PMP Rita - All Ch08-14

4. Which of the following risk events is MOST likely to interfere with attaining a project's schedule objective? A. Delays in obtaining required approvals B. Substantial increases in the cost of purchased materials C. Contract disputes that generate claims for increased payments D. Slippage of the planned post-implementation review meeting

Answer A Cost increases (choice B) and contract disputes (choice C) will not necessarily interfere with schedule. Notice the words "post-implementation" in choice D. It will not definitely interfere with the project schedule. Choice A is the only one that deals with a time delay.

29. You have just been assigned as the project manager for a new telecommunications project that is entering the second phase of the project. There appear to be many risks on this project, but no one has evaluated them to assess the range of possible project outcomes. What needs to be done? A. Plan Risk Management B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks

Answer A Did you notice that this project has already begun? Risk management is a required element of project management. You must complete the risk management process, starting with the Plan Risk Management process, making choice A the correct choice.

37. A project manager is creating a risk response plan. However, every time a risk response is suggested, another risk is identified that is caused by the response. Which of the following is the BEST thing for the project manager to do? A. Document the new risks and continue the Plan Risk Responses process B. Make sure the project work is better understood C. Spend more time making sure the risk responses are clearly defined D. Get more people involved in the Identify Risks process, since risks have been missed

Answer A Did you realize this question describes secondary risks? Identifying secondary risks is good and expected while completing the Plan Risk Responses process. With that in mind, the best thing to do is choice A.

18. The project is just starting out and consists of people from 14 different departments. The project charter was signed by one person and contains over 30 major requirements that must be met on the project. The sponsor has informed the project manager that the SPI must be kept between 0.95 and 1.1. A few minutes of investigation resulted in the identification of 34 stakeholders, and the schedule objectives on the project are constrained. A project manager has just been hired. Which of the following types of project management power will BEST help the project manager gain the cooperation of others? A. Formal B. Referent C. Penalty D. Expert

Answer A Generally, the best forms of power are reward or expert. The project manager has not had time to become a recognized expert in the company (choice D) and reward is not included as a choice here. This leaves formal power (choice A) as the only logical answer.

39. What type of contract do you NOT want to use if you do not have enough labor to audit invoices? A. Cost plus fixed fee (CPFF) B. Time & material (T&M) C. Fixed price (FP) D. Fixed price incentive fee (FPIF)

Answer A If you got this question wrong, reread it. You need to audit invoices in all contract types, so how do you choose? Look for the answer that is BEST. In this case, it would be the choice that requires the greatest effort. A T&M contract (choice B) should be for small dollars and short duration (remember that a T&M contract has no incentive to finish), so it does not have a great risk. Choices C and D cannot be best because the risk to the buyer is limited-they are still only going to pay the contract price. In a CPFF contract, the buyer pays all costs. The seller could be charging the buyer for costs that should not be allocated to the buyer. Because of the size and dollar amount of these type of contracts and because the risk to the buyer is great, CPFF contracts need the most auditing. Since this question asked for which one you do not want to use, the answer must be choice A.

18. The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The buyer points out that the performing organization spent a lot of money hiring a design team to come up with the design. The project manager is concerned that the risk for the buyer be as small as possible. An advantage of a fixed price contract for the buyer is: A. Cost risk is lower B. Cost risk is higher C. There is little risk D. Risk is shared by all parties

Answer A If you had trouble with this one, you need to remember that the questions are asked from the buyer's perspective unless otherwise noted. In this case, the seller has the most cost risk, and the buyer's risk is lower.

10. Risk tolerances are determined in order to help: A. The team rank the project risks B. The project manager estimate the project C. The team schedule the project D. Management know how other managers will act on the project

Answer A If you know the tolerances of the stakeholders, you can determine how they might react to different situations and risk events. You use this information to help assign levels of risk on each work package or activity.

8. The project status report is an example of which type of communication? A. Formal written communication B. Formal verbal communication C. Informal written communication D. Informal verbal communication

Answer A The project status needs to be known by many people. Therefore, it is best to make this type of communication in writing so that it can be transmitted to many people. It is also formal in that it is an official report of the project. Therefore, choice A is the best answer.

8. What does a resource histogram show that a responsibility assignment matrix does not? A. Time B. Activity C. Interrelationships D. The person in charge of each activity

Answer A The responsibility assignment matrix maps specific resources against the work packages from the WBS. On a resource histogram, the use of resources is shown individually or by groups over time.

9. You have just been assigned as project manager for a large telecommunications project. This one-year project is about halfway done. The project team consists of 5 sellers and 20 of your company's employees. You want to understand who is responsible for doing what on the project. Where would you find such information? A. Responsibility assignment matrix B. Resource histogram C. Bar chart D. Project organization chart

Answer A The responsibility assignment matrix maps who will do the work. The resource histogram (choice B) shows the number of resources used in each time period. In its pure form, a bar chart (choice C) shows only activity and calendar date. An organizational chart (choice D) shows who reports to whom.

22. Conflict resolution techniques that may be used on a project include confronting, smoothing, forcing, and: A. Withdrawing B. Directing C. Organizing D. Controlling

Answer A There is always the option to simply postpone dealing with the issue until later. This is withdrawing.

18. During a team meeting, the team adds a specific area of extra work to the project because they have determined it would benefit the customer. What is wrong in this situation? A. The team is gold plating B. These efforts shouldn't be done in meetings C. Nothing. This is how to meet or exceed customer expectations D. Nothing. The project manager is in control of the situation

Answer A This is an example of gold plating. You should provide ONLY what the customer asked for. The team does not know if their change will provide benefit to the customer. Focus efforts on fulfilling the requirements.

27. The cost performance index (CPI) of a project is 0.6 and the schedule performance index (SPI) is 0.71. The project has 625 work packages and is being completed over a four-year period. The team members are very inexperienced, and the project received little support for proper planning. Which of the following is the BEST thing to do? A. Update risk identification and analysis B. Spend more time improving the cost estimates C. Remove as many work packages as possible D. Reorganize the responsibility assignment matrix

Answer A This project has deviated so far from the baseline that updated risk identification and risk analysis should be performed.

36. A project team is creating a project management plan when management asks them to identify project risks and provide some form of qualitative output as soon as possible. What should the project team provide? A. Prioritized list of project risks B. Risk triggers C. Contingency reserves D. Probability of achieving the time and cost objectives

Answer A This question essentially asks, "What is an output of the Perform Qualitative Risk Analysis process?" Only Choice A meets that criteria. Choices B and C are parts of the Plan Risk Responses process. Choice D occurs during the Perform Quantitative Risk Analysis process.

21. During the Plan Risk Management process, your team has come up with 434 risks and 16 major causes of those risks. The project is the last of a series of projects that the team has worked on together. The sponsor is very supportive, and a lot of time was invested in making sure the project work was complete and signed off by all key stakeholders. During project planning, the team cannot come up with an effective way to mitigate or insure against a risk. It is not work that can be outsourced, nor can it be deleted. What would be the BEST solution? A. Accept the risk B. Continue to investigate ways to mitigate the risk C. Look for ways to avoid the risk D. Look for ways to transfer the risk

Answer A This question relates real-world situations to risk types. Did you realize that the entire first paragraph is extraneous (belanglos)? Based on the question, you cannot delete the work to avoid it, nor can you insure or outsource to transfer the risk. This leaves acceptance as the only correct choice.

16. In a fixed price (FP) contract, the fee or profit is: A. Unknown B. Part of the negotiation involved in paying every invoice C. Applied as a line item to every invoice D. Determined with the other party at the end of the project

Answer A To the seller, it is known, but this question is from the buyer's perspective. You do not know what profit the seller included in the contract.

7. Communications under a contract should tend toward: A. Formal written communication B. Formal verbal communication C. Informal written communication D. Informal verbal communication

Answer A When we talk about contracts, everything that we do is more formal than in other project activities. Records are also important, thus the need for written communication.

5. If a risk has a 20 percent chance of happening in a given month, and the project is expected to last five months, what is the probability that this risk event will occur during the fourth month of the project? A. Less than 1 percent B. 20 percent C. 60 percent D. 80 percent

Answer B Don't feel too silly if you got this wrong. Many people miss this one. No calculation is needed. If there is a 20 percent chance in any one month, the chance in the fourth month must therefore be 20 percent.

5. Formal written correspondence with the customer is required when: A. Defects are detected B. The customer requests additional work not covered under contract C. The project has a schedule slippage that includes changes to the critical path D. The project has cost overruns

Answer B Everything that we do is more formal in a procurement environment than in other project activities. Because choice B deals with contracts, it is the best answer.

26. At the end of a project, a project manager determines that the project has added four areas of functionality and three areas of performance. The customer has expressed satisfaction with the project. What does this mean in terms of success of the project? A. The project was an unqualified success B. The project was unsuccessful because it was gold plated C. The project was unsuccessful because the customer being happy means they would have paid more for the work D. The project was successful because the team had a chance to learn new areas of functionality and the customer was satisfied

Answer B Gold plating a project wastes time and probably cost. It makes the project unsuccessful.

27. A project manager is in the middle of creating a request for proposal (RFP). What part of the procurement process is she in? A. Conduct Procurements B. Plan Procurements C. Administer Procurements D. Make-or-Buy Analysis

Answer B In the Plan Procurements process, we create the procurement documents. The request for proposal is one of those documents.

2. To what does the following sentence refer? "The point where the benefits or revenue to be received from improving quality equals the incremental cost to achieve that quality" A. Quality control analysis B. Marginal analysis C. Standard quality analysis D. Conformance analysis

Answer B Know the term so you will be able to answer questions that deal with this concept. Choices A, C, and D may sound good, but they are made-up terms.

6. The MOST common causes of conflict on a project are schedules, project priorities, and: A. Personality B. Resources C. Cost D. Management

Answer B Know the top four sources (schedule, project priorities, resources, and technical opinions) so you can answer questions such as this one. Don't be fooled because "personality" is on the list. It is last.

10. All of the following MUST be present to have a contract EXCEPT: A. Procurement statement of work B. Acceptance C. Address of the seller D. Buyers' signatures

Answer C Many people miss the fact that a contract includes a procurement statement of work(choice A). To have a contract, you must also have acceptance (choice B). One set of signatures is not enough; you must have sign-off (i.e., acceptance) from both parties, so choice D is only partially correct. The address of the seller (choice C) is not required, and therefore is the exception.

36. The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project to be awarded to a different seller, The BEST thing the project manager should remind the team to focus on in order to make a selection is the: A. Procurement documents B. Procurement audits C. Evaluation criteria D. Procurement management plan

Answer C The evaluation criteria are the primary tools for evaluating potential sellers and should be used by the entire team in order to make a selection.

14. A team member is not performing well on the project because she is inexperienced in system development work. There is no one else available who is better qualified to do the work. What is the BEST solution for the project manager? A. Consult with the functional manager to determine project completion incentives for the team member B. Obtain a new resource more skilled in development work C. Arrange for the team member to get training D. Allocate some of the project schedule reserve

Answer C The job of the project manager includes providing or obtaining project-specific training for team members. This kind of training is a direct cast of the project.

3. The MOST likely result of communication blockers is that: A. The project is delayed B. Trust level is enhanced C. Conflict occurs D. Senior management is displeased

Answer C The major result of communication blockers and miscommunication as a whole is conflict.

19. The project team has created a plan for how they will implement the quality policy. It addresses the organizational structure, responsibilities, procedures, and other information about plans for quality. If this changes during the project, WHICH of the following plans will also change? A. Quality assurance plan B. Quality management plan C. Project management plan D. Quality control plan

Answer C The plan described is the quality management plan. Since the quality management plan is included in the project management plan, changing the quality management plan will also change the project management plan.

32. After much excitement and hard work, the procurement statement of work for the project is completed. Even after gaining agreement that the procurement statement of work is complete, the project manager is still concerned whether it actually addresses all the buyer's needs. The project manager is about to attend the bidder conference. He asks you for advice on what to do during the session. Which of the following is the BEST advice you can give him? A. You do not need to attend this session. The contract manager will hold it B. Make sure you negotiate project scope C. Make sure you give all the sellers enough time to ask questions. They may not want to ask questions while their competitors are in the room D. Let the project sponsor handle the meeting so you can be the good guy in the negotiation session

Answer C The project manager should attend the bidder conference, so choice A is incorrect. Did you select choice B because the question referred to a concern about scope? Then read the choice again. lt talks about negotiation, and negotiation occurs after the seller is selected, not during the bidder conference. The procurement manager usually holds the bidder conference, so choice D is incorrect. Choice C describes one of the many challenges of a bidder conference and is therefore the best answer.

25. You were in the middle of a two-year project to deploy new technology to field offices across the country. A hurricane caused power outages just when the upgrade was near completion. When the power was restored, all of the project reports and historical data were lost with no way of retrieving them. What should have been done to prevent this problem? A. Purchase insurance B. Plan for a reserve fund C. Monitor the weather and have a contingency plan D. Schedule the installation outside of the hurricane season

Answer C The risk is the loss of data due to a power outage. Choice A is not related to "mitigating" the problem. It transfers the risk. A reserve fund (choice B) is acceptance and would help address the cost factors after the power failure, but would not reduce the probability or impact of it. Avoiding the hurricane by scheduling the installation at a different time (choice D) mitigates the power outage risk but could have a large negative impact on the project schedule and so is not the best choice. The better choice of the mitigation options (choices C and D) is to monitor the weather and know when to implement the contingency plan.

14. A control chart shows seven data points in a row on one side of the mean. What should be done? A. Perform a design of experiments B. Adjust the chart to reflect the new mean C. Find an assignable cause D. Nothing. This is the rule of seven and can be ignored

Answer C The rule of seven applies here. If you have seven data points in a row on the same side of the mean, statistically the mean has shifted, calling for action to correct the problem.

31. During the first half of the project, five team members left for other projects without being replaced, two team members went on vacation without informing you, and other team members expressed uncertainty about the work they were to complete. In this situation, it is BEST if you create a _____ for the second half of the project. A. Work breakdown structure B. Resource histogram C. Staffing management plan D. Responsibility assignment matrix

Answer C The staffing management plan describes when resources will be brought onto and taken off the project.

32. The customer requests a change to the project that would increase the project risk. Which of the following should you do before all the others? A. Include the expected monetary value of the risk in the new cost estimate. B. Talk to the customer about the impact of the change. C. Analyze the impacts of the change with the team. D. Change the risk management plan.

Answer C This is a recurring theme. First, you should evaluate the impact of the change. Next, determine options. Then go to management and the customer.

22. You are asked to select tools and techniques to implement a quality assurance program to supplement existing quality control activities. Which of the following would NOT be appropriate for this purpose? A. Quality audits B. Statistical sampling C. Pareto charts D. Focus groups

Answer D Quality audits (choice A), statistical sampling (choice B), and Pareto charts (choice C) are tools and techniques used in the Perform Quality Assurance and Perform Quality Control processes. Focus groups are a tool of the Collect Requirements process, and would not be useful in the Perform Quality Assurance process.

25. The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project awarded to a different seller. What part of the procurement process is the team in? A. Plan Procurements B. Administer Procurements C. Negotiate Contract D. Conduct Procurements

Answer D Selected sellers are an output of the Conduct Procurements process.

15. A project has several teams. Team C has repeatedly missed deadlines in the past. This has caused team D to have to crash the critical path several times. As the team leader for team D, you should meet with the: A. The leader of team C B. Project manager C. Project manager and management D. Project manager and the leader of team C

Answer D Those having the problem should resolve the problem. Having had to crash the critical path several times implies that team D has already dealt with these problems. In this case, the two team leaders need to meet. The extent of this situation requires the project manager's involvement as well.

4. Communications are often enhanced when the sender ___ the receiver. A. Speaks up to B. Uses more physical movements when talking to C. Talks slowly to D. Shows concern for the perspective of

Answer D Understanding the receiver's perspective allows you to direct the communication to meet his needs.

1. All of the following are forms of power derived from the project manager's position EXCEPT: A. Formal B. Reward C. Penalty D. Expert

Answer D When someone is given the job of project manager, they will have formal, reward, and penalty power. But just having the position does not make the project manager either a technical or project management expert.

40. A new project manager is about to begin creating the procurement statement of work. One stakeholder wants to add many items to the procurement statement of work. Another stakeholder only wants to describe the functional requirements. The project is important for the project manager's company, but a seller will do the work. How would you advise the project manager? A. The procurement statement of work should be general to allow the seller to make his own decisions B. The procurement statement of work should be general to allow clarification later C. The procurement statement of work should be detailed to allow clarification later D. The procurement statement of work should be as detailed as necessary for the type of project

Answer D When the seller has more expertise than the buyer, the procurement statement of work should describe performance or function rather than a complete list of work. In any case, the procurement statement of work should be as detailed as possible.

24. The requirements of many stakeholders were not approved for inclusion in your project. Therefore, you had a difficult time receiving formal approval of the project management plan for this project. The stakeholders argued and held up the project while they held meeting after meeting about their requirements. The project was finally approved and work began six months ago. All of the following would be good preventive actions to implement EXCEPT: A. Keep a file of what requirements were not included in the project B. Make sure the change control process is not used as a vehicle to add the requirements back into the project C. Maintain an issue log D. Hold meetings with the stakeholders to go over the work that will not be added to the project

Answer D Why would choice D be the action not to take? Isn't it similar to choice A? Yes and no. This issue should be over, but since there were so many meetings and arguments about the requirements being removed, it is unlikely that the issue will be dropped by the stakeholders. However, since it has not come up again, and the project was started six months ago, spending time in a meeting is excessive. The other choices are easier and have less impact on the project and are therefore things that could be done.

15. You are managing a project in a just-in-time environment. This will require more attention, because the amount of inventory in such an environment is generally: A. 45 percent B. 10 percent C. 12 percent D. 0 percent

Answer D With a just-in-time environment, supplies are delivered when you need them and not before. Therefore, you have little or no inventory.

21. A project manager has just been assigned a team that comes from many countries, including Brazil, Japan, the US, and Britain. What is her BEST tool for success? A. The responsibility assignment matrix (RAM) B. The teleconference C. Team communication with the WBS D. Communication and well-developed people skills

Answer D Working with people from different cultures, with different cultural values and beliefs, necessitates an understanding of both basic definitions and the areas of cultural impact. As project managers, we need to have good communication skills and a willingness to adapt to other cultures.

19. As part of the records management system, you are trying to make sure that all records from the procurement are documented and indexed. Which of the following do you NOT have to worry about? A. Proposal B. Procurement statement of work C. Terms and conditions D. Negotiation process

Answer D You will see long, wordy questions consisting of many paragraphs on the exam, but do not let them worry you. Sometimes the briefer questions are harder. To answer this question, you need to know what a records management system is and that it would not be used to keep track of negotiations. The negotiation process is not a document.

56. A project manager has just found out that a major subcontractor for her project is consistently late delivering work. The project team member responsible for this part of the project does not get along with the subcontractor. To resolve the problem, the project manager says, "You will have to give up something to solve this problem." What conflict resolution method is she using? A. Confrontation B. Compromise C. Smoothing D. Communicating

Answer: B Compromise

53. A project manager must publish a project schedule. Activities, start/end times, and resources are identified. What should the project manager do NEXT? A. Distribute the project schedule according to the communications management plan. B. Confirm availability of resources C. Refine the project management plan to reflect more accurate costing information. D. Publish a bar chart illustrating the timeline

Answer: B Confirm the availability of resources

55. You are a project manager leading a cross-functional project team in a weak matrix environment. None of your project team members report to you functionally ad you do no have the ability to directly reward their performance. The project is difficult, involving tight date constraints and challenging quality standards. Which of the following types of project management power will likely be the MOST effective in this circumstance? A. Referent B. Expert C. Penalty D. Formal

Answer: B Expert

38. Who manages the resources in a matrix organization? A. Senior Managers B. Functional Managers C. Project Manager D. Human Resources

Answer: B Functional Managers

47. The most important role of the project sponsor is to: A. Manage and resolve conflicts between the team and upper management B. Provide and protect the project's financial resources C. Provide and project the project's human resources D. Balance the project's constraints regarding time, scope, and cost.

Answer: B Provide and protect the project's financial resources

48. The most common cause of conflict on a project are schedules, project priorities, and: A. Personalities B. Resources C. Cost D. Management

Answer: B Resources

41. An obstacle to team building in a matrix organization is that the: A. Team organization is technically focused B. Team members are borrowed resources and can be hard to motivate C. Teams are too centralized D. Teams are too large and therefore very hard to handle.

Answer: B Team members are borrowed resources and can be hard to motivate

51. Which of the following is not an input into Develop Human Resource Plan? A. Enterprise Environmental Factors B. Role and Responsibility assignments C. Organizational Process Audits D. Activity Resource Requirements

Answer: B. Role and Responsibility assignments

54. During every project team meeting, the project manager asks each team member to describe the work he or she is doing, and the project manager assigns new activities to team members. The length of these meetings has increased because there are many different activities to assign. This could be happening for all the following reasons EXCEPT? A. Lack of a WBS B. Lack of a responsibility assignment matrix C. Lack of resource leveling D. Lack of team involvement in project planning.

Answer: C Lack of resource leveling.

39. The "Halo Effect" refers to the tendency to: A. Promote from within B. Hire the best C. Move people into project management because they are good in their technical fields. D. Move people into project management because they have had project management training.

Answer: C Move people into project management because they are good in their technical fields.

40. What is considered the LEAST desirable form of power for a project manager to exercise? A. Formal B. Referent C. Punishment D. Forcing

Answer: C Punishment

43. All of the following are typical concerns of matrixed team members EXCEPT? A. Wondering who will handle their evaluations B. Servicing multiple bosses C. Developing commitment D. Computing fringe benefits when working multiple projects

Answer: D Computing fringe benefits when working multiple projects

37. The highest point of Maslow's hierarchy if needs is? A. Physiological Satisfaction B. Attainment of Survival C. Need for Association D. Esteem

Answer: D Esteem

35. All of the following are forms of power derived from the project manager's positions EXCEPT? A. Formal B. Reward C. Penalty D. Expert

Answer: D Expert

44. The Human Resource Plan: A. Should be created by the Human Resources department B. IS a part of the resource management plan C. Is a tool of Develop Project Team D. Is an output of the Develop Human Resource Plan Process

Answer: D Is an output of the Develop Human Resource Plan Process

46. Which type of organization is BEST for managing complex projects involving cross-disciplinary efforts? A. Projectized B. Functional C. Line D. Matrix

Answer: D Matrix

42. Which statement below BEST matches a Theory X manager's beliefs? A. People want to be rewarded for their work B. People have higher needs that will not emerge until the lower level needs have been satisfied C. People will contribute to work if left alone D. People cannot be trusted.

Answer: D People cannot be trusted

58. A project manager had a complex problem to solve and made a decision about what needed to be done. A few months late, the problem resurfaced. What did the project manager most likely not do? A. Proper risk analysis B. Confirm that the decision solved the problem C. Have the project sponsor validate the decision D. Use an Ishikawa diagram

Answer: D Use an Ishikawa diagram

49. Human resource management encompasses: A. Organizational Planning, Acquire Project Team, Report Performance, and Manage Project Team. B. Develop Human Resource Plan, Acquire Project Team, Report Performance, and Develop Project Team. C. Develop Human Resource Plan, Staff Acquisition, Develop Project Team, and Release Project Team D. Develop Human Resource Plan, Acquire Project Team, Develop Project Team, Manage Project Team

Answer: D. Develop Human Resource Plan, Acquire Project Team, Develop Project Team, Manage Project Team

59. Work on a project is ongoing when the project manager overhears two workers arguing over what a set of instructions mean. The project manager investigates and discovers that the instructions for the construction of concrete footings currently being poured were poorly translated between the different languages in use on the project. Which of the following is the BEST thing for the project manager to do FIRST? A. Get the instructions translated by a more experienced party B. Look for quality impacts of the poor translation of the instructions for the footings. C. Bring the issue to the attention of the team and ask them to look for other translation problems. D. Inform the sponsor of the problem in the next project report.

Answer : B. Look for quality impacts of the poor translation of the instructions for the footings.

14. Outputs of the Plan Risk Responses process include: A. Residual risks, fallback plans, and contingency reserves B. Risk triggers, contracts, and a risk list C. Secondary risks, process updates, and risk owners D. Contingency plans, project management plan updates, and change requests

Answer A A risk list (choice B), process updates (choice C), and change requests (choice D) are not outputs of the Plan Risk Responses process. The items in choice A are all outputs of the Plan Risk Responses process, making choice A the correct answer.

13. Which ofthe following activities occurs during the Plan Procurements process? A. Make-or-buy decisions B. Answering sellers' questions about the bid documents C. Advertising D. Proposal evaluation

Answer A Answering sellers' questions (choice B), advertising (choice C), and proposal evaluation (choice D) occur during the Conduct Procurements process.

1. When a product or service completely meets a customer's requirements: A. Quality is achieved B. The cost of quality is high C. The cost of quality is low D. The customer pays the minimum price

Answer A As a general rule, one cannot say that quality (as defined in the question) is either of high or low cost (choices Band C) or that it provides the minimum price (choice D). lt does give the customer what the customer wanted, which may not be the lowest or highest cost. Therefore, the best answer is A.

30. Which of the following leadership traits is MOST important for a project manager? A. Communication B. Team building C. Technical expertise D. Project control

Answer A As project managers spend 90 percent of their time communicating, the correct choice must be A.

21. Which of the following is an advantage of centralized contracting? A. Increased expertise B. Easier access C. No home D. More loyalty to the project

Answer A Centralized contracting usually means harder access and less loyalty. Therefore, choices B and D are disadvantages. The fact that procurement managers have no home when they're not working on a project (choice C) is also a disadvantage.

34. Close Procurements is different from Close Project or Phase in that Close Procurements: A. Occurs before project closure B. Is the only one to involve the customer C. Includes the return of property D. May be done more than once for each contract

Answer A Choice B cannot be correct since the customer may be involved in lessons learned and procurement audits and would certainly be involved in formal acceptance. Choice C cannot be correct since both Close Procurements and Close Project or Phase involve the return of property. Close Procurements is done only once for each contract, so choice D cannot be correct. Choice A is correct because contracts are closed out before the project is closed out with the Close Project or Phase process.

27. The project CPI is 1.02, the benefit cost ratio is 1.7, and the latest round of performance reviews identified few needed adjustments. The project team was co-located into a new building when the project started. Everyone commented on how excited they were to have all new facilities. The sponsor is providing adequate support for the project, and few unidentified risks have occurred. In an attempt to improve performance, the project manager spends part of the project budget on new chairs for the team members and adds the term "senior" to each team member's job title. Which of the following is the MOST correct thing that can be said of this project or the project manager? A. The project manager has misunderstood Herzberg's theory B. The project is slowly spending more money than it should. The project manager should begin to watch cost more carefully C. The performance review should be handled better to find more adjustments D. The project manager should use good judgment to determine which variances are important

Answer A Choice B includes the concept of cost to trick you into selecting it if you are unsure of the real answer. There is no indication that the costs are trending in any particular direction. There is no reason to think that performance reviews should turn up more adjustments (choice C). The project manager should always use good judgment (choice D), but nothing in this question talks about judgment regarding variances, so this cannot be the best choice, In this situation, the project manager is making great working conditions better. According to Herzberg's theory, fixing bad working conditions will help you to motivate, but making good working conditions better will not improve motivation. You need to focus on the motivating agents and not the hygiene factors

8. Pareto charts help the project manager: A. Focus on the most critical issues to improve quality B. Focus on stimulating thinking C. Explore a desired future outcome D. Determine if a process is out of control

Answer A Choices B and C relate to fishbone diagrams. Choice D relates to control charts. Only choice A relates to Pareto charts.

17. A project manager and team from a firm that designs railroad equipment are tasked to design a machine to load stone onto railroad cars. The design allows for two percent spillage, amounting to over two tons of spilled rock per day. In which of the following does the project manager document quality control, quality assurance, and quality improvements for this project? A. Quality management plan B. Quality policy C. Control charts D. Project management plan

Answer A Choices Band C are components of a quality management plan. The quality management plan is part of the project management plan. The best answer is the quality management plan.

12. What is one of the KEY objectives during contract negotiations? A. Obtain a fair and reasonable price B. Negotiate a price under the seller's estimate C. Ensure that all project risks are thoroughly delineated D. Ensure that an effective communications management plan is established

Answer A Choices C and D are good ideas, but not the key objective. Negotiations should be win/win, so choice B is not the best choice. A fair and equitable price (choice A) will create a good working atmosphere. Otherwise, you will pay later, on change orders.

23. The installation project has a CPI of 1.03 and an SPI of 1.0. There are 14 team members, and each team member had input into the final project management plan. The customer has accepted the three deliverables completed so far without complaint and the responsibility assignment matrix has not changed since the project began. The project is being completed in a matrix environment and there are no contracts needed for the project. Though the sponsor is happy with the status of the project, one of the team members is always complaining about how much time his project work is taking. Which of the following would be the BEST thing for the project manager to do? A. Review the reward system for the project B. Try to improve schedule performance of the project C. Meet with the customer to try to extend the schedule D. Gain formal acceptance in writing from the customer

Answer A Improving schedule performance (choice B) relates to getting the project completed sooner. Though it would seem to always be a good idea to improve schedule performance, this project's performance is fine. The schedule has been approved as it is. lt would be better for the project manager to spend more time controlling the project to make sure it finishes according to plan than to improve schedule performance. If you chose C, ask yourself why. There is nothing wrong with the schedule performance of the project that would require an extension. Did you think that the best way to deal with the complaining stakeholder was to give hirn more time? How do you know the team member's activities are on the critical path? lt is always important to gain formal acceptance from the customer, as it provides an opportunity for the team to check if everything is going well, lt is a good idea to get such acceptance in writing. Choice D could be done, but there is a more important problem that takes precedence here. Read on. The only thing glaringly wrong in this situation is that the team member is complaining. If you read the situation completely, you will notice that the team member was involved and approved the project management plan, including his own involvement in the project. Since the responsibility assignment matrix has not changed, the team member has not even been assigned different duties since the project began. There must be something else causing the team member to complain. The project manager should investigate and find out what part of the reward system is ineffective.

22. With which type of contract is the seller MOST concerned about project scope? A. Fixed price B. Cost plus fixed fee C. Time and material D. Purchase order

Answer A In a fixed price contract, the seller has the cost risk and therefore wants to completely understand the procurement statement of work before bidding.

31. The project manager and project sponsor are discussing the project costs and whether it is better to have their own company do part of the project or hire another company to do the work. If they asked for your opinion, you might say it would be better to do the work yourself if: A. There is a lot of proprietary data B. You have the expertise but you do not have the available manpower C. You do not need control over the work D. Your company resources are limited

Answer A It is generally better to do the work yourself if using an outside company means you have to turn over proprietary data to the other company.

19. A project manager wants to more extensively involve the stakeholders on the project. Which of the following would be the BEST way to accomplish this? A. Have the stakeholders periodically review the list of project requirements B. Invite the stakeholders to attend project status meetings C. Send the status report to the stakeholders D. Constantly update the stakeholders on the status of all project changes

Answer A It seems like all of these are good ideas, but choice A helps discover errors and changes, and could therefore be considered the best choice.

29. The management theory that states that all people can direct their own efforts is: A. Theory Y B. Herzberg's theory C. Maslow's hierarchy D. Theory X

Answer A Know the difference between Theory X and Theory Y.

23. The purpose of status meetings is to: A. Exchange information about the project B. Have team members report on what they are doing C. Issue work authorizations D. Confirm the accuracy of the costs submitted by the team

Answer A Many people select choice B, but the question asks for the purpose of such meetings. Team members' reporting on what they are doing may best be done outside of meetings. The main purpose is choice A.

35. Monte Carlo analysis is used to: A. Get an indication of the risk involved in the project B. Estimate an activity's length C. Simulate the order in which activities occur D. Prove to management that extra staff is needed

Answer A Notice how many choices are half right? Monte Carlo could help you know that an estimate for an activity needs to change, but not what the activity estimate should be (choice B). Monte Carlo is a simulation (choice C), but it simulates time, not order of activities. Monte Carlo can be used to prove things to management (choice D), but its main focus deals with time, not staff. Risk can be assessed using Monte Carlo analysis (choice A). By considering the inputs to the PERT estimates and the network diagram, you can obtain a better overview of the overall project risk.

5. A manager notices that a project manager is holding a meeting with some of the team and some stakeholders to discuss the quality of the project. The project schedule has been compressed, and the CPI is 1.1. They have worked hard on the project, the team has been rewarded according to the reward system the project manager put in place, and there is a strong sense of team. The manager suggests that the project manager does not have enough time to hold meetings about quality when the schedule is so compressed. Which of the following BEST describes why the manager is wrong? A. Improved quality leads to increased productivity, increased cost effectiveness, and decreased cost risk B. Improved quality leads to increased productivity, decreased cost effectiveness, and increased cost risk C. Improved quality leads to increased productivity, increased cost effectiveness, and increased cost risk D. Improved quality leads to increased productivity, decreased cost effectiveness, and decreased cost risk

Answer A Notice in this question that there is a lot of data not relevant to answering the question ? Expect these distracters to occur in almost every question on the exam. Quality should produce a decrease rather than an increase in cost risk as a result of less rework, so choices B and C can be eliminated. Quality should also provide increased cost effectiveness due to less rework. This eliminates Choice D, leaving the best answer, choice A.

6. A routine audit of a cost reimbursable (CR) contract determines that overcharges are being made. If the contract does not specify corrective action, the buyer should: A. Continue to make project payments B. Halt payments until the problem is corrected C. Void the contract and start legal action to recover overpayments D. Change the contract to require more frequent audits

Answer A Notice that choice B is really saying "halt ALL payments," Halting all payments would be a breach of contract on the buyer's part. Choice C is too severe and cannot be done unilaterally. Choice D does not solve the problem presented. A choice that said, "Halt payments on the disputed amount" would probably be the best answer, but it is not offered. The best answer is A.

10. During project planning in a matrix organization, the project manager determines that additional human resources are needed. From whom would he request these resources? A. Project manager B. Functional manager C. Team D. Project sponsor

Answer B Did you remember that in a matrix organization, the functional manager controls the resources?

31. During project executing, a major problem occurs that was not included in the risk register. What should you do FIRST? A. Create a workaround B. Reevaluate the Identify Risks process C. Look for any unexpected effects of the problem D. Tell management

Answer A Notice that this is a problem that has occurred, rather than a problem that has just been identified. Following the right process is part of professional and social responsibility. Because an unidentified problem or risk occurred, it is important to perform choices B and C. However, they are not your first choices. You might need to inform management (choice D) but this is reactive, not proactive, and not the first thing you should do.

3. All of the following statements concerning procurement documents are incorrect EXCEPT: A. Well-designed procurement documents can simplify comparison of responses B. Procurement documents must be rigorous with no flexibility to allow consideration of seller suggestions C. In general, bid documents should not include evaluation criteria D. Well-designed procurement documents do not include a procurement statement of work

Answer A Often the seller is required to inform the buyer of anything that is missing or unclear in the procurement documents (choice B). It is in the buyer's best interest to discover missing items, since it will save the buyer money and trouble to correct the problem early. Procurement documents must contain terms and conditions and evaluation criteria (choice C), as well as all the work that is to be done, including the procurement statement ofwork (choice D). This is so the seller can price the project and know what is most important to the buyer. Choice A is an important point for the real world and is the best answer.

16. There are several executing activities underway on your project. You are beginning to get concerned about the accuracy of the progress reporting your team members are doing. How could you verify whether here is a problem? A. Qulity audits B. Risk quantification reports C. Regression analysis D. Monte Carlo analysis

Answer A Quality audits are a necessary part of the Perform Quality Assurance process. They help you assess whether the processes are being followed crrectly on the project.

17. A team member is visiting the manufacturing plant of one of the suppliers. Which of the following is the MOST important thing to be done in any telephone calls the project manager might make to the team member? A. Ask the team member to repeat back what the project manager says B. Review the list of contact information for all stakeholders C. Ask the team member to look for change requests D. Review the upcoming meeting schedule

Answer A Questions like this can drive one crazy. Although it asks for the most important thing, there are many choices that are reasonably correct. In questions like this, look for the most immediate need. In this case, the team member is in a manufacturing environment. That means that communications will most likely be blocked by noise. In order to have the issue at hand, the communication, taken care of, it is BEST for the project manager to use choice A.

25. Project performance appraisals are different from team performance assessments in that project performance appraisals focus on: A. How an individual team member is performing on the project B. An evaluation of the project teams effectiveness C. A team-building effort D. Reducing the staff turnover rate

Answer A Questions like this can drive you crazy on the exam because it is easy to get confused. The best thing to do is to look at the two terms used here (project performance appraisals and team performance assessment) and review in your mind what each means BEFORE looking at the choices. Choices B, C, and D list aspects of team performance assessments. Only choice A is correct. Project performance appraisals deal with how each team member is performing work, rather than how well the team is working together.

40. Which of the following MUST be an agenda item at all team meetings? A. Discussion of project risks B. Status of current activities C. Identification of new activities D. Review of project problems

Answer A Risk is so important that it must be discussed at all team meetings.

32. The project manager is looking at the project's resource needs and lessons learned from past projects. This information causes the project manager to be concerned about the ability to acquire enough resources for the project in six months. Which of the following would be the LEAST effective preventive action? A. Make sure functional managers have a copy of the resource histogram B. Show the sponsor the data, and explain the project manager's concern C. Determine metrics to use as an early warning sign that resources will not be available D. Ask functional managers for their opinions

Answer A Sending data without pointing out the issue (choice A) increases the likelihood that the communication will not be adequately decoded by the recipient. The other choices are more effective communication in this instance.

28. Stakeholders can be identified in which project management process groups? A. Initiating, planning, executing, monitoring and controlling, and closing B. Initiating and planning C. Planning and monitoring and controlling D. Monitoring and controlling and closing

Answer A Stakeholders can be identified throughout the project management process groups. However, the earlier stakeholders are identified, the better for the project. If all of the stakeholders' needs and requirements are taken into account before plans are finalized and project work is begun, fewer changes will be needed later in the project, when they will be more costly.

26. When do stakeholders have the MOST influence on a project? A. At the beginning of the project B. In the middle of the project C. At the end of the project D. Throughout the project

Answer A Stakeholders must be identified and involved at the beginning of the project, in order to determine their requirements and expections. Remember that if this is not done early, the results may be expensive changes and/or dissatisfaction later in the project.

25. Design of experiments: A. Identifies which variables will have the most influence on a qualty outcome. B. Identifies which variables will have the least influence on a qualty outcome. C. Determines what a quality outcome is. D. Determines methods to be used for research and development.

Answer A The design of experiments technique allows you to find those factors that have the most impact on quality It allows the project manager to focus attention on the factors that are most important.

10. Testing the entire population would: A. Take too long B. Provide more information than wanted C. Be mutually exclusive D. Show many defects

Answer A The length of time it takes to test a whole population is one of the reasons to take a sample.

17. A project performed under a cost reimbursable contract has finally entered the Close Procurements process. What MUST the buyer remember to do? A. Decrease the risk rating of the project B. Audit seller's cost submittals C. Evaluate the fee he is paying D. Make sure that the seller is not adding resources

Answer B Although a reserve might be decreased for the project overall when one of its contracts enters closure, the risk rating of the project (choice A) may not be affected. Choice C should have been done during the Conduct Procurements process. Although choice D may be a concern during the Administer Procurements process, it is not common during Close Procurements. Choice B, audit seller's cost submittals, is part of the procurement audit and is a required aspect of Close Procurements.

3. Who is ultimately responsible for quality management on the project? A. The project engineer B. The project manager C. The quality manager D. The team member

Answer B Although each person working on the project should check their own work as part of any project, the project manager ultimately has the responsibility for quality on the project as a whole.

30. Your project has just been fast tracked and you are looking to quickly bring in a subcontractor to complete networking. There is no time to issue a request for proposal (RFP), so you choose to use a company you have used many times before for software development. A PRIMARY concern in this situation is: A. Collusion (Geheime Absprachen) between subcontractors B. The subcontractor's qualifications C. The subcontractor's evaluation criteria D. Holding a bidder conference

Answer B Although you have used this contractor before, how can you be sure the company is qualified to do the new work, since it is not exactly like the previous work? This is the risk you are taking.

7. The primary objective of contract negotiations is to: A. Get the most from the other side B. Protect the relationship C. Get the highest monetary return D. Define objectives and stick to them

Answer B As a project manager, you want to develop a relationship during negotiations that will last throughout the project.

14. A project manager has a project team consisting of people in four countries. The project is very important to the company, and the project manager is concerned about its success. The length of the project schedule is acceptable. What type of communication should he use? A. Informal verbal communication B. Formal written communication C. Formal verbal communication D. Informal written communication

Answer B Because of the differences in culture and the distance between team members, formal written communication is needed.

28. You just found out that a major subcontractor for your project consistently provides deliverables late. The subcontractor approaches you and asks you to continue accepting late deliverables in exchange for a decrease in project costs. This offer is an example of: A. Confronting B. Compromise C. Smoothing D. Forcing

Answer B Both parties are giving up something. This is a compromise

15. The sponsor is worried about the seller deriving extra profit on the cost plus fixed fee (CPFF) contract. Each month he requires the project manager to submit CPI calculations and an analysis of the cost to complete. The project manager explains to the sponsor that extra profits should NOT be a worry on this project because: A. The team is making sure the seller does not cut scope B. All costs invoiced are being audited C. There can only be a maximum 10 percent increase if there is an unexpected cost overrun D. The fee is only received by the seller when the project is completed

Answer B Choice A cannot be best because cutting scope decreases profits on this type of contract. Choice C cannot be best, as CPFF contracts generally do not limit fee increases. Choice D cannot be best, as the fee in a CPFF contract is usually paid out on a continuous basis during the life of the project. One of the ways to change the profit in a cost plus fixed fee contract is to invoice for items not chargeable to the project (choice B).

7. All the following are examples of Control Quality EXCEPT: A. Inspection B. Cost of quality C. Pareto chart D. Fishbone diagram

Answer B Choices A, C, and D are done as part of Perform Quality Assurance or Perform Quality Control (depending on how they are used). This leaves only choice B, which must be the best answer, as cost of quality is part of Plan Quality.

12. Communication is the key to the success of a project. As the project manager, you have three stakeholders with whom you need to communicate. As such, you have six channels of communication. A new stakeholder has been added that you also need to communicate with. How many communications channels do you have now? A. 7 B. 10 C. 12 D. 16

Answer B Did you realize that the project manager is part of the communication channels? Therefore, there are actually four stakeholders to begin with and six channels of communication. The question is asking how many total channels of communication you have with a team of five people. The formula is [N x (N-l)]/2 or (5 x 4)/2 = 10.

22. The project has 13 team members and affects over 15 departments in the organization. Because the project is 20 percent complete to date and the team has had successful performance reports from five of the affected departmnents, the project manager holds a party to celebrate. The project manager invites key stakeholders from all of the departments to the party, in order to give those providing good reviews an informal opportunity to communicate good things to those departments that have not yet been affected by the project. At the party, the project manager walks around to try to discover any relevant information that would help the project be more successful. He happens to hear a manager of one of the departments talking about setting up more regular meetings on the project. The BEST thing for the project manager to do would be to FIRST: A. Record the effectiveness of the party in the project lessons learned B. Review the information distribution methods on the project C. Hold a meeting of all the stakeholders to discuss their concerns D. Make sure the manager has a copy of the communications management plan so he is reminded that such concerns should be sent to the project manager

Answer B Many of these choices could be done, but ask yourself, "What is the most effective thing to do?" The party may well generate lessons learned, and recording them (choice A) would certainly be a good idea, but the question asked what to do first. There is a more immediate issue the manager. Choice C could also be useful, but it would require taking time of all the stakeholders when there is only one stakeholder, the manager, who definitely has an issue. Besides, a good project manager would be holding regular meetings with the stakeholders already. Choice D might be a good idea, as the manager apparently is not communicating with the project manager. However, this would not absolutely make sure the manager does communicate. The manager is, in effect, saying that he is not getting the information he needs. His lack of needed information is causing hirn to suggest more meetings. Too many meetings are a problem on projects. The concept of information distribution (choice B) is to determine who needs what information and plan how to get it to them. A great project manager does not just add meetings, but solves the real problem in the best way. That might take the form of changing a report or sending existing reports to different people rather than adding meetings. For these reasons, choice B is best.

9. When a project manager is engaged in negotiations, nonverbal communication skills are of: A. Little importance B. Major importance C. Importance only when cost and schedule objectives are involved D. Importance only to ensure you win the negotiation

Answer B Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal communication is of major importance.

26. The project team seems to like to argue; they have argued about everything. Luckily the project manager has set in place a reward system and team-building sessions that will help and encourage the team to cooperate more. The Iatest thing they are arguing about is whether they should complete a work package themselves or outsource the work to someone else. What part of the procurement process must they be in? A. Conduct Procurements B. Plan Procurements C. Administer Procurements D. Claims Administration

Answer B Notice that much of this question is irrelevant? Did you also notice that the words "make-or-buy decision' were not used in the question? Instead, the question used the definition of make-or-buy. Watch out for this on the exam. A make-or-buy decision is needed before the rest of the procurement process can occur. Therefore, the situation must be taking place in one of the early steps of the procurement process.

26. A project manager had a complex problem to solve and made a decision about what needed to be done. A few months later, the problem resurfaced. What did the project manager MOST likely not do? A. Proper risk analysis B. Confirm that the decision solved the problem C. Have the project sponsor validate the decision D. Use an Ishikawa diagram

Answer B Notice the phrasing of this question, "most likely NOT do," Expect to see questions worded on the exam in ways that can cause you to misinterpret them. You will also see questions about things we forget to do in the real world. "Who has time;' you might say, "to determine if each problem is really solved?" One could respond with, "Who has time not to do this? Who has time to deal with the same problem twice?" The final steps of problem solving include: implement a decision, review it, and confirm that the decision solved the problem.

11. All of the following are examples of the cost of nonconformance EXCEPT: A. Rework B. Quality training C. Scrap D. Warranty costs

Answer B Only quality training (choice B) is a cost of conformance to quality. All the other choices are costs of nonconformance to quality.

24. A project manager has just taken over the project from another project manager during the execution of the project. The previous project manager created a project budget, determined communications requirements, and went on to complete work packages. What should the new project manager do NEXT? A. Coordinate completion of work packages B. Identify quality standards C. Begin the Identify Risk process D. Execute the project management plan

Answer B Performance of work packages (choice A) is done after project planning. Since the previous project manager did not finish planning, choice D should not be next. Identify Risks (choice C) sounds like a good choice: however, identifying quality standards (choice B) occurs before the Identify Risks process. The best answer is B.

13. You are a project manager leading a cross-functional project team in a weak matrix environment. None of your project team members report to you functionally, and you do not have the ability to directly reward their performance. The project is difficult, involving tight date constraints and challenging quality standards. Which of the following types of project management power will likely be the MOST effective in this circumstance? A. Referent B. Expert C. Penalty D. Formal

Answer B Reward and expert are the best sources of power. Reward is not listed as a choice.

8. What should be done with risks on the watchlist? A. Document them for historical use on other projects B. Document them and revisit during project monitoring and controlling C. Document them and set them aside because they are already covered in your contingency plans D. Document them and give them to the customer

Answer B Risks change throughout the project. You need to review risks at intervals during the project to ensure that non-critical risks have not become critical.

7. Risks will be identified during which risk management process(es)? A. Perform Quantitative Risk Analysis and Identify Risks B. Identify Risks and Monitor and Control Risks C. Perform Qualitative Risk Analysis and Monitor and Control Risks D. Identify Risks

Answer B This is a tricky question. Risks are identified during the Identify Risk process naturally, but newly emerging risks are identified in the Monitor and Control Risks process.

20. During the middle of the project, things have been going well. The work authorization system has allowed people to know when to start work, and the issue log has helped keep track of stakeholders' needs. The benefit cost ratio has been improving, and the sponsor has expressed his appreciation for the team members' efforts by hosting a milestone party for the team. The project manager gets a call from a team member saying that the results from the completion of their activity's predecessor is two days late. Which of the following reasons would BEST describe why this occurred? A. The project manager was focusing on the sponsor's needs B. Functional management was not included in the communications management plan C. The successor activities should have been watched, not the predecessors D. The right people were not invited to the milestone party

Answer B Since there is no information about the sponsor or his needs in this situation and nothing presented here relates to sponsors, choice A cannot be best. Choice C cannot be best, as it is not a correct statement. One watches both predecessor and successor activities. Choice D cannot be best, as the attendance at the party and the issue at hand are not related. Often forgotten in communications management plans are the bosses of team members (functional management, since of course you remember that we are assuming a matrix organization). Including the bosses of team members in communications planning, requirements gathering, risk management, and other areas of project management helps make the project better. In addition, it helps the boss manage his own resources effectively. If the functional manager of the team member assigned to the predecessor activity had been included, he would have known when the team member was needed to do work for the project and the impact, if any, of delay. The communications management plan might also have included a method to communicate potential delays. For these reasons, choice B is best.

39. During the Identify Risks process, a project manager made a long list of risks identified by all the stakeholders using various methods. He then made sure that all the risks were understood and that triggers had been identified. Later, in the Plan Risk Responses process, he took all the risks identified by the stakeholders and determined ways to mitigate them. What has he done wrong? A. The project manager should have waited until the Perform Qualitative Risk Analysis process to get the stakeholders involved B. More people should be involved in the Plan Risk Responses process C. The project manager should have created workarounds D. Triggers are not identified until the Identify Risks process

Answer B Stakeholders (choice A) are involved in the Identify Risks process. Workarounds (choice C) are created later in the risk process. Plan Risk Responses must include the involvement of all risk response owners and possibly others. This makes choice B the correct answer.

12. Standard deviation is a measure of how: A. Far the estimate is from the highest estimate B. Far the measurement is from the mean C. Correct the sample is D. Much time remains in the project

Answer B Standard deviation is the measurement of a range around the mean. Therefore, choice B must be the best answer.

24. You have been appointed as the manager of a new, large, and complex project. Because this project is business-critical and very visible, senior management has told you to analyze the project's risks and prepare response strategies for them as soon as possible. The organization has risk management procedures that are seldom used or followed, and has had a history of handling risks badly. The projects first milestone is in two weeks. In preparing the risk response plan, input from which of the following is generally LEAST important? A. Project team members B. Project sponsor C. Individuals responsible for risk management policies and templates D. Key stakeholders

Answer B Team members (choice A) will have knowledge of the project and the product of the project and will thus have a lot to contribute to risk responses. Those responsible for risk templates (choice C) will be able to provide the templates from past projects (historical records) and therefore will be very important. Key stakeholders (choice D) will know more about the technical working of the project to help plan "What are we going to do about it?" so choice D is not likely to be the least important. The sponsor (choice B) may have the least knowledge of what will work to solve the problems. Sponsors need to be involved in the project and help identify risks. They may even approve the response plans created by others, but they would not generally be major contributors to response plans. This makes B the best choice.

33. Which of the following is a chief characteristic of the Delphi technique? A. Extrapolation from historical records from previous projects B. Expert opinion C. Analytical hierarchy process D. Bottom-up approach

Answer B The Delphi technique uses experts and builds to consensus; therefore, expert opinion is the chief characteristic.

16. You have just been assigned as project manager for a large manufacturing project. This one-year project is about halfway done. It involves five different sellers and 20 members of your company on the project team. You want to quickly review where the project now stands. Which of the following reports would be the MOST helpful in finding such information? A. Work status B. Progress C. Forecast D. Communications

Answer B The key word is "quickly" The status report (choice A) is too detailed for a quick look. The forecast report (choice C) only looks into the future. The progress report (choice B) will summarize project status.

11. A project manager must publish a project schedule. Activities, start/end times, and resources are identified. What should the project manager do NEXT? A. Distribute the project schedule according to the communications management plan B. Confirm the availability of the resources C. Refine the project management plan to reflect more aceurate costing information D. Publish a bar chart illustrating the timeline

Answer B The project schedule remains preliminary until resource assignments are confirmed.

34. A project has had some problems, but now seems under control. In the last few months, almost all the reserve has been used up and most of the negative impacts of events that had been predicted have occurred. There are only four activities left, and two of them are on the critical path. Management now informs the project manager that it would be in the performing organizations best interest to finish the project two weeks earlier than scheduled in order to receive an additional profit. In response, the project manager sends out a request for proposal for some work that the team was going to do, in the hopes that another company might be able to do the work faster. The project manager can BEST be said to be attempting to work with: A. Reserve B. Opportunities C. Scope verification D. Threats

Answer B The wording of this question can be confusing. Reserve (choice A) is mentioned in the situation, but the project manager is not dealing with reserves in the actions he is taking. Choice C involves meeting with the customer to gain formal acceptance, so it cannot be the best choice. Choice D cannot be the best choice since the project manager is trying to make something good happen, not dealing with a negative impact, or threat, that mayor may not occur. The project manager is working to make a positive impact on the project more likely to occur. Therefore, choice B is best.

31. Work on a project is ongoing when the project manager overhears two workers arguing over what a set of instructions mean. The project manager investigates and discovers that the instructions for the construction of the concrete footings currently being poured were poorly translated between the different languages in use on the project. Which of the following is the BEST thing for the project manager to do FIRST? A. Get the instructions translated by a more experienced party B. Look for quality impacts of the poor translation of the instructions for the footings C. Bring the issue to the attention of the team and ask them to look for other translation problems D. Inform the sponsor of the problem in the next project report

Answer B Though all of these choices are correct things to do, the question asks what to do first. What is the most immediate problem? Isn't it most urgent to find out whether the concrete footings meet your project requirements? Choice A could be done, but it does not address the immediate concern. Choice C is excellent, and something many project managers might never think of doing. However, it does not address the immediate problem. Choice D is also not taking action to solve the problem. Are the concrete footings adequate? Only choice B will help you answer that.

4. The sponsor's role on a project is BEST described as: A. Helping to plan activities B. Helping to prevent unnecessary changes to project objectives C. Identifying unnecessary project constraints D. Helping to put the project management plan together

Answer B Though the sponsor may help plan some of the activities (choice A), it is not the sponsor's exclusive duty. Some project constraints (choice C) come from the sponsor, but they should be considered necessary. The project management plan (choice D) is created by the team and approved by the sponsor and other management. Since the project objectives are stated in the project charter and it is the sponsor who issues the project charter, choice B is the correct answer.

12. Purchasing insurance is BEST considered an example of risk: A. Mitigation B. Transfer C. Acceptance D. Avoidance

Answer B To mitigate risk (choice A), we either reduce the probability of the event happening or reduce its impact. Many people think of using insurance as a way of decreasing impact. However, mitigating risk is taking action before a risk event occurs. Buying insurance is not such an action. Acceptance of risk (choice C) does not involve such action as purchasing insurance. Avoidance of risk (choice D) means we change the way we will execute the project so the risk is no longer a factor. Transference is passing the risk off to another party.

30. A particular stakeholder has a reputation for making many changes on projects. What is the BEST approach a project manager can take at the beginning of the project to manage this situation? A. Say "No" to the stakeholder a few times to dissuade him from submitting more changes B. Get the stakeholder involved in the project as early as possible C. Talk to the stakeholder's boss to find ways to direct the stakeholder's activities to another project D. Ask that the stakeholder not be included in the stakeholder listing

Answer B We cannot avoid the stakeholder (choices C and D), because he has a stake in the project. A project manager can say "No"' (choice A), but this does not solve the root cause. There may be some good ideas within those changes. The only choice that deals with the problem is choice B. Changes are not bad! Changes normally come from lack of input at the beginning of the project. If we begin effective communication with this stakeholder early (choice B), we stand a much better chance of discovering his changes during the planning process, when they will have less of an impact on the project.

28. While preparing your risk responses, you identify additional risks. What should you do? A. Add reserves to the project to accommodate the new risks and notify management B. Document the risk items, and calculate the expected monetary value based on probability and impact that result from the occurrences C. Determine the risk events and the associated cost, then add the cost to the project budget as a reserve D. Add a 10 percent contingency to the project budget and notify the customer

Answer B When a new risk is identified, it should go through the risk management process. Choice A cannot be the best choice, as you first need to determine the probability and impact of the risk and then try to diminish impact through the Plan Risk Responses process. Only after these efforts should you add reserves. Choice C addresses only costs, when there could also be a time impact. This choice also ignores the work of Plan Risk Responses. Choice D cannot be the best choice because it is better to determine reserves based on a detailed analysis of risk. Therefore, the best choice is B.

1. Extensive use of ___ communication is most likely to aid in solving complex problems. A. Verbal B. Written C. Formal D. Nonverbal

Answer B Written communication allows your words to be documented, and they will go to everyone in the same form. When there are complex problems, you want everyone to receive the same thing.

26. A system development project is nearing project closing when a previously unidentified risk is discovered. This could potentially affect the project's overall ability to deliver. What should be done NEXT? A. Alert the project sponsor of potential impacts to cost, scope, or schedule B. Qualify the risk C. Mitigate this risk by developing a risk response plan D. Develop a workaround

Answer B You would need to analyze the problem before you would talk to the sponsor (choice A). You could not mitigate the risk (choice C) until you qualified the risk. A workaround (choice D) is an unplanned response to a risk that is occurring. This risk is identified, not occurring, so there is no need to take action by creating a workaround. Qualifying the risk (choice B) will give you an indication of how great the risk is. That information will help you determine how to proceed.

38. A watchlist is an output of which risk management process? A. Plan Risk Responses B. Perform Quantitative Risk Analysis C. Perform Qualitative Risk Analysis D. Plan Risk Management

Answer C A watchlist is made up of low priority risks that, in the Perform Qualitative Risk Analysis process, were determined to be of too low priority or low impact to move further in the risk process.

29. As the project manager, you are preparing your methods for quality management. You are looking for a method that can demonstrate the relationship between events and their resulting effects. You want to use a method to depict the events that cause a negative effect on quality. Which of the following is the BEST choice for accomplishing your objective? A. Histogram B. Pareto chart C. Ishikawa diagram D. Control chart

Answer C All reports and diagrams are communications tools. This question asks you to pick the most appropriate quality tool to help communications. An Ishikawa diagram (choice C), also called a cause and effect diagram. is more appropriate than the Pareto chart (choice B) since you are trying to determine the causes. Once causes are known and you have data on occurrences, the data can be displayed in a Pareto chart.

33. A seller is awarded a contract to build a pipeline. The contract terms and conditions require that a work plan be issued for the buyer's approval prior to commencing work, but the seller fails to provide one. Which of the following is the BEST thing for the buyer's project manager to do? A. File a letter of intent B. Develop the work plan and issue it to the seller to move things along C. Issue a default letter D. Issue a stop work order to the seller until a work plan is prepared

Answer C Any time that a seller does not perform according to the contract, the project manager must take action. The preferred choice might be to contact the seller and ask what is going on, but that choice is not available here. Therefore, the best choice is to let him know he is in default (choice C).

11. Which of the following BEST describes the project manager's role during the procurement process? A. The project manager has only minor involvement B. The project manager should be the negotiator C. The project manager should supply an understanding of the risks of the project D. The project manager should tell the contract manager how the contracting process should be handled

Answer C As the project manager, you know what the project risks are. You need to make sure that provisions are included in the contract to address these risks.

11. Project information has been distributed according to the communications management plan. Some project deliverables have been changed in accordance with the project management plan. One stakeholder expressed surprise to the project manager upon hearing of a previously published change to a project deliverable. All stakeholders received the communication containing notification of the change. What should the project manager do? A. Determine why the stakeholder did not receive the information and let him know when it was published B. Ask the functional manager why the stakeholder did not understand his responsibility C. Review the communications management plan and make revisions if necessary D. Address the situation in the next steering committee meeting so others do not miss published changes

Answer C Choice A cannot be correct because the question states that all stakeholders received the information. Choices Band D do not address the root cause of the problem. The problem presented here shows that there is something missing in the communications management plan. The best answer is to review the communications management plan in order to prevent future problems and find any instances of similar problems.

21. You are in the middle of a major new facility construction project. The structural steel is in place and the heating conduits are going into place, when a senior manager informs you that he is worried that the project will not meet the quality standards. What should you do in this situation? A. Assure senior management that during the Plan Quality process it was determined that the project would meet the quality standards B. Analogously estimate future results C. Form a quality assurance team D. Check the results from the last quality management plan

Answer C Choice A is not productive since it does not solve the problem. An analogous estimate (choice B) looks at past history of other projects. This would not be appropriate to determine how the current project is going. The quality management plan (choice D) does not provide results. Perform Quality Assurance (choice C) helps to determine if the project will satisfy the relevant quality standards.

6. Quality is: A. Meeting and exceeding the customer's expectations B. Adding extras to make the customer happy C. The degree to which the project meets requirements D. Conformance to management's objectives

Answer C Choices A and B cannot be the best, because there can be a cost impact (or time, risk, etc.) of exceeding expectations or adding extras. Since a project should meet requirements, choice C is best.

7. What conflict resolution technique is a project manager using when he says, "I cannot deal with this issue now!" A. Problem solving B. Forcing C. Withdrawal D. Compromising

Answer C Delaying the issue is called withdrawal.

4. A project manager for the seller is told by her management that the project should do whatever possible to be awarded incentive money. The primary objective of incentive clauses in a contract is to: A. Reduce costs for the buyer B. Help the seller control costs C. Synchronize objectives D. Reduce risk for the seller by shifting risk to the buyer

Answer C Incentives are meant to bring the objectives of the seller in line with those of the buyer. That way both are progressing toward the same objective.

3. The halo effect refers to the tendency to: A. Promote from within. B. Hire the best. C. Move people into project management because they are good in their technical fields. D. Move people into project management because they have had project management training.

Answer C Just because a person is good in a technical field does not mean he or she will also be a good project manager.

16. The new project is exciting to both the project manager and the team. This is the project manager's first assignment as project manager. The team has the feeling that they will be able to complete work that has never been tried before. There are 29 people contributing to the product description, and the team consists of nine highly experienced experts in their field. Part of the way through planning, three highly technical team members are disagreeing about the scope of two of the deliverables. One is pointing to the draft WBS and saying that two additional work packages should be added. Another is saying that a particular work package should not even be done. The third team member agrees with both of them. How should the project manager BEST deal with the conflict? A. He should listen to the differences of opinion, determine the best choice, and implement that choice B. He should postpone further discussions, meet with each individual, and determine the best approach C. He should listen to the differences of opinions, encourage logical discussions, and facilitate an agreement D. He should help the team focus on agreeable aspects of their opinions and build unity by using relaxation techniques and common-focus team building

Answer C Do not get confused by the wordiness of the question. Ask yourself what is the best way to resolve any conflict, and you can get the answer. Most of the situation is a distracter. Problem solving and compromising are the two most important conflict resolution techniques. Conflict management is a key general management skill.

9. Bidder conferences are part of: A. Plan Procurements B. Administer Procurements C. Conduct Procurements D. Communications Management

Answer C Expect many questions on the exam that require you to know in what part of the procurement process activities are done.

2. If a project has a 60 percent chance of a $100,000 profit and a 40 percent chance of a $100,000 loss, the expected monetary value for the project is: A. $100,000 profit B. $60,000 loss C. $20,000 profit D. $40,000 loss

Answer C Expected monetary value (EMV) is computed by EMV = Probability x Impact. We need to compute both positive and negative values and then add them. 0.6 x $100,000 = $60,000. 0.4 x ($100,000) = ($40,000) Expected Monetary Value = $60,000 - $40,000 = $20,000 profit

6. If a risk event has a 90 percent chance of occurring, and the consequences will be $10,000, what does $9,000 represent? A. Risk value B. Present value C. Expected monetary value D. Contingency budget

Answer C Expected monetary value is computed by multiplying the probability times the impact. In this case, EMV = 0.9 x $10,000 = $9,000.

24. The project has been challenging to manage. Everyone has been on edge due to pressure to complete the project on time. Unfortunately, the tension has grown to the point where team meetings have become shouting matches and little work is accomplished during the meetings. One team member asks to be excused from future team meetings, as all the shouting upsets him. Meanwhile, the sponsor has asked to attend team meetings in order to better understand how the project is going and the issues involved in completing the project, and the customer has started discussions about adding scope to the project. In this situation, it would be BEST for the project manager to: A. Ask the sponsor if the information needed could be sent in a report rather than have her attend the meeting B. Inform the team member who asked to be excused from the meetings of the value of communication in such meetings C. Create new ground rules for the meetings and introduce them to the team D. Hold a team-building exercise that involves all the team members

Answer C Here is a situation where all four choices could be done. Choice A does not solve the root cause of the problem described. Choice B merely dismisses the concerns of the team member and might cause anger. A team-building exercise (choice D) would take planning and so could not be done right away. Remember, the sponsor might be attending the next meeting and at least one team member might not attend because of past problems. The best thing to do would be to set up new ground rules for the team governing behavior (choice C) and then plan a team-building exercise (choice D).

2. With a clear contract statement of work, a seller completes work as specified, but the buyer is not pleased with the results. The contract is considered to be: A. Null and void B. Incomplete C. Complete D. Waived

Answer C If the seller completes the work specified in the procurement statement of work, the contract is considered complete. That does not mean the same thing as contract closed. The Close Procurements process must still occur. However, in this situation, the contract work is completed. Tricky!

13. You are finding it difficult to evaluate the exact cost impact of risks. You should evaluate on a(n): A. Quantitative basis B. Numerical basis C. Qualitative basis D. Econometric basis

Answer C If you cannot determine an exact cost impact to the event, use qualitative estimates such as Low, Medium, High, etc.

23. Your company has an emergency and needs contracted work done as soon as possible. Under these circumstances, which of the following would be the MOST helpful to add to the contract? A. A clear procurement statement of work B. Requirements as to which subcontractors can be used C. Incentives D. A force majeure clause

Answer C If you follow the proper project management process, you ALLWAYS have good definition of scope (choice A). In this situation, you are in a time crunch. Both good scope definition and incentives are required to make it happen. Which provides the better answer? Along with good scope definition, you need the seller to feel your need for speed. Incentives bring the seller's objectives in line with the buyer's and thus would be the MOST helpful. Good scope definition alone does not ensure speed.

38. During project executing, your project team member delivers a project deliverable to the buyer. However, the buyer refuses the deliverable, stating that it does not meet the requirement on page 300 of the technical specifications. You review the document and find that you agree. What is the BEST thing to do? A. Explain that the contract is wrong and should be changed B. Issue a change order C. Review the requirements and meet with the responsible team member to review the WBS dictionary D. Call a meeting of the team to review the requirement on page 300

Answer C In choice A, the contract could be wrong, or the customer could be wrong, but this would have/should have been discovered earlier if proper project management was followed. If you picked choice B, you have forgotten that a seller cannot issue a change order (although he could request one). Did you select choice D? If so, remember that project management is not about making every decision with ALL the team members. Choke C involves meeting with the appropriate team member. If such a problem has arisen, it could mean something was wrong in the WBS dictionary or in how the team member completed the work.

4. A project has faced major difficulties in the quality of its deliverables. Management now states that quality is the most important project constraint. If another problem with quality were to occur, what would be the BEST thing for the project manager to do? A. Fix the problem as soon as possible B. Allow the schedule to slip by cutting cost C. Allow cost to increase by fixing the root cause of the problem D. Allow risk to increase by cutting cost

Answer C Many people would pick choice A. lt is proactive, but choice C mentions root cause and the probable effect of dealing with the problem. If a problem with quality occurs again, some other project constraint(s) must change to accommodate fixing the problem. Choice B is partially correct (allow schedule to slip) but may not need to occur, because the project manager might be able to compress the schedule in other areas. Besides, cutting cost does not necessarily cause the schedule to slip. Choice D is not best, because a quality problem is most likely to create additional cost, rather than cut cost.

27. During project executing, a project team member informs the project manager that a work package has not met the quality metric, and that she believes it is not possible to meet it. The project manager meets with all parties concerned to analyze the situation. Which part of the quality management process is the project manager involved in? A. Perform Quality Assurance B. Project Control C. Perform Quality Control D. Plan Quality Management

Answer C Measuring is part of the Perform Quality Control process. Did you select choice B? The question asked what part of the quality process are you in, not what part of the project management process are you in.

1. Once signed, a contract is legally binding unless: A. One party is unable to perform B. One party is unable to finance its part of the work C. It is in violation of applicable law D. It is declared null and void by either party's legal counsel

Answer C Once signed, a contract is binding. Generally, the inability to perform, get financing, or one party's belief that the contract is null and void does not change the fact that the contract is binding. If, however, both sides agree to terminate the contract, the contract can move into closure. Once closure is completed, the project is considered completed.

29. Negotiations between two parties are becoming complex, so party A makes some notes that both parties sign. However, when the work is being done, party B claims that they are not required to provide an item they both agreed to during negotiations, because it was not included in the subsequent contract. In this case, party B is: A. Incorrect, because both parties must comply with what they agreed upon B. Correct, because there was an offer C. Generally correct, because both parties are only required to perform what is in the contract D. Generally incorrect, because all agreements must be upheld

Answer C Party B is only required to deliver what is defined in the contract.

20. You are a project manager for a major information systems project. Someone from the quality department comes to see you about beginning a quality audit of your project. The team, already under pressure to complete the project as soon as possible, objects to the audit. You should explain to the team that the purpose of a quality audit is: A. Part of an ISO 9000 investigation B. To check if the customer is following its quality process C. To identify inefficient and ineffective policies D. To check the accuracy of costs submitted by the team

Answer C Perform Quality Assurance, of which an audit is part, focuses on processes, procedures, and standards. Though ISO may be thought of as a standard, that is not the only reason an audit would be conducted, and so choice A cannot be best. The seller cannot generally control or review the customer's process, so choice B cannot be best. Choice D is more representative of a cost audit than a quality audit, so cannot be the best choice.

20. You are in the middle of a complex negotiation when the other party says, "We need to finish in one hour because I have to catch my plane:' That person is using which of the following negotiatian strategies? A. Good guy, bad guy B. Delay C. Deadline D. Extreme demands

Answer C Putting a time limit on the negotiation is an example of deadline.

13. All of the following result from quality audits EXCEPT: A. Determination of whether project activities comply with organizational policies B. Improved processes to increase productivity C. Creation of quality metrics D. Confirmation of the implementation of approved change requests

Answer C Quality metrics are an output of the Plan Quality process. They are an input to the Perform Quality Assurance process, which is the process in which quality audits take place.

12. During every project team meeting, the project manager asks each team member to describe the work he or she is doing, and the project manager assigns new activities to team members. The length of these meetings has increased because there are many different activities to assign. This could be happening for all the following reasons EXCEPT: A. Lack of a WBS B. Lack of a responsibility assignment matrix C. Lack of resource leveling D. Lack of team involvement in project planning

Answer C Resource leveling refers to maintaining the same number of resources on the project for each time period. Leveling has nothing to do with assigning activities or managing meetings.

5. All the following statements about change control are incorrect EXCEPT: A. A fixed price contract will minimize the need for change control B. Changes seldom provide real benefits to the project C. Contracts should include procedures to accommodate changes D. More detailed specifications eliminate the causes of changes

Answer C Since there can be changes in any form of contract, choice A is not the best answer. There are always good ideas (changes) that can add benefit to the project, so choice B cannot be the best answer. In choice D, the word "eliminate" implies that changes will not occur. As that is not true, this cannot be the best answer.

18. A project manager asked various stakeholders to determine the probability and impact of a number of risks. He then analyzed assumptions. He is about to move to the next step of risk management. Based on this information, what has the project manager forgotten to do? A. Evaluate trends in risk analysis B. Identify triggers C. Provide a standardized risk rating matrix D. Create a fallback plan

Answer C The activities of the Perform Qualitative Risk Analysis process are probability and impact definition, assumptions testing (data quality assessment), and probability and impact matrix development.

3. Assuming that the ends of a range of estimates are +/- 3 sigma from the mean, which of the following range estimates involves the LEAST risk? A. 30 days, plus or minus 5 days B. 22 - 30 days C. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days D. Mean of 28 days

Answer C This one drove you crazy didn't it? Reread the question! When you look at the ranges of each choice, you will see that choice A is ten days, choice B is eight days, and choice C is seven days. The range of estimates with the smallest range is the least risky. Therefore, the answer is C. The words +/- 3 sigma are extraneous. Practice reading questions that are wordy and have extraneous data.

23. The new software installation project is in progress. The project manager is working with the quality assurance department to improve everyone's confidence that the project will satisfy the quality standards. Which of the following MUST they have before they start this process? A. Quality problems B. Quality improvement C. Quality control measurements D. Rework

Answer C This question is similar to others in this book, but not exactly the same. You may also see this occur on your exam. Carefully read the questions! Though quality problems (choice A) MAY lead to quality assurance efforts, they are not a MUST. Quality improvement (choice B) is a result of Perform Quality Assurance, not an input. Rework (choice D) can be an output of Perform Quality Control. That leaves only quality control measurements (choice C), which are inputs to Perform Quality Assurance.

17. A project manager has just finished the risk response plan for a $387,000 engineering project. Which of the following should he probably do NEXT? A. Determine the overall risk rating of the project B. Begin to analyze the risks that show up in the project drawings C. Add work packages to the project work breakdown structure D. Hold a project risk reassessment

Answer C This situation is occurring during project planning. Planning must be completed before moving on. Determining the risk rating of the project (choice A) is done during the Perform Qualitative Risk Analysis process, and should have already been done. Choice B is work that is done during project executing. Project risk reassessment (choice D) occurs during Monitor and Control Risks, the next step in the risk process after Plan Risk Responses. But the question does not ask what is next in the risk management process, just what is next. Only choice C, as part of iterations, comes after risk in project planning. Do you know the order of planning yet?

16. During which risk management process is a determination to transfer a risk made? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks

Answer C Transference is a risk response strategy.

9. All of the following are ALWAYS inputs to the risk management process EXCEPT: A. Historical information B. Lessons learned C. Work breakdown structure D. Project status reports

Answer D Project status reports (choice D) can be an input to risk management. However, when completing risk management for the first time, you would not have project status reports. Therefore, project status reports are not always an input to risk management.

30. During project executing, a team member identifies a risk that is not in the risk register. What should you do? A. Get further information on how the team member identified the risk, because you already performed a detailed analysis and did not identify this risk B. Disregard the risk, because risks were identified during project planning C. Inform the customer about the risk D. Analyze the risk

Answer D First, you want to determine what the risk entails and the impact to the project, then determine what actions you will take regarding the risk.

28. The project manager notices that project activities being completed by one department are all taking slightly longer than planned. To date, none of the activities/work packages have been on the critical path, nor have they affected the critical chain planning that has occurred. The project manager is bothered by the problem, since four of the next five critical path activities are being completed by this department. After making three calls, the project manager is finally able to converse with the department manager to determine what is going on. The conversation is slow, because both speak different native languages and they are trying to converse in French, a shared language. To make communication easier, the project manager frequently asks the department manager to repeat back what has been said. The department manager communicates that his staff is following a company policy that requires two levels of testing. During the conversation, the department manager also makes a comment that leads the project manager to believe that the policy may include excessive work. This is the fourth time the project manager has heard such a comment. What is the BEST thing to do? A. Create a better communications management plan that requires only one language to be the universal language on the project and have translators readily available on a moment's notice B. Contact someone else in the department who speaks the project manager's native language better to confirm the department manager's opinion C. Find out if the upcoming activities should be reestimated D. Work on increasing the effectiveness of the performing organization by recommending continuous improvement of the policy in question

Answer D "What?" you say. Yes, D is the best answer. Let's take a look, as this question could be said to have more than one right ans wer. Choice A might be a good idea, but has two problems. It may not be needed on the project, and it does not deal with the problem at hand, the policy that is slowing things down. Choice B is not the best choice as the project manager already has heard the opinion on many other occasions. It is already confirmed. Choice C is just being reactive. A good project manager will find the root cause and deal with that, even if it means attempting to improve the company's policies and processes. This is continuous improvement. Because there are several activities affected by the policy, it would serve the project better to get to the root cause of the problem and solve it.

11. All of the following are common results of risk management EXCEPT: A. Contract terms and conditions are created B. The project management plan is changed C. The communications management plan is changed D. The project charter is changed

Answer D A change to the project charter is not always necessary. In fact, a change to the charter is a fundamental change to the project and may require a major adjustment to all aspects of the project management plan. There are many reasons the other choices could happen as a result of risk. Since a contract can only be created after risks are known (a contract is a tool to transfer risks), it is common sense that choice A cannot be the exception. The project management plan (choice B) could change to include a modified WBS and new work packages related to mitigating risk. The communications management plan (choice C) could change as a way to address a risk. Choice D is the best answer.

15. Workarounds are determined during which risk management process? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks

Answer D A workaround refers to determining how to handle a risk that occurs but is not included in the risk register. The project must be in the Monitor and Control Risks process if risks have occurred.

5. Which of the following conflict resolution techniques will generate the MOST lasting solution? A. Forcing B. Smoothing C. Compromise D. Problem solving

Answer D Problem solving normally takes more time, but it gets buy-in from everyone, generating a more lasting solution.

10. A large, one-year telecommunications project is about halfway done when you take the place of the previous project manager. The project involves three different sellers and a project team of 30 people. You would like to see the project's communications requirements and what technology is being used to aid in project communications. Where will you find this information? A. The project management plan B. The information distribution plan C. The bar chart D. The communications management plan

Answer D Although the information is found as a sub-plan to the project management plan (choice A), the communications management plan (choice D) is the best answer because it directly answers the question.

20. You are a project manager for the construction of a major new manufacturing plant that has never been done before. The project cost is estimated at $30,000,000 and will make use of three sellers. Once begun, the project cannot be cancelled, as there will be a large expenditure on plant and equipment. As the project manager, it would be MOST important to carefully: A. Review all cost proposals from the sellers B. Examine the budget reserves C. Complete the project charter D. Perform an identification of risks

Answer D Choice A could be done, but it is not a pressing issue based on the situation provided. Choice B could also be done, but not until risk planning is completed. It is always important to carefully complete a project charter, choice C, but there are other issues needing detailed attention in this situation, so choice C cannot be best. Since this project has never been done before, and there will be a large cost outlay, it would be best for the project manager to spend more time on risk management. Risk identification is the most proactive response and would have the greatest positive impact on the project.

37. The performing organization is trying to decide whether to split the contracts department and assign procurement responsibilities to departments directly responsible for the projects. A procurement professional might not want this split to occur because they would lose ____ in a decentralized contracting environment. A. Standardized company project management practices B. Loyalty to the project C. Experience D. Access to others with similar expertise

Answer D Choice A is incorrect, as the change would not impact the entire project management process, only procurement. Loyalty to the project (choice B) would be gained, not lost, in a decentralized environment. In a decentralized procurement situation, there is less focus on maintaining the skill or expertise of the contracting function, making choice D the best answer.

15. The project status meeting is not going weIl. Everyone is talking at the same time, there are people who are not participating, and many topics are being discussed at random. Which of the following rules for effective meetings is NOT being adhered to? A. Demonstrate courtesy and consideration of each other, and control who is allowed to speak B. Schedule meetings in advance C. Have a purpose for the meeting with the right people in attendance D. Create and publish an agenda and a set of rules for controlling the meeting

Answer D Choice A is not a "rule" for effective meetings. Since there is no indication that the meeting was not scheduled in advance (choice B) or that there isn't a purpose (choice C), these cannot be the best answers. "Discussed at randomn" implies no agenda (choice D). If an agenda is issued beforehand, people will follow the outline and should not need random discussions.

9. A control chart helps the project manager: A. Focus on the most critical issues to improve quality B. Focus on stimulating thinking C. Explore a desired future outcome D. Determine if a process is functioning within set limits

Answer D Choice A relates to Pareto charts. Choices B and C relate to fishbone diagrams. Only choice D relates to control charts.

19. A project manager is trying to settle a dispute between two team members. One says the systems should be integrated before testing, and the other maintains each system should be tested before integration. The project involves over 30 people, and 12 systems need to be integrated. The sponsor is demanding that integration happen on time. What is the BEST statement the project manager can make to resolve the conflict? A. Do it my way B. Let's calm down and get the job done C. Let's deal with this again next week after we all calm down D. Let's do limited testing before integration and finish testing after integration

Answer D Choice D is an example of compromising.

13. Two people are arguing about what needs to be done to complete a work package. If the project manager wants to know what is going on, she should pay MOST attention to: A. What is being said and when B. What is being said, who is saying it, and the time of day C. Physical mannerisms and what is being said D. The pitch and tone of the voices, and physical mannerisms

Answer D Choices C and D both include nonverbal communication, which represents 55 percent of communication. Choice D adds paralingual communication (pitch and tone) and is thus the best choice.

23. An experienced project manager has just begun working for a large information technology integrator. Her manager provides her with a draft project charter and immediately asks her to provide an analysis of the risks on the project. Which of the following would BEST help in this effort? A. An article from PM Network Magazine B. Her project scope statement from the project planning process C. Her resource plan from the project planning process D. A conversation with a team member from a similar project that failed in the past

Answer D Did you realize that this situation is taking place during the initiating process group? Choices B and C are created in the project planning process and so are not yet available. Therefore, we are left with deciding if choice A or choice D provides the greater value. Since the information gained in choice D is more specific to your company, it is the best choice.

14. Which of the following is the BEST thing for a project manager to do in the Conduct Procurements process of procurement management? A. Evaluate risks B. Select a contract type C. Update the project schedule D. Answer sellers' questions about bid documents

Answer D During the Conduct Procurements process, you normally answer questions submitted by the sellers. The risk analysis processes (choice A) are done before the procurement process begins, as procurement is a risk mitigation and transference tool. Selecting a contract type (choice B) is part of Plan Procurements. Changes to the project schedule (choice C) may be an output of the Administer Procurements process.

21. What theory proposes that employees' efforts will lead to effective performance and the employees will be rewarded for accomplishments? A. Conditional reinforcement B. Malsows hierarchy C. McGregor's D. Expectancy

Answer D Employees who believe that their efforts will lead to effective performance and who expect to be rewarded for their accomplishments will stay productive as rewards meet their expectations. This is expectancy theory.

18. A project manager overhears a conversation between two stakeholders who are talking about how unhappy they are with the impacts of the project on their own departments. Stakeholder A asks if the project is on time, and stakeholder B replies that the SPI is 1.05. Stakeholder A asks if the project manager for the project knows of stake holder B's concern. Stakeholder B responds that he is not sure. What is the BEST thing for the project manager to do? A. Make sure the stakeholders see that the project manager overheard and then ask them to direct any questions to the project manager in writing B. Make a presentation to all the stakeholders regarding the status of the project C. Send both stakeholders a copy of the issue log and ask for additional comments D. Arrange a meeting with both stakeholders to allow them to voice any concerns they may have

Answer D Here again is a question with more than one right answer. Would asking for something in writing be the best way to communicate? In this particular situation, asking for the concern to be in writing might alienate the stakeholders. Therefore, choice A cannot be best. The issue log (choice C) is where the issue should be listed, but the situation does not say if the project manager knows what the stakeholder's concern is. Therefore, C cannot be the best choice. Why not choice B? Notice the use of the words "all stakeholders" Why bother other stakeholders with this problem when the project manager already knows there may be some concern of stakeholders A and B to address, not all stakeholders. Choice B refers to making a presentation. Presentations are formal verbal. This problem would likely require informal verbal communication in order to discover the real problem. Choice D is therefore the best choice.

35. You have just started administering a contract when management decides to terminate the contract. What should you do FIRST? A. Go back to the Plan Procurements process B. Go back to the Conduct Procurements process C. Finish the Administer Procurements process D. Go to the Close Procurements process

Answer D If the contract is terminated, the project needs to enter closure. You need those results for historical purposes.

1. All of the following are factors in the assessment of project risk EXCEPT: A. Risk event B. Risk probability C. Amount at stake D. Insurance premiums

Answer D Insurance premiums come into play when you determine which risk response strategy you will use.

27. The project has been going well, except for the number of changes being made. The project is being installed into seven different departments within the company and will greatly improve departmental performance when operational. There are 14 project management processes selected for use on this project. The project manager is a technical expert as well as having been trained in communications and managing people. Which of the following is the MOST likely cause of the project problems? A. The project manager was not trained in understanding the company environment B. The project should have more management oversight since it will result in such great benefits to the company C. The project should have used more of the project management processes D. Some stakeholders were not identified

Answer D It is important he re to look for the choice that would solve the real problem. There is no reason to think that training (choice A), management oversight (choice B), or a need for more processes (choice C) are factors contributing to the number of changes. The root cause would be that stakeholders were missed and, therefore, their requirements were not found. Those stakeholders are now causing changes to accommodate their needs. The best choice is D.

20. A project is in the middle of execution when a stakeholder suggests a major new change. This change will cause the third major overhaul of the project. At the same time, the project manager discovers that a major work package was not completed because a team member's boss moved him to another project that had a higher priority. Which of the following is the BEST person for the project manger to address these issues with? A. The team B. Senior management C. The customer D. The sponsor

Answer D It is the sponsor's role to prevent unnecessary changes and to set priorities between projects. The situation described in this question implies that such work is not being done, and the project manager must therefore go to the root of the problem: the sponsor.

30. Which of the following explains why quality is planned in and not inspected in? A. It reduces quality and is less expensive B. It improves quality and is more expensive C. It reduces quality and is more expensive D. It improves quality and is less expensive

Answer D Look for the proactive approach. When we plan for quality, it improves quality, which is less expensive over the long run. NOTE: You may spend more initially for increased quality, but you will save through reduced rework, etc.

24. During what part of the procurement process does procurement negotiation occur? A. Plan Procurements B. Close Procurements C. Administer Procurements D. Conduct Procurements

Answer D Negotiation occurs during the Conduct Procurements process.

33. A large project is underway when one of the team members reviews the project status report. He sees that the project is currently running late. As he looks at the report further, he notices that the delay will cause one of his activities to be scheduled during a time he will be out of the country and cannot work on the activity. This is of great concern because he is very committed to the project being successful and he does not want to be the cause of the project being further delayed. What is the BEST THING for him to do? A. Contact the project manager immediately to provide the project manager with his schedule B. Include the information in his next report C. Request that the issue be added to the project issue log D. Recommend preventive action

Answer D Notice that this question talks about what the team member should do? It is important for the project manager to understand the team mernber's role and possibly even instruct team members on how to work on projects and what is expected of them. Choices A, B, and C have one thing in common. They involve the team member asking the project manager to do something. In reality, it may very well be the team member who will come up with a solution (such as decreasing the scope of the activity, fast tracking, or specific suggestions about changes to predecessor activities). Therefore, choice D is the best choice. But ask yourself how you run your projects. Which is better, your way or this way? Lastly, please note that recommended corrective or preventive actions can come from the team or stakeholders, in addition to the project manager.

28. Your program manager has come to you, the project manager, for help with a bid for her newest project. You want to protect your company from financial risk. You have limited scope definition. What is the BEST type of contract to choose? A. Fixed price (FP) B. Cost plus percentage of cost (CPPC) C. Time and material (T&M) D. Cost plus fixed fee (CPFF)

Answer D Of the options given, the only contract that limits fees for large projects with limited scope definition is cost plus fixed fee.

34. There have been many work packages completed successfully on the project, and the sponsor has made some recommendations for improvements. The project is on schedule to meet an aggressive deadline when the successor activity to a critical path activity suffers a major setback. The activity has 14 days of float and is being completed by four people. There are two other team members with the skill set to assist the troubled activity, if needed. The project manager receives a call that three other team members are attempting to be removed from the project because they do not feel the project can be successful. When the project manager pursues this, she discovers that those team members have issues that have not been addressed. Which of the following is the BEST thing to do to improve the project? A. Have the team members immediately assist the troubled activity B. Investigate why the project schedule is aggressive C. See who can replace the three team members D. Create an issue log

Answer D Sometimes complex problems are caused by not doing simple things. The data in the first paragraph, once you read the choices, is completely extraneous. The troubled activity has float and so does not need immediate attention. Choice A may not be necessary if the amount of float will not be exceeded by the problem. None of the choices suggest investigating if the amount of float is enough to cover any delay caused by the trouble, whatever it is. Rather, the choices take you in different directions. Choice B should have already been done before the project began. Choice C cannot be best, as replacing team members does not solve the root cause of the problem. Could there be something that the project manager is doing wrong, or could be doing that she is not, that would solve the problem without losing resources? Wouldn't it be more effective to discover the root cause of those team members' concerns so that the problem does not surface again later? The creation of an issue log will let the troubled team members know that their concerns have been heard, are noted, and will be resolved. This might be enough to stop them from leaving and avoid project delays and confusion if new team members must be added. This makes choice D the best answer.

22. A project manager is quantifying risk for her project. Several of her experts are offsite, but wish to be included. How can this be done? A. Use Monte Carlo analysis using the Internet as a tool B. Apply the critical path method C. Determine options for recommended corrective action D. Apply the Delphi technique

Answer D The Delphi technique is most commonly used to obtain expert opinions on technical issues, the necessary project or product scope, or the risks.

6. A project manager has a problem with a team member's performance. What is the BEST form of communication for addressing this problem? A. Formal written communication B. Formal verbal communication C. Informal written communication D. Informal verbal communication

Answer D The best choice is D. If informal verbal communication does not solve the problem, choice A is the next best choice. This does not me an that you do not keep records of the problem, but this question is asking about communication between two parties.

25. The project manager is expecting a deliverable to be submitted by e-mail from a team member today. At the end of the day, the project manager contacts the team member to notify him that it has not been received. The team member apologizes and says that he was not able to e- mail the deliverable, and it was sent through themail instead. The team member goes on to explain that he notified the project manager that this would occur during a phone conversation they had while the project manager was traveling. "Wasn't that the conversation we had when I told you I could not hear you well due to poor cell phone coverage?" asks the project manager. "Yes," replies the team member. What could have avoided this problem? A. Paralingual communication B. Adding to the issue log after the phone call C. Better attention to determining communications requirements D. Feedback during the communication

Answer D The pitch and tone of voice (choice A) is not relevant here, as the project manager could not even hear what was being said. There were no issues recognized after the conversation, so none could be added to the issue log (choice B). This issue is not related to communications requirements, so choice C cannot be best. Saying, "I am not sure I properly heard what you said" during the conversation or asking for the message to be repeated back to the sender would have prevented this problem. This makes choice D the best option.

19. A project manager has assembled the project team, identified 56 risks on the project, determined what would trigger the risks, rated them on a risk rating matrix, tested their assumptions, and assessed the quality of the data used. The team is continuing to move through the risk management process. What has the project manager forgotten to do? A. Simulation B. Risk mitigation C. Overall risk ranking for the project D. Involvement of other stakeholders

Answer D The process they have used so far is fine, except the input of other stakeholders is needed in order to identify more risks.

8. A seller is working on a cost reimbursable (CR) contract when the buyer decides he would like to expand the scope of services and change to a fixed price (FP) contract. All of the following are the seller's options EXCEPT: A. Completing the original work on a cost reimbursable basis and then negotiating a fixed price for the additional work B. Completing the original work and rejecting the additional work C. Negotiating a fixed price contract that includes all the work D. Starting over with a new contract

Answer D The seller does not have the choice to start over. The contract that exists is binding. Both parties could agree to start over, but this is a drastic step.

2. The work breakdown structure can be an effective aid for communication in which situation(s)? A. Internal within the project team B. Internal within the organization C. External with the customer D. Internal and external to the project

Answer D The work breakdown structure allows communication vertically and horizontally within the organization as well as outside the project.

2. The highest point of Maslow's hierarchy of needs is called: A. Physiological satisfaction B. Attainment of survival C. Need for association D. Esteem

Answer D This question is asking which of the FOLLOWING is the highest. Self-actualization is not listed, so the next best choice is esteem.

29. If a project manager wants to report on the actual project results vs. planned results, she should use a: A. Trend report B. Forecasting report C. Status report D. Variance report

Answer D This situation describes the need to "compare," A trend report (choice A) shows performance over time. A forecasting report (choice B) looks only to the future. A status report (choice C) is generally static (relating to a moment in time). The only choice that compares project results is a variance analysis (choice D).

57. Project performance appraisals are different from team performance assessments in the project performance appraisals focus on: A. How an individual team member is performing on the project B. An evaluation of the project team's effectiveness C. A team building effort D. Reducing the staff turnover rate

Answer: A How an individual team member is performing on the project

45. Which conflict resolution technique produces the most lasting results? A. Problem solving B. Smoothing C. Compromising D. Withdrawing

Answer: A Problem Solving

52. You have been assigned as project manager for a large telecommunications project. This one year project is about halfway done. The project team consists of five sellers and 20 of your company's employees. You want to understand who is responsible for doing what on the project. Where would you find such information? A. Responsibility assignment matrix B. Resource histogram C. Bar chart D. Project organization chart

Answer: A Responsibility assignment matrix

36. If you hear a project manager saying to a customer "We all agree that this project is important. Let's not fight over a few thousand dollars," what conflict resolution technique is the project manager trying to use? A. Smoothing B. Problem solving C. Forcing D. Compromising

Answer: A Smoothing

50. What does a resource histogram show that a responsibility assignment matrix does not? A. Time B. Activity C. Interrelationships D. The person in charge of each activity

Answer: A Time