Facilitating Processes

10: Beth likes new technology, and is in the process of developing a communications plan for her project team. She is preparing to issue hand-held computers (PDAs) to all her project team, even though some of her team members are technology averse. Only parts of the team will be on call, and only during certain parts of the project. During her stakeholder analysis, what is Beth forgetting? A. Beth needs a communications matrix to determine when the PDA communications should be dispatched. B. Most managers already have PDAs and she will not have to issue them. C. Care must be taken to avoid using inappropriate technology and delivering unnecessary information to the project team members who will not need "instant" information. D. She will need a training plan for the team members who are technology averse.

A10: Answer C is the best answer. Communications plans must be devised to avoid wasting resources with inappropriate technology or unnecessary information. Answer A addresses the unnecessary information portion of the problem, but not the inappropriate technology issue. Although Answer B might be more and more true in society, it is not stated in the question. Answer D would be true if the technology choice were appropriate.

11: Human resources management as it relates to Project Management includes which of the following? A. Stakeholders, sponsors, customers, project team, and inter-ested parties B. Project team members and project managers C. Project team members D. Identifying, documenting, and assigning project roles and responsibilities, and reporting relationships

A11: Answer A is correct and includes all stakeholders. Answers B and C are incorrect because they are missing stakeholders. Answer D is incorrect because it is the definition of organizational planning.

12: Denise is a rather autocratic line manager and has recently taken a position managing IT projects for a consulting firm. Her project team members will generally be changing with each new project. How would you, as an experienced project manager, advise her with regard to her management style? A. Denise has been successful as a manager in the past; she should continue the techniques that have been successful for her. B. Remind her that she might want to alter her style because project teams are generally composed of individuals temporarily assigned to the project and new to working together. C. Remind her that she will now rarely have direct authority over her project team members. D. Suggest she use the X theory of human resources management.

A12: Answer B is the correct answer. Answer A is incorrect because her past autocratic techniques might not work in a temporary environment. Answer C is probably true, but it is not the best answer. Answer D, the X theory of management, is another term used for an authoritarian management style.

13: Gina is a detail-oriented programmer in charge of a small software development project. She is having difficulty eliciting cooperation from her project team during the initiation phase. She has sent a detailed list of what she feels the project should be doing, but is not getting response from her team. How would you counsel her? A. Gina should call a team meeting and have the team perform a lessons-learned session on why the project is not going as planned. B. Talk to the sponsor and get referential authority to make the team perform the work. C. Techniques that work well in one phase of a project might not work well in other phases. Therefore, she might need a collaborative approach during initiation. D. All of the above.

A13: Answer C is correct. Gina's detail orientation might not be helping to develop buy-in from the rest of the team members. Answer A is incorrect because it is not the best answer, although at times a lessons-learned session in an early stage of a project can help. Answers B and D are incorrect because requesting referent power will not likely resolve this situation. Referent power involves borrowing of authority from a functional manager, which could actually make the situation worse, if not utilized correctly.

14: The scheduling and coordinating of scarce resources is a challenge for a project manager, especially if the resources are committed to other projects or activities. Inputs to human resources planning include all of the following except A. Templates B. Project interfaces C. Staffing requirements D. Constraints

A14: Answer A is correct. Answers B, C, and D are all inputs to human resources planning. Templates are a tool used in HR planning.

15: The term interface is frequently used in a variety of situations that are related to your project. The definition of a technical interface, with regard to human resources management, is which of the following? A. A method of moving data between organizational units B. Formal or informal reporting relationships between different technical disciplines, such as design and tooling C. The actual reporting relationship between two individuals in an organization D. Technical interfaces do not exist between human resources; this is a systems term

A15: Answer B is correct, according to PMI's definition of project interface inputs into organizational planning. Answers A, C, and D are incorrect because they are not the correct definition according to the PMBOK. This is a straightforward memorization-type question.

16: Fast Auto Supply has hired Edward Thomas, also known as E.T. to his friends, to finish the development of a new radio product. E.T. is reviewing the documents his predecessor has created. He comes across a list of job skills and competencies, and the time frame in which these would be needed. What is E.T. reviewing? A. Resource requirements B. Staffing requirements C. Team evaluations D. A preliminary project plan

A16: Answer B is correct and is PMI's definition of staffing requirements. Answer A is incorrect because resource requirements may also include materials and supplies. Answer C is incorrect because there is no evaluation material mentioned in the question. Answer D is tempting, but the information does not include dependencies, and is therefore not a project schedule. Further, PMI depicts the project plan as a grouping of planning documents, not the project schedule.

17: Ron is given an assignment to run a project to develop a new ice cream flavor. He is told that he must use Rick, a chemist in the food products department, on this project. This is an example of what? A. Management preferences B. An expected staff-assignment constraint C. Poor management practices because the project has not been chartered or scoped D. A collective-bargaining agreement

A17: Answer B is correct. Although Answer A is tempting, the better answer is that it is a constraint. Answer C is incorrect because the project's scope is clearly to deliver a new ice cream flavor. Answer D is incorrect, although the constraint could be a result of a labor agreement.

18: It is good to have cohesiveness within a team. However, group think is dangerous in a project environment because A. It inhibits appropriate problem solving. B. It tends to enable groups to consider unpopular alternatives. C. It allows for the use of outside expertise, undermining the project team. D. It requires a sizeable amount of time to survey warning signals from other groups and organizations.

A18: Answer A is correct. Group think can cause collective rationalization, and pressures for conformity that are counterproductive to good problem solving. Answers B, C, and D are incorrect because they are techniques for avoiding group think.

19: Providing support and enthusiasm to team members and stakeholders is a valuable ingredient for a successful project manager. Coaching is considered what type of human resources technique? A. Corrective B. A role on the organizational chart C. A practice designed to facilitate managing D. A type of stakeholder analysis

A19: Answer C is correct. Coaching is an HR practice listed as a tool and technique within organizational planning. Answer A is tempting because often coaching does occur as a corrective action. Answer B is incorrect because coaches are usually managers on organizational charts. Answer D is incorrect because coaching is not related to stakeholder analysis.

1: To prepare for the PMP exam, it is important to understand how all of the Project Management processes interact with each other during the entire project life cycle. During this preparation, George realizes the fundamental differences between core processes and facilitating processes is A. Core processes need to be done in the same order on most projects, whereas facilitating processes, although not optional, are performed intermittently and as needed. B. Core processes are mandatory and facilitating processes are optional. C. Core processes focus on developing the schedule, whereas facilitating processes focus on developing the project plan. D. Core processes are measured and facilitating processes are not.

A1: Answer A is the best answer. This is the PMI-defined reason for the differences between core and facilitating processes. Answer B is incorrect because facilitating processes are not optional. Answer C is tempting because it is generally true, but not the best answer. Answer D is incorrect because the quantitative risk analysis involves measuring.

20: The corporate "grapevine" is considered what form of communication? A. Accurate, especially for project information B. An informal channel that might or might not have truthful information that should be considered by a project manager C. Inappropriate D. A "real world" communications method

A20: Answer B is correct. Project managers need to be aware of the effect of the corporate grapevine, either good or bad, because it can influence morale on a project. Answer A is incorrect because often grapevine information is incorrect. Answers C and D may be true, but are not the best answers.

21: As the project develops through the planning phase, various deliverables are constructed that are inputs to other parts of the project. One of these deliverables is a responsibility assignment matrix (RAM), which is used for what part of human resources planning? A. Role and responsibility assignments as an output of planning B. A resource pool description C. In conjunction with large, noncollocated groups to facilitate meeting management D. To govern certain portions of a project

A21: Answer A is correct. The responsibility assignment matrix (RAM) is used to link role assignments closely to scope and the WBS. Answer B is incorrect because a resource pool description is an input to schedule development. Answers C and D are nonexistent artifacts.

22: Surrounding yourself with the right people at the right time is a form of resource leveling that will be beneficial in the long run and might reduce variances to your budget. What is one of the key elements of a staffing management plan? A. How staff will be released from a project when they are no longer needed B. A resource histogram C. Details about resource skill sets D. All of the above

A22: Answer A is correct. PMI states that particular attention should be paid to how staff are released from a project. It is also possible to improve morale by reducing uncertainty with continual communication. Answer D is tempting because all items are elements of a staffing management plan, but Answer A is the best answer. Answers B and C are incorrect because they would not likely resolve the entire situation.

23: An experienced project manager once said, "Projects would run incredibly well if people's agendas did not get in the way." This statement summarizes one of the human resource challenges that a project manager must cope with throughout the entire project. Human resource planning produces all but which of the following artifacts? A. Performance evaluation B. Organization chart C. A staff management plan D. RAM

A23: Answer A is correct. Performance evaluations are not an output of human resources planning. Answers B, C, and D are outputs of the human resource planning process and therefore incorrect answers to this question.

24: You are developing a network diagram using an activity on arrow (AOA) format. While you are formatting the drawing, you show how the activities are linked together by using circles. These circles are known as A. Data B. Events C. Predecessors D. Loops

A24: Answer B is correct. Whenever using the activity on arrow format, the activities are linked by circles that are known as events. The event is used to show the finish of activities entering into it and the start of activities that are going out of it. Answer A is incorrect because it does not fully answer the question. Answer C is incorrect because predecessors only describe the activities that occur before the event. Answer D is incorrect because network loops are perpetually repeating relationships among activities and cannot occur in a network diagram.

25: Rick is working in a functionally organized company and is attempting to staff his project. Working in this environment can be a constraint to his resource planning. He does not have a preassigned group, nor does he have the money to obtain outside resources. What can Rick do? A. Use the stage gate technique to stop the project until staffing issues are resolved. B. Negotiate with functional managers and other project managers for staffing on his project. C. Attempt to do the project himself, and lengthen the time for delivery. D. Consult the organizational policies for recruitment.

A25: Answer B is correct. Rick's only real choice here is to negotiate. Answer A could be employed, if his negotiations fail, but it is not the best answer. Answer C is incorrect because we do not know the scope of the project, and whether it can be done by one person. Answer D is incorrect because Rick has no authority for outside recruitment.

26: A staffing pool description provides which of the following pieces of information? A. Employee's past performance reviews B. Employee competencies C. Employee age D. Employee bill rate

A26: Answer B is correct. Employee competencies, previous experience, personal interests, availability, and characteristics are all part of the staffing pool description. Answer A is incorrect; although past performance is considered, the performance reviews are not part of the description. Answer C is generally illegal to include. Answer D is incorrect because billing rate is not part of the description.

27: The process of interviewing and hiring personnel is a time- and resource-consuming part of the staff acquisition process. Therefore, many companies are outsourcing this human resource function to other organizations so they can focus on their core competencies instead. The outputs of staff acquisition are which of the following? A. Assignment characteristics B. Contracts for outsourced staff C. Staff assignments and project team directory D. All of the above

A27: Answer C is correct. Answers A and B are not outputs of staff acquisition. Answer D is incorrect because Answers A and B are not included.

28: Arnie and Jeff are project managers who are having lunch and discussing their respective projects and the risks associated with each. "I just don't know what I don't know!" says Arnie, frustrated. "Do a SWOT," Jeff offers. What is Jeff talking about? A. An analysis of security, work breakdown structure (WBS), objectives, and tactics B. A strategic waterfall opportunity template C. Jeff's mouth was full—he meant to say "SWAG" D. An evaluation of the strengths, weaknesses, opportunities, and threats that might affect Arnie's project

A28: Answer D is correct. A SWOT analysis is a technique for risk identification. Answers A, B, and C are incorrect acronyms.

29: Risk identification can be defined as A. Identifying all the risks on a project B. Determining which risks might affect a project and recording their attributes C. Identifying key risks by performing a Pareto analysis D. Knowing when to label issues as risks for mitigation purposes

A29: Answer B is correct, and the definition of risk identification from PMI. Answer A is incorrect, but a hoped-for goal on all projects. Answer C is incorrect because a Pareto analysis would be part of quantitative risk analysis. Answer D is incorrect, but a good skill for a project manager to have.

2: Rod is a friend of yours and is struggling with the definitions of quality. He believes quality is about testing. You are working with him on developing the quality management plan for a project on which you both are working. How would you describe the definition of quality planning? A. Quality planning is evaluating the overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. B. Quality planning is the totality of characteristics of an entity that bear on its capability to satisfy stated or implied needs. C. Quality planning is the monitoring of specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate the causes of unsatisfactory performance. D. Quality planning is the identification of quality standards that are relevant to the project and determining how to satisfy them.

A2: Answer D is the PMI definition of quality planning. Answer A is incorrect because it is the definition of quality assurance. Answer B is incorrect because it is the definition of quality. Answer C is incorrect because it is the definition of quality control.

30: Cara is having regular team meetings on her new footwear product. She has had the team do a first cut on its view of what risks affect the project. What should she do next? A. Document the risks and file them in the project folder. B. Involve stakeholders in a second review and then file in the project folder. C. Involve stakeholders in a second review and then individuals who are not project team members for a final, unbiased review. D. Develop risk responses.

A30: Answer C is correct. Involving stakeholders and nonproject team members is key to developing an unbiased analysis of risk. Answer A is incorrect because it does not iterate through another pass of evaluation. Answer B is tempting, and often where many project managers end, but it is not the best answer. Answer D is not done until after risk qualification and quantification are done.

31: Boyd works in the pharmaceutical industry and is involved in a new drug release to help individuals who suffer from chronic depression. He is aware of a potential new change in the way the FDA allows new drug products to come to market, but he is not sure whether his product will be "grandfathered." This is an example of which of the following? A. An internal risk B. A technical risk C. Iterative product development D. An external risk

A31: Answer D is correct. FDA rulings and regulations are an example of an external risk. An example of an internal risk might be lack of funding for a project. A technical risk is the capability of producing the product with a new process. Iterative product development is not associated with risks. Answer A is incorrect because an internal risk would likely be generated within his own company and not an organization such as the FDA. Answer B is incorrect because this example does not involve a technical risk. Answer C is incorrect because iterative product development involves the different stages that a product evolves into over time and is not applicable to this situation.

32: Surfer Joe lives and works in Los Angeles, an earthquake-prone area, and is a manager of IT operations for a health food distributor. He is working on developing a business continuity site for his computer room, outside of the earthquake zone. What type of risk is Joe trying to mitigate? A. An external risk B. An organizational risk C. Force majeure D. A Project Management risk

A32: Answer C is correct. A force majeure is an external risk, such as a flood or an earthquake that generally requires disaster recovery rather than risk management. Answer A is tempting because an earthquake is a type of external risk, but it is not the best answer. Answer B is incorrect because organizational risks involve scope time or cost. Answer D is incorrect because Project Management risks involve poor planning.

33: A golf club manufacturer is beginning a project to develop a new club head out of a titanium alloy using an unproven high heat and cooling method. The product will have embedded "flex beads," and is expected to revolutionize the industry, according to management. As the project manager for the new product development, which of the following concerns you most? A. Lack of prior experience in product development B. The technical risks associated with the new manufacturing method C. Other companies getting the process developed first D. Sufficiency of the budget to cover experimentation

A33: Answer B is correct. The technical risks associated with the product development should concern you because they are unproven. Answer A is incorrect because the golf manufacturer has clearly developed products in the past. Answers C and D might concern you, but they are not the best answers.

34: Your company has decided to develop a Project Management Office (PMO) specifically to address the new rapid development methodologies available in IT. As the project manager for the development and deployment of the methodology, you are concerned because your boss, the CIO, has said she wants it to be available in two months and you have no staff to help. What type of risk is this? A. Both project and organizational B. External C. Technical D. Job

A34: Answer A is correct. The risks posed are both inadequate planning and inadequate funding in scope, time, and resources. Answer B is incorrect because the source of the risk is internal: the CIO. Answer C is incorrect—although the rapid development concept is relatively new, there is no new technology in creating a methodology. Answer D may be true, but it is not a risk category identified by PMI.

35: You are trying to gain consensus on issues associated with a merger between your company, which produces egg rolls, and a new startup in the egg roll business. You have sent questionnaires to legal, marketing, and manufacturing and have compiled the results. You are now about to send out the compilation for a new round of feedback. What technique are you using? A. Brainstorming B. Interviewing C. Delphi D. Assumption analysis

A35: Answer C is correct. The Delphi technique is a way to reach consensus with experts via questionnaire. Answer A is incorrect because brainstorming is generally not done by questionnaire, but in a facilitated session. Answer B is incorrect because a questionnaire is being used. Interviewing involves one-on-one conversations. Answer D is incorrect because assumption analysis is not a technique identified by PMI.

36: As a project manager, you want to solicit information from experts, but do not want a single individual to have undue influence over the results. You are looking for the most unbiased data possible. What technique should you use? A. Brainstorming B. Interviewing C. Delphi D. Assumption analysis

A36: Answer C is correct. The Delphi technique is useful because participation is anonymous, and the multiple iterations generate a consensus without undue bias. Answers A, B, and D are incorrect because they do not allow the source to be anonymous. This anonymity will likely lead to the least-biased results.

37: An Ishikawa diagram is useful for all but which of the following processes? A. Quality control B. Risk identification C. Quality planning D. Activity sequencing

A37: Answer D is correct. Ishikawa, fishbone, or cause-and-effect diagrams are used in all the quality processes as well as risk identification. Answers A, B, and C are incorrect because Ishikawa is not used in quality control, quality planning, or activity sequencing.

38: There are various methods to graphically depict the logic of a project. Which of the following diagramming techniques is not used as a tool of risk identification? A. System process B. Fishbone C. WBS D. Influence

A38: Answer D is correct. The WBS is not a diagramming technique; however, it is an input to risk identification. Answers A, B, and C are incorrect because system processes diagrams, fishbone diagrams, and influence diagrams are all diagramming techniques that can be used in risk identification and therefore are incorrect answers to this question.

39: You are driving down the highway and going above the speed limit. Behind you, you see a state trooper car with its lights flashing. The state trooper car is an example of what? A. Poor judgment B. A cause and effect C. A risk trigger D. A risk

A39: Answer C is correct. The state trooper lights are a risk trigger, or a warning sign or indication that a risk is about to occur. It isn't definite because you don't know yet whether the state trooper car is after you. Answers A and B may be true to a certain extent, but are not the best answers to this question. Answer D is incorrect because the state trooper car is not the risk.

3: At the Jumping Gymboree for children, Ellen, the owner, is planning a new location. Very much an advocate of quality, she has learned a lot from the opening of her first site and doesn't want to make the same mistakes again. She has had a lessons-learned session facilitated by a professional to ensure the organization documents the process. She is ready to start the project and wants to make sure everything at the new site and any other additional sites is of high quality. She believes she should begin her quality management plan, but does not have much information about the new site, size, or location, or really whether the project will move forward. What should she be doing instead? A. Focus on project initiation for the new site. B. Establish a quality policy for Jumping Gymboree. C. Obtain the local building requirements and regulations. D. Formalize the lessons learned into a procedure for the development of new sites.

A3: Answer B is the best answer because it codifies the overall intentions of the Jumping Gymboree organization with regard to quality. Answer A may be true, but it is not the best answer. Answer C would be appropriate if her new site were launched. Although Answer D is tempting, it does not provide the focus on quality.

40: Jane has been working long hours on her project. Many of her team members have been coming down with the Asian flu, and causing project delays. As a key project team member, Jane has now listed the Asian flu as a minor project risk, in case she gets it. Jane, sitting alone at her desk, begins to cough and feel chilled. What has happened? A. A risk response B. A cause and effect C. A risk trigger D. A risk

A40: Answer C is correct. Jane's coughing and chills are a risk trigger and could be an indicator that she might have the Asian flu. Answer A is incorrect because the risk response is not stated in the question. Answer B is incorrect because there has not been a cause-and-effect relationship developed in this situation. Answer D is incorrect because she has not actually been diagnosed as having the flu.

41: Risk identification, analysis of risks, and development of mitigation strategies are vital steps in the success of a project. Assessing the impact and likelihood of identified risks is known as A. Risk management B. Quantitative risk analysis C. Qualitative risk analysis D. Risk assessment

A41: Answer C is correct, and the definition of qualitative risk analysis. Quantitative risk analysis is defined as the numeric analysis of probability of each risk. Risk management is the overall set of risk activities. Risk assessment is not a PMI term. Answers A, B, and D are incorrect because they do not involve assessing the impact and likelihood of identified risks.

42: Because project managers spend a large percentage of their time communicating with other team members and stakeholders, being timid is usually not a virtue for success. Interviewing is a technique identified by PMI that can be used in a number of processes to gather information that might be vital to the project. Which process does not use interviewing? A. Qualitative risk analysis B. Quantitative risk analysis C. Risk identification D. Risk management

A42: Answer A is correct. Qualitative risk analysis focuses on probability, and does not use interviewing as a technique. Risk identification and quantitative risk analysis do use interviewing as a technique. Answers B, C, and D are correct reasons for interviewing and therefore are incorrect for this question.

73: From the table in Question 71, what is the total slack for the project? A. 20 B. 161 C. 268 D. 88

A73: Answer B is the correct answer. The calculation is Event 1 Latest Finish (55)-Earliest Finish (30)=Slack (25) Event 2 Latest Finish (25)-Earliest Finish (16)=Slack (9) Event 3 Latest Finish (92)-Earliest Finish (40)=Slack (52) Event 4 Latest Finish (96)-Earliest Finish (21)=Slack (75) Total Slack (161)=Slack 1 (25)+Slack 2 (9)+Slack 3 (52)+Slack 4 (75) Therefore, Answers A, C, and D are incorrect.

43: Weighing of risks and risk outcomes should impact the project selection process as an organization decides what projects should be added to its project portfolio. What factor can magnify the importance of a particular risk? A. Time criticality of risk-related actions B. Quality of information C. Mitigation strategies D. Prioritization

A43: Answer A is correct. The time criticality of a risk-related action can increase the importance of a risk. Answer B is incorrect because quality of information can actually reduce risk. Answer C is incorrect because mitigation strategies do not magnify a risk. Answer D is incorrect because prioritization is a tool that is used in risk response development.

44: Determining the validity of information and the probability of outcomes can be a guessing game in some circumstances and can lead to ambiguity and chaos. Data precision is an input to assessing the impact and likelihood of an identified risk. What does data precision provide? A. Information on the extent to which a risk is known, the data available, and the quality of the data about the risk B. A probability rating for the risk C. The extent to which assumptions are used in evaluating risks D. The risk priority

A44: Answer A is correct. Data precision is defined as the information about a risk. Answer B is incorrect because the probability and impact are a technique of qualitative risk analysis. Answer C is incorrect because assumptions are another input. Answer D is incorrect because prioritization is an output of qualitative risk analysis.

45: Aaron is developing a project plan and assessing risk. He realizes he has a noncollocated project team, multiple functional departments involved, and multiple IT teams programming, using a new unproven web tool. James, on the other hand, is working on a project that is using a single, proven technology with one team. What is their relative project risk based on project type? A. James has a relatively high-risk project because his team is noncollocated. B. Aaron has a relatively low-risk project type because there are many experts involved. C. James has a highly complex project using state-of-the-art technology, and is therefore in a project with more uncertainty. D. Aaron has a highly complex project using state-of-the-art technology, and is therefore in a project with more uncertainty.

A45: Answer D is correct. Aaron's project spans multiple departments and locations and is using an unproven technology; therefore, the project has a higher risk profile. Answer A is incorrect because James's team is collocated. Answer B is incorrect because, even with experts, the complexity of his project makes it risky. Answer C is incorrect because James is using proven technology.

46: Craig needs to decide what projects should be added to the project review board agenda for the meeting next week. He has a list of over 20 projects that have various degrees of risk and return on investment (ROI). Therefore, he ranks the projects according to their probability of success and ROI. A risk probability is defined as A. A rating of high, medium, or low B. The impact of a risk to the project C. The effect on project objectives if the risk occurs D. The likelihood that a risk will occur

A46: Answer D is correct. Answer A is incorrect because it describes the actual qualitative ratings. Answers B and C are incorrect because they are risk consequences.

47: During the planning phase of a project, you should do a risk analysis for your project. Attributing a quantitative measurement to risks can be a challenge because different people might have different opinions of which attributes are the most important. A risk impact scale that is high, medium, or low is known as A. A probability scale B. An ordinal scale C. A cardinal scale D. Nonlinear

A47: Answer B is correct. An ordinal scale is rank-ordered values. Answer A is incorrect because a probability scale is between 0 and 1. Answer C is incorrect because a cardinal scale assigns values to impacts. Answer D is incorrect because linear and nonlinear values are used in cardinal scales.

48: Utilization of best practices in Project Management requires the retainment of archives for future reference. Part of these archives should include risk analysis-related deliverables so they can be reviewed for future projects. Assessing risk probability is difficult because A. Probability assessment is a mathematical process that requires a mathematician. B. Data precision is unknown. C. At the beginning of a project, risk is higher. D. It often requires expert judgment, and is often done without the benefit of historical information.

A48: Answer D is correct. Answer A is incorrect, and generally not true. Probability does not require a mathematician. Answer B is incorrect because data precision is an input to qualitative risk analysis. Answer C is true, but not the best answer for this question.

49: Data precision ranking uses all of the following except A. Extent of understanding of the risk B. Quality of the data about a risk C. A probability impact matrix D. Reliability and integrity of the data about a risk

A49: Answer C is correct. Answers A, B, and D are all items to consider when ranking data precision. A probability impact matrix is a tool in qualitative risk analysis, separate from data precision ranking.

4: Jeff is a pharmacist who provides delivery orders to nursing homes. He is keenly interested in providing a high-quality service: Orders received by noon will be delivered by noon the next day. He always meets his target, and often exceeds it. However, his competitor, Ralph, is providing more services, such as 1-hour delivery, 24-hour delivery, and transportation to and from doctors' offices. His competitor is not as consistent, but is getting more and more business. How would you characterize the two businesses? A. Jeff provides a high-grade, high-quality service, whereas Ralph provides a high-grade, low-quality service. B. Jeff provides a low-grade, low-quality service, whereas Ralph provides a high-grade, high-quality service. C. Jeff provides a low-grade, high-quality service, whereas Ralph provides a high-grade, low-quality service. D. Jeff provides a high-grade, low-quality service, whereas Ralph provides a low-grade, high-quality service.

A4: Answer C is correct. Jeff provides fewer services or features than Ralph; therefore, he provides a lower-grade service. However, Jeff's service meets or exceeds the expectations and is therefore a high-quality service, whereas Ralph's service is inconsistent. Ralph will not continue to get more business if his quality remains poor; however, Jeff would be smart to consider adding a service or two. Answers A, B, and D are incorrect because they do not accurately reflect the facts in this explanation because Jeff's service is low grade and high quality.

50: Rachel has been working on the qualitative risk analysis for her canning machinery rebuild project. She notices that her data precision rankings for most of her risks are very low. What should she do? A. Revisit the rankings with the project team. B. Accept the data as it is. The rankings are intended to be a guideline to develop risk responses. C. See whether she can gather more accurate data. D. Consult an expert.

A50: Answer C is correct. Low precision rankings mean there might be a lack of understanding about the risk, and therefore more data is needed for useful qualitative analysis. Answer A is incorrect because the analysis most likely included the project team. Answer B is incorrect because the low rankings point to a need for further information. Answer D is tempting, but also incorrect for this question.

51: Outputs of qualitative risk analysis include all of the following except A. Overall risk ranking for the project B. Risk triggers C. List of prioritized risks D. List of risks requiring additional analysis and management effort

A51: Answer B is correct. Answers A, C, and D are all outputs of qualitative risk analysis. Answer B is an output of risk identification.

52: The ability to research the project risks and capture them for future reference helps to show a relationship to the success of a project. Quantitative risk analysis and qualitative risk analysis differ in what ways? A. Qualitative risk analysis assesses the impact and likelihood, whereas quantitative risk analysis assesses the consequence on specific project objectives. B. Quantitative risk analysis assesses the impact and likelihood, whereas qualitative risk analysis assesses the consequence on specific project objectives. C. They are essentially the same and generally done at the same time. D. Qualitative risk analysis uses the risk management as input whereas quantitative risk analysis does not.

A52: Answer A is correct. Answer B is incorrect because it is the opposite of Answer A. Answer C is tempting because it is often true that they are done at the same time; however, the objectives of the two functions are different. Answer D is not true because both processes use the risk management plan as inputs.

53: There are numerous objectives of the risk analysis process that can contribute to the development of the change control management process. One of the objectives of quantitative risk analysis is to A. Develop a probability of project success. B. Quantify the risk exposure of a project and determine the size of reserves needed. C. Perform sensitivity analysis. D. Use the Monte Carlo technique.

A53: Answer B is correct. Answer A is incorrect because quantitative analysis focuses on the probability of achieving the cost and time objectives, not necessarily the entire project's success. Answers C and D are tools used in quantitative risk analysis, not objectives of the process.

54: Unfortunately, risk analysis is not done regularly on many projects at many companies. A lot of time should be spent on risk analysis during the planning phase as a key ingredient to the success of a project by proactively identifying and isolating known risk occurrences. Randy is evaluating a number of risk options and the probabilities as well as costs associated with each option. He wants to provide the highest expected value for his choice. What tool should he use? A. Critical path method (CPM) B. Decision tree analysis C. Sensitivity analysis D. Expert judgment

A54: Answer B is correct. A decision tree focuses on the probability and cost outcome of a particular decision path and provides the means to analyze which decision would provide the highest expected value. Answer A is the critical path method and is used in scheduling, not risk analysis. Answer C is incorrect because sensitivity analysis is used to determine what risks have the most impact on the project. Answer D is tempting because expert judgment is used so often in projects, but it is not the correct answer.

55: Dylan has formed his new IT team and looks forward to planning his first project. His mentor has emphasized that he needs to develop a risk response plan to help show the IT governance board that he is forward thinking in his project plan development. Which of the following is not true of risk response planning? A. It must be timely. B. It must be cost effective. C. It is decided by the project manager. D. It must be owned by a responsible person.

A55: Answer C is correct. A risk response plan must be agreed upon by all parties involved. Answers A, B, and D are attributes of risk response planning.

56: The ability to be creative and open minded about new ideas will have a positive impact upon your risk response plan development and can lead to other opportunities as others realize your capabilities. Risk response planning involves which of the following? A. Developing options and assigning individual responsibility for risk responses B. Identifying risks requiring the most attention C. Determining whether a risk trigger has occurred D. Reducing threats to the project

A56: Answer A is correct. Answer B is incorrect because it is an objective of quantitative risk analysis. Answer C is incorrect because it is a part of risk control and monitoring. Answer D is tempting, but incorrect, because risk response planning doesn't reduce a threat; it determines actions to take to reduce a threat or enhance an opportunity.

57: You are creating your risk response plan and are deciding to change your project plan resources to protect your project from the impact of a key resource needing to use the Family Leave Act. What type of risk response strategy are you using? A. Acceptance B. Mitigation C. Transference D. Avoidance

A57: Answer D is correct. By changing your project plan, you are attempting to avoid or eliminate the risk entirely. Answers A, B, and C, use different tactics to mitigate risk, and are therefore incorrect.

58: Jessica is developing a project plan for a project with a new technology and realizes the in-house programmers do not have the experience to do the work, which could potentially cause the project schedule to be delayed significantly during their learning curve. As a consequence, Jessica has decided to use a contracting firm with a fixed-price bid to address the coding risk. What type of risk strategy is she using? A. Acceptance B. Mitigation C. Transference D. Avoidance

A58: Answer C is correct. By using contractors with a fixed price, she is transferring the risk of the new technology and coding schedule performance to the contract company. Answers A, B, and D are not this type of risk strategy.

59: A1 company wants you to develop a new web front end to a legacy system. The functionality of the entire development involves more than 1,000 transactions. You are expected to deliver the new system in one year. As you develop the project plan, you realize the risk of delivering a year out might hide problems in terms of the complexity of the project and you decide to propose delivery of small, frequent packages of functionality in one-month intervals. What type of risk strategy are you using? A. Agile programming techniques B. Mitigation C. Transference D. Avoidance

A59: Answer B is correct. By taking action to reduce the probability of hidden problems by delivering more frequently, you are mitigating the possibility of the problems. This is not to say that some might still exist. Answer A is tempting because agile programming is, in effect, the mitigation strategy. Answers C and D are different risk strategies.

5: John is trying to make a case for improving quality efforts and planning in his company. He is aware that in the quality discipline, it is axiomatic that benefits outweigh costs, but he is trying to show how the costs of quality break down for his given project within his quality management plan. What three types of costs will he highlight? A. Quality control, rework, and external B. Prevention, appraisal, and failure C. Internal, external, and stakeholder satisfaction D. Experimental, benchmarking, and flow charting

A5: Answer B is correct. The costs of quality are the total cost of all efforts to achieve quality, including work to conform and rework due to nonconformance. Answer A is incorrect because, although it touches on appraisal costs (quality control) and failure, it does not mention prevention costs. Answer C is incorrect because internal and external costs are related to failure costs, and stakeholder satisfaction relates to conformance costs, but appraisal costs are missing. Answer D is incorrect because these are tools and techniques for quality planning related to appraisal, but do not include the other items in the definition of cost of quality.

60: Some people indicate that Project Management adds too much paperwork and documentation to the project and does not have a perceived value. By providing value-added deliverables such as a risk analysis and a risk register, a project manager allows stakeholders to have a full understanding of the issues that could add to the timeline and/or costs of the project. A risk register is also known as A. A risk threshold B. A risk management plan C. A list of prioritized risks D. A risk response plan

A60: Answer D is correct. Answers A, B, and C are inputs to risk response planning.

61: Being prepared to respond to adverse conditions is part of many healthcare workers' jobs. Increasing numbers of clinical personnel are realizing how Project Management risk response planning can be incorporated into their operations to handle these adverse situations. A risk response plan should include all of the following except A. Risk owners and responsibilities B. Specific actions to implement C. Contractual agreements D. Budgets and time frames for responses

A61: Answer C is correct. Risk response plans do not include contractual agreements, although they are an output of risk response planning. Answers A, B, and D are all elements that should be included in the risk response plan.

62: A residual risk is defined as A. A risk that arises as a direct result of a risk response B. A risk that remains as an accepted or unaddressed risk C. A risk that is not properly mitigated, and therefore remains D. A risk that must be incorporated into the project plan

A62: Answer B is correct. Answer A is incorrect, and is the definition of a secondary risk. Answer C is tempting because of the word residual, but it is not true. Answer D is an output of risk planning and would involve other risk response plans.

63: The process to acquire capital goods can be time consuming, especially if numerous approvals are needed and there is a lack of urgency from the departments involved in the purchase order process. Determining when to obtain products and services from outside the organization for a project should be done during which process? A. Activity cost estimating B. Procurement planning C. Scope definition D. Activity definition

A63: Answer C is correct. Procurement planning should be done during the scope definition effort, according to the PMBOK. Answer B is tricky because the question defines procurement planning—but this is the process, not the timing of when to do it. Answers A and D are not the appropriate processes during which procurement planning should take place.

64: Ray has a technical problem with his project implementing the infrastructure needed for a voice response unit. He is considering an outside vendor for help, and knows that because he is late in the planning process, he will only have a limited budget to engage help. He also knows the system he is implementing is only supported by one firm in his city. What factors are most likely to influence his procurement planning? A. Market conditions B. His project scope statement C. Contract type D. Other units in his organization

A64: Answer A is correct. Ray is in need of specialized services from a single firm. Depending on who else happens to need their services, he might or might not be able to afford them. Answer B is incorrect because it is an input to procurement planning, but not a factor that will influence Ray's planning. Answers C and D are incorrect because they are tools and techniques of procurement planning.

65: Ron is running a construction firm, and working on a business building in the downtown area. He realizes he will need an extra dump truck to make the schedule for clearing the lot. In general, Ron has sufficient trucking capacity, but he might be getting more downtown work. He is considering procuring another truck, but isn't sure whether he should rent or buy. How should Ron approach the issue? A. Perform a cost benefit analysis. B. Determine the indirect and direct costs of each option, and estimate the portion allocated to the project for a purchase. C. Consider double shifts on the trucks he has. D. Contact a consultant.

A65: Answer B is correct. Ron needs to do a make-or-buy analysis, which involves determining the lowest cost. Answer A is tempting but it is not the appropriate tool for this issue. Answer C may be true, but it is not the best answer. Answer D is incorrect because contacting a consultant would not provide him with any new information he does not have.

66: Josh wants to transfer risk to another entity in order to reduce the risk for his "hole-in-one" celebrity golf tournament project. Because this generally involves a cost, it will be necessary for documents to be created that outline the obligations of both parties. Which contract type moves risk to the seller most effectively? A. Fixed price B. Cost-reimbursable C. Cost plus D. Time and material

A66: Answer A is correct. Fixed-price contracts put the burden on the seller to produce the product or deliverable within the specified time for a specified cost. Answer B is incorrect because the costs are recoverable by the seller, so if they go over budget, costs are still recovered. Answer C is incorrect because cost plus enables the seller to achieve a profit in addition to all the costs associated. Cost plus is another form of cost reimbursable. Time and material contracts shift the risk entirely to the purchaser. Answer D is incorrect because time and material pricing puts the burden on the buyer because the seller does not have an incentive to keep costs low.

67: Rhonda has decided to outsource a particular deliverable on her construction project. She has described the product and services in detail and has included the necessary reporting requirements. What has Rhonda prepared? A. A statement of work (SOW) B. A contract C. A procurement management plan D. A scope definition

A67: Answer A is correct. A statement of work requires sufficient detail for the prospective seller to determine whether he can and wants to do the work required. Answer B is incorrect because a contract involves pricing and timing and sometimes performance incentives. Answer C is incorrect because the procurement management plan describes how the remaining procurement processes will be governed. Answer D is tempting because, in essence, an SOW is a scope definition; however, this is not the best answer.

68: New project managers are frequently perplexed by the proliferation of various terms in the Project Management field. Two areas frequently confused include procurement and solicitation. The difference between procurement planning and solicitation planning is A. Procurement planning develops the procurement management plan, whereas solicitation planning develops the SOW. B. Procurement planning involves preparing the documents to support solicitation, whereas solicitation planning identifies which project deliverables can be best met by an outside organization. C. Procurement planning identifies which project deliverables can be best met by an outside organization, whereas solicitation planning involves preparing the documents to support solicitation. D. Procurement planning develops the evaluation criteria for vendors, whereas solicitation planning determines the SOW.

A68: Answer C is correct. Answer A is incorrect because the SOWs are developed in procurement planning. Answer B is incorrect because it is the opposite of Answer C. Answer D is incorrect because evaluation criteria are an output of solicitation planning.

69: Companies spend millions of dollars annually by moving employees from cubicle to cubicle and office to office. Ellen is setting up a meeting to talk about her requirements to all prospective companies hoping to provide the moving service for her office move project. What type of meeting is Ellen having? A. A project kickoff meeting B. An illegal one—discussion with prospective sellers before a contract is unethical C. A prebid conference D. An advertising meeting

A69: Answer C is correct. A meeting with prospective vendors is called a bidding conference, or a prebid conference. Answer A is incorrect because kickoff meetings involve all stakeholders, and are associated with the project, not solicitation. Answer B is incorrect because bidder conferences, as long as all bidders are on equal footing, are perfectly legal and good practice. Answer D is incorrect but tempting because it is also a tool and technique of solicitation planning.

6: Carmen is developing her quality management plan for an advertising campaign project. What items must it include for it to properly address quality management for her project? A. It must be formal. B. It must be related to the advertising industry standards for quality. C. It must include information on quality control, quality assurance, and quality improvement for the project. D. It must include the advertising checklist of required steps for federal approval as well as the resources for the project.

A6: Answer C is correct. The quality management plan must address the project quality system, including the procedures and processes needed to implement the process. Answer A is incorrect because a quality management plan may be informal or formal, highly detailed or broadly framed, depending on the project. Answer B is tempting because, ideally, the quality management plan will address industry standards, but these are inputs to the quality planning process. Answer D is incorrect because a checklist is another output of the quality planning process, but not the quality plan. Federal approval is a red herring.

70: During procurement planning, Jeff is considering the items he needs to outsource, and the vendors who could potentially be involved. Why is it important for Jeff to consider potential vendors? A. To create the qualified seller list B. In order to exercise some degree of control over contracting decisions C. Jeff doesn't need to consider vendors; that task is done in solicitation planning and the actual solicitation process D. Because vendor capability is a risk to be factored into his planning

A70: Answer B is correct. PMBOK states that considering potential vendors during the procurement planning may help exercise influence over the contract. Answer A is incorrect because the qualified seller list is an input to solicitation. Answer C is incorrect but tempting because vendors are considered during solicitation planning and solicitation. Answer D may be true, but it is not the best answer.

71: From the following table, what is the total slack for Event 1? Activity Duration Estimate (Days) Earliest Start Earliest Finish Latest Start Latest Finish Event 1 20 10 30 35 55 Event 2 2 14 16 23 25 Event 3 13 27 40 79 92 Event 4 8 13 21 88 96 A. 10 B. 25 C. 30 D. 20

A71: Answer B is the correct answer. The calculation is Latest Finish (55)-Earliest Finish (30)=Slack (25) Therefore, Answers A, C, and D are incorrect.

72: From the table in Question 71, which event has a negative slack? A. Event 3 B. Event 2 C. Event 1 D. None

A72: Answer D is the correct answer. None of these events has a negative slack. The calculations are Event 1 Latest Finish (55)-Earliest Finish (30)=Slack (25) Event 2 Latest Finish (25)-Earliest Finish (16)=Slack (9) Event 3 Latest Finish (92)-Earliest Finish (40)=Slack (52) Event 4 Latest Finish (96)-Earliest Finish (21)=Slack (75) Therefore, Answers A, B, and C are incorrect.

74: Budiono is excited to be involved with his new international project in Indonesia but is trying to determine the critical path for his project because several of the tasks have long durations. In doing forward pass and backward pass calculations, it is important for him to identify and focus on paths of tasks that have a __________ slack for the project. A. negative B. zero C. positive D. delayed

A74: Answer A is the correct answer. In addition to identifying the paths that have potential slippage and the critical path for the project, the project manager needs to look for paths that have negative slack. Answer B is incorrect because zero slack is not necessarily bad unless you anticipate some events that were not identified in the estimates and could cause delays. Answer C is incorrect because a positive slack is advantageous to the project manager as a contingency, who uses it for unidentified issues that arise. Answer D is incorrect because there is no Project Management concept that would have a delayed slack effect for the project.

75: Norma has been doing Project Management for over 20 years and has never heard of PMI. Now she is overwhelmed with all the new terminology that she has to learn from the PMBOK for tasks that she used to take for granted. She is surprised to find out that the longest path of activities from the beginning to the end of the project is called the A. Path with positive slack B. Relative difference C. Critical path D. Schedule variance

A75: Answer C is the correct answer. Answer A is incorrect because paths with zero or negative values (not positive slack) are referred to as critical paths. Answer B is incorrect because it is an incorrect term for this question. Answer D is incorrect because a schedule variance is the difference between the actual schedule and the budgeted schedule.

76: While evaluating the network diagram for the town hall expansion project, Jeff looks at the relationship between the facility management timelines and the construction contractors. He realizes the earliest start and the earliest finish times for the tasks are determined by calculating _________ through the diagram. A. forward B. backward C. progressive elaborations D. consistently

A76: Answer A is the correct answer. Earliest start and finish times are calculated by working through the network diagram from the first task to the last task. Answer B is incorrect because the backward pass calculation is formulated by working from the end of the project to the beginning of it. Answer C is incorrect because progressive elaborations are not associated with forward or backward pass calculations. Answer D is incorrect; however, it might sound correct because of questions on the test that use common everyday words to simplify complex concepts.

77: Using backward pass calculations, what is the latest start time of a task if the duration is 37 days, the required completion is 219 days, the latest finish is 245 days, and the estimated completion is 205 days? A. 208 B. 14 C. 40 D. 450

A77: Answer A is the correct answer. The calculation is Latest Start (208)=Latest Finish (245)-Duration (37) Therefore, Answers B, C, and D are incorrect. Use the following network diagram logic to answer Questions 78 and 79:

78: Sara has never seen a network diagram before, but she must explain the concept to the shareholders at next week's steering committee meeting, and get their buy-in for the schedule of a software development project that she is working on. This diagram is an example of A. Activity on arrow formatting B. Looping C. Serial processing D. Laddering

A78: Answer D is the best answer. Laddering is done to show how a subject matter expert can complete one task and then go forward to complete the same task as another subject matter expert begins the second task that had a dependency upon the first task (for example, trimming and then painting rooms in a house). Answer A is incorrect because Activity on Arrow is another type of formatting that uses arrows to show relationships between tasks. Answer B is incorrect because looping in a network diagram is not possible because the task would perpetually repeat itself without being completed. Answer C is correct because serial processing is the sequential completion of tasks throughout a network diagram; however, it is not the best response because the diagram has multiple sequences going on simultaneously.

79: What type of formatting is it? A. Activity on arrow B. Activity in box C. Work breakdown structure D. Responsibility assignment matrix

A79: Answer B is the correct answer. This network diagram is formatted in activity in box formatting. Answer A is incorrect because AOA is activity on arrow, which is a different type of formatting. Answer C is incorrect because a work breakdown structure is not a network logic type of formatting. Answer D is incorrect because a Responsibility Assignment Matrix (RAM) is a reporting deliverable that is not associated with type of network diagram.

7: You are working on a yearlong global project involving 60 different countries. The project has a large number of stakeholders because it is rolling out a new process for managing global procurement. You are in the project-planning phase of this project and working on the communication plan. What do you need to consider before you do your stakeholder analysis? A. Understand the project organization, the number of departments and disciplines involved, the number of locations and individuals involved, and whether the procurement process will need to be communicated to vendors. B. Meet with the project team to determine who would be the most likely project communication recipients. C. Obtain global email address lists from corporate communications that have been used on similar projects. D. Plan to communicate only with the project sponsor and corporate location because the project is a yearlong effort; communicating to other sites will not be necessary until the process is delivered.

A7: Answer A is the best answer. Understanding the complexity of the audience and the communications requirements is the first input to communications planning. Answers B and C may take place during the stakeholder analysis, but are not what needs to be compiled first. Answer D is often an option chosen in projects that get into trouble. Not considering all stakeholders in communications can lead to lack of acceptance in a project.

80: With the development of a new space shuttle landing protocol, you need to make some decisions about the duration estimates that you are to provide at the kickoff meeting with the heads of the aerospace division. By following a beta probability distribution with three estimates and utilizing a network diagram, calculate the expected duration with the following probabilities: T (Optimistic) = 7 days T (Most Likely) = 10 days T (Pessimistic) = 22 days A. 7 days B. 17 days C. 12 days D. 32 days

A80: Answer C is the correct answer. The calculation is T (Duration Estimate)=Estimate (Optimistic)+4 (Most Likely)+ Estimate (Pessimistic)''6 Therefore, (7+4[10]+22)''6= 11.5 rounded to 12 Therefore Answers A, B, and D are incorrect.

8: Allen Prieto, a product manager for a manufacturer of vending mechanisms for Laundromats and soda machines, is working on a communications plan for his new debit card vending mechanism. He is interested in communicating with the dealerships that sell his equipment, but knows many of them have not made the technology leap to email because the business has traditionally been handled by paper and phone. He also knows there will be a move by corporate to require dealers to be Internet capable within three months. What factors should he consider in determining his communications method? A. What other traditional mechanisms have been used for dealerships B. Immediacy of need for information because the new product will be hot and dealers will want to know about it quickly C. The technical details that will need to be communicated D. Other stakeholders on the project; dealerships are not the only interested party

A8: Answer B is correct. Allen has considered the availability of technology, the expected expertise of the recipient, and the possibility that the technology will change during the project. This is tricky because Answer A would be a logical route to pursue, and Answer C would be a factor to consider in the communication content, but not the method. Answer D is also tempting but not the best answer because other stakeholders do matter, but the method can be tailored to their needs as well.

9: Reggie is developing a communications plan for his project. It is an informal and broadly framed statement indicating communications will be "as frequent as necessary as determined by the project control board" within his overall project plan and a communications matrix that provides the information on who will get what information when and how. What is he missing? A. A statement of how data will be collected and stored and corrections distributed B. A method for assessing information between scheduled communications C. A method of updating and refining the communications management plan as the project progresses D. A production schedule showing when each communication will be produced

A9: Answer A is correct. The broadly framed statement does not mention data collection or storage. Answer B is incorrect because the project control board will assess information between scheduled communications. Answer C is incorrect because the project control board would also serve the function of modifying the plan if necessary. Answer D is incorrect because a communications matrix is the production schedule of when each type of communication will be produced.