PMP Sample Test Lesson 2&3

11-11 The two dimensions of risk used to determine expected value are: A. Consequence and contingencies B. Probability and assumptions analysis C. Probability and consequence D. Probability and data precision

11-11 Answer C - Risk ratings are determined by the product of probability and Impact ( or consequence) when using qualitative analysis and to determine expected monetary value when utilizing a decision tree (quantitative analysis. Refer to pages 291 and 299, PMBOK Guide

10-1 The sender-receiver model is designed to assist project managers and team members improve their communications skills by emphasizing a) The need for the project manager to engage in downward communication b) The importance of horizontal communications during project execution c) Potential communications barriers and the importance of feedback loops d) The need to communicate information verbally

10-1 Answer C - The communications model emphasizes awareness about developing the appropriate message to be delivered, the potentials barriers that may be encountered and the importance of a feedback loop to improve delivery and understanding of a message.

10-10 The cost performance index or CPI is used to indicate: a) The sum of individual earned value budgets b) Cost efficiency c) The variance between EV and PV d) The variance between actual cost and budgeted cost

10-10 Answer B. CPI is a calculation associated with Earned Value Analysis that compares the efficiency is which project monetary resources are expended. Refer to page 183. PMBOK Guide

10-11 Your project currently has ten people assigned to the project team including yourself. At the end of the month you will be adding three additional team members to your project. What is the change in the number of communications channels after you add the new team members? a) 13 b) 45 c) 33 d) 78

10-11 Answer C - Use the formula: # of Channels = {N( N-1}) / 2 10(10-1)/ 2 = 45 13(13-1)/ 2 = 78 78 -45 = 33 (Note, in similar questions you may have to consider that the project manager is not included in the actual count of team members and may have to be added to the count to determine the number of channels. Example if you have a team of 10, the project manager would be added making the count 11 for calculating the number of channels.

10-12 Your team currently includes 9 members. You increase the team size to 12. The number of communications channels within the total project team has increased by: a) 10 b) 30 c) 33 d) 54

10-12 Answer C - # Channels = N(N-1) / 2 . In this situation you must include the project manager in the calculations. 9 + project manager = 10 and 12 + project manager = 13. Answer is the difference between 45 and 78 = 33.

10-13 In the communications model the sender transmits information to the receiver. Communication is most effective between sender and receiver when the _________ between the sender and receiver overlaps. a) Area of responsibility b) Personality screen c) Region of experience d) Perception screen

10-13 Answer C - Areas of common interest and experience will contribute to the effectiveness of the communications process. Areas of responsibility or function may create communications barriers. Personality and perception screens may distort the message.

10-14 Project information has been distributed according to the communications plan. Some project deliverables have been changed. Those changes were made according to the change control plan. One stakeholder expressed surprise to the project manager upon being informed of a previously published change to a project deliverable. All other stakeholders received notification of the change.What should the project manager do? a) Inform the stakeholder of the date when the change was approved b) Review the communications plan with the stakeholder and explain his responsibility c) Review the communications plan and make revisions, if necessary d) Address the situation in the next steering committee meeting so others do not miss published changes

10-14 Answer C - In this case the communications plan and the communications requirements analysis may not have included all Key stakeholders. Informing the stakeholder of the date of the change does not resolve the situation and it may occur again. The existing communications plan may not be complete and explaining stakeholder responsibility without ensuring the process has been agreed upon could result in conflict. Addressing a communications issue during steering committee meeting may assist will not resolve a problem until the communications plan is reviewed and updated as needed.

10-15 In the communication process, the basic communications model includes all of the following except: A. Noise B. Medium C. Urgency D. Message

10-15 Answer C - Urgency is not included in the basic communications model but should be considered when determining the method of communications to be used. Refer to page 255,PMBOK Guide

10-16 During stakeholder analysis the project manager and team may use many different models to classify stakeholders. The model that helps to analyze a stakeholder's ability to impose his or her will or power and influence the need for immediate attention from the project team along with the legitimacy of the stakeholder's involvement is the: A. Power / interest grid B. RAM C. Salience model D. Stakeholder register

10-16 Answer C - The salience model addresses stakeholder power, influence, need for information and legitimate involvement I a project. The Power and interest grid assists in determining the level of influence and interest a stakeholder may have on the planning and outcome of the project. The RAM, Responsibility Assignment Matrix, connects project stakeholders with WBS components. The stakeholder register is an output of stakeholder analysis. Refer to page 249, PMBOK Guide

10-17 You are planning to distribute a significant amount of information about your project to a large audience. You decide to post the information on an internal knowledge sharing tool for access at the convenience of the stakeholder. The communication method you are using is: A. Interactive communication B. Push communication C. Pull communications D. Expert judgment

10-17 Answer C - Pull communications utilizes websites, knowledge repositories and other types of accessible data bases. Refer to page 256, PMBOK Guide. Expert judgment generally refers to the input from subject matter experts and functional managers and is not specific to communications management.

10-18 Which of the following is most tightly linked to the Plan Communications process? A. Project Performance Reports B. Reporting systems C. Interpersonal skills D. Enterprise environmental factors

10-18 Answer D - Enterprise environmental factors are a key input to the plan communications process. Refer to page 252, PMBOK Guide. Reporting systems is a tool or technique within the Report Performance process. Interpersonal skills are associated with the Manage Stakeholder Expectations process. Project performance reports are an output of the Report Performance Process.

12-5 As the buyer during the contract negotiation process, you are interested in a contract that would have the least amount of risk to your organization. Which of the following contracts would be preferred to meet your risk averse needs? A. Firm Fixed Price B. Cost Plus Percentage of Cost C. Cost Plus Incentive Fee D. Cost Plus Fixed Fee

12-5 Answer A - The Firm Fixed Price or Lump Sum contract places the responsibility to deal with the risk of a cost overrun with the seller. Cost plus contracts shift the cost risks to the buyer.

10-2 You have been asked to provide information about your project's current performance in terms of the relationships between scope, schedule and budget. The most appropriate type of report that will accomplish this is: a) Progress report b) Earned Value analysis report c) Jeopardy report d) Status report

10-2 Answer B- Earned value management provides an integrated view of project performance and compares work performed with work planned to be performed and the planned cost of work with the actual cost of work. Progress reports provide information about what has been accomplished to date, a jeopardy report provides information about problem issues and problems, and a status report provides information about work that is currently being performed.

10-3 As a project manager you must identify the information needs of the stakeholders involved in the project. These needs are identified in which of the following processes? a) Stakeholder management strategy b) Trend analysis c) Value analysis d) Communications requirements analysis

10-3 Answer D - Stakeholder communications requirements are determined during communications requirements analysis. The intention is to identify information that is most valuable to the stakeholder. Stakeholder management strategy is an output to the identify stakeholder process. Value analysis is associated with product analysis. Refer to page 253 PMBOK Guide

10-4 As a project manager for a new and highly complex project it is important for you to develop your communications plan: a) During execution b) At the earliest stages of the project c) Upon completion of the project plan d) Evenly throughout each project phase

10-4 Answer B - Communications planning is including in the planning process which is generally completed before execution. Updates to the project plan, including the communications plan will occur during the entire project life cycle. Refer to page 252 PMBOK Guide

10-5 Project resources should be expended only on communicating information that: a) Contributes to the success of the project or where a lack of communication can lead to failure. b) Originates from the sponsor or the project management office c) Has been generated internally by the organization's executive team d) Is developed by the project team

10-5 Answer A - Communications requirements analysis determines the information needs of the stakeholders and identifies information that is most critical to success or failure. Refer to page 253, PMBOK Guide

10-6 Of the following items which one is the most significant factor in the determination of the method that may be used to transfer information among project stakeholders? a) Stakeholder identification b) The communications plan c) The immediacy or urgency of the need for information d) The organization chart

10-6 Answer C - Stakeholder identification will provide a list of stakeholder affected by the project, the communications plan provides guidelines for managing project related information. The organization chart assists in identifying stakeholders. The urgency associated with information will be an important factor in deciding how information is communicated. Examples - meetings, conversations, written documents, use of technology such as email. Refer to page 245, PMBOK Guide

10-7 The collecting, storing, analysis and distribution of project information is accomplished most effectively by using: a) A Project Management Information System b) The communications management plan c) The scope statement d) The project change control process

10-7 Answer A - The PMIS is a collection of systems that provide the opportunity to gather, store, and disseminate information. Refer to page 260, PMBOK Guide. The communications management plan is a guide for managing project information. The scope statement describes the project in detail. The change control process is a subsidiary of the project management plan.

10-8 During project implementation, the project manager is required to submit several reports that will communicate information about the project. Describing the project conditions at the present moment in relationship to schedule and other metrics is found in the: a) Status report b) Progress report c) Project Forecast d) Quality report

10-8 Answer A - The project status report is included in Report Performance outputs. Status reports address the current condition of a project including risks, and issues. Progress reports refer to work that has been completed during a reporting period. Forecasts refer to future scheduled work.

10-9 A commonly used method for determining the performance of a project at a specific point in time by comparing planned results with actual results and then reporting the project performance as it relates to an integrated view of scope, time, and cost is: a) Trend analysis b) Variance analysis c) Earned value analysis d) Project presentations and review

10-9 Answer C - Earned value analysis is used to develop an integrated view of project status at the date of measurement. Trend analysis and variance analysis are included in earned value analysis. Variance analysis may include only a comparison of actual performance with one specific baseline. Presentations may be used to deliver information obtained during earned value analysis.

11-1 All of the following are inputs to the process of Risk Management Planning except: A. Project Scope Statement B. Project Management Plan C. Organizational Process Assets D. Risk Register

11-1 Answer D - The risk register is an output of the Identify Risks process. Refer to page 278 and 279,PMBOK guide

11-10 Your team is using a probability impact matrix. The scales on each axis of the matrix are labeled Very High, High, Moderate, Low, and Very Low. Your team is using: A. A cardinal scale B. An ordinal scale C. SWOT analysis D. Quantitative risk analysis

11-10 Answer B - Ordinal scales utilize a narrative description when rating or ranking items that require attention. A cardinal scale utilizes a numeric system such as .1 to .90. The ordinal rating system may be used with the Probability / Impact matrix. Refer to pages 291 and 292 PMBOK Guide.

11-12 Your team is using a model that translates the uncertainties specified at a detailed level into their potential impact on project objectives at the level of the whole project. The technique being used is: A. Modeling and Simulation B. Data precision analysis C. Decision tree analysis D. Quantitative trends

11-12 Answer A - The use of modeling and simulations such as Monte Carlo Simulation generate information through iterations. Project information at the activity level is chosen at random during the process and produces data that illustrates the likelihood of achieving specific cost or schedule targets. Refer to page 299, PMBOK Guide

11-13 You believe that your project's product design effort would be a major challenge to the team's abilities and you do not have the tools or material to manage it effectively so you decide to seek a supplier who specializes in the specific technical area. You sign a fixed-price contract to execute this piece of the project work. This is an example of: A. Risk avoidance B. Risk transfer C. Risk mitigation D. Risk acceptance

11-13 Answer B --Transferring risk does not eliminate the risk. It shifts the risk to a more qualified entity or to a third party. Liability for the risk is accepted by the entity or third party at an agreed upon cost. Risk avoidance refers to risks that should be eliminated by changing strategy. Mitigation is associated with reduction of probability and or impact. Acceptance indicates that the risk is well with the capabilities of the project team or key stakeholders.

11-14 Your team has utilized all of the appropriate tools and techniques for responding to identified project risks and has discovered that some risks have been reduced in impact but remain a potential threat. These risks require further monitoring and are referred to as: A. Secondary risks B. Primary risks C. Cumulative risks D. Residual risks

11-14 Answer D - Residual risks are included in the outputs of the Plan Risk Responses process and are expected to remain as threats. Their probability and impact have been reduced through mitigation. Primary risks are included in the initial risk identification process are generally most obvious. Secondary risks are those risks that result from the decisions about how to manage primary risks. Cumulative risk is a combination or collective expected value of the effect of multiple risks.

11-15 All of the following are tools and techniques for Risk Monitoring and Control except: A. Earned value analysis B. Project risk audits C. Technical performance measurements D. Exploitation

11-15 Answer D - Exploit Risk is considered a tool or technique of the Plan Risk Responses process and is associated with managing opportunity or risks that may have a positive impact on a project. Refer to page 304. PMBOK Guide

11-16 Your project has encountered an unexpected problem. One of the components you were expecting to receive has not been ordered. This may mean youwill not be able to perform a proper product demonstration. There is not enough time to send an expedited order because thedemonstartion is scheduled to take place in three days. You assemble your team to determine if there may be to temporarily modify the product modified to function without the missing component. Your team will be involved in which of the following? A. Developing a mitigation sytrategy B. Developing a risk transference plan C. Identifying a workaround D. Designing a prototype

11-16 Answer C - A Work around is a temporary response to an uplanned event. Work arounds allow for work to continue while a permanent solution is developed. Mitigation generally refers to the redcution of the probability the occurance and an event. Risk transfer shifts teh risk to another organization.

11-17 Project risk is typically characterized by what three elements: A. Severity of impact, duration of impact and cost of impact B. Identification, type of risk category and probability of impact C. Risk event, risk probability and the amount at stake D. Occurrence, frequency and cost

11-17 Answer C - A risk event is the actual occurrence of the risk. Example - equipment failure. Risk probability is the likelihood that a risk event may occur. Amount at stake refers to the impact or consequence of the risk and is usually described in terms of the effect on cost or schedule.

11-18 Purchasing insurance is considered an example of risk: A. Mitigation. B. Transfer. C. Acceptance. D. Avoidance.

11-18 Answer B - transfer generally involves the shifting of a risk from one party to another. It does not illuminate or reduce the risk. Insurance is a common form of transfer of risk. Refer to page 303, PMBOK Guide

11-19 You are the project manager assigned to a very critical project. This requires you to ensure that project risk must be handled intentionally and methodically. You have assembled the project team, identified 32 potential project risks, determined what would trigger the risks, rated and ranked each risk using a risk rating matrix. You have also reviewed and verified all documented assumptions from the project team, and have verified the sources of data used in the process of identifying and rating the risks. You are continuing to move through the risk management process.What have you forgotten to do? A. Conduct a simulation B. Determine which risks are transferable C. Perform an evaluation of the overall riskiness of the project D. Involve other stakeholders

11-19 Answer D - The risk management process requires input from all key stakeholders including the project team. Use of a stakeholder register assists in the proper identification of stakeholders and in obtaining their input. Refer to page 284, PMBOK Guide

11-2 Outputs from Monitor and Control Risks include all of the following except: A. Requested changes B. Risk Register updates C. Risk Audits D. Project plan updates

11-2 Answer C - Risk audits are considered to be a tool or technique in the Monitor and Control Risk process. Refer to page 274, PMBOK Guide, Risk Management Overview.

11-20 A project manager is faced with a product design risk issue. It has been determined that the materials used to house a critical component of the product are subject to significant corrosion as a result of exposure to the typical work environment. The project team has decided to modify the design using veryexpensive corrosion-resistant materials in this component, which will basically eliminate the risk. The technique used by the team is: A. Risk avoidance B. Risk acceptance C. Risk transference D. Risk deflection

11-20 Answer A - Risk avoidance is a technique that is used to change the plan to eliminate a risk or threat entirely. Risks can be avoided through effective and thorough requirements management and communication or the use of subject matter experts.

11-21 During the analysis of possible decisions regarding the direction a project team should select during project analysis it has been determined by subject matter experts that in one branch of a decision tree there is a 40% percent chance of making $100.000 and a 60% chance of losing $150,000. What is the expected monetary value of this part of the analysis? A. $50,000 B. -$50,000 C. $90,000 D. -$90,000

11-21 Answer B - .60 x 150,000 + .40 x 100,000 = -50,000 .60 x -150,000 = - 90,000 .40 100,000 = 40,000 -90,000 + 40,0000 = -50,0000 Using the decision tree, the expected value of a branch is determined by multiplying the anticipated outcome of each component of the branch by the probability of achieving the result. The results of these calculations are then added together to determine the expected monetary value of the branch. Note: the sum of the probabilties of each outcome in the chance nodes of a decison tree will equal 100%. Refer to page 299, PMBOK guide for details about decision tree characteristics.

11-22 Using the following information and a normal distribution curve, what is the probability that the project will be completed in 64 days? Optimistic time is 48 days. Pessimistic time is 72 days. Most likely time is 60 days A. 16% B. 84% C. 50% D. 100%

11-22 Answer B - to Determine the probability of completing in 64 days, the following steps are required: Determine the weighted average using the formula {Optimistic + 4(Most Likely) + Pessimistic} / 6. Determine the standard deviation using the formula (Pessimistic - Optimisitc) / 6. In the normal distribtuon curve there is a 68% probability that the outcome will be within 1 standard deviation from the mean. There is a 95% probability that the result will fall within 2 standard deviations from the mean and a 99.73% probability that the result will fall within 3 standard deviations from the mean. If the mean is at the 50% point and there is a 68% probablity of the result falling within plus or minue one standard deviation of the mean the probabilty of 1 standard deviation is divided by 2. The result is 34. Adding 34 to 50% = 84%. Subtracting 34 from 50% = 16%. The Standard deviation in this example is 4. The mean is 60. 60 + 4 = 64 or one standard deviation from the mean. 50% + 34 = 84%.

11-3 You are managing a project and have a major decision to make about a change in the plan. You decide to contact several subject matter experts to obtain their opinions before making a decision. Each expert is unaware of the participation by any of the other experts you have contacted. The process being used is: A. Nominal group technique B. Delphi technique C. Brainstorming D. SWOT analysis

11-3 Answer B - The Delphi technique utilizes input from subject matter experts who remain anonymous to other experts involved in specific research or problem resolution. Refer to page 286 PMBOK guide and to page 108.

11-4 You have just completed an analysis of project risks and have prioritized them using a probability and impact matrix. The approach you used to prioritize the risks is: A. Qualitative analysis B. Quantitative analysis C. Sensitivity analysis D. Earned value analysis

11-4 Answer A - Qualitative risk analysis utilizes the experience of subject matter experts, functional managers, best practices, and previous project records. It is a rapid and low cost approach to risk analysis. The Probability / Impact matrix used the knowledge and familiarity of the project team and subject matter experts to determine likelihood and impact of a project risk event. Refer to page 289, PMBOK Guide

11-5 Defining _____________ will provide a structure for systematically identifying risks to a consistent level of detail during the project planning process. The areas defined in this process should reflect common sources of risk for the industry or application area. A. Assumptions B. Constraints C. The product description D. Risk categories

11-5 Answer D - Assumptions are information items that should be verified. They are not generally considered to be based on factual data. Constraints are limitations that should be considered when developing project plans. The product description provides details about the complexity of the product to be delivered. Risk categories assist is detailed risk identification and may be utilized with a Risk Breakdown Structure (RBS) refer to page 280, PMBOK Guide

11-6 All of the following are tools and techniques for risk identification except: A. Monte Carlo simulation B. Interviewing C. SWOT analysis D. Delphi technique

11-6 Answer A - Monte Carlo simulation is associated with Quantitative Risk Analysis and uses iterative simulations to determine project outcomes. Refer to page 299 , PMBOK Guide

11-7 You notice that some of your project team members are not attending your meetings and that there has been an increase in requests for transfer from your project. These are examples of: A. Risk events B. Risk triggers C. Primary risks D. Residual risks

11-7 Answer B - A Risk trigger is referred to as a symptom of an impending risk event and signals the project manager to take action before the event occurs. Risk events are actual occurrences of an identified risk event. Primary and secondary risks are risk events identified by the project team or key stakeholders.

11-8 The Ishikawa or fishbone diagram is used to display: A. System flows B. Predecessors and successor tasks C. Cause and effects D. Casual influences and relationships between activities

11-8 Answer C - The cause and effect diagram is also known as a fishbone or Ishikawa diagram (after its developer Kaoru Ishikawa).Refer to page 287 and 208, PMBOK Guide. System flows are associated with flow charts. Network diagrams display predecessor and successor relationships.

11-9 The enterprise environmental factors that can influence the Identify Risk Process include all of the following except: A. Assumptions analysis B. Risk attitudes C. Industry studies D. Commercial data bases

11-9 Answer A - Assumptions analysis is associated with the tools and techniques of risk identification.

12-1 When you decide to give up your rights under contract to expedite an activity by circumventing a process you have decided to: A. Enter into contract default B. Terminate the contract C. Execute a waiver D. Submit an informal change request

12-1 Answer C - A waiver is a voluntary relinquishment of a right or an entitlement.

12-10 As the project manager for a new project you have been given the responsibility to provide all potential contractors with the information they need to determine if they would like to continue with the contracting process. To accomplish this you may want to schedule a: A. Project stakeholder meeting B. A bidder's conference C. A make or buy analysis conference D. A project kickoff meeting

12-10 Answer B - the Bidder's conference provides an opportunity for the buyer to provide all potential sellers with information to allow them to determine if they should continue with the proposal process.

12-11 All of the following are examples of procurement documents except: A. Request for Information B. Request for Proposal C. Project Scope Statement D. Request for Quote

12-11 Answer C - The project scope statement is generally developed after the Statement of work and Contract has been reviewed and approved.

12-12 A cost reimbursable contract introduces greater risk to the: A. Buyer B. Seller C. Project team D. Functional managers

12-12 Answer A - In a cost reimbursable contract the buyer generally has not finalized requirements. The risk of great cost is placed with the buyer.

12-13 The seller is protected from liabilities and penalties when a project is impacted by a natural disaster through the: A. Liquidated damages clause B. Penalty clause C. Force Majeure clause D. Statement of work

12-13 Answer C - The Force Majeure clause is intended to protect the seller from any liabilities resulting in natural disasters, Example of a force majeure clause in a contract: "No Party shall be liable for any failure to perform its obligations where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, hurricane or other natural disaster). Penalty clauses and Liquidated damages are associated with a failure to meet a contractual obligation.

12-14 The terms , contractual conditions, roles and responsibilities defined by two or more parties who enter into a partnership or joint venture are known as: A. Statements of work B. Acceptance criteria C. Considerations D. Teaming agreements

12-14 Answer D - Teaming agreements are legal, contractual agreements that form partnerships or joint ventures. Considerations are generally something of value. Acceptance criteria generally refers specific functions and conditions that must be achieved before approval and payment is secured. Refer to page 319, PMBOK Guide

12-15 The legal contractual relationship that exists between a buyer and a seller after the contract is signed is known as: A. Privity B. Obligation C. Bilateral agreement D. Legally bonded relationship

12-15 Answer A - Privity of contract is a relationship that exists only between the parties to the contract, most commonly a contract that provides goods or services (a contract of sale). A bilateral agreement is a binding contract between the two parties that have agreed to mutually acceptable terms.

12-16 The risk associated with design specifications are the responsibility of the: A. Buyer B. Seller C. Project manager D. Project sponsor

12-16 Answer A - Design specifications are generally provided by the buyer and risks associated with design are the responsibility of the buyer. Function specifications and performance specifications are the responsibility of the seller.

12-17 A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $150,000 with a predetermined fee of $15,000 and a share ratio of 80/20. The actual cost of the project is $130,000. What is the total fee that will be awarded to the seller? A. $31,000 B. $19,000 C. $15,000 D. None of the above

12-17 Answer B: Target cost = 150,000 Actual cost = 130,000 Savings = 20,000 Share to the seller 20% of 20,000 = 4000 15,000 + 4000 = 19,000 Total project cost for the buyer = 130,000 + 19,000 = 149,000

12-18 Under which type of contract does the seller accept all liability for poor workmanship, engineering errors, and consequential damages? A. Incentive fee B. Fixed price C. Cost plus D. Cost plus fixed fee

12-18 Answer B - Fixed price. The Fixed price or lump-sum contract places the risk on the seller. The seller will generally include a contingency in the contract to assist in minimizing the risk of reduced profits.

12-19 Contractual language does not preclude the possibility of misunderstandings and situations that could adversely affect project progress. Therefore, it is considered a best practice to have a ______ committee established as a means of removing the obstacles and managing conflicts A. Top management B. Disputes resolution C. Steering D. Engagement

12-19 Answer B - Generally the process for resolving contractual disputes is described in the contract itself and usually includes designated representatives from each party involved who are authorized to resolve contract issues. Refer to page 339, PMBOK Guide - Claims administration

12-2 The tools and techniques of Administer Procurements includes all of the following except: A. Performance reporting B. Payment systems C. Inspections and audits D. Change requests

12-2 Answer D - Change requests are generally an output of a process.

12-20 Which of the following contract types does NOT encourage the seller to controlcosts and, as a result,places the greatest risk on the buyer? A. Cost exclusive B. Cost Plus Fixed Fee C. Cost Plus Incentive Fee D. Cost Plus Percentage of Cost

12-20 Answer D - The Cost plus percentage of cost or CPPC contract transfers all cost to the buyer and any increase in costs will result in an increase in the fee to the seller. This places significant risk with the buyer and requires close cost management.

12-3 The process that ensures that each party meets their contractual obligations and that their legal rights are protected is: A. Administer procurements B. Contract payment systems C. Claims administration D. Contract change control

12-3 Answer A - Contract payment systems, claims administration, and contract change control are all included in the Administer procurements process.

12-4 Ending a contract before all contractual objectives have been reached due to a buyers decision to change business direction is an example of: A. Breach of contract B. Contract close out C. Termination for convenience D. Letter of intent

12-4 Answer C - Termination for convenience is a contract clause that permits the buyer close a contract at any time for any reason. Generally there will be specific conditions associated with the execution of this clause. Breach of contract refers to a failure to deliver a bargained for a agreed upon contractual condition.

12-6 The buyer has negotiated a cost plus incentive fee contract with the seller. The contract has a target cost $300,000, a target fee of $40,000, a sharing ratio of 80/20, a maximum fee of $60,000 and a minimum fee of $10,000. If the actual cost of the project is $380,000 how much will the buyer pay as a fee to the seller? A. $56,000 B. $104,000 C. $30,000 D. $24,000

12-6 Answer D - Solution Target cost = 300,000 Target fee = 40,000 Sharing ratio = 80/20 which means the seller assumes 20% of the cost overrun or 20% of 80,000 = 16,000. Target fee 40,000 -16,000 = 24,000 The cost plus incentive fee contract shares the cost savings but could also result in redcued fees to the seller if a cost savings is not achieved.

12-7 You are involved in finalizing contract negotiations. The definitive contract has not yet been signed and may take an additional two weeks but it is critical to start several work packages within the three days work to avoid schedule problems later. You should utilize a: A. Verbal agreement to get started B. Letter of intent or letter contract C. A project charter D. A statement of work update

12-7 Answer B - A letter of intent is an agreement to begin work and release some funding to avoid potentially serious schedule delays to meet a negotiated delivery date while final approvals of the definitive contract are obtained.

12-8 A contract can be described as: A. An informal agreement between two parties B. A mutually binding agreement involving an offer and an acceptance C. A type of project scope statement D. A document approved by the sponsor defining project manager authority

12-8 Answer - B. A contract is a negotiated agreement that is considered to be for a legal purpose and includes the legal obligations of the seller to deliver the agreed upon products or services. Contracts include a consideration or payment for services.

12-9 Buyers may wish to review the qualifications of potential sellers before they actually meet with them. This process is known as: A. Obtaining independent estimates B. Screening C. A weighting system D. Contract negotiation

12-9 Answer B - Prior to reviewing detailed proposals a buyer may review the qualifications of sellers who have indicated an interest to bid. Pre-screening of qualifications will ensure that negotiations are focused on sellers who can perform the required work. A weighting system is generally utilized to score qualified sellers after proposals have been submitted.

8-10 Your project quality team is reviewing the outputs of a specific process. During the review, the team is following rigid pass/fail guidelines and is approving only a small portion of the outputs. Your team is involved in the process of: a) Variable sampling b) Prevention analysis c) Attribute sampling d) Project monitoring

8-10 Answer C. Attribute sampling refers to the process of determining if an output either conforms or does not conform to required specification

8-11 You have contracted a team of experts to define the right mix of ingredients that will produce the desired product and ensure optimization of the process. Which of the following techniques will be used? a) Statistical sampling b) Brainstorming c) Nominal group technique d) Design of experiments

8-11 Answer D. Design of experiments (Taguchi) utilizes a process to determine the best mix of variables or ingredients to produce the desired result. Statistical sampling is performed after products have been produced. Brainstorming and Nominal Group technique are tools and techniques associated with defining requirements or identifying problems.

8-12 You have developed a graphical display of process results gathered over time and have used the information to determine that the process is not performing within expected parameters. You have identified several consecutive data points that are above the process average. This is an indication of ________ a) A trend b) A run c) A random cause d) An alpha risk

8-12 Answer: B - A run is a set of data points displayed above or below the process average on a control chart. Generally 7 consecutive points above of below the process average but with the upper or lower control limits indicates a run. A trend is a set of data points moving in a specific positive or negative direction. A random cause is considered normal and expected when analyzing processes and will result in some variation from the process average. An alpha risk is the associated with product sampling.

8-13 Inspections are utilized by the project manager to assess the quality of deliverables produced during the project life cycle. The costs incurred during the inspection process are associated with: a) Prevention costs b) Cost of non conformance c) Cost benefit analysis d) Appraisal costs

8-13 Answer - D Appraisal costs are associated with the cost of conformance and include inspections and reviews.

8-14 Monitoring specific project results to determine if they comply with relevant quality standards is: a) Quality control b) Quality assurance c) Quality planning d) Earned Value Management

8-14 Answer A - Quality control is utilized to monitor and record results during execution of quality activities. Refer to page 206 PMBOK Guide.

8-15 Fitness for use and the legal aspects of quality are key items emphasized by: a) Crosby b) Juran c) Kerzner d) Heerkens

8-15 Answer B - Joseph Juran emphasized continuous improvement, safety, and fitness for use. This means the product should perform as expected in terms of functionality and should be safe for use by the customer.

8-16 You have gathered information about product defects through analysis and have compiled a list of defects that having been repeating over a period of time. You notice that some of the defects are appearing more frequently than others. You want to address the defects that occur most often. Which tool would you select to display the frequency of defects? a) Pareto diagram b) Run chart c) Control chart d) Scatter diagram

8-16 Answer A - the Pareto diagram is used to display errors or problems in the order of frequency of occurrence. A Run chart is a type of control chart. Scatter diagrams are used to determine if a relationship between exits between different sets of data.

8-17 You have discovered a problem with one of the technical processes that is needed to perform some of the work of your project. You decide to utilize root cause analysis to determine the reason for the problem. Which of the following are you using? a) Perform Quality audit b) Inspection c) Process analysis d) Perform quality control

8-17 Answer D: Root cause analysis is a tool or technique within the process of Perform Quality Control. Perform Quality audit is associated with verifying compliance with organization policies and procedures. Process analysis is included within Perform Quality Control. Refer to page, 206 PMBOK Guide.

8-18 All of the following are tools and techniques in the perform quality control process except: a) Cause and effect diagram b) Histogram c) Change request d) Run chart

8-18 Answer C - A change request is an output of Perform Quality Control. Refer to page 206 PMBOK Guide

8-19 As the project manager for the Step-Fast Personal exercise product you contract a subject matter expert to determine if the project activities comply with organizational and project policies and procedures. The SME is specifically interested in identifying gaps and shortcomings in your processes. You have initiated which of the following? a) Quality plan review b) Develop quality control measurements c) Prevention process d) Quality audit

8-19 Answer D - A quality audit is a review to determine if project activities comply with organizational policies and procedures. Refer to page 204, PMBOK Guide.

8-20 Comparing actual or planned project practices to those of other projects to generate ideas for improvement is known as: a) Benchmarking b) Benefit/cost analysis c) Flowcharting d) Pareto diagram

8-20 Answer A - Benchmarking s used to compare planned project practices with established best practices to generate improvement ideas and as a basis for reviewing performance. Benefit / Cost analysis determines if a project is worth accepting and implementing. Flow charting displays a process. Pareto diagrams display problems or errors. Refer to page 197, PMBOK Guide

8-21 You are observing a control chart and notice that there are 8 consecutive datapoints above the center line or mean. This is an indication that: a) The process is in control b) The process requires more data points to analyze c) The process appears to be affected by other than random causes d) The mean should be adjusted

8-21 Answer: A run indicates that a specific condition or assignable cause resulted in the placement of the data points and should be investigated. Generally 7 consecutive points above or below the center line or process average indicates a run.

9-6 In a weak matrix the project manager's role is that of: a. An expeditor b. Decision maker c. Functional manager d. Subject matter expert

9-6 Answer A - In a weak matrix, the project manager is essentially dealing with a functional structure and does not have a significant level of authority. The project manager functions as an expeditor to solve issues and ensure that tasks are completed. The greater level of authority is associated with the functional managers.

8-22 You are the project manager for the Delta Fast Time software project and the project has been initiated. Some of the initial work has been completed and you are requesting acceptance of this work by the client. Which of the following processes are you involved in? a) Quality assurance b) Scope verification c) Quality control d) Statistical sampling

8-22 Answer B - Scope verification is associated with acceptance of a project deliverable. Quality assurance is associated with the review of procedures and policies. Quality control is associated with the actions taken to address quality problems or performance issues. Statistical sampling is a tool or technique of Perform Quality Control.

8-5 You have been asked to define the quality standards for the project you are assigned to. You have defined the variables that will be measured and have identified the key attributes that are important to you and your stakeholders. Which of the following is not an example of an attribute? a) Yards b) Pounds c) Meters d) Distance

8-5 Answer D. Distance is not associated with a product. Attributes are those items associated with the actual physical product or deliverable

8-6 All of the following are tools and techniques used in performing quality control except: a) Pareto analysis b) Quality metrics c) Control charts d) Scatter diagram

8-6 Answer B. Metrics are an output of Plan quality and an input to Perform Quality Assurance and Perform Quality Control. Refer to pages 191 and200, PMBOK Guide.

8-7 You are managing a project and have discovered during a walk through inspection that a large amount of scrap material has been generated by a team of newly hired workers. The scrap material is an example of a) Internal failure b) External failure c) Cost of conformance d) Appraisal costs

8-7 Answer A. Internal failure results in defects, repairs, scrap and rework. External failure is associated with quality issues experience by the customer. Cost of conformance refers to the cost incurred to ensure compliance. Appraisal costs are included in the cost of conformance.

8-8 You have been asked to identify the major reasons for the high percentage of product returns your company is experiencing. Which of the following tools will most effectively assist you in further identifying the reasons for the failures? a) Pareto chart b) Fishbone or Ishikawa diagram c) Scatter Diagram d) Attribute sampling

8-8 Answer B - The Fishbone diagram is also referred to as a root cause analysis tool. Pareto diagrams display the frequency of occurrence of identified problems. Scatter diagrams indicate a relationship between sets of data. Attribute sampling identifies deliverables that have failed to meet requirements.

8-9 The total cost of all efforts including prevention, appraisal and defect repair to achieve product or service quality is known as: a) The Quality Plan b) Cost of quality c) Cost Baseline d) TQM

8-9 Answer B - The quality plan defines the approach to managing quality and may include costs that will include in the project budget. The cost baseline is the final approved project budget. TQM is total quality management and is an approach to manage quality within an organization. Cost of quality includes all costs associated with preventing and correcting quality problems. Refer to page 195 PMBOK Guide

9-1 A project manager has the least amount of authority in the_________ organizational structure: a. Matrix b. Strong Matrix c. Projectized d. Functional

9-1 Answer D - In the functional organizational structure, priorities are established by the functional manager. Projects are considered to be less important than functional work. Refer to page 28, PMBOK Guide.

9-10 The project manager is likely to be most successful in developing a strong and supportive high performing team in which structure? a. Projectized b. Strong matrix c. Balanced matrix d. Functional

9-10 Answer A - In the projectized structure the project manager has direct control of the project team and the team is dedicated to the project. The project manager has the ability to establish more effective and meaningful work relationships with the team members.

9-11 Collective bargaining agreements are an example of a (an) ____________ during organizational planning. a. Assumption b. Constraint c. Pre-determined project team selection d. Expected staff assignment

9-11 Answer B - Collective bargaining is associated with unions and generally there will be specific conditions and restricts that may constrain some actions or prevent the use of certain approaches or procedures.

9-12 You have decided that your best approach to keep your team working effectively is to monitor their performance very closely and to carefully analyze their work output. This style ofmanagement is referred to as: a. Theory Y b. Hygienic motivation c. Theory Z d. Theory X

9-12 Answer D - Theory X (Douglas McGregor) managers believe that people must be closely supervised in ensure that work is completed. Theory Y managers utilize a participative approach.Theory Z (Ouchi) refers to a concept that worker collectively support higher level organizational goals. Hygienic motivation is a fabricated term.

9-13 All of the following are tools and techniques for team development except: a. Reward and recognition b. Collocation c. Acquisition d. Training

9-13 Answer C - Acquisition is a tool or technique in the process Acquire project team

9-14 Referring to the Tuckman Model, the greatest level of conflict in the phases of team building is most likely to appear in the____________ phase. a. Forming b. Adjourning c. Mourning d. Storming

9-14 Answer D - Storming follows the Forming stage and generally includes a significant amount of conflict as team members discuss and identify areas or disagreement. Refer to page 233 PMBOK Guide

9-15 You are reviewing previous work experience, personal interests, and personal characteristics of a potentially available group of people and preparing to negotiate for the resources you need. You are engaged in the process of: a. Organizational Planning b. Acquire Project team c. Team development d. Pre-assignment

9-15 Answer B. Acquire Project Team is the process of determining resource requirements, determining availability of resources and acquiring resources through negotiation or appropriate organizational processes. Refer to page 225 PMBOK Guide

9-16 A project manager has the greatest amount of authority in the_________ organizational structure: a. Strong Matrix b. Projectized c. Functional d. Departmentalized

9-16 Answer B - In the projectized structure the project manager is provided with nearly full authority to manage the project and the project resources.

9-17 The project manager and a functional manager cannot reach agreement about the assignment of resources for a project. The functional manager insists that the resources are not available due to other priorities. In this case the conflict will require the assistance of the___________ to reach a solution. a. Customer b. Project Sponsor c. A new project manager d. Contractor

9-17 Answer B. Generally project conflicts should be resolved at the lowest levels or authority whenever possible. In some cases conflict requires the involvement of the project sponsor or executive especially when there is an impasse regarding resource assignments. Customer and contractors would not, in most cases become involved in internal resource management disputes.

9-18 The motivational theory in which high levels of trust, confidence, and commitment to workers leads to high levels of support of the organization's goals is referred to as: a. Theory X b. Theory Y c. Theory Z d. Hygiene Theory

9-18 Answer C - Theory Z, attributed to Ouchi, refers to a system where employees focus on the higher level goals of the organization and much less on individual needs. Theory X and Theory Y are managerial styles described by Douglas McGregor. Theory X managers do not trust their employees. Theory Y managers emphasize trust and participation.

9-19 The project manager of a project that you have been observing appears to remain distant from his team and often places one of his team members in charge for days at a time. This style of management is generally considered to be: a. Motivational b. Participatory c. Laissez Fair d. Conciliatory

9-19 Answer C - A manager with a "hand off" attitude toward the project work and the team is considered "Laissez Fair."

9-2 The totality of socially transmitted behavior patterns, arts, beliefs, institutions and other products of human work and thought is associated with: a. Culture b. Organizational structure c. Internationalization d. Standards and regulations

9-2 Answer A - Over a period of time, organizations develop a specific set of values and norms that shape the way employees and managers view the organization, the behaviors of personnel and how the organization operates.

9-20 You are attempting the influence a functional manager by using your associationwith a high level executive for leverage. You are using which form of power? a. Coercive. b. Referent. c. Formal. d. Penalty

9-20 Answer B - referent power has many meanings but it is generally referred to as power derived from a perceived connection with people of higher levels of authority. Coercive power is a form of penalty power. Formal power is associated with position of rank.

9-3 Project managers must develop skills to ensure that work is completed and deliverables are produced. This means developing an understanding of formal and informal structures of all organizations involved in the project. An understanding of power and politics is also required. Understanding all of these elements will assist in improving the project manager's: a. Formal reporting process b. Upward communication c. Influencing skills d. Writing style

9-3 Answer C - The understanding of power and politics enables the project manager to develop the appropriate approaches and techniques to gain trust and influence project stakeholders. Influencing skills will affect the formal reporting process, upward communication, and writing style.

9-4 It is generally believed that there is a difference between leading and managing. Which of the following is typically considered to be a responsibility associated with managing? a. Establishing direction b. Aligning people c. Motivating and inspiring d. Consistently producing key results expected by stakeholders

9-4 Answer D - Establishing direction, aligning people with organizational objectives, and motivating are generally associated with leadership. Producing results, planning, and delegating are generally associated with managing.

9-5 In the balanced matrix, the project manager generally shares authority with or has relatively the same authority as the: a. Sponsor b. Customer c. Functional manager d. Executive staff

9-5 Answer C - In a balanced matrix, the authority of the project manager and the authority of the functional manager are basically equal which may result in some conflict especially when resource assignments are being delegated. Refer to Page 28, PMBOK Guide

9-7 You have just completed negotiations to acquire some additional resources for your project. During the negotiations there was considerable conflict about which resources would be provided by the functional group. A solution was reached in which you were able to obtain most of the resources you needed, but you had to agree to give up some of those resources at an earlier date than you had planned. This conflict was resolved using which type of conflict handling? a. Forcing b. Collaboration c. Compromise d. Smoothing

9-7 Answer C - Compromise. In this form of conflict management the parties involved agree to give up something to gain something. This is referred to as a win/lose and lose/win situation. Forcing involves authority and a one sided decision. Smoothing or accommodating refers to discussions that are focused only on what each side is in agreement with or in congruence. Collaboration results in a win/win situation for all parties.

9-8 You have just joined an informal group of people who meet to discuss new trends and issues in project management. The satisfaction that you gain from associating with that group is most closely aligned with: a. The first level of Maslow's hierarchy of needs b. The 5th level of Maslow's hierarchy of needs c. The 3rd level of Maslow's hierarchy of needs d. Herzberg's Hygiene Theory

9-8 Answer C - The third level of Maslow's Hierarchy of Needs is the need for social connections or belonging. Herzberg differentiated between factors that may cause dissatisfaction and conditions ir situations that would motivate people.

9-9 Aligning the various members of the project team to activities on the WBS and assigning ownership for the activities is accomplished by using: a. A resource pool description b. A responsibility assignment matrix c. A work package d. A cost account code

9-9 Answer B - The RAM or Responsibility Assignment matrix aligns WBS elements with Project Stakeholders and clearly indicates responsibility. Work pages are elements of the WBS. Cost accounts are associated with work packages. Resource pools describe resource skills and availability. Refer to page 221 PMBOK Guide

2/3-1 Each project management knowledge area is subdivided into _______________. a) Methods b) Processes c) Categories d) Best practices

2/3-1 Answer: B - Processes. Each project management knowledge area is subdivided into specific processes, each of which are further define by categories of inputs, tools and techniques, and outputs.

2/3-10 Your company is introducing a new product to be available in the first quarter of the next business cycle. The product will support an existing product as an add-on optional feature. Which of the following is true? a) This is an ongoing operation because the previous product is already in use by customers b) This is a project because it involves a new product that has not been previously developed and sold by the company c) This is an operation because it adding a feature will be part of an ongoing sales effort d) This is a program that supports the operations of the company

2/3-10 Answer B - This is a project to develop something new and unique and will have a defined end date. It is not an operation or a program. The new product is separate from the existing product. Refer to page 5 and 6 of the PMBOK ® Guide

2/3-11 Generally, a project manager's level of authority during his or her project assignment can be directly related to which of the following? a) The project manager's relationship with the project sponsor b) The organizational structure c) The project manager's communications skills d) The project manager's technical competency

2/3-11 Answer B - The project manager's level of authority usually depends on the type of organizational structure. These structures include Functional, Matrix, and Projectized. Communications skills and technical ability may affect level of authority in some organizations but managerial structure is generally the major factor. Refer to page 27 -28 of the PMBOK Guide 4th edition.

2/3-12 A significant advantage of the functional organizational structure is: a) All employees are grouped by expertise and assigned to one clear manager and chain of command b) Communication between the elements of each functional group is fast and efficient c) Project work is considered to be priority work in all functional groups d) Resources are easily shared across functional groups

2/3-12 Answer A - In a functional organizational structure, people are grouped by technical expertise and are a assigned to one clearly defined manager. This establishes efficient internal operations and communications. The functional structure can create difficulties in communicating between groups,technical skills are not generally shared with other functional groups and operations and functional work are generally priorities.

2/3-13 You have been assigned as project manager in a balanced matrix organizational structure. This presents a challenge to you in obtaining and assigning project resources because a) The project manager has minimal authority in a balanced matrix b) The project manager has an equal level of authority with the functional managers and this may lead to conflict is the assignment of resources c) In a balanced matrix the project budget is controlled by the functional managers d) The project manager is assigned to the project on a part time basis.

2/3-13 Answer B - In the balanced matrix, the project managers authority is low to moderate and usually at an equal level with the functional managers. This can result in conflicts regarding resource assignments, priorities, and in the general management of the project. The project manager is assigned full time and control of the budget is shared between project manager and functional manager.

2/3-14 Generally, projects are panned by developing phases that are performed sequentially. In some cases, it is necessary to accelerate the project life cycle by overlapping project phases. Which of the following best describes this technique? a) The technique of overlapping requires the elimination of many project activities b) Overlapping project phases will compress the schedule but will not generally have an effect on project risk c) This technique is known as fast tracking and the risks should be determined to be acceptable before it is implemented d) This technique is known as crashing and can increase the cost of the project but will not affect project risk

2/3-14 Answer C - Overlapping is referred to as fast tracking and can introduce risk into the project. Generally, activities are not removed and the scope is not changed. Crashing involves the addition of resources or the use of overtime and will usually increase project cost.

2/3-15 The initiating process group includes all of the following except: a) Stakeholder identification b) Business case development and review c) A contract or statement of work d) Project scope statement

2/3-15 Answer D - the project scope statement is an output of the Define Scope process and is part of the Planning process group.

2/3-16 Which of the following process groups is specifically targeted to complete the project work and to satisfy project requirements? a) Planning process group b) Executing process group c) Monitoring and Controlling process group d) Closing process group

2/3-16 Answer B - The executing process group is intended to ensure that the work defined in the project plan is performed. Refer to page 39 of the PMBOK Guide 4th edition.

2/3-17 During the execution of a project the project manager should communicate the need for a change control process mainly because a) The cost of project changes will not change significantly as the project progresses but it is important to maintain a record of all changes for budget tracking purposes b) The cost of project changes will likely increase through the project lifecycle and a process should be in place to ensure that only necessary changes are considered and implemented c) This will minimize the number if changes that can be introduced into the project d) The change control process will ensure that only stakeholders with significant authority can submit change requests.

2/3-17 Answer B - As a project proceeds, the cost of change will, in most cases increase. This requires project managers and team members to control changes effectively and to emphasize the need for proper and well organized planning. A change control process is not designed to minimize change, it is intended to manage change and prevent unauthorized changes.

2/3-18 Success in portfolio management is generally defined as: a) Compliance with schedule, budget, and specifications requirements b) Benefits realization c) Aggregate performance of all components d) Control of changes to specific products and services

2/3-18 Answer C- Portfolio management is generally associated with the relationships between components in the portfolio, effective resource management to protect priority components, and the aggregate results of the portfolio as they relate to strategic performance. Refer to page 9 of the PMBOK Guide ® 4th edition.

2/3-2 The application of knowledge, skills, tools and techniques to project activities to meet the project requirements is referred to as: a) Project initiation b) Project coordination c) Project administration d) Project management

2/3-2 Answer: D - Project management. Refer to page 6 PMBOK ® Guide. The question refers to the specific definition of project management as provided in the PMBON ® Guide 4th edition.

2/3-3 All of the following are examples of Enterprise Environmental Factors except: a) Organizational culture b) Political climate c) Performance measurement criteria d) Existing facilities and infrastructure

2/3-3 Answer : C - performance criteria is an example of an organizational process asset. Process assets include policies, procedures, templates and other items that will assist in guiding the completion of project work. Refer to pages 14 and 32 in the PMBOK ® Guide 4th edition.

2/3-4 The person or organization that provides the funding or financial resources for the project is referred to as the a) customer b) Sponsor c) Steering committee d) Project Management Office

2/3-4 Answer: B - The Sponsor provides the financial resources and is considered to be a key stakeholder. The customer is considered to be the recipient of the product of the project and the person or organization that will pay for and use the actual project deliverable. Refer to page 25 of the PMBOK ® Guide 4th edition.

2/3-5 During the project lifecycle stakeholder identification is expected to be: a) A continuous and sometimes difficult process b) The responsibility of the project sponsor c) Completed prior to the approval of the project charter d) Focused only stakeholders who will be impacted favorably as a result of the project

2/3-5 Answer: A - Stakeholder identification will continue throughout the project life cycle. As the project proceeds through each phase, additional stakeholders may become involved while others will be released. Stakeholder identification is conducted primarily by the project manager but some stakeholders may be identified in the project charter or the project contract. Stakeholder identification may include people and organizations favorably affected or negatively affected by the project outcome.

2/3-6 The end of a project phase is generally considered to be: a) The formal authorization to begin the next project phase b) A natural point to assess project performance and determine if the project should proceed to the next phase c) The points in the project life cycle where risk is at its lowest level d) The point where formal control procedures of the project are generally enforced

2/3-6 Answer B - As a project phase nears completion the project manager and team should assess the performance of the project and determine if acceptable conditions exist to support a decision to move forward or discontinue the project. Risk levels will vary as the project progresses and the end of a phase is generally considered to be a good point to reassess risk. Project control procedures should be enforced throughout the project life cycle. Refer to page 20 of the PMBOK Guide 4th edition.

2/3-7 All of the following statements about the project life cycle are true except: a) Cost and staffing are at the highest levels during the start of the project b) Risk is at the highest levels of uncertainty at the start of the project c) The control needs of the organization will determine how many phases will be included in the project life cycle d) Project phases are typically completed sequentially but can be overlapped to accelerate completion of a project

2/3-7 Answer A - Cost and staffing are generally at the lowest levels during the startup and first phase of a project. Refer to page16 of the PMBOK ® Guide 4th edition.

2/3-8 As you are defining the project in more detail and moving through the phases of the project you are engaged in which of the following? a) Progressive elaboration b) Project selection c) Monitoring and controlling d) Decomposition

2/3-8 Answer A - Progressive elaboration is defined as "moving forward in increments and adding more detail as the project progresses. Project selection precedes the detailing or progressive planning of a project. Monitoring and controlling is ongoing throughout the project lifecycle and is utilized during and after detailed planning and elaboration of the project. Decomposition is generally associated with the development of the WBS and refers to the breakdown of large items into smaller, more manageable components.

2/3-9 All of the following are generally considered characteristics of a project except: a) Unique undertaking b) A temporary endeavor with specific starts and end dates c) Ongoing and continually supporting organizational operations d) Completed when all objectives are achieved or terminated when the project objectives are no longer viable.

2/3-9 Answer C - Projects have some characteristics that are similar to operations. Projects and operations require resources, they are planned and scheduling is involved. Projects, however, are generally considered temporary, regardless of total scheduled time. Operations are ongoing and support the day to day functions of an organization. Refer to page 5 in the PBOK ® Guide 4th edition.

4-1 The set of combined processes implemented by the project manager to ensure that all of the elements of the project are effectively coordinated are known as: A. Project execution B. Inputs, Tools and Techniques, Outputs C. Project Integration Management D. Project monitoring and control

4-1 Answer C. Project integration management combines all of the processes within the entire project life cycle through the 5 major process groups - Initiating, Planning, Executing, Monitoring & Controlling, and Closing.

4-10 ______________ is a collection of formal, documented procedures that defines how project performance will be monitored and evaluated. A. Concurrent engineering process B. Lessons learned documentation C. Change control system D. Project Selection process

4-10 Answer C. The change control system is defined in the PMBOK Guide as a collection of formal, documented procedures that defines how project performance will be monitored and evaluated and how changes will be approved.

4-11 During the planning process the project manager should be aware that assumptions generally involve: A. A degree of risk B. Input from all stakeholders C. Financial controls D. Detailed, factual information

4-11 Answer A. Assumptions are not based on factual information and failure to validate may result is significant risk events.

4-12 _________________ are applicable restrictions that will affect project performance A. Organizational policies B. Performance guidelines C. Constraints D. Additional planning requirements

4-12 Answer C. Constraints are restrictions or limitations and must be managed throughout the project life cycle. Examples include resource availability, predetermined schedules and predetermined budgets.

4-13 ___________________ is a formal, approved document that includes the collection of outputs of the planning process and is used to manage and control project execution. A. The Project Management plan B. The Organizational process asset document C. The Organizational procedures document D. The Work authorization system

4-13 Answer A. The project management plan is a document that combines the results of all planning processes. Subsidiary plans, such as Time Management and Cost management are the outputs or results the planning processes.

4-14 Risk plans, quality plans, change control plans are all ______________ to the project plan. A. Constraints B. Appendixes C. Additions D. Subsidiaries

4-14 Answer D. Subsidiary plans are the outputs of the individual planning processes associated with Scope, Time, Cost, Quality, Human Resources, Communications, Risk, and Procurement management.

4-15 _________________ is the primary process for carrying out the project plan. A. Configuration management B. Direct and manage project execution C. Administrative management D. Expert judgment

4-15 Answer B. As described in the PMBOK Guide, Direct and Manage Project Execution is the major process for carrying out the plan. Refer to page 43 of the PMBOK Guide to review the 5 major process groups and the 42 supporting process groups.

4-16 As a project manager, you must ensure that changes are coordinated across the entire project life cycle from conception to completion . The process that focuses on this requirement is________________ A. Management of the Triple Constraint B. General management C. Integrated change control

4-16 Answer C. Integrated change control includes all of the lower level processes and subsidiary plans that will be used to manage project performance throughout the project life cycle.

4-17 As a project is being executed and is progressing through its life cycle you notice that a significantly large percentage of project changes occurring on the project have been originated by the research department. What should you do? A. Assign a team member to work solely with the research department B. Change your communication plan to ensure that you, as the project manager, are the only person assigned to interface with the research department C. Ask the research department to assign one person to be your liaison D. Schedule a meeting with the research department to review the change process and determine the causes of the changes

4-17 Answer D. The most appropriate action to take in this case is to ensure that the research department fully understands the project scope of work, the change control process, and to determine why the change requests continue to be submitted.

4-18 You are the project manager on an information technology project. A technical specialist on your team, after having an informal meeting with a low ranking customer representative working on the project, determines that a simple alteration in the display would be a great addition to the project. You and the project sponsor have already signed off on the scope and a change control process is in place. The technical specialist installs the change with no negative effect to the project schedule and at no additional cost. What management action should be taken? A. The information specialist should be recognized for exceeding customer expectations without affecting project cost or schedule. B. The project manager should add a task to the project plan with no associated time. C. The technical specialist should be informed that his actions were not authorized and that the action was in appropriate. D. The project manager should create a change control form, and have the customer sign-off, since the change has already been made.

4-18 Answer C. The change control process should be followed by everyone on the project team. Failure to manage change effectively can result in significant scope creep and could result in serious implications and additional risk and liability.

4-19 Two months into a design project, the customer requested a modification to the product specifications. The change was immediately implemented by the project team without notifying the project manager. During the final testing phase, results were different than what had been planned for. This scenario is an example of which of the following? A. Poor adherence to the change control process B. Poor adherence to the communication plan C. Poor development of the quality management plan D. Poor definition of the test plan

4-19 Answer A. The change control process was not followed. Failure to follow the agreed upon change control processes may create serious risk situations and jeopardize and entire project.

4-2 The document that assigns a project manager and officially authorizes a project to use organizational resources for the purpose of planning, executing and controlling a project is the: A. Project Charter B. Project Plan C. Scope Statement D. Work authorization Form

4-2 Answer A. The project charter is part of the initiating process and provides the authorization to move forward. The project scope statement, the project plan, and work authorization process are developed after the charter has been approved.

4-3 A project manager schedules meetings for many different reasons. Status review meetings are typically : A. Held to provide all stakeholders with critical project information B. Regularly scheduled meetings held to exchange information about the project between project team members. C. Held to update departmental staff of project status D. Held only when there is a need for a workaround

4-3 Answer B. Generally project status meetings provide the project team and those stakeholders directly involved in project activities with up to date information about the project. Other stakeholders and higher level managers may receive information through formal reports or specifically scheduled meetings. Workarounds are temporary responses to an unplanned situation and generally require immediate action.

4-4 _____________________ is any documented procedure used to apply technical and administrative direction and surveillance for the purpose of identifying, recording, and controlling any changes to product characteristics. A. Scope Change Control B. Schedule Change Control C. Quality Control D. Configuration Management

4-4 Answer D. Configuration management is considered a component of change control and is specifically associated with changes to features, functions and physical characteristics of a product or deliverable.

4-5 Generally, Earned Value Management is a technique used for measuring variance on: A. Small , short duration projects B. Large, complex projects C. Only projects external to an organization D. Only Government projects

4-5 Answer B. Earned value management is generally associated with large, long term projects.Earned value management provides a means to determine project performance at any point in the project life cycle and also provides an opportunity to forecast the possible outcome of the project in terms of cost and schedule.

4-6 A _________________ consists of the data sources, tools and techniques used to gather, integrate, analyze and disseminate the results of the combined outputs of the project management processes. A. Project management planning system B. Project controls system C. Project communication system D. Project management information system

4-6 Answer D. The Project management information system can be a combination of systems that are used to track project performance. These systems may include the tracking of time worked, project costs, and other factors that would be communicated to project stakeholders

4-7 Assumptions are factors used for planning purposes and may be communicated to a project team by several different stakeholders. These factors, when stated, are generally considered to be true real or certain and are : A. Absolute and non-negotiable B. Not always based on factual information C. Estimates D. Easy to understand and communicate

4-7 Answer B. Assumptions documented during the project planning process are generally considered to be non-factual and require validation.

4-8 The project management plan is used to: A. Provide project inputs, tools and techniques, and outputs B. Guide project execution, document project planning assumptions, and facilitate communication among stakeholders C. Provide general management, product knowledge, and project management information D. Create organized policies using stakeholders skills and knowledge

4-8 Answer B. The project plan is based on estimates, past experience of the project team, and other available information. Generally, the project plan is considered to be a guide that is expected to change throughout the project life cycle. The initial project plan provides an approach to achieving objectives and guidelines for communicating information.

4-9 ______________ are usually included to support the overall project management plan and are developed for the purpose of providing more detailed information, guidelines and control processes for specifically defined project elements or planning components. A. Change request forms B. Performance reports C. Subsidiary plans D. Statements of work

4-9 Answer C. The project management plan is actually a combination of several plans that provide overall guidance to the project team. These plans include Change Management, Scope Management, Cost management, Resources management and other depending on size and complexity of the project.

5-1 Determining whether the project scope has been completed relies mostly upon the use of: A. Project Charter B. Project Scope Statement C. Statement of Work D. Project Plan

5-1 Answer B. The project charter authorizes the project but is not a detailed plan. The statement of work generally precedes a contract and provides a narrative description of work to be completed. The project plan is derived from the project scope statement. The scope statement answers the questions: What? Why? Who? Where? When? And How? and along with the WBS provides the detailed description of what must be accomplished.

5-10A work package is: A. A task with a unique identifier B. The first level of the WBS C. A deliverable oriented grouping of project components D. A deliverable at the lowest level of a branch of the WBS

5-10 Answer D: Answers A, B are associated with components of a WBS. The WBS is a deliverable oriented grouping of components but the work package is the lowest level deliverable in a branch of the WBS and contains several activities or an activity list.

5-11 You receive a verbal change request from your client that will impact the agreed upon scope of work. You should A. Accept the change and document the request B. Deny the change and advise the customer that changes to the scope are not acceptable C. Review the change control process with the client D. Accept the change only after you make sure you will not be held accountable for anyadditional work.

5-11 Answer C: The appropriate action when change requests are submitted is to follow the establishedand agreed up change control process.

5-12 All of the following are included in scope change control except: A. Influencing factors that create scope changes B. Determining that a change has occurred C. Verifying the correctness of work results D. Managing the actual changes when and if they occur

5-12 Answer C: Verifying the correctness of work is associated with quality management and scope verification.

5-13 A term used to describe the magnitude of unauthorized variations to the scope of work is: A. Re-planning B. Feasibility analysis C. Scope creep D. Performance measurement

5-13 Answer C: Scope creep is the general term used to describe work that has been added to the project scope without proper authorization.

5-14 Reviews, audits, and walk-throughs are examples of: A. Formal acceptance B. Inspection C. Additional planning D. Internal failure

5-14 Answer B. Inspection of products may be accomplished through reviews, audits, and walkthroughvisits. Walk-throughs are commonly associated with projects that produce physical deliverables thatcan be observed and tested. Formal acceptance usually follows a successful inspection.Internal failure results from non-conformance to processes.

5-15 The _____________ aids in creating a more detailed definition of the scope of the project and can be used to verify the work of the project. A. Scope baseline B. WBS C. Project charter D. Alternatives identification

5-15 Answer B. the scope baseline is an output of scope definition. The project charter initiates the project and provides high level information. Alternatives identification does not provide detailed descriptions of project work.

5-16 The scope baseline is the defined as the: A. Scope statement, WBS, and any approved changes B. Description in the project charter C. Project schedule and budget D. Only valid performance measure

5-16 Answer A: The scope baseline is an output of the Create WBS process. Page 122 PMBOK Guide 4th edition.

5-17 The _________ contains detailed descriptions of work packages. A. WBS dictionary B. Scope of work statement C. Task-level budget estimates D. Activity cost estimates

5-17 Answer: A. The WBS dictionary provides the project team with more detailed information about components of the WBS. Page 122 PMBOK Guide

5-18 A scope statement is important because it: A.Provides an executive summary of the project for sponsors. B. Documents authorization of the project for the stakeholders. C. Provided criteria for determining total project cost. D. Defines the product, the project deliverables and user acceptance criteria

5-18 Answer D: The scope statement is not an executive summary or the project charter. It does not include all of the information needed to develop a complete cost estimate. It does define the project in detail and includes descriptive acceptance criteria.

5-19 Typically, during the project planning process, a detailed project network schedule can be created after: A. A scope statement is approved B. WBS is created C. An escalation process is agreed upon D. A project control plan is created

5-19 Answer B. Generally, after a WBS has been developed and the work packages fully defined, the project team will develop a network diagram as predecessor and successor relationships are established.

5-2 You have been selected as the project manager for a major infrastructure upgrade at your company headquarters. This means that: A. A project charter has been approved and signed by management B. Project selection processes have been initiated C. The project plan has been progressively elaborated D. The scope of the project has been verified

5-2 Answer A. Generally, if a project manager is assigned, the project has been approved and authorized. Project selection processes will determine if a project should be approved. The selection of a project manager indicates that planning will begin soon. The scope of the project will be determined during the planning process and verified as the project progresses.

5-20 A stakeholder wants to make a change to the work breakdown structure that does not affect the time or cost of the project. What is the BEST thing to do? A. Tell the stakeholder that the change cannot be made without revising the project plan B. Make the change C. Meet with management D. Look for other impacts to the project

5-20 Answer D. The correct action is to analyze the change and determine the potential impact on other area if the project. Impact analysis is a key factor in project change control.

5-3 As a project manager you should always become familiar with the description of the product that will be delivered to ensure that: A. There is a relationship between the product and the business need that the project was initiated to address B. No changes to the product scope will occur C. The project scope can be changed without detailed analysis D. All constraints have been removed

5-3 Answer A. The project manager should understand the purpose and functions of the product and the needs of the organization that will receive the product.

5-4 The process of planning in increments, adding detail as the plan is developed is known as: A. Scope definition B. Decomposition C. Progressive elaboration D. Initiation

5-4 Answer C. This is the specific definition of progressive elaboration. Scope definition, decomposition, and initiation are all included in the broad definition of progressive elaboration

5-5 The scope statement includes all of the following except: A. Project business objectives B. Project deliverables C. Detailed WBS D. Product summary

5-5 Answer C. The WBS is generally developed after the project scope statement has been defined and accepted.

5-6 You and your team are working together and subdividing the major deliverables of the project into smaller components. You are involved in the process of A. Scope Planning B. Decomposition C. Initiation D. Scope statement development

5-6 Answer B. Decomposition is the specific process used to develop a detailed WBS

5-7 The process that will help to improve the reliability of cost, duration, and resource estimates is: A. Define scope B. Product analysis C. Benefit Cost analysis D. Initiation

5-7 Answer: A. The Define scope process produces a detailed description of the project and product. The result is the scope statement which will provide a basis for more detailed planning. Product analysis is included in the define scope process. Benefit Cost analysis is generally associated withproject selection. Initiation precedes the detailed planning process.

5-8 The document that describes in detail, the objectives, project work, deliverables, and product of a project is the A. Scope statement B. Project Charter C. WBS D. WBS dictionary

5-8 Answer A. The project charter does not provide project details. The WBS is developed form the information in the Scope Statement. The WBS dictionary provides detailed information about elements of the WBS.

5-9 Completion of the product scope is measured against: A. Product requirements B. Project requirements C. Project Objectives D. Scope statement

5-9 Answer: A. Product scope refers to the complexity of the product in terms of features, functions, and physical characteristics. Project requirements, project objectives, and the scope statement are associated with project scope.

6-1 Determining activity sequences, developing activity duration estimates and estimating resource requirements are necessary to: A. Define the project B. Develop the WBS C. Develop the schedule D. Initiate the project

6-1 Answer: C. Sequence activities, activity duration estimates, and estimating resources provide the inputs to the develop schedule process. Page 131 PMBOK Guide Time management overview.

6-10 The technique used to modify the project schedule to account for limited resources or to develop a "resource limited" schedule is known as: A. PDM B. Critical Path Method C. Critical Chain Method D. Schedule network analysis

6-10 Answer C. Critical chain method identifies the "weak links" in the project schedule and utilizes buffers to manage the schedule. Refer to page 155 of the PMBOK Guide.

6-11 If you are required to develop a diagram that includes feedback loops or conditional branches you would use: A. a PERT chart B. a GERT chart C. PDM D. ADM

6-11 Answer B. A GERT Chart, Graphical Evaluation Review Technique, is a flow chart that includes decision points and feedback loops. A PERT Chart (Program Evaluation Review Technique) utilizes a network diagram. There are no feedback loops or decision points in a project network diagram. PDM - precedence diagram method and ADM - activity diagram method produce network diagrams.

6-12 You are in the process of calculating the single, deterministic early and late start and finish dates for your project activities. This form of mathematical analysis is known as: A. CPM B. Monte Carlo simulation C. Program Evaluation Review Technique D. Activity duration estimating

6-12 Answer A. CPM - Critical Path Method and utilizes the forward and backward pass to determine early start, early finish, late start and late finish of each activity. Monte Carlo simulation is a quantitative risk analysis technique. Activity duration estimating precedes the development of the project schedule.

6-13 Your sponsor has informed you that a major project activity must be scheduled with a date to start no earlier than June 1. This is an example of: A. a major milestone B. a lag C. a constraint D. an activity duration estimate

6-13 Answer C. A constraint is a limitation. Predetermined dates limit options and eliminate alternatives.

7-10 According to the learning curve theory, when a large number of items areproduced repetitively: A. Productivity increases are uniform over time B. Productivity will increase, but at a diminishing rate C. Productivity is unchanged D. Productivity decreases due to boredom and apathy

7-10 Answer B. Learning curve data indicates that as work is repeated the time required to complete the work is reduced but the rate of improvement also decreases

6-14 Your project sponsor contacts you and asks you to provide an estimate on the total duration of a newly approved project. He wants the estimate to be available for a meeting with project stakeholders that has been scheduled for later in the afternoon. The most appropriate estimating technique to meet this need would be A. a bottom-up estimate B. a definitive estimate C. a PERT estimate D. an analogous estimate

6-14 Answer D. An analogous estimate, a top down estimating technique, can generally be developed quickly. It is not intended to become the final estimate. It range of reliability can be extreme. A bottom up estimate requires significant time to prepare. A PERT estimate, also known as a weighted average estimate is usually associated with specific project activities.

6-15 How does Free Float differ from Total Float? A. Total Float is the accumulated amount of Free Float. B. There is no real difference ─the two terms are functionally equivalent C. An activity's free float is calculated by subtracting its Total Float from the critical path's Total Float D. Free Float affects only the early start of any immediately following activities

6-15 Answer D: Free float is the amount of flexibility between the early finish of an activity and the early start of its immediate successor activities. Free float allows an activity to slip for a period of timebefore affecting its immediate successor.

6-16 You are working on a software development project, and are about to enter the testing phase. The project requires the installation of specific hardware which is associated with another project that has been delayed. This is an example of : A. Mandatory dependency B. External dependency C. Internal dependency D. Discretionary dependency

6-16 Answer: B. An external dependency is related to a non-project activity and are considered outside the control of the project team.

6-17 The tools and techniques of the process "Define activities" include all of the following except: A. Decomposition B. Rolling wave planning C. Scope baseline D. Templates

6-17 Answer C. The scope baseline is an input to the define activities process. Page 134 PMBOK Guide.

6-18 You have been asked to develop a schematic display of the logical relationships of your project's activities. The result of your efforts is the: A. Project network diagram B. Resource breakdown structure C. WBS D. Schedule network template Create a network diagram using the following information: Activity Duration Dependencies A 2 - B 3 A C 1 A D 4 B,C E 1 D F 2 E G 3 E H 2 F,G

6-18 Answer A.A project network diagram is produced when the logical relationships of all project activities have been defined. The WBS and resource breakdown structure do not display logical relationships.

6-19 What is the duration of this project? A. 12 B. 13 C. 14 D. 15

6-19 Answer D

6-2 All of the following are inputs to the process "define activities" except: A. Scope baseline B. Organizational process assets C. Enterprise environmental factors D. Decomposition

6-2 Answer D. Decomposition is included in the tools and techniques of the define activities process.

6-20 What is the critical path for this project? A. ABCDEH B. ACDEGH C. ABDEGH D. ABDEFH

6-20 Answer C

6-21 What is the earliest that activity G can start? A. 9 B. 10 C. 13 D. 15

6-21 Answer B

6-3 The software cannot be tested until coding is completed. This is an example of: A. Discretionary dependency B. Soft logic C. Preferential logic D. Mandatory dependency

6-3 Answer D. Mandatory dependencies are also known as hard logic and are generally inherent in the nature of the work. Discretionary, soft logic, and preferential are generally associated with best practices.

6-4 You have been asked to reduce the schedule duration of a major project. Your team suggests overlapping several project activities to reduce the overall duration. This process is known as: A. Crashing B. Fast tracking C. Leveling D. Monte Carlo technique

6-4 Answer B. Crashing involves the use of overtime or additional resources. Leveling redistributes work and may result in an increase in project schedule. Monte Carlotechnique is generally associated with risk management and is used to determineprobable project outcomes or results.

6-5 A functional manager for the engineering team has provided you with thisinformation:A work package for the engineering activities will most likely require12 weeks to complete. Ifeverything goes well, it could take 8 weeks, but therehave been times when this work hastaken 24 weeks to complete. Based on this information, what is the expected duration of thework package? A. 13 B. 14 C. 12 D. 15

6-5 Answer A. Use the formula (optimistic + 4 times the most likely + pessimistic) divided by 6 {8 + 4(12) + 24} / 6 = 13.33

6-6 A work package is behind schedule. You decide to add more resources to theactivities and use some overtime to correct the schedule slippage. This is anexample of the techniqueknown as: A. Resource leveling B. Heuristics C. Crashing D. CPM

6-6 Answer C. Adding resources or using overtime may reduce the duration of an activity. Resource leveling is used when a resource has been over allocated. Heuristics is a term associated with generally accepted information or "common Knowledge." CPM refers to Critical Path Method.

6-7 The start of an activity must be delayed until 5 days after the finish of itspreceding activity. The correct term for this modification of the logicalrelationship is: A. Lead B. Lag C. Slack D. Float

6-7 Answer B. Lag introduces delay between predecessor and successor relationships and is usually associated with a physical requirement. Allowing concrete to cure is a common example of lag. Lead is used to accelerate a network path. Float and slack or measures of flexibility in a project schedule.

6-8 The most common type of relationship in the PDM is the: A. Start to Finish B. Finish to Finish C. Finish to Start D. Start to Start

6-8 Answer C. Refer to page 138 PMBOK Guide.

6-9 Which of the following is not a tool or technique in the control schedule process? A. Variance analysis B. Performance reviews C. Resource leveling D. Change requests

6-9 Answer D. Change requests are an output of the control schedule process.

7-1 All of the following are inputs to the determine budget process except: A. Scope Baseline B. Project Schedule C. Activity cost estimates D. Reserve Analysis

7-1 Answer D. Reserve analysis is a tool or technique of the determine budget process

7-11 Opportunity cost is associated with: A. Poor project selection B. Selecting one project and taking it through completion C. Careful and detailed estimating D. Definitive estimating

7-11 Answer A.Generally, opportunity cost is experienced when funding has been assigned to a specific project and a more desirable project opportunity develops. The greater opportunity is missed due to the commitment of capital resources to a previously selected project. The best alternative is not chosen.

7-12 You have allocated the project costs over the life cycle phases of the project. The main output of this process is a (an): A. Project schedule B. Cost control plan C. Time phased budget D. Estimate At Completion

7-12 Answer C. The allocation of the aggregated project cost across the project life cycle is referred to as the time phased budget. Refer to page 177 PMBOK Guide. Estimate at Completion is a forecast of the final project budget based on current performance. The cost control plan provides a method to manage cost changes and identify cost variances. The project schedule displays project activity duration over time and provides an estimate of the total duration of the project life cycle.

7-13 Earned value management is a tool and technique used in: A. Cost baseline development B. Controlling costs C. Parametric estimating D. Cost budgeting

7-13 Answer B. Earned value analysis provides a means to determine cost variance. Refer to page 181 PMBOK Guide

7-14 You are reviewing an Earned Value report and observe that the CPI is 1.2 and the SPI is 1.1. You will report to your sponsor that the project is: A. Right on plan according to schedule and budget baselines B. Ahead of schedule and over budget C. Ahead of schedule and under budget D. Not enough information to determine the project condition

7-14 Answer C. A CPI and SPI greater than 1 indicates that the project is performing very efficiently and is achieving results that are superior to the planned results. A CP and SPI that equal 1 indicates that the project is performing at planned levels.

7-15 Your Earned value analysis report is due. Your project information indicates the following: EV = 150,000, PV = 140,000, AC = 160,000. You will report to your project sponsor that the project is: A. The project is ahead of schedule and under budget B. The project is ahead of schedule and over budget C. The project is behind schedule and over budget D. The project is behind schedule and under budget

7-15 Answer B. Earned value greater than planned value indicates the project is ahead of schedule. Actual cost greater than Earned value indicates the project is over budget. Refer to page 182 PMBOK Guide

7-16 As projects progress through their life cycles, a graph of project cost expenditures will follow a characteristic "S" shape. Typically the information provided in this type of graph indicates that: A. Projects run in "cycles" B. Problems often occur near the beginning and the end of projects C. Projects inherently are prone to experiencing "ups and downs" D. Project costs start at low levels, rapidly increase, plateau and then decline

7-16 Answer D. The typical project life cycle begins with low cost and staffing. As the project progresses, costs increase. The project will reach a point when maximum resources are applied and then resources will be systematically released as the project reaches closure. Refer to pages 16 and 17 PMBOK Guide

7-17 If the cumulative CPI falls below the baseline plan, all future work must be performed at: A. The TCPI to achieve the planned BAC B. Below the TCPI to achieve the planned BAC C. The planned CPI to achieve the planned BAC D. The planned ETC to achieve the planned BAC

7-17 Answer A. The TCPI is the level of performance that must be achieved if the CPI falls below 1 and the project BAC must be met. Refer to page 185 PMBOK Guide

7-2 Your project's earned value (EV) = 350, its actual cost (AC) = 400, and its plannedvalue (PV) = 325. What is the cost variance (CV)? A. + 350 B. - 75 C. + 400 D. -50

7-2 Answer D. Cost variance = EV - AC. 350 - 400 = -50

7-3 Measuring the square footage of a building and then multiplying that figure by a set cost factor for construction is an example of A. Analogous estimating B. Parametric estimating C. SWAG D. Bottom up estimating

7-3 Answer B. Parametric estimating uses statistical relationships such as cost, duration, and labor rates. Refer to page 172, PMBOK Guide.

7-4Your team is in the process of finalizing and producing the cost performance baseline for the project you are working on. Your team is involved in which of the following? A. Cost Estimating B. Determine budget C. Resource leveling D. Bottom up estimating

7-4 Answer B. The cost performance baseline is an output of the determine budget process. Refer to page 178 PMBOK Guide

7-5 You are managing a very complex project that will require a large number of human resources. You need information about the resources that are available from within your company's functional departments. The main source of this information is the: A. Company outsourcing policy B. The WBS C. Chart of accounts D. Resource pool description

7-5 Answer B. The resource pool provides information about the skills and availability of organizational human resources.

7-6 You are involved in the process of developing an assessment of the likelyquantitative amount of funding that will be required to provide the product of the project. You are involved in: A. Pricing B. Alternatives analysis C. Estimate costs D. Risk assessment

7-6 Answer C. Pricing is associated with business decisions about profit margins. Alternatives analysis refers to considering other options about how to develop and or produce the project's deliverables. Risk assessment is included in the process of estimating costs.

7-7 Which of the following is not generally an example of direct cost? A. Materials B. Subcontractor expenses C. Employee benefits D. Project manager salary

7-7 Answer C. Employee benefits, taxes, rent, maintenance are generally considered indirect project costs.

7-8 Your project actual cost has been reported at $200.000. This is equal to the Earned Value. The Budget at completion for your project is $400.000. It is assumed that all future work will be accomplished at the budgeted rate. The EAC (Estimate At Completion) is: A. $200,000 B. $600,000 C. $400,000 D. Cannot be determined with the information provided

7-8 Answer C.In this example the EAC = AC + BAC - EV EAC = 200,000 + 400,000 - 200,000 or 400,000

7-9 You are requested to predict as closely and as accurately as possible theestimated cost of the project. Which of the following techniques would you use? A. Bottom-up estimating B. Order of Magnitude C. parametric D. Analogous

7-9 Answer A. A bottom up estimate will produce a definitive estimate. Order of magnitude, parametric and analogous estimates are considered to be top down and have a wide range of probable outcomes.

8-1 A product that is produced at a high level of quality but does not include many of the features of similar products is referred to as a) Inaccurate b) Imprecise c) Low grade d) Non-conforming

8-1 Answer C. Products that are produced at an acceptable level of quality and meet the desired requirements of the customer but are limited in functionality and features are referred to as low grade. Refer to page 190 of the PMBOK Guide

8-2 Quality planning involves documenting how the project will demonstrate compliance in meeting requirements and should be performed: a) In parallel with the other planning processes b) During the initial phase of the project c) After the WBS has been developed d) By the organization prior to the approval of the project charter

8-2 Answer A. Quality management is integrated with many other project planning processes especially cost and time management. Initiation and WBS development are included in other planning processes. Refer to page 192 PMBOK Guide

8-3 To ensure that a product has been properly prepared for safe use, which of the following should be used by the inspector operating the product? a) Check list b) Quality control plan c) Cause and effect process d) WBS

8-3 Answer A. A Quality control plan should be utilized during development of the product. A cause and effect diagram is used to determine the root cause of a problem. The WBS is a key element of the planning process and assist in defining the work of the project. Checklists minimize the omission of important steps and operating errors.

8-4 Your team is analyzing defects and attempting to isolate the root cause of a problem. Two variables have been isolated through analysis of the data that is available. There is a concern that one of the two variables is compounding the problem by causing an effect on the other. Which of the following tools or techniques will assist in identifying the relationship between variables? a) Flow chart b) Pareto diagram c) Scatter diagram d) Run chart

8-4 Answer C. The scatter diagram is used to determine correlation between two sets of data. Refer to page 212 PMBOK Guide

7-18 The average cost of a 6 year project is estimated to be $6 million per year andthe estimated total returns are expected to be $12 million. The ROI for this project is: A. 33% B. 0% C. 50% D. 25%

Answer A. ROI = Average returns / average cost x 100 The average return is 12 million / 6 or 2 million per year. 2million / 6 million = 33%