he shouldn't have given the complex assignment to a new team member - Team Member; since he implied he understood the discussion and didn't ask his doubts immediately - Project Manager; he should have also helped the team member in preparing and reviewing the document - Project Manager; since it is his responsibility to ensure his message is clear and concise and confirm that the team member truly understands the message
Project Manager: since it is his responsibility to ensure his message is clear and concise and confirm that the team member truly understands the message. Explanations: In the communication model, it is the sender's responsibility to make the message clear, complete, and concise so that the recipient can receive it. The sender must also confirm that the recipient truly understands the message. In this scenario, the Project Manager is at fault. For more information refer to PMBOK® Guide - Fifth Edition, Project Communications Management, PN 293.
You are being hired to manage a highway construction project for a contractor working for XYZ. The sponsor is a project officer who works for the XYZ municipal government. You have three separate teams working all three shifts with a separate manager for each team. Each team has members from two different unions, and each union has its own representative. Who is the BEST person to approve the project charter?
Project Officer who works for XYZ. Explanations: Since the Project Officer who works for XYZ is the sponsor, he is responsible for approving and signing the charter.
You are a Project Manager taking over a project midway. It is in the execution phase. You would like to know more about project deliverables, work required to complete those deliverables, project constraints, assumptions, etc. Which of the following documents would be MOST useful? - Work Breakdown Structure (WBS) - Requirements Documentation - Activity List - Project Scope Statement
Project Scope Statement Explanations: The Project Manager should refer to the project scope statement as it captures all the details related to the project scope including product acceptance criteria, scope description, project deliverables, constraints, assumptions, etc. Options A and Option C define project scope at the smaller work package and activity level respectively. Option B Requirements Documentation captures requirements of the project related to quality, functional and non-functional requirements, support requirements, etc. and is an incorrect.
A Project Manager has invited key stakeholders and team members for the first meeting of the project. The agenda of the meeting is to announce the start of the project, outline the project goals and objectives, as well as communicate the project success criteria. The Project Manager also plans to discuss the individual roles and responsibilities, along with the commitment of the stakeholders. What is this activity called?
Project kick-off meeting Explanations: The kick-off meeting which is done in the beginning of the project and then before starting each new project phase has four main objectives: a) publicly state the beginning of the project, b) outline the project goals as well as the individual roles and responsibilities of team members, c) clarify the expectations of all parties, and d) create a commitment by all those who influence the project's outcome.
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?
Provide the report. Explanations: As a team member, you need to respond to the request even if you do not personally agree with it. Since you have already tried to reason with the Project Manager, option C is not appropriate.
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:
Pull Communication Explanations: This is an example of a pull communication method which is used for large volumes of information or for large audiences that require the recipients to access the communication content at their own discretion. It is easier to recall pull communication as "pulling of information" as desired by the receiver at his discretion. For more information, refer to PMBOK® Guide - Fifth Edition, Project Communication Management, PN 295.
A Project Manager shares project performance through status reports via email to all the stakeholders of the project. Which of the following techniques is he using? - Kick-off meeting - Pull Communication - Push Communication - Communication model
Push Communication Explanations: Push communication is sending information to specific recipients who need information. This ensures that the information is distributed but doesn't certify that it reached or was understood by the intended audience. Examples of push communication include letters and press releases. For more information refer to PMBOK® Guide - Fifth Edition, Project Communication Management, PN 295.
A Project Sponsor appointed a Project Manager to a new project and asked him to get started immediately, even before the charter got approved. What should the Project Manager do?
Push to create and approve the charter. Explanations: The charter is important because it formally authorizes a project. The Project Manager must do whatever possible to get the charter issued.
While responding to a procurement request, the seller outlined the detailed technical solution, provided a handful of past customer references, and also made a detailed commercial offer. Which procurement document would the seller most likely respond to?
Request for Proposal Explanations: An RFP requests for a detailed proposal.
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?
Requirements Documentation Explanations: The Project Manager is in the process of "collect requirements" which has the output requirements documentation. This document describes how individual requirements meet the business need for the project. It is important that the requirements documented are unambiguous (measurable and testable), traceable, and acceptable to key stakeholders. Option A, stakeholder register is only a list of stakeholders in the project, whereas option B stakeholder management strategy describes the strategy to manage stakeholder expectations. Option D issue log is a document to capture project issues.
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?
Resource Leveling Explanations: Resource leveling is required whenever individual bars in the Resource Histogram extend beyond the maximum allowed hours. Resource leveling can be done by either adding more resources or modifying the schedule. Option (a) reducing scope or (b) extending working hours would be detrimental to the project's success and is not recommended here. Option D schedule compression which can be done through either crashing or fast tracking wouldn't necessarily be helpful. Since specific bars are showing an overflow, it can be best tackled using resource leveling.
A key stakeholder expresses his concern over lack of project visibility and progress and says that project status reports received lack information relevant to the stakeholder's department. How should the Project Manager respond?
Review the Project Communication Management Plan to determine the stakeholder's needs
You are a Project Manager in a financial firm with multinational dealings. You feel the financial meltdown in one of the client's countries could affect your project adversely, and you want to hedge your risks. Although the probability of occurrence of the event is low, you are advised to play it safe. In terms of risk attitude, your organization could BEST be described as:
Risk Averse Explanations: Someone who doesn't want to take risks is called risk averse and the Project Manager seems to be part of such an organization. Option C risk neutral describes a person/or an organization which is indifferent to the risk, and Option A risk seeker suggests an aptitude to take risks with an opportunity for higher returns. Option D risk mitigation is a risk response strategy and is an invalid choice.
You are managing a project which would provide e-learning solutions to your customer. The requirements of this project are not clearly defined in the beginning, and there would be modifications based on customer feedback as the project evolves. You decide to plan as much as you can and begin to create work while continuing the planning. Which of the following techniques would be the most helpful while defining activities for the project? - Rolling Wave Planning - Templates - Extreme Programming - Just in Time
Rolling Wave Planning Explanations: Rolling wave planning is a form of progressive elaboration where work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the Work Breakdown Structure. Therefore, work can exist at various levels of detail depending on where it is in the project lifecycle. As more information is known about upcoming events, the higher-level work packages can be decomposed further. Option B templates, which are usually standardized, would not be a very helpful tool for evolving requirements. Option (c) and (d) are not recognized tools and techniques of project time management.
Your development team is waiting for the design team to finish its work. As a Project Manager, you have decided to use this approach to reduce uncertainty in the project. Which of the following relationship does this describe? - Iterative relationship - Sequential relationship - Overlapping relationship - Common relationship
Sequential relationship Explanations: A sequential relationship is the stage where a phase can only start once the previous phase is complete. The step-by-step nature of the approach reduces uncertainty but may eliminate options for reducing the schedule.
According to Maslow's Hierarchy of needs, what comes HIGHEST on the pyramid?
Social Explanations: According to Maslow, there are five levels of human needs from bottom to top. They are physiological, safety, social, esteem, and self-actualization. Option D Hygiene factors are part of Herzberg's theory.
Which of the following is NOT TRUE for stakeholders? - Stakeholders can be customers, sponsors, and the performing organization - Stakeholders cannot exert influence over the project, its deliverables, or team members - Stakeholder identification is a continuous process - A project can be perceived as having both positive and negative results by the stakeholders
Stakeholders cannot exert influence over the project, its deliverables, or team members. Explanations: This statement is wrong as stakeholders can exert influence over the project, its deliverables, and team members.
An activity cannot be started until the predecessor also starts. This is an example of:
Start-to-Start. Explanations: This is an example of a start-to-start dependency. It means that B can't start before A starts, or in other words Activity B can start after Activity A has started.
Which of the following is an example of Lead? - Pillars for a structure can be started 7 days after the foundation to allow for curing - Test lab preparation can start 5 days before a product is made available for test - Both test planning and product development can start simultaneously after the design is finalized - Crash tests cannot be carried out until a working final model is made available
Test lab preparation can start 5 days before a product is made available for test. Explanations: Lead means that the successor activity can start in advance of the predecessor activity.
A CEO from his Paris office wishes to communicate with the technical officer in China. What is the correct procedure to communicate? - The CEO will decode the message from French to Chinese; the technical staff will encode it from Chinese to French - The CEO will encode the message from Chinese to French; the technical staff will decode it from French to Chinese - The CEO will decode the message from French to Chinese; the technical staff will encode it from Chinese to French - The CEO will encode the message from French to Chinese; the technical staff will decode it from Chinese to French
The CEO will encode the message from French to Chinese; the technical staff will decode it from Chinese to French Explanations: Each message is encoded by the sender and decoded by the receiver based on the receiver's education, language, experience, and culture. For more information, please refer to PMBOK® Guide - Fifth Edition, Project Communication Management, PN 293.
Project management is the application of knowledge, skills, tools, and techniques to manage activities to meet the project requirements. Which of the following is NOT true about managing a project? - It involves identifying requirements - It involves addressing the various needs, concerns, and expectations of the stakeholders as the project is planned and carried out - It involves balancing the competing project constraints such as scope, quality, schedule, budget, resources, and risk - The specific project will not influence the constraints on which the Project Manager needs to focus
The specific project will not influence the constraints on which the Project Manager needs to focus. Explanations: The question has a negative connotation. Refer PN 5 of PMBOK® Guide - Fifth Edition.
A project team is working on initiating a project. Which of the following options is NOT true about this situation? - The Sponsor is developing the project charter - The Project Manager is developing the project charter - The Project manager is participating in the development of the project charter - The Sponsor and the Project Manager together are developing the project charter
The Project Manager is developing the project charter. Explanations: As per the new examination content outline, the Project Manager will not develop the project charter and will only participate in developing the project charter.
Which of the following statements is true? - Cost and staffing levels are high at the start - The ability to influence the final characteristics of the product without impacting the cost is highest at the start - Uncertainty is the least at the start of the project - Stakeholder influences increase over the life of the project
The ability to influence the final characteristics of the product without impacting the cost is highest at the start. Explanations: The ability to influence the final characteristics of the product without impacting the cost is highest at the start. Cost and staffing levels are low at the start. Uncertainty is greatest at the start of the project. Stakeholder influences are greatest at the start of the project and decrease over the life of the project.
A pharmaceutical company wants to launch a new over-the-counter medication for flu in the U.S. The Project Manager is identifying project communication constraints. Which of the following is NOT a valid constraint? - The company should get an FDA approval before producing or selling the medicine - The key person responsible for communicating the information on the project may not be available through the entire project - The milestone meeting should be attended by all the major key stakeholders - The project has teams working in different geographical locations and time shifts
The key person responsible for communicating the information on the project may not be available through the entire project. Explanations: The key person responsible for communicating information on the project may not be available through the entire project. A communication constraint is usually derived from specific legislation or regulation (Option A), organizational policies (Option C), or a project constraint (Option D) which limits the project's options during communication management. However, (Option B) is an uncertain event or risk in the project which needs to be addressed through risk management.
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?
The project should first develop an approved project charter which would formally initiate the project. Explanations: The project should develop an approved project charter which would formally initiate the project. An approved project charter formally initiates a project and authorizes a Project Manager to apply resources to the project. A project without a project charter is not a project. With this in mind, a Project Sponsor should first develop a project charter. All the other Options A, B, and C are not suitable until the new project is formally initiated.
You are a Project Manager of a highly visible and critical project in your company. This project was initiated with much fanfare, and you have some of the best technical experts as a part of the project team. You are in the process planning and detailing the scope of the project when you hear the project is being terminated. What could be the MOST likely cause?
The project sponsor failed to support the project. Explanations: The answer to this question can be reached by the process of elimination. Since the project is already initiated and is in the planning stage options A, and D can't be true. There is no evidence to believe option B, and the most probable explanation could be the failure to support the project by the sponsor. The term sponsor, by definition, suggests a financial responsibility. This sponsor is thought to "own" the project and is considered responsible for ensuring its success. The sponsor is also typically the one who proposes the project in the first place, whose business unit reaps its benefits.
Which of the following is NOT true about the initiating process group? - Large projects may divide the projects into phases - The project team members are committed - Initial scope and financial resources are committed - Internal and external stakeholders are identified
The project team members are committed. The entire project team is usually not available during initiation.
You are a Project Manager working on a critical project. You track the project schedule closely. While going through the critical path, you realize that the project is showing negative float. What is your BEST response to the situation?
Use a schedule compression technique. Explanations: The best option is to compress the project schedule because the critical path activities can be delayed thus resulting in a negative float. In this case, the Project Manager should use a schedule compression technique such as fast tracking or crashing.
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?
Use this approved schedule duration as a baseline and start tracking the project. Explanations: The Project Manager is in the process develop schedule. Since the project schedule has already been approved, it implies Option A, B, and D are already completed as part of the processes estimate activity resources, develop schedule, and sequence activities. The next step would be to treat this estimate as a schedule baseline and start tracking the project as part of the process control schedule.
As a Project Manager, you are working with your team to explore alternatives to decrease project cost without compromising on performance or scope of the project. Which of the following techniques are you most probably using? - Benchmarking - Reverse Engineering - Process Analysis - Value Analysis
Value Analysis Explanations: Value analysis is also referred to as value management or value methodology (VM). It requires the systematic approach to identify project functions and assign values to those functions to get the functions at lowest overall cost without loss of performance.
You are managing one of the most technically challenging and complex projects for your company. In the beginning of the project, there used to be heated arguments on the team regarding the best approach to solving a problem. However, the project is well into the execution stage and the team has finished designing the architecture of the product. They seem to have developed a good understanding of the system. What is the most appropriate way to handle project conflicts at this stage?
You should let the team explore the best alternatives amongst themselves while you facilitate and support them. Explanations: You should let the team explore the best alternatives amongst themselves while you facilitate and support them. A Project Manager needs to provide more direction in the beginning of the project because he knows the best way to plan the project. However, as the project team matures and develops an understanding during project execution phase, the Project Manager needs to transition to a support role. Your leadership style could be coaching, facilitating, or supporting.
