PMP Practice Test ! Questions: 100

The common term for an authorized time-phased budget, which includes the Budget at Completion (BAC), used to measure cost performance, and displayed in the form of an S-curve is: a. Earned Value b. Cost Performance Index c. Cost Baseline d. Project Budget

C. Cost Baseline Explanation: Cost Baseline provides a yardstick against which you can measure cost performance. Please refer PMBOK Guide - Sixth Edition, Cost Baseline page 254 for the definition of cost baseline.

According to Maslow's hierarchy of needs, what comes at the BOTTOM of the pyramid? a. Physiological b. Social c. Esteem d. Self Actualization

a. Physiological Explanation: Maslow and other theorists might be referenced on the PMP exam and it is important to get familiar with them. Maslow's hierarchy of needs is displayed as a pyramid and displays the five levels of human need from bottom to top. These needs include Physiological, Safety, Social, Esteem. and Self actualization. ***STUDY THIS TOPIC!!!

You are a Project Manager. In the process of sequencing activities for your project, you create a schedule network diagram that uses boxes called nodes to present activities and connects them with arrows to represent logical relationships between them. What is this popular scheduling diagram known as? a. Precedence Diagramming Method (PDM) b. Arrow Diagramming Method (ADM) c. Program Evaluation and Review technique (PERT) d. Graphical Evaluation and Review Technique (GERT)

a Precedence Diagramming Method (PDM) Explanation: The precedence Diagram Method, also known as Activity-On-Node, is a tool for scheduling activities in a project plan and constructing a project schedule network diagram that uses boxes, referred to as nodes, to represent activities and connects them with arrows that show the dependencies.

Sub network or fragment network templates are most useful when the project has MANY: a. Mandatory dependencies b. Discretionary Dependencies c. Undefined Variables d. Identical or nearly identical deliverables

d. Identical or nearly identical deliverables Explanation: Sub network or fragment network templates are part of project schedule network template. It can be used to expedite the preparation of net works of project activities, especially when a project includes several identical deliverables.

As a Project Manager, you are estimating the duration of your project activities using PERT (Program Evaluation and Review technique). For a particular project activity, your Optimistic estimate is 14 days, Pessimistic estimate is 47 days, and Most Likely estimate is 27 days. What should be the expected duration of this activity? a. 28.17 b. 31 c. 43 d. 36

a. 28.17 Explanation: PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely. The expected duration is calculated using the equation: Expected Duration = [P + 4(ML) + O]/6, where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this method, the correct answer comes out to b 28.167 days or 28.17 days. [P + 4(ML) + O]/6 [47 + 4(27) + O]/6 [47 + 108 + 14]/6 = 169/6 =28.166

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

a. 36 Explanation: This is based on the formula n*(n-1)/2. If n is the number of stakeholders in the project, the total possible communication channels =n*(n-1)/2. The project have five team members: a sponsor, a technical architect, an external customer, and the Project Manager himself. this, there are 9 people and 36 possible communication channels. n*(n-1)/2: Need to do further research. Wrong answer.

There are three projects A,B, and C. NPV for projects ,B, and C are $50,000, $80,000, and $40,000 respectively. In a meeting, the management unanimously has chosen projects A and C. What is the opportunity cost of the project? a. 80000 b. 130000 c. 90000 d. 0

a. 80000 Explanation: Opportunity cost is the cost of giving up the opportunity by selecting a project(s) over another. Here, Project B is not selected. Note: Explanation is not clear.When selecting between two projects, the opportunity cost is simply the value of the project that was not selected. Opportunity cost of a resource, means the value of the next-highest-valued alternative use of that resource.

You are the Project Manager of a project for which a prototype was recently delivered. The sponsor of the project calls you and gives you an overall estimate for the project. This form of estimate is know as ____________________. a. Analogous Estimate b. Parametric Estimate c. Heuristic Estimate d. Three Point Estimate

a. Analogous Estimate Explanation: Analogous Estimate (also called Top down approach) is a form of Expert Judgment. It uses estimations from previous similar activities to estimate future durations. The accuracy of estimates derived using this method depends on the correctness of historical information, similarity of the historical projects (here a prototype project), and expert judgment.

Your project team is involved in estimating the cost of the project as a part of project cost management. Which of the following tools and techniques will NOT be applicable for this purpose? a. Cost Benefit Analysis b. Reserve Analysis c. Cost of Quality d. Alternatives Analysis

a. Cost Benefit Analysis Explanation: Reserve Analysis, option (B), is an analytical technique to determine a reserve for budget, estimated costs and funds for the project. It is an important technique in the process of estimating costs. Option (C), Cost of Quality is the sum of all costs a company invests into the release of a quality product and can be used to prepared cost estimates. Option (D), Alternatives Analysis can also be used as a technique to evaluate identified options in order to select which options or approaches to use to execute and perform the work of the project. However, Cost Benefit Analysis is a technique that compares positive factors or benefits with negative ones to determine the net result of doing the action. It is a popular technique for selecting projects but will not be useful during cost estimation at the activity level. Please refer to PMBOK Guide - Sixth Edition Project Cost Management, page 245 for more details.*Studies!!

In which of the following types of contracts does the buyer have the MAXIMUM cost risk? a. Cost Reimbursable b. Fixed Price c. Time and Material d. Cost Plus Fixed Fee

a. Cost Reimbursable Explanation: In a cost reimbursable type of contract, the buyer has the maximum risk because the total cost of the project remains unknown. This is usually used when the buyer is not able to come up with complete contract statement of work and has limited understanding. Similarly, in a Fixed Price Contract Option (b) the buyer has least cost risk, because any additional cost over and above the negotiated price has to be borne by the seller.

A project Manager is trying to successfully complete a project, but her role in the organization is limited and she has no control over project budget. Although she has some power to authorize decisions, she needs to seek approval on most of the major decisions. Also, her team members work only part-time on the project. The Project Manager is in a _____________ organization. a. Functional b. Projectized c. Composite d. Strong Matrix

a. Functional Explanation: The Project Manager has limited authority and no control on project budget. Also, her team members are not allocated full time to project work. Therefore, it can be deduced that the project Manager is working in a functional organization structure.

During the initiating stage, which of the following elements will be identified to meet the project goals? a. Key deliverable b. Stakeholders c. Quality d. Vendors

a. Key deliverables Explanation: Even though the identification of stakeholders and potential sellers happens as part of initiating phase though the "identify stakeholders" process, this will not help to meet the project goals. Key deliverables help in meeting the project goals. Quality identification happens during planning.

You are managing a large diversified project team. In the initial days of the project, the team members behaved like independent individuals and seemed reserved, learning about their roles and responsibilities. Then, as the team began to work on the project and participate in technical decisions, their trust level grew. The team members now support each other's needs and work together. According to you, which stage of team development is the team in? a. Norming b. Performing c. Forming d. Adjourning

a. Norming Explanation: The stage at which team members begin to work together and adjust work habits and behavior to support the team and develop trust is the Norming stage. There are five stages of team development: Forming, Storming, Norming, Performing, and Adjourning. Please refer to PMBOK Guide - Sixth Edition Project Guide - Sixth Edition Project Resource Management, page 338.

A Project Manager is in the process of preparing a plan that documents how the procurement process will be managed: from developing procurement documents to contract closure. She is also going through project requirements and scope documents with the team and discussing different contract types to decide the one most suitable for the project. According to you, which process of procurement management is the Project Manager in? a. Plan Procurement Management b. Conduct Procurements c. Control Procurements d. Close Procurements

a. Plan Procurement Management Explanation: The Project Manager is in the 'plan procurement management' process, and she is preparing the procurement management plan with her team. Contract types are also important tools of this process, which is carried at the planning stage of the project. Please refer to PMBOK Guide - Sixth Edition Project Procurement Management page 466.

A project team, is in the process of identifying quality requirements and standards for the project. It is documenting how the project will demonstrate compliance. The team has referred to organizational process assets and is using tools like statistical sampling and control charts. Which process of Quality Management is the project team performing? a. Plan Quality Management b. Perform Quality Assurance c. Perform Quality Control d. Manage Project Team

a. Plan Quality Management Explanation: Notice the words "identifying quality requirements and standards." This is a part of quality planning. So, the project is in Plan Quality Management process in the planning phase. Please refer to PMBOK Guide - Sixth Edition Project Quality Management page 277.

You are the Project Manager of a large team with people from diversified locations. There are many groups within a project, such as architects, human resources, legal, quality engineers, etc., with their own hierarchy and reporting structure. In order to ensure that each team member has clarity on their own and other members' reporting structure, you decide to capture all of this information graphically. Which of the following documents will you be using for this purposes? a. Project Organization Chart b. Resource Breakdown Structure c. Organization Breakdown structure d. Resource assignment Matrix

a. Project Organization Chart Explanation: A project organization chart is part of the human resource plan and displays project team members and their reporting structure. Depending on the project requirements, team size, and their reporting hierarchy, this chart could be highly detailed or broadly framed. Please refer PMBOK Guide - Sixth Edition page 319

How is the role of project expeditor different from project coordinator? a. Project coordinator has some power to make decisions b. Project coordinator acts primarily as Staff assistant c. Project coordinator acts as a communication coordinator d. Project coordinator can control project budget

a. Project coordinator has some power to make decisions Explanation: A project coordinator has some power to make decisions. The only difference between the role of coordinator and expeditor is that the former has some power to make decisions and may report to high level management, while the latter acts as a communication coordinator, that is, he or she monitors and reports the status of the project to the senior management. Option (b) and (c) are true for both the roles of coordinator and project expeditor, and option (d) is a false statement.

Which of the following elements are to be considered while developing the project schedule? Pick the best answer. a. Project deliverables b. Project timeline c. Quality d. Cost

a. Project deliverables Explanation: The project schedule is developed from activities, which are decomposed from the Scope baseline (the Deliverable). The Timeline is a result of sequencing activities and estimating resources and durations. The Schedule itself will describe the timeline.

John has been assigned to a project recently, and he is in the process of documenting the project charter with the project sponsor. Which of the following MUST he include in the Project Charter? a. Project purpose or justification b. Positive risks c. Budget estimates d. Risk analysis

a. Project purpose or justification Explanation: According to PMBOK Guide - Sixth Edition, Sec 4.1.3.1 Page 81, the project description must be included in the project charter. Options C and D, budget estimates and risk analysis may be included in some project charters, if required.

A project Manager is involved in a procurement management process in a centralized contracting environment. He is assigned a full-time contract manager who reports to him for the project. In this scenario, which of the following is usually NOT the role of the Project Manager? a. Provide increased expertise in contracting and also guide the team on standardized company practices b. Make sure the contract contains all project c. Identify risk and incorporate mitigation and allocation of risks into contracts d. Help tailor the contract to the unique needs of the project

a. Provide increased expertise in contracting and also guide the team on standardized company practices Explanation: The Project Manager is working in an organization with a centralized contracting group. He has also been assigned an experienced full-time contract manager who would be a specialist in contracting procedure. In these circumstances, it is not expected for a project Manager to pride guidance on organization contracting policies.

You are a Project Manager in an oil company and have joined a project midway. You want to understand how requirement activities and configuration management activities such as changes to the project requirement will be initiated. You want to know how impacts will be analyzed, tracked, and reported. You also want to know the authorization levels required to approve these changes. Which of the following documents will provide this information? a. Requirements Management Plan b. Integrated Change Control c. Project Charter d. Project Scope Statement

a. Requirements Management Plan Explanation: Requirements management plan documents how requirements will be analyzed, documented, and measured in the project. It also includes configuration management activities such as how changes to the product requirement will be initiated, how impact will be analyzed, tracked and reported, and who will authorize these changes. Option (b), Integrated Change Control, is a process required for effective and efficient change management. Refer to PMBOK Guide - Sixth Edition Project Scope Management, page 137.

Which of the following is the MOST COMMON reason for conflict? a. Schedules b. Personalities c. Technical Beliefs d. Administrative policies and procedures

a. Schedules Explanation: The most widely accepted common reasons for conflict in a team are Schedules, Priorities, Resources, Technical beliefs, Administrative policies and procedures, and project costs and Personalities (they are in order of most common to least common).

As a Project manager of a complex and relatively new technology, you have asked for an expensive training for yourself and the team from the project sponsor. Although the sponsor has agreed to your request, he asks you to start the project in the meantime. Which of the following is NOT an option for you? a. Since you have already asked your sponsor for training, you can do nothing to enhance your skills in the meantime b. Visit PMO and Organization project database to go through lessons learned from previous projects c. Talk to fellow project Managers who have executed similar projects in the organization d. Join an organization or library to gain access to journals featuring the technology

a. Since you have already asked your sponsor for training, you can do nothing to enhance your skills in the meantime Explanation: Doing nothing is the worst option because there is always something that can be done to enhance your skills and knowledge

A Project Manager is forced to give a contract to a preferred supplier as he has a strict deadline to meet. What could be the BIGGEST risk in this situation for the Project Manager? a. The seller has not proven that he has required expertise and resources to take this assignment. b. The Project Manager didn't get a chance to evaluate other vendors who could be better c. The seller may not fulfill the evaluation criteria to bid for the project. d. The seller may not meet acceptance criteria in the contract, and Project Manager might have to accept what he gets

a. The seller has not proven that he has required expertise and resources to take this assignment Explanation: Since this contract is given to the seller without evaluating his competency, the project manager is taking a major risk. Option (b) and (c) are issues, not risks, because they are known facts. Option (d) is incorrect because the contract is legally binding and the seller is bound to oblige the contract.

You are managing a large project that has many stakeholders across various departments in the organization. During the planning stage, you created a communication management plan based on the project organization. During the planning stage, you created a communication management plan based on the project organization structure and external stakeholder requirements in order to manage the flow of project information. During project execution, one of the stakeholders contacts you and informs you that his expectations have not been completely accounted for in the project. What should be your BEST response to the situation? a. Understand his expectations and update project documents accordingly, starting with stakeholder register b. Since the stakeholder analysis has already been completed and all the other stakeholders have been agreed to the project deliverables, the process cannot be repeated for this particular stakeholder c. Go through the stakeholder analysis with the team as there might be more unidentified stakeholders in the project d. Inform the stakeholder that he will be included in all project communications and he can raise his concerns whenever he feels his requirements are not being addressed

a. Understand his expectations and update project documents accordingly, starting with stakeholder register Explanation: Managing stakeholder expectations and establishing an effective communication with them is one of the most critical activities for project success. The Project Manager should update the project documents according to the requirements of the stakeholders. Option (B) is incorrect as all the stakeholders in the project need to be identified and their expectations managed throughout the project. Option (C) is incorrect as there is not reference in the question to suggest that more stakeholders might have been missed in the project. Option (D) is an incorrect approach. The Project Manager should proactively manage stakeholder expectation in the project.

You are managing a large and complex project which is in the planning stage. After assessing the detailed project requirements with the stakeholders, you ask the team to create a Work Breakdown Structure (WBS). However, since most of the team is new, you decide to brief them on some rules of creating a WBS. Which of the following statements in INCORRECT about a Work Breakdown Structure? a. WBS is a list of specific activities used to accomplish the deliverables b. WBS includes only work needed to create deliverables. Hence, work not in WBS is not part of the project c. Lower-level WBS components are a decomposed result of the upper-level WBS components d. WBS allows better estimation of cost, risk, and time

a. WBS is a list of specific activities used to accomplish the deliverables Explanation: WBS is a list of specific activities used to accomplish the deliverables. Work Breakdown Structure (WBS) is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope. Hence, it is NOT a list of specific activities used to accomplish the deliverables. How the work is completed (activities) can vary and change throughout the project, but deliverables cannot change without a change request. For more information on Work Breakdown Structure (WBS), please refer to PMBOK Guide - Sixth Edition project Scope Management, page 156.

As part of Quantitative Risk Analysis, a Project Manager has derived four packages with the following probability and impact. Using EMV (Expected Monetary Value), which one should he use in the project? a. Work package 1: Probability 15% and Impact $20,000 b. Work package II: Probability 7% and Impact $10,000 c. Work package III: Probability 7% and Impact $15,000 d. Work package IV: Probability 15% and Impact $10,000

a. Work package I: Probability 15% and Impact $20,000. Explanation: EMV=Probability*Impact. If the impact is positive, it is an opportunity, and if the impact is negative, it is a threat. From the given options, all are opportunities, and the one which is highest should be the right option.

A Project Manager who has just been assigned to a new project has been asked by his sponsor to come up with an initial cost estimate called a Rough Order of Magnitude (ROM). This would typically fall in which range? a. -50% to +100% b. -25% to +75% c. -10% to +15% d. -100% to +50%

b. -25% to +75% Explanation: The Rough Order of Magnitude estimate (ROM) is usually done in the initial stages of the project, when limited information is available. The budgeted estimate will be in the range of -10% to +25%, and the definitive estimate will be in the range of -5% to +10%.

A project team is in the process of obtaining seller responses, selecting a seller, and awarding a contract. For this purpose, the team is using some predefined selection criteria to evaluate the bids and select the most appropriate seller. Which process of project management is the project team working on? a. Plan Procurement Management b. Conduct Procurement's c. Control Procurement's d. Proposal Evaluation

b. Conduct Procurement's Explanation: The activities are part of the 'conduct procurement' process, which includes obtaining seller responses, selecting a seller, and awarding a contract based on selection criteria to qualified sellers. Although the team is working on proposal evaluation, Option (d) is not a process, but a tool.

Which of the following activities is part of the initiating phase? a. Develop stakeholder management plan b. Conduct benefit analysis with stakeholders to validate project alignment with organizational strategy and expected business value c. Validate Scope d. Conduct kick-off meeting

b. Conduct benefit analysis with stakeholders to validate project alignment with organizational strategy and expected business value. Explanation: This task has newly been added to the examination content outline. Options (A) and (D) are part of planning. Option (C) is part of Monitoring and Controlling.

A Project Manager has worked on many challenging projects and has managed teams across the globe in the last 20 years of his career. Now, he intends to share his best practices and lessons learned throughout his professional career. The Project Manager is: a. Enhancing his professional skills by evaluating his experience and strengths b. Contributing to the project management knowledge base c. capturing his professional stint in an autobiography d. Informing others about project management principles and helping the profession grow

b. Contributing to the project management knowledge base Explanation: project Manager is contributing to the project management knowledge base. The Project Manager is sharing the lessons learned and best practices and contributing to the project management knowledge base.

A contract type where the seller is reimbursed for all allowable costs for performing the contract work and receives a predetermined incentive fee based on achieving certain performance incentives is: a. Cost Plus Fixed Fee Contract b. Cost Plus Incentive Fee contract c. Cost Plus Award Fee Contract d. Fixed Price Incentive Fee contract

b. Cost Plus Incentive Fee contract Explanation: A contract type where the seller is reimbursed for all allowable costs for performing the contract work and receives a predetermined incentive fee based on achieving a certain performance incentive is "cost plus incentive fee" contract. It helps protect buyer interest as seller has good incentive to keep costs down. Please refer to PMBOK Guide - Sixth Edition Project Procurement Management page 472.

A Project Manager defines a personal plan for his career and professional development every year. As a part of this plan, he goes through his project experiences and lessons learned and decides on the training needs to help him excel as a Project Manager and contribute to his organization. In this scenario, the Project Manager is: a. Contributing to the Project Management knowledge base b. Enhancing his Personal Professional Competence c. Helping his organization through his project success d. Putting the project's need before his own and making decisions in the best interest of the project

b. Enhancing his Personal Professional Competence Explanation: This is an example of a Project Manager working on enhancing his skills(s)

Which of the following is NOT a project? a. Campaigning for an election b. Family Weekend drives to sea coast c. Writing an autobiography abut project management experience d. Preparing for PMP examinations

b. Family Weekend drives to sea coast Explanation: A project is a temporary endeavor undertaken to create a unique product, service, or result. Family weekend drive is an ongoing activity and is not a project.

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

b. Incorporate needs of all stakeholders Explanation: The Project Manager is required to identify all the stakeholders and incorporate the requirements of every stakeholder.

As a Project Manager, you have created a Resource Breakdown Structure (RBS) for your project. Which of the following statements is NOT TRUE about Resource Breakdown Structure (RBS)? a. It is a hierarchical structure of resources b. It is used for estimating resource utilization c. It is used for organizing and reporting project schedule d. It has resources grouped by category and type

b. It is used for estimating resource utilization Explanation: Resource Calendars, not RBS, are used for Resource Utilization. Resource Breakdown Structure (RBS) is focused on creating a hierarchical list of the resources, both significant and seemingly redundant, that are involved in the project. Every hierarchical level lists a number of resources that are needed for carrying out various kinds of project-related activities. Every kind of resource is further divided into a number of categories or resource-types to help classify them.

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

b. Leading and developing the project team Explanation: According to the new examination content outline, it is by leading and developing the project team. Earlier, it was based on budget and schedule.

You are a Project Manager in an organization with a functional structure; hence, it is important that you negotiate suitable resources for your project from the functional manager. Which of the following tools could be a valuable asset to prove your project resource requirements to the functional manager? a. Staffing Management Plan b. Network Diagram and Project Schedule c. Resource Assignment Matrix d. Project organization chart

b. Net work Diagram and Project Schedule Explanation: Project schedule, along with network diagram (that graphically represents the project schedule), provides the most convincing visual proof of the resource requirements in the project and can be used during resource negotiation by the Project Manager. A project schedule is derived from a WBS, an effort estimate for each task, and a resource list with availability for each resource, so it is granular and most accurate. A staffing management plan provides guidelines on how human resources should be defined, staffed, managed, and controlled. Options (c) and (d) capture the reporting structure and the roles and responsibilities of the team members; therefore, they are not the best choices.

You are a Project Manager of an ambitious project in an organization. Although you have successfully managed many critical projects before, this is a new organization and you are working on this technology for the first time. However, you hear that the company has proven expertise on the technology and has also done a similar project in the past. In this situation, what is the BEST option available to you? a. Approach the Project Manager from the earlier project and take his inputs b. Obtain historical records and guidance from the Project Management Office (PMO) c. Involve Stakeholders and take their opinion and expertise on the project d. Continue to manage the project by your instincts until there is a major issue

b. Obtain historical records and guidance from the Project Management Office (PMO) Explanation: Obtain historical records and guidance from the PMO. Though all the options except (d) reflect proactive nature of the Project Manager and is appropriate, the best option is to go through historical records from the PMO. It will help you to get an objective and systematic assessment of past projects in the organization. Remember, a project management office plays a critical role by providing centralized management of the projects and access to policies, templates, lessons learned, and historical records of projects.

A Project Manager is responding to a business proposal from an overseas company. Which of the following should he refer to as a guide to understand the business practice(s) that are allowed and discouraged? a. Procurement documents, including contract statement of work b. Organization policies and procedures c. Project Charter d. PMI code of Professional Conduct

b. Organization policies and procedures Explanation: A Project Manager is an expert in control. Legal (as well as Purchasing) experts will provide guidance about business decisions one would make in a foreign country. The PMI Code of Ethics (1.1.3) states, We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities. Option (b) is better.

Which of the following is true with respect to Plan Cost Management? a. Plan Quality Management b. Perform Quality Assurance c. Perform Quality Control d. Manage Project Team

b. Perform Quality Assurance Explanation: In the latest examination content outline, budget plan is replaced with cost management plan. Option (a) is part of Initiating.

As part of Stakeholder Analysis, it is important to prioritize the needs of key stakeholders to ensure efficient use of effort to communicate with them and manage their expectations. Which of the following is NOT a classification model? a. Power/Influence grid b. Power/Impact grid c. Power/Interest grid d. Influence/Impact grid

b. Power/Impact grid Explanation: All of the other options are classification models used to prioritize stakeholders' needs. Refer PMBOK Guide - Sixth Edition, page 512 for more information on the multiple classification models.

A car manufacturing company conceptualized a new car that will be more fuel efficient, ergonomically designed, and that satisfies the latest safety regulations. This car was recently launched and has now moved into full-fledged production. This is an example of: a. Operation, as the company is into car manufacturing, which is an ongoing process. b. Project, as this car was conceptualized, designed, and has now been launched. c. Project, as it has clear scope and requirements in terms of safety compliance, fuel efficiency, etc. d. Operation, as this activity didn't create a unique product.

b. Project, as this car was conceptualized, designed, and has now been launched. Explanation: This is a typical scenario where project intersects with operation during product life cycle. Notice the word launched. All the activities before launch of the vehicle are part of a project, which is a temporary activity with a well-defined unique output. Once the car moves to production, it becomes an ongoing operation for the company.

A Project Manager has submitted a formal document that describes the procurement items in sufficient detail. This document allows prospective sellers to determine if they are capable of providing the product and details methodology and results that will be provide to the buyer. What is this called? a. Invitation for Bid b. Request for proposal c. Request for quotation d. Contract Statement of Work

b. Request for Proposal Explanation: A request for proposal (referred to as an RFP) is an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. An RFP requests a price but also a detailed proposal on how the work will be accomplished, who will do it, company experiences, etc. Option (a) 'Invitation for bid' is in general similar to an RFP. Option (c)' Requests for quotation requests a price quote per item or hour.

A Project Manager wants to capture information related to staff acquisition and release, training needs, resource calendar, recognition, and rewards. Which of the following documents would be most appropriate? a. Project Management Plan b. Resource Management Plan c. Project Team Assignments d. Issue Log

b. Resource Management Plan Explanation: Option: b: resource management plan that is a part of the resource plan describes when and how the resource requirements will be met. A project management plan, option (a), may or may not contain a resource management plan; hence, (b) is a better option. Option (c) Project team assignments is an output of the 'acquire resources' and can include project team directories, memos to team members, etc. Option (d) issue log is used for capturing project issues and is not the correct answer.

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

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

After a high-level management meeting, the manager chairing the meeting asks the Project Manager to document and communicate the action items to all the stakeholders. The Project Manager is part of a ____________ organization structure. a. Balanced Matrix b. Weak Matrix c. Strong Matrix d. Tight Matrix

b. Weak Matrix Explanation: The Project Manager is part of a weak matrix organization and is playing the role of project expeditor. The project expeditor acts primarily as staff assistant and communication coordinator. The expediter personally cannot make or enforce decisions.

A cost reimbursable contract has an estimated cost of $20,000. If the seller beats the cost, 80% of the savings will go to the buyer and 20% will go to the seller. If the actual costs come in at $18,000, what is the final price? a. $18,000 b. $18,200 c. $18,400 d. $18,600

c. $18,400 Explanation: For this question, Target price = $20,000; Actual cost =$18,000; Sharing ratio = 80/20; Actual cost to buyer = $18000 + ($20,000-$18,000)*20% = $18,400

A project has a project manager, a sponsor, a human resource specialist, a quality analyst, and seven team members. How many communication channels are possible in the project? a. 50 b. 110 c. 55 d. 115

c. 55 Explanation: The number of communication channels possible can be deduced using the formula n*(n-1)/2. In this case, (11*10)/2 = 55.

A project team is working on a risk response strategy by evaluating every risk and coming up with suitable response strategies. However, one particular risk with a negative impact cannot be avoided or mitigated. Furthermore, there is no way to transfer risk by outsourcing or buying insurance. What is the best the team can do about the risk? a. Treat it as a secondary risk and update it in the Risk Register b. Share the risk by allocating ownership to a third party c. Accept the risk and put it in the watch list d. Revisit the Risk Response Strategy

c. Accept the risk and put it in the watch list Explanation: The question suggests that the team has already explored all the alternatives, so option (d) would not provide any further solution. In this case, the best strategy is to accept the risk and, if possible, plan for a contingency to be implemented if risk occurs. Option (b) is a strategy for positive risks or opportunities. Option (a) is not true, as secondary risk is an outcome of implementing a risk response strategy.

You are a Project Manager for an infrastructure development project, and the project involves building a multi-storey building. You have submitted your project estimates for cost and duration to the client. You also inform the buyer that the estimates would be true provided there is an 8th floorfoundation built on the site already. What does this statement describe in your project? a. Risk b. Constraint c. Assumption d. Mandatory Dependency

c. Assumption Explanation: This is an assumption you have made about the usability of existing foundation to derive the project estimates. An assumption, by definition, is a statement that is assumed to be true and from which a conclusion can be drawn. There may be external circumstances or events that must occur for the project to be successful. These are categorized under project assumptions. This is not a risk as there is not element of uncertainty involved. Risk, by definition, is an event which may or may not occur in the future. If it occurs, it can positively or negatively affect the project. There is also no justification to believe that this is a project constraint, as constraints usually limit project options and are outside the control of the project team. Pre-existence of a foundation for building a multi-storey building is also not an example of Mandatory Dependency (option d).

You have been assigned to a large construction project, and you are in the "Initiating" process group. You have identified the project stakeholders using a stakeholder analysis tool and defined the high-level scope of the project. During these activities, you have identified a key project limitation regarding the project location. What is the BEST option for you in this situation? a. Document the project limitation as a project constraint b. discuss the project constraint with the project sponsor and the customer c. Document the project limitation as a project constraint and propose and implementation approach to the sponsor and customer, if required d. Ignore the project constraint and work toward getting approval or the project charter.

c. Document the project limitation as a project constraint and propose and implementation approach to the sponsor and customer, if required Explanation: The PMI Code of Ethics (1.1.3) states, We provide accurate information in a timely manner. The project is not yet approved, and this limitation could keep it from being approved. You could select (b), which allows you to just provide information and reports,

In a meeting, the Sponsor has discussed three projects with you: Project A with Net Present Value of $55,000 and a payback period of 5 years; Project B with Net Present Value of $95,000; and Project C with payback period of 10 years. He provides you with additional information about the projects and intends to assign you as the Project Manager for the selected project. As a Project Manager, you are NOT expected to: a. Conduct project selection methods to select one of the three projects discussed with you by the sponsor to evaluate feasibility of new products and services. b. Proceed to select the project with higher NPV c. engage in deceitful practices d. Participate in the project selection method

c. Engage in deceitful practices Explanation: Per the new examination content outline, the project manager participates in the development of the project charter.

A large project with a team of 150 people is in the planning stage. It will span over a duration of 3 years and is under strict budget. A Project manager is using the project charter to assess the detailed project requirements in consultation with the stakeholders and to establish the key project deliverables. He sets his project quality objective based on the organization capability baseline set by the quality policy. However, one of the stakeholders refuses to accept this and asks him to reduce the quality objective as it will help cut down cost of quality of the project. He also refuses to approve the project if the Project Manager does not agree to his suggestion. What should the Project Manager do? a. Explain to the stakeholder that Cost of Quality is less than cost of project b. Explain to the stakeholder that if Quality objectives are set lower than expected, they will be highlighted during Quality Audit c. Explain to the stakeholder that the quality policy is used to set quality objectives for all the projects in the organization and they need to abide by it d. Agree to the stakeholder's suggestion and reduce the metric as he will not approve the project otherwise

c. Explain to the stakeholder that the quality policy is used to set quality objectives for all the projects in the organization and they need to abide by it Explanation Option (c) is correct because quality policy is set by the management in the organization and not by the Project manger, but he needs to abide by it. Option (b) though correct, is wrong in essence. The project should follow the right process by choice, and not due to fear of being caught during audits.

As a part of Stakeholder Management, a Project Manager can follow all of these management practices, EXCEPT: a. Identify all the stakeholders and capture them in the project team directory b. Ensure that stakeholders c. Give preference to stakeholders over customers in case of conflict of interest d. Communicate all relevant information about the project to stakeholders.

c. Give preference to stakeholders over customers in case of conflict of interest. Explanation: In case of conflict of interest, it should generally be resolved in favor of the customer or organization who would use the project's product or service.

A new Project Manager takes over a project during the execution phase. One of the main issues faced by the project is that the customer complains of poor visibility on the project. What should be his first step toward resolving the issue? a. Have a discussion with the customer to understand why he feels the project lacks visibility b. Have a discussion with the team members who have been in the project since the beginning to understand customer-specific communication needs c. Go through the communication management plan to understand customer communication requirements and assess whether they are being addressed properly d. The Project Manager should first understand the project and go through project management plan to understand the project properly

c. Go through the communication management plan to understand customer communication requirements and assess whether they are being addressed properly Explanation: Since the communication management plan details the communication requirements of all the stakeholders, the project manager should first ensure that the plan is being properly followed. Option (a) and (b) can follow later. Option (d), though true, is not relevant to the situation. Refer to PMBOK Guide - Sixth Edi

Risk Breakdown Structure is an example Of: a. Text-oriented format b. functional chart c. Hierarchical representation of risks according to risk categories d. Matrix-based organization chart

c. Hierarchical representation of risks according to risk categories Explanation: As part of risk breakdown structure, all risks are placed in a hierarchical structure as they are identified, which makes your risk planning more efficient.

Which of the following statements DOES NOT describe the essence of Integration Management in the context of Project Management? a. Balancing of competing objectives and the exploration of alternative actions b. The processes and activities needed to identify, define, combine, unify, and coordinate process and project management activities within the Project Management Process Group c. Integrating different components from the development cycle to create the final deliverable d. Managing inter dependencies among Project Management knowledge areas

c. Integrating different components from the development cycle to create the final deliverable Explanation: Integrating different components from a development cycle to create a final deliverable is an example of Software integration management used in software development projects. During this software integration phase, components from different development modules are integrated into one product and tested. However, integration management involves making choices about resource allocation, trade-offs among competing objectives, and managing interdependencies among project management knowledge areas, i.e., options (a), (b) and (d).

Which of the following processes does not have defect repair as one of the outputs? a. Perform Integrated Change Control Process b. Control Procurements c. Monitor and Control d. Control Schedule

c. It shows disrespect to the project management authority as the approach of the team member, and he should be appreciated Explanation: Defect repair can be a component of a change request. change requests are the input for perform integrated change control process and can be the output for the remaining option.

You are a Project Manager of a software project that is in a critical phase of testing and bug fixing. An enthusiastic test engineer working on the project tells you that he found a major bug the previous night during testing. He assures you that there is nothing to worry about as he has 'patched' the code and it is working fine now. What should be your main concern about this incident? a. There is nothing to be concerned about; the incident shows the proactive approach of the team member, and he should be appreciated b. It can be a case of scope creep c. It shows disrespect to the project management authority as the team member didn't ask his opinion d. The patch or bug fix may not work correctly in all scenarios

c. It shows disrespect to the project management authority as the team member didn't ask his opinion

A Project Manager is managing a project that has constraints on the availability of required resources throughout the project. He needs to rearrange the schedule in such a way that a constant number of resources are used each month. Which of the following techniques should the Project Manager use to achieve this? a. Fast Tracking b. Crashing c. Leveling d. Lagging

c. Leveling Explanation: Resource leveling is a technique that allows one to adjust the start and end dates to accommodate the demand and supply of resources. Refer Page 211, PMBOK Guide-Sixth Edition.

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

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

Which of the following types of organizations would have the most complex communication management? a. Functional Organization b. Projectized Organization c. Matrix Organization d. Ad hoc Organization

c. Matrix Organization Explanation: Matrix organization has a combination of both functional and projectile characteristics as project members are from across the organization. This makes the communication more complex and challenging as team members not only need to communicate within their project team but across different horizontal departments and vertical domains. Note: There is no word for ad hoc organization in the PMBOK Guide - Sixth Edition.

When is the cost highest in the project life cycle? a. At the initiating phase b. During planning c. Midway during the project d. During closure

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

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

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

A project is in the initiating stage, and the Project Manager is identifying project communication constraints. Which of the following could be a valid constraint? a. The project could face high attrition rate b. Management and customer expect detailed formal status reports on the project c. Project team members would be required to work from different geographical locations d. Many stakeholders of the project would not be able to attend the planned project kick-off meeting

c. Project team members would be required to work from different geographical locations Explanation: Constraints always limit project team options. Option (a) is a know risk, and (b) and (d) can be addressed under stakeholder management by drawing consensus on the report format and rescheduling the meeting date.

A Project Manager has used a popular cost estimating model to come up with cost estimates for this upcoming project. However, the sponsor asks him to add 15% to the total cost estimate as the customer always negotiates and asks the prices to be reduced by 10% to 15%. What is the BEST option for the Project Manager? a. Do as the sponsor says as she is your senior and project sponsor b. Recalculate the cost estimates using a more suitable technique and check the difference between the estimates c. Provide the sponsor with details on cost estimation and suggest that she share this with the customer d. Refuse to make any changes or increase the estimated cost

c. Provide the sponsor with details on cost estimation and suggest that she share this with the customer Explanation: Both option (a) and (d) are wrong because they are evasive responses to the situation and do not help to improve it. Option (b) may not solve the problem as there is no reason to believe that the Project Manager's current estimates are flawed. The fact that customer asks to reduce cost by 10% indicates that he does not trust the seller to quote a fair price. Option (c) provides the customer with the details on estimating the model and cost breakup to help build trust with the customer and negotiate a fair price.

You are a project Manager for a big project, and quality is a top priority. You have devoted a lot of the project time to the creation of the quality management plan. What is the advantage of the quality management plan? a. Prevents defects from reaching the customers b. guarantees improvement in project quality c. provides a systematic approach to meet the project's quality goals d. Conforms to customers' testing methodology

c. Provides a systematic approach to meet the project's quality goals Explanation: The purpose of quality management plan is to provide an approach to meet the project's quality goals. Preventing defects from reaching customers is the responsibility of Quality Control. The plan does not guarantee project quality. Conformance to customers' testing methodology may not be incorporated in the project quality plan. Refer PMBOK Guide - 6th Edition page 271.

Your company is bidding for a major project from Company X. You have a friend in Company X, and he requests your help in evaluating the proposals. What action should you take? a. Accept the friend's request and work impartially while helping on the proposal evaluation b. Accept the friend's request and take care of your company's interests while helping on the proposal evaluation c. Reject the friend's request d. Ask your Manager's opinion

c. Reject the friend's request Explanation: This is a clear situation of conflict of interest, and the Project Manager should reject the request

A project is in the execution stage. The customer comes back with an additional feature to be added in the forthcoming milestone delivery. The project team has assessed the impact of the change by performing Integrated Change Control. The Project Manager should: a. Hold a meeting with the customer to explain why it is not a good option to incorporate change requests during project execution b. Create a change request and proceed for review by the Change Control Board c. Review Quality Management Plan and evaluate the effect of the additional feature on quality d. Notify stakeholders affected by change

c. Review Quality Management Plan and evaluate the effect of the additional feature on quality Explanation: Review Quality Management Plan and evaluate the effect of the additional feature on quality. Quality needs to considered whenever there is a change in a triple constraint. If you choose option (d), you are quite close. The stakeholders should be informed as part of change management. Option (b) would have been completed by the project team as part of Integrated Change Control.

Which of the following is NOT an input to the "Plan Stakeholder Management" Process? a. Project Management Plan b. Stakeholder register c.stakeholder management Plan d. Enterprise Environmental Factors

c. Stakeholder Register Explanation: Stakeholder management plan is an OUTPUT, not an input to the process.

Which of the following is an example of smoothing as part of promoting interaction among stakeholders? a. The Project Manager keeps himself aloof and uninvolved from team conflicts and lets the team handle it themselves b. The Project Manager calls the troublemakers and tries to resolve their problems through discussion c. The Project Manager downplays the difference of opinion, saying the difference lies only in perception d. The Project Manager takes the side of the more experienced resource as he is more valuable to the project

c. The Project Manager downplays the difference of opinion, saying the difference lies only in perception Explanation: Smoothing is a technique in which the Project Manager emphasizes agreement rather than difference of opinion, and option (c) is the correct choice.

You are a Project Manager, and your project sponsor has asked you to come up with the total funding requirements of the project. What will be the total funding requirements for your project? a. The total approved budget by time period b. The total project budget plus anticipated liabilities c. The total funds, including the cost baseline and any management reserves d. The total individual cost estimates

c. The total funds, including the cost baseline and any management reserves Explanation: The total funds include cost baseline plus management reserves, if any. Cost baseline includes contingency reserves for the risk remaining after risk response planning. A management reserve is an extra amount of funds to be set aside to cover unforeseen risks or changes in the project, and total fund requirement for the project would include management reserves. Option (a) and option (b) describe cost baseline, and option (d) refers to cost budgeting.

Which estimate technique does the Program evaluation and Review Technique (PERT) use to define the approximate range of activity costs? a. Earned Value Technique b. Parametric Estimation Technique c. Three Point Estimate Technique d. Historical Information

c. Three Point Estimate Technique Explanation: Program Evaluation and Review Technique (PERT) calculates an expected activity cost using the weighted average of the three estimates, that is (Most Likely + Optimistic + Pessimistic)/3. Most likely is the approximate realistic scenario, that is, the cost of the activity given the resources likely to be assigned, their productivity, and realistic expectations of availability. Optimistic is the best-case scenario of what is described in the most likely estimate. Pessimistic is the worst-case scenario, that is, the activity duration is based on a worst-case scenario of what is described in the most likely estimate.

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

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

You are the Project Manager of a large and complex project. Your project team has finished creating a Work Breakdown Structure for the project. However, some of the team members are still not sure of the kind of work included in each of their work packages. Which of the following documents would you suggest they go through? a. Project scope statement b. Project Management Plan c. Work Break Structure (WBS) Dictionary d. The product Scope document

c. Work Break Structure (WBS) Dictionary Explanation: A Work Break Structure (WBS) Dictionary accompanies a Work Breakdown Structure and provides a description of the work to be done for each WBS package. It provides more detailed descriptions of the WBS components, such as work description, schedule milestones, schedule activities, resources required, cost estimates, quality requirements, acceptance criteria, etc. The project scope statement contains details about the scope of the project, but it is at a much higher level and will not be helpful in this situation.

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

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

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

d. Communicate project stage review findings to all the stakeholders Explanation: The Project Manager needs to communicate the project progress to stakeholders at all the major milestones. Option (A) would have been addressed during revisiting the risk as part of kick off meeting, whereas Options (B) and (C) are not mandatory activities and may not be required in every project.

A project team in a software project started with risk management planning and identified new risks. Next, it conducted qualitative risk analysis using a probability and impact matrix and thereafter completed the 'plan risk response' process. What is an important step that the team needs to complete before moving to risk monitoring and control? a. Evaluate risks quantitatively using any of the tools of Quantitative Risk Analysis b. Identify risk owners among stakeholder and project team c. evaluate the amount of contingency time and cost reserve needed d. Communicate the status of identified risks and response strategy to stakeholders.

d. Communicate the status of identified risks and response strategy to stakeholders Explanation: It is important to communicate risks and strategies to stakeholders before moving to the next stage of the project. Option (b) and (c) are part of plan risk response and is already completed. Option (a), quantitative risk analysis, comes before risk response planning and would have been either addressed or skipped depending on project requirements.

You work in a pharmaceutical company, and your client has shared some confidential information with you. A medical university requests you to share the information about the client for their research. What should you do? a. Share the information as it will be used purely for academic purposes b. Share the information but hide all references that could expose the client c. Never share any information about the client as you are bound by Non-Disclosure Agreement d. contact your client and seek permission to disclose the information

d. Contact your client and seek permission to disclose the information Explanation: The best option is to consult the client on these matters. Option (a) seems to be in good faith, but you need to remember that the owner of the data is the client, so you can't share the information without seeking his or her approval.

A Project Manager is in the planning stage and is evaluating risks in the project. He wants to improve the project's chances of success by evaluating all possible risks. As a part of risk management planning and identification, he has used a standard questionnaire to identify risks and has identified about 20 risks in the project. What should he do before moving to the next process, "qualitative risk analysis"? a. Prioritize risk by determining each risk's probability and impact b. Update project management plan and other project documents based on inputs from these risks. c. Communicate the status of identified risks to stakeholders d. Continue to identify more risks using other tools and techniques

d. Continue to identify more risks using other tools and techniques. Explanation: Although surveys were used, other tools and techniques need to be applied to identify risks. It is also not clear whether all stakeholders were involved in the risk identification process. Option (b) and (c) are not valid as the risk identification process is not yet completed, and option (a) is part of 'perform quantitative risk analysis' process.

You are a Project Manager in a leading manufacturing company, and you are managing a critical project for the company. Your project is facing severe cost constraints, and you cannot delay the delivery date of the product. The decision to lower the quality and grade of the product is ______________. a. Wrong, as grade and quality should never be compromised in a product. b. Wrong, as grade can be compromised but not quality c. Wrong, as quality can be compromised but not grade d. Correct, as both grade and quality can be compromised according to project need

d. Correct, as both grade and quality can be compromised according to project need Explanation (disregard!) Recall triple constraints and real life project constraints. Though it is not advised to compromise on quality and grade, the Project Manager and team are responsible for managing the tradeoff in quality and grade of the delivered product in specific scenarios. This should be approved by the customer and stakeholders.

A project Manager is managing a short duration pilot project and has started with a risk management planning process. He has identified new risks and arranged them based on probability and the impact matrix. The Project Manager now proceeds to plan responses for the risk without analyzing the risks numerically. According to you, this decision of the Project Manager is: a. Incorrect. It is important to numerically analyze each risk in order to come up with appropriate responses. b. Correct. Quantitative Risk Analysis is a waste of time and is not required if risks are already assessed qualitatively. c. Incorrect. quantitative risk analysis is important. We need to calculate EMV for each risk and later move on to risk response planning. d. Correct. This is a short duration project, and the Project Manager might skip Quantitative Risk analysis if he feels it does not assist in the Risk Management process.

d. Correct. This is a short duration project, and the Project Manager might skip Quantitative Risk analysis if he feels it does not assist in the Risk Management process. Explanation: It is not mandatory for you to do quantitative risk analysis and you can directly move on to risk response planning, especially for a low priority or short term project.

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

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

A project team is ahead of it schedule, and its SPI and CPI are currently 1.4 and 1.2 respectively. The Project Manager and the team are brainstorming about the scope of the next milestone delivery. They have found that including an additional feature would enhance the usability of the product and can be compressed in the current schedule. What should the project team do next? a. Add this feature in the next release as long as it doesn't affect the delivery date b. Get through the change management and analyze the impact of this additional feature c. Discuss it with the project sponsor d. Drop this feature as it is gold plating and the customer does not need it.

d. Drop this feature as it is gold plating and the customer does not need it. Explanation: PMI does not recommend gold plating, and this additional feature is definitely not part of the requirement in the contract. Though it does not affect delivery, it may involved costs or additional risk, so option (a) is not justified. The best option would be to first evaluate the impact of this additional feature and then discuss it with the customer. Since that is not a choice, (d) is the best answer.

The Project Manager is participating in the development of a project charter by gathering and analyzing the stakeholders' requirements and ensuring that the project scope, milestones, and deliverables are documented correctly. Which of the following is NOT achieved by the sponsor's approval of the project charter? a. Formalizing the authority assigned to the Project Manager b. Gaining commitment of the stakeholders c. Gaining acceptance for the project by the stakeholders d. Ensuring formal acceptance of the deliverables by the customer

d. Ensuring formal acceptance of the deliverables by the customer Explanation: The Project Charter is approved by the sponsor and the customer (if required). It formalizes the authority assigned to the Project Manager and helps the project manager gain commitment and acceptance for the project. Option (d) is correct in this scenario as formal acceptance of the project deliverables is part of the 'Validate Scope' process and is performed during the Monitoring and Controlling process group.

In a project kick-off meeting, there is utter chaos, with all the attendees talking simultaneously. The Project Manager is not able to present his report due to the commotion, and the stakeholders feel that their expectations are not being met properly. Also, many of the invited attendees are not present. What must have the Project Manager done to avoid this situation? a. Communicate agenda of the meeting clearly to all the Stakeholders b. Postpone the meeting to ensure availability of all the Stakeholders c. Conduct a brainstorming session to reach a consensus with Stakeholders d. Establish ground rules for the meeting and communicate the rules to all the attendees

d. Establish ground rules for the meeting and communicate the rules to all the attendees. Explanation: This is a question where you need to concentrate on the root cause of the situation. There is no evidence to believe that option (a) was not done. Option (b) may not always be feasible. Also, option (c) may not be required once the Project Manager is able to present his point of view and order is restored. The most important thing in this situation is to establish clear expectations regarding acceptable behavior by project team members. Discussing ground rules also allows team members to discover values that are important to one another and to improve productivity.

To acquire and manage the project team, which of the following plan or documents should be referred to? a. Human Resource management plan b. procurement management plan c. Project charter d. Human Resource management plan and Procurement management plan

d. Human Resource Management plan and Procurement management plan Explanation: According to the new examination content outline, a human resource management plan should be considered in addition to the procurement management plan.

A project team is in the process of estimating the types and quantities of resources required to perform each activity. Which of the following activities will NOT be done by the team during this process? a. Estimate the type and quantity of resource required to perform each activity b. Go through the past data and lessons learned from previous projects c. Study the organization policies and procedures regarding staffing d. Identify and show network dependency in the project activities

d. Identify and show network dependency in the project activity Explanation: The project team is in the process of Estimating Activity Resources, and the activities provided as options (b) and (c) are done as part of this process. Option (d), which involves creating a schedule network diagram to display project schedule activities and logical relationship between them, is part of the Sequence Activities process.

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

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

A software project run in an IT company has 14 stakeholders and is in the final testing stage. At this point, the technical architect leaves the project and two new test engineers join. What is the change in the potential communication channels of the project. a. Communication channel would remain unaffected by change in team members. b. Number of communication channels will increase by 13 c. Number of communication channels will increase by 26 d. Number of communication channels will increase by 14

d. Number of communication channels will increase by 14 Explanation The question is asking about the change, not the total potential communication channels in the project. The total possible communication channels = n*(n-1)/2, where n is the number of stakeholders in the project. When the technical architect was part of the project team, there were 14 stakeholders, which made a total of [(14*13)/2] = 91 channels. When the technical architect left the project team and two new test engineers were added, there were 15 stakeholders, which made a total of [(15*14)/2] = 105 channels. The change in the potential communication channels is 105-91=14.

Which of the following is NOT a technique used in "develop project team process? a. Training b. Interpersonal Skills c. Co-Location d. Observation and Conversation

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

A Project Manager is going through the Project Statement of Work provided by the project sponsor. Which of the following will NOT be a part of this document? a. Business Need b. Product Scope Description c. Strategic Plan d. Performance Measurement Baseline

d. Performance Measurement Baseline Explanation: Performance Measurement Baseline is a part of the project management plan. Refer PMBOK Guide - Sixth Edition Project Integration Management, page 88, Project Procurement Management, page 477.0

You have delivered many complex and technically challenging projects in the past and have won respect and appreciation for your work from the customers and senior managers in the organization. Which form of power are you using? a. Formal (Legitimate) b. Reward c. Expert d. Referent

d. Referent Explanation: This an example of Referent power derived from respect and appreciation. A leader may use several types of power. Formal authority (legitimate power) is the ability to influence through the authority to direct, based upon position in the hierarchy of the organizational structure or the perception of official empowerment to issue orders. Reward power is the ability to influence based upon direct or indirect control over positive consequences one desires to gain, such as raises in compensation, bonuses, promotions, choice assignments, or other perks. Penalty (coercive) power is the ability to influence based upon direct or indirect control over positive consequences one desires to gain, such as raises in compensation, bonuses, promotions, choice assignments, or other perks. Penalty (coercive) power is the ability to influence based upon direct or indirect control over negative consequences one desires to avoid, such as the lack of raises in compensation, bonuses, promotions, choice assignments, or other perks. Expert power is the ability to influence based upon expertise or special knowledge considered important to the work at hand. Referent power is the ability to influence based upon respect, loyalty, admiration, affection, or a desire to gain approval.

After a project management plan is prepared and approved, a project stakeholder asks the Project Manager to correct some syntax and grammatical errors in the project documents as they could be misleading. What should the Project Manager do? a. Refuse as these are trivial changes and can be ignored b. Refuse as the project management plan has already been discussed and approved c. Refuse and ask the stakeholder to meet the project sponsor d. Refuse and ask the stakeholder to raise a change request that can be considered by the change control board

d. Refuse and ask the stakeholder to raise a change request that can be considered by the change control board Explanation: All changes in the project should be documented through change requests and should go through proper change management process. Option (a) is wrong because the question says the grammatical errors could be misleading and are not trivial.

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

d. Standardized guidelines and work instructions Explanation: Standardized guidelines and work instructions' is a part of organizational Process Assets. Refer to PMBOK Guide - Sixth Edition 'Project Integration Management' page 93.

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

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

You are working on a critical project for a large enterprise. The project has a major milestone delivery next week and is in the final testing phase. The project team is working on two critical showstopper bugs that are affecting the project. One of the senior members of the project has resigned, and the outsourced component that was scheduled for delivery next week may be delayed. Additionally, the current performance indices are 1.09 (CPI) and 1.90 (SPI). What is the MOST critical issue faced by the project? a. Cost and Schedule b. Delay in third party component c. Resource movement d. Testing defects

d. Testing defects Explanation: This question exemplifies a typical scenario when a Project Manager needs to integrate information and make a decision from many choices. Since both CPI and SPI are more than one, cost and schedule are in control. Delay in third-party components is a risk that may or may not occur. Furthermore, there is no information to suggest that it will delay the milestone release. The Project Manager can plan for knowledge transfer to minimize the effect of senior member's resignation. The showstopper bugs need to be resolved before delivery, and that is the most critical issue faced by the project.

The project is in the final testing stage and is approaching a critical deadline. Two senior members of the team who have already had disagreement throughout project execution are caught up in a deadlock. The Project Manager has earlier tried his best to sort out their differences but it hasn't worked. What is the BEST the Project Manager can do in this situation? a. Talk to the project sponsor since they are senior members of the project b. Give them a final warning and make it clear that such behavior is not encouraged c. Talk face-to-face with each of them individually to sort out their differences d. Use an Autocratic approach and make a decision that is best for the project

d. Use an Autocratic approach and make a decision that is best for the project Explanation: The Project Manager is responsible for the project's success. This project is approaching a critical deadline, and these two members have always been a problem. telling your sponsor about this issue is definitely not an options, as a Project Manager should be able to handle conflicts with the team. Option (B) and (C) may not work as the Project Manager has tried earlier to resolve their differences amicably. The only option is to make a decision that is in the best interest of the project, including expulsion of one resource if required.

Which of the following is an example of external failure cost? a. Cost of testing b. Cost of training c. Cost of documentation d. Warranty Cost

d. Warranty cost Explanation: Warranty cost is the only cost which belongs to the category of external failure cost. Training and documentation are prevention costs. Testing is appraisal cost. Please refer to PMBOK Guide - Sixth Edition Project quality Management, Cost of Quality page 282.