Test 4

T4 - 83. Which of the following is NOT a way of avoiding conflict? A. Asking two team members to work on the same activity B. Keeping the team informed of the exact project status C. Clearly assigning work with no overlapping responsibilities D. Continuously motivating the team to help them face work challenges

Correct Option: A

T4 - 27. A Project Manager asks you about the software to be used to create the WBS and is concerned about the graphical representation of the WBS. As an experienced Project Manager, you suggest that the key result of creating a WBS is not the graphical representation but: A. Team Buy-in B. Bar Chart C. List of activities D. The WBS numbering system

Correct Option: A A WBS should be created with the project team, and all of the team members should have confidence that only the work required to complete the project is captured in the WBS. A WBS is not just a graphical representation. It should be used as a tool for team communication so that everybody knows what they are supposed to do and also what other team members are supposed to work on.

T4 - 174. Your project is coming to an end, and you are in the process of listing the activities that must be performed to close the project. Which of the following should be performed during the closing process? A. Issue a formal notice of project completion to sellers B. Issue payment schedules and requests C. Request final inspection reports for all vendor-supplied products D. Seek legal counsel from the company's legal department prior to closing the project

Correct Option: A As part of the closing process, you need to issue a formal notice of project completion to sellers.

T4 - 48. Which of the following documents has information regarding how people should be informed about the project's progress? A. Communication Management Plan B. Risk Management Plan C. Cost Management Plan D. Schedule Management Plan

Correct Option: A Communication Management plan has information regarding how people should be informed about the project's progress.

T4 - 167. James is a Senior Manager at a telecommunications company. He is currently managing a project that involves developing a voice-over IP gateway that addresses the challenges faced by service providers who are deploying packet-based voice networks. All of the technical work has already been completed on the project and the project is in the closing phase. Which of the following should be performed at this stage? A. Document lessons learned B. Ensure that the project is integrated with other projects C. Perform scope verification D. Verify the quality of process

Correct Option: A Document lessons learned is an activity that is performed during the closing process.

T4 - 22. Which technique is used in the "Identify Stakeholders" process? A. Expert Judgment B. Stakeholder Engagement plan C. Stakeholder register D. Issue log

Correct Option: A Expert Judgment is a technique used in the "Identify stakeholders" process. Option D, Issue log, is the input to this process. Options B and C, stakeholder engagement plan and stakeholder register, are the outputs of this process. For more information on this process, refer to Page No. 507 of PMBOK® Guide - Sixth Edition

T4 - 134. Which of the following defines standards and provides specifications for products, services, and systems to meet quality, safety, and efficiency? A. ISO B. BS C. CMMI D. IEEE

Correct Option: A ISO is an international organization for standards and is an independent body that provides standards for products, services, and systems to meet quality requirements. It is mostly used in the manufacturing industry. CMMI or Capability Maturity Model Integration is used mostly in the software industry. It is not a standard but a set of best practices. BS or British standards from British Standard Institute help organizations improve their quality and performance, reduce their risk, manage and protect their reputations, and be more sustainable. IEEE is Institute of Electrical and Electronics Engineers. It provides standards in some of the areas, like software test documentation, software unit testing, and Quality assurance planning.

T4 - 147. You are the Project Manager of a new risk management software that is being developed for one of your customers. You are midway through the project, and you are showing the first version of the product to your stakeholders. While the demo is in progress, one of the stakeholders points out that a few features requested by the customer's CEO are not present in the product. Incorporating those features would require changing the design of the product, which is expensive at this stage. What is the reason for such a scenario? A. Stakeholder analysis was not done properly B. The team misunderstood the requirement C. The CEO requirements were not in line with what the product was supposed to do D. The stakeholder who pointed out this problem was trying to create issues

Correct Option: A If the project has gone to a stage where a demo is being presented to key stakeholders and some stakeholder requirements seem to be missing, it indicates that stakeholder analysis was not done properly.

T4 - 84. Assigning overlapping responsibilities is sure to lead to conflict. One of the good ways to avoid conflict is to ensure that such things are avoided as much as possible. Refer PMBOK® Guide - Sixth Edition to know more on the conflict management techniques. As a Project Manager, you have a problem with a team member's performance. Which of the following is the best way of communicating this problem to the team member? A. Informal Verbal B. Formal Written C. Formal Verbal D. Informal Written

Correct Option: A If this does not solve the problem, then you should go for formal written communication. Refer PMBOK® Guide - Sixth Edition for more information on Project Communications Management.

T4 - 121. Which of the following is a key objective of the Validate Scope process? A. To ensure that the customer accepts the project deliverable B. To track progress of requirement completion C. To get better visibility on project progress D. All of the above

Correct Option: A If you have got this question wrong, please read the Scope Management chapter for better understanding of what needs to be done in the Validate Scope process.

T4 - 1. A Project Manager is working on constructing a new bridge, but is not getting enough project attention. Resources are occupied in process-related work and the Project Manager has little authority to assign resources. In what form of organization is the project being performed? A. Functional B. Strong Matrix C. Projectized D. Weak Matrix

Correct Option: A In a functional organization, team members are more concerned about their functional work than the project activities. In this case, the project is not getting enough attention because resources are occupied in process-related work, and the Project Manager does not have much authority to direct them to the project work.

T4 - 70. As a Project Manager, you received a change that does not impact the project schedule. What would you do? A. Ask your manager for permission B. Evaluate the impact on other components of the triple constraint C. Get in touch with the Change control board D. Go ahead and accept the change

Correct Option: B Whenever there is a change, impact on all of the triple constraint factors should be evaluated.

T4 - 143. You have supplied software code to a manufacturer, and the manufacturer has paid for your code. However, one of your testers informs you that there is a potential problem with the code. This was not identified at the time the software was supplied. It has the potential to be a problem to the manufacturer. Also, the tester informs you that the chances of this problem occurring are very slim. What should be done in such a case? A. Inform the manufacturer about the potential problem and supply him with the new version of the software B. Ask your management for guidance as does not look good to inform the customer about the potential problem C. Reward the tester for doing a great job D. Wait for the Manufacturer to report the problem and charge him extra for solving the problem

Correct Option: A Inform the manufacturer about the potential problem and supply him with the new version of the software. It's unethical to not let the customer know about a known problem.

T4 - 99. You were about to send a deliverable to your customer when you realize that there is a defect that the customer would not notice. What would you do? A. Discuss with the customer B. Go ahead and send the deliverable C. Inform your senior management and seek guidance D. Extend the Project deliverable timeframe

Correct Option: A It's ethically not right to send a deliverable with a known defect to the customer. In the present case, the best thing is to speak with the customer to see if he is ok with you sending the deliverable with the defect.

T4 - 107. You are working on a large project where you have to identify various subcontractors to do certain parts of the project. One of your potential subcontractors, Susan, is not from the same city and you have called her for contract term negotiations at your office the next morning. However, the evening before the meeting, you find out that the part of work that needs to be subcontracted has been cancelled. What should you do in such a scenario? A. Cancel the meeting B. Change face-to-face meeting to Telephonic Meeting C. Ask your Subordinate to meet the Subcontractor D. Meet the Subcontractor as you have already called her

Correct Option: A It's not ethical to waste anyone's time when you know that the task that was supposed to be subcontracted has already been cancelled.

T4 - 95. Although the customer has requested not to be contacted, you should keep verifying what you are doing to ensure there is no gap in understanding the requirements. You are in the process of selecting the seller for a part of your project that needs to be subcontracted. The project is being performed under a tight budget, and your senior management has given you strict instructions to select the lowest bidder. You have narrowed down to two bids. The lowest bid was from a bidder that you had a bad experience with in the past. The other bidder is very well known for treating customers well. Whom will you select? A. The lowest bidder B. Ask the other bidder to match the lowest price C. Disqualify the lowest bidder by citing some clause D. Select the other bidder as you will have a nice time working with them

Correct Option: A Once the rules for selecting the right vendor are communicated to you by the senior management, you should follow them. In this case, the senior management has clearly communicated that the lowest bidder must be selected

T4 - 158. Which of the following tools is used to document the lessons that were learned when the contract was administered? A. Audit B. Buyer-conducted performance review C. Quality audit D. Contract review

Correct Option: A Once you've closed a contract, it's important to conduct an audit to document the lessons learned during contract administration.

T4 - 26. During a regular project meeting, one of the team members suggests a nice feature that the customer may like. The Project Manager says "no" to this feature as the project should concentrate only on what is required for completion. This is an example of: A. Scope Management B. Change Management C. Project Management D. Quality Management

Correct Option: A One of the key responsibilities of a Project Manager is to ensure that only what is in the project scope is done. Doing more than what is part of the project scope is called gold plating, and PMI® is against gold plating.

T4 - 112. Alex is the Project Manager of a large machinery manufacturing project. During the execution phase of the project, the customer asks for a major change in the machine design. The change has a huge time and cost implication, but the customer says there is not enough funding for this change. As a Project Manager, what should Alex do? A. Meet with the customer to understand why he is asking for the change B. Ask the team members to implement the change without going to the change control board C. Escalate the issue to senior management and seek guidance D. Do nothing and let the work continue as usual

Correct Option: A Option B will be ruled out. If you are making any change, the change control board should be involved. Option D is not a good option. It just involves postponing the problem. Escalating the issue is not a good option unless you have complete details. The best option is option A.

T4 - 160. You have been hired by a contractor who wants you to manage a construction project for one of his clients. The project team has been working on this for six weeks. You need to determine whether the team is ahead of or behind schedule. Which of the following techniques is the BEST to use? A. Performance reviews B. Schedule change control system C. Bottom-up estimating D. Project management software

Correct Option: A Performance reviews help you look at the work that the team is performing in order to determine whether the project is ahead of or behind schedule.

T4 - 9. Which of the following is a source of information about specific project constraints and assumptions based on the current environment, historical record, and expert judgment? A. Project Charter B. Communication Management Plan C. Risk Management Plan D. Project Scope Management Plan

Correct Option: A Project constraints, assumptions, and high level risks are listed in the project charter based on the current environment, historical data, and/or expert judgment. This will help the project manager identify the project limitations and propose an implementation approach. The project scope management plan details how the project scope will be managed, such as how changes to the project scope will be dealt with.

T4 - 133. Which of the following is an example of the cost of conformance? A. Quality Training B. Cost of Rework C. Warranty cost D. Scrap

Correct Option: A Quality training helps to increase productivity, so it is listed as a cost of conformance.

T4 - 151. Your most recent project status report contains the following information: EV = 3,000, AC = 3,500, and PV = 4,000. The schedule performance index is: A. 0.75 B. 1.33 C. 0.83 D. 1.17

Correct Option: A SPI = EV/PV = 3000/4000 = 0.75

T4 - 39. As a Project Manager, you are asking each of your team members to give time estimates of their activities and calendar dates when they are available to work on those activities. What exactly are you doing? A. Schedule Development B. Schedule Network Analysis C. Schedule Control D. Activity Sequencing

Correct Option: A Schedule development is the process of assigning calendar dates of when each activity will be done and by whom. This is exactly what the Project Manager is doing.

T4 - 186. Which of the following describes management information systems? A. Software that an enterprise uses to support business and administrative operations B. Software projects built for client organizations C. Small applications written for personal use D. Software applications that are marketed to hundreds or even millions of clients.

Correct Option: A Software that an enterprise uses to support business and administrative operations. You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 55. Which of the following is a key characteristic of the Delphi technique? A. Expert Opinion B. Using Analogous approach to solve problems C. Using Parametric approach to solve problems D. Using Historical data to predict

Correct Option: A The Delphi technique is based on the philosophy of building consensus with experts.

T4 - 149. You are a Project Manager. When you perform earned value analysis for a project, you find that SPI is 1.3 and CPI is 0.85. What can be said about the project status? A. The Project is ahead of the schedule and over the budget B. The Project is behind the schedule and under the budget C. The Project is ahead of the schedule and under the budget D. The Project is behind the schedule and over the budget

Correct Option: A The Project is ahead of the schedule and over its budget. This is a straightforward earned value technique question.

T4 - 125. A Cost Performance Index (CPI) of 0.73 means that: A. The Project is only getting 73 cents out of every $1 spent B. The Project would cost 37% more than originally planned C. The Project is progressing at 73% of the rate originally planned D. The Project would cost 73% more than originally planned

Correct Option: A The Project is only getting 73 cents out of every $1 spent.

T4 - 29. As a Project Manager, what can you use to clearly communicate the work that is included in the work packages? A. WBS Dictionary B. Scope Statement C. Requirements Document D. Project Management Plan

Correct Option: A The WBS dictionary has the detailed work description of all the work packages.

T4 - 4. A high-level project's schedule constraints have just been determined. Which phase is the project in? A. Initiating B. Closing C. Planning D. Monitoring and Control

Correct Option: A The high level schedule constraints are determined during the initiating phase of the project. The detailed planning is done during the planning phase.

T4 - 6. Which of the following is a disadvantage of a functional organization? A. Project Manager has little or no authority B. Easier management of specialists C. Team members report to a single "Boss" D. Clearly defined career path in area of specialization

Correct Option: A The other options are advantages of a functional organization.

T4 - 46. You are the Project Manager of an ongoing project involving 50 employees of your company and 10 subcontractors. You want to know who is assigned to what task. Where should you look for this information? A. Responsibility Assignment Matrix B. Pareto Chart C. Project Organization Chart D. Resource Histogram

Correct Option: A The responsibility assignment matrix shows the project resources assigned to each work package. Refer PMBOK® Guide - Sixth Edition, page 317.

T4 - 128. You are the Project Manager of a new business center construction project. The project sponsor wants to know the cost forecast of the project at completion. The project has a total budget of $100,000 and CPI of 0.90. The project has spent $40,000 so far. How much more money needs to be spent on the project? A. $71,111 B. $43,110 C. $68,230 D. $81,100

Correct Option: A The total budget is $100,00 and CPI is 0.90. According to the earned value technique, the EAC (Estimate At Completion) would be $100,000/9= $111,111. $40,000 has already been spent, so additional money required is $111,111-$40,000=$71,111.

T4 - 79. A team member is not performing well on a project because of inexperience. There is nobody who is better qualified to do the job. As a Project Manager, what should you do? A. Arrange training for the team member B. Escalate the matter to higher authority C. Try doing it on your own D. Wait till the team member fails to deliver

Correct Option: A This is the best possible solution among the other given options.

T4 - 152. A Project Manager performs earned value analysis and finds the following results: AC = 220,000, PV=250,000, EV = 220,000. Help her to identify the CV. A. CV = 0 B. CV = 30,000 C. CV = -30,000 D. CV = 1

Correct Option: A To evaluate CV, we use the formula CV = EV - AC = 0.

T4 - 111. Which of the following is a hygiene factor according to Hertzberg's Motivation Theory? A. Good relationships with co-workers and managers B. Self actualization C. Recognition from peers D. Neat and clean office space

Correct Option: A Understanding what motivates a team member is important because few people are motivated by just money or challenging assignments. Hertzberg found that the factors causing job satisfaction (and presumably motivation) were different from those causing job dissatisfaction. He developed the motivation hygiene theory to explain these results. He called the satisfiers motivators and the dissatisfiers hygiene factors. He used the term "hygiene" in the sense that they are considered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not provide satisfaction.

T4 - 81. Understanding and managing the team when the team is spread across different locations, time zones, and shifts is called______ A. Virtual/Remote Team management B. Peer-review process C. Delegation Technique D. Interpersonal Skill

Correct Option: A Virtual/remote team management refers to understanding and managing the team when the team is spread across different locations, time zones, and shifts. Peer-review process is the review by people who are at the same level of expertise. Delegation involves assigning an activity to another person. Interpersonal skill is the ability to establish and maintain relationships with other people.

T4 - 103. You are the Project Manager of a large system integration project, and you are looking for a subcontractor to do certain aspects of the work. Your boss comes up with a recommendation for a vendor who has worked on many successful projects with your company. What should be your primary concern in such a scenario? A. Does working with this vendor violate any of the company laws? B. Is the vendor costlier than other vendors? C. Is the vendor qualified to do such Work? D. The contract Terms and Conditions

Correct Option: A Whenever you have to subcontract any work to any vendor and you get a recommendation, the first thing you should do is to ensure that no applicable company or government rules are violated. Violating such rules is unethical, and a certified Project Manager is not expected to violate any rules.

T4 - 154. Which of the following is NOT a tool or technique of "monitor risks"? A. Gathering information about how the work is being performed B. Bringing in an outside party to review your risk response strategies C. Revisiting your risk register to review and reassess risks D. Using Earned Value analysis to find variances that point to potential project problems

Correct Option: A Work performance information is an input to the process. It needs to be gathered BEFORE you start monitoring your risks.

T4 - 80. Which of the following is the highest point in Maslow's Hierarchy of Needs? A. Self Actualization B. Esteem C. Social D. Safety

Correct Option: A You are expected to know about Maslow's Hierarchy of Needs.

T4 - 190. The effect where the average individual weight that people pull in a group decreases as the size of the group increases, found by Ringelmann (1913), is an example of: A. Production blocking B. Motivation C. Individual capacity D. Coordination

Correct Option: A You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 196. Legitimate power is based on the subordinate's perception that the leader has a right to exercise influence because of the leader's: A. Role or position within the organization B. Expertise and knowledge C. Personal characteristics and personality D. Ability to punish or reward

Correct Option: A You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 16. Which of the following is NOT an advantage of obtaining approval for the project charter from the sponsor and the customer? A. Preparation of the project plan is done during this period B. The project charter ensures commitment and acceptance of the sponsor and the customer C. The project charter declares the Project Manager D. The project charter formalizes the authority assigned to the Project Manager

Correct Option: A When the project charter is approved by the sponsor and/or customer, the Project Manager is formally authorized to manage the project. It indicates that the project will have the support of the sponsor and customer and that the project will gain commitment and acceptance from them. Options B, C, and D are all advantages.

T4 - 135. James, a Project Manager, has been advised to use a Pareto chart for his project. How can a Pareto chart help James? A. To identify whether Process is in control or not B. To focus his attention on critical issues C. To identify the root cause of a Problem D. To determine the correlation between two variables

Correct Option: B A Pareto chart helps identify a few critical issues that have the maximum impact on the project. Option A refers to a control chart, and option C refers to a fishbone diagram. Option D refers to the scatter diagram.

T4 - 183. Which of the following is NOT true about Monte Carlo Simulation? A. It is a way to represent and analyze risk and uncertainty B. It is impractical for large models C. Latin hypercube sampling is a variant of Monte Carlo simulation D. The uncertainty in key input quantities is represented as a probability distribution

Correct Option: B A common misconception about Monte Carlo simulation is that the computational effort is combinatorial (exponential) in the number of uncertain inputs, thus making it impractical for large models.

T4 - 156. Which of the following is a defect? A. A mistake made by a team member on the job B. A project management plan that does not meet its requirements C. A change that the team needs to make in how it does the work D. A change request that's been rejected by the change control board

Correct Option: B A defect is an imperfection or deficiency in a project component where the component does not meet its requirements or specifications and needs to be either repaired or replaced. Of all the options listed, Option B, a project management plan that does not meet its requirements, is a defect.

T4 - 8. What is the most powerful role in a projectized organization? A. The Resource Manager B. The Project Manager C. The Functional Manager D. The Team

Correct Option: B A projectized organization is organized by projects, so the Project Manager has the maximum power in this type of organization.

T4 - 14. During which project management process group is a rough order of magnitude estimate created? A. Executing B. Initiating C. Monitoring and Control D. Planning

Correct Option: B A rough order of magnitude estimate refers to a very high-level estimate. This is generally done during the project initiation phase when very limited information is available about the project

T4 - 146. There is a change request for your project. You documented the change and sent it to the change control board (CCB) for approval. What's the next step in this process? A. Establish whether Change is required or not B. The members on the CCB use expert judgment to accept or reject the change C. Analyze the impact of the change request with your team members D. Call the CCB and advise them about whether they should approve or reject the change

Correct Option: B As a Project Manager, you can only create change requests when needed and submit them to the change control board for approval. Accepting or rejecting the change is decided by the change control board.

T4 - 153. If EV = 50, PV = 60, AC = 55, and the current cost performance is likely to continue into the future, what is the likely variation in the overall cost at the end of the project? A. The question does not provide sufficient information to come to a conclusion B. 0.1 C. 0.2 D. -0.1

Correct Option: B Based on the EV and AC values, it seems that there is a 10% escalation in the cost. Given that this trend is likely to continue in the future, the project will also end up with a 10% cost escalation.

T4 - 30. Brad is the Project Manager of a new data migration project. He is supposed to release his project WBS. In order to create his WBS, Brad goes to the organization process database and looks at the WBS of a completed data migration project. He uses that as a starting point to create his own WBS. Which of the following tools and techniques of creating WBS process is he using? A. Template B. Decomposition C. Brainstorming D. Delphi Technique

Correct Option: B Brad is using the technique of Decomposition.

T4 - 25. Project teams report to Project Manager in a projectized organization. In a matrix organization, a Project Manager can expect the communication to be: A. Open and Accurate B. Complex C. Difficult to Understand D. Simple

Correct Option: B Communication in a matrix organization is complex because each team member has two bosses, a functional manager and a Project Manager.

T4 - 165. How is contract closure different from administrative closure? A. Contract closure involves the customer as well B. Contract closure is done before administrative closure C. Contract closure can be done many times in a contract D. Contract closure is not mandatory

Correct Option: B Contract closure is done before administrative closure. All other options are wrong. The customer may be involved in administrative closure (e.g., contributing to lesson learned).

T4 - 98. During which procurement process is contract negotiation done? A. Close Procurements B. Conduct Procurements C. Plan Procurements D. Control Procurements

Correct Option: B Contract negotiation to select the seller is done as a part of the conduct procurements process.

T4 - 56. As a Project Manager, you have been asked to assist the contract manager in drafting the contract of a large project with limited scope clarity. What type of contract would you suggest, so that your organization does not face any financial losses? A. Time and Material B. Cost Plus Fixed Fee C. Firm Fixed Fee D. Cost Plus Percentage of Cost

Correct Option: B Cost Plus Fixed Fee contract is suitable for a large project with limited scope clarity. Please note that a time and material contract is best suited for smaller projects. Refer PMBOK® Guide - Sixth Edition, page 471 for different types of contracts.

T4 - 175. You are a Project Manager and are in the closing process of the project. Your customer has been presented with a formal acceptance and sign-off document. They refuse to sign, claiming that the product does not meet their expectations. You know that this situation could have been prevented by doing all of the following, EXCEPT: A. Requesting sign-off at important milestones B. Documenting the customer's refusal to sign C. Documenting the requirements D. Performing quality inspections during the process

Correct Option: B Documenting the requirements, performing inspections, and requesting acceptance and sign-off at important milestones are all acceptable ways to assure customer satisfaction.

T4 - 12. What is the key role of a Project Sponsor in a project? A. Helps in identifying key project risks B. Helps in preventing unnecessary changes to the project objectives C. Helps in identifying some key project activities D. Shares lessons learnt from the previous project

Correct Option: B Even though the sponsor may help to identify some key risks and share lessons learned from previous projects, the sponsor's role is to ensure that there are no unnecessary changes made to the project objectives.

T4 - 126. A Schedule Performance Index (SPI) of 0.67 means that" A. You are ahead of the Schedule by 33% B. You are progressing at only 67% of the rate originally planned C. You are progressing at only 37% of the rate originally planned D. You are behind the schedule by 33%

Correct Option: B For more information on SPI, please refer to page 263 of PMBOK® Guide - Sixth Edition.

T4 - 144. You are managing the installation of a new software product. The product has to be installed in 1000 client systems one by one. While your installation team does the installation, the quality team analyzes process metric measurements and adds the data points to a control chart. When you examine the control chart, you discover that the process is out of control and some immediate action needs to be taken. What is noticed on the control chart? A. There were two points that were more than 100% away from the mean. B. At least seven consecutive measurements were below or above the mean C. All the measurements were within the upper and lower control limits D. There were a lot of variations in the measurement.

Correct Option: B If seven consecutive measurements are below or above the mean, the process is out of control. This is a statistical principle.

T4 - 82. Which of the following is NOT a power derived from the Project Manager's authority? A. Formal B. Expert C. Reward D. Penalty

Correct Option: B If someone is assigned as a Project Manager, he or she gets formal power along with the power to reward or penalize. Expert power comes from experience or education. If you are recognized as an expert, people will count on your opinion and are more likely to follow your leadership.

T4 - 67. With respect to change, what is the most important activity for a Project Manager to focus on? A. Inform Project Sponsor about the change B. Prevent unnecessary change C. Track and record the change D. Implement the change

Correct Option: B If you think that option D, "Implement the change," could also be the right answer, please note that the changes are actually done by the project team and not by the Project Manager.

T4 - 138. In the middle of a project, you identify a risk that was not identified during the risk identification process. What should you do in this case? A. Do a detailed analysis on why this risk was not identified earlier B. Analyze the risk C. Ignore this risk, as risk identification is over D. Escalate the matter to the quality team so that they can come up with a new risk identification process

Correct Option: B In every question, use the basic concept that you need to show proactiveness and also get more information before taking any action. In this case, ignoring the risk is not an option. You need to be proactive. When you identify a new risk, you should not ignore it. You need to work on what action needs to be taken. This can be achieved by getting more information about the risk itself.

T4 - 15. Which process group recognizes that a project or phase should begin and commits this to the organization? A. Monitoring process B. Initiating process C. Planning process D. Scoping process

Correct Option: B Initiating process group recognizes that the project or phase should begin and commits this to the organization.

T4 - 96. You are executing a project in a foreign country where it's customary to pay the police for additional security cover. In another country, this might be considered bribery. You and your team members require the additional cover. What would you do? A. Do not pay to the police as it is bribe B. Pay the police because it's the local custom and cannot be classified as bribe C. Ask for direction from your senior management D. Find out if there is any budget for such payment and act accordingly

Correct Option: B It's very important to understand the difference between what is a government fee and what is a bribe. As a certified PMP®, you should say no to a bribe, but not to government fees. In this case, it is customary to pay for additional security, so you should go ahead and pay.

T4 - 131. A systematic method of eliminating waste is called_______. A. Six Sigma B. Lean C. Kanban D. Agile

Correct Option: B Lean is a systematic method of eliminating waste. Six sigma is a technique to reduce defects. Kanban is based on Just In Time principle for continuous improvement. Agile is used in rapidly changing environment where the iteration duration is 2 to 4 weeks.

T4 - 181. You have to select between two projects: Project A with Net Present Value (NPV) of $100,000 and Project B with NPV of $70,000. What is the opportunity cost of selecting Project A over Project B? A. 30000 B. 70000 C. 170000 D. 100000

Correct Option: B NPV is the total value of all the future cash flows today, so you should generally select the project with the higher NPV for execution. When you do that, you are actually losing the opportunity to do the competing project. The opportunity cost is the NPV of the project that you have not selected.

T4 - 64. You were conducting the project post-mortem meeting for one of your recently completed projects. It was clear in the meeting that some of the customers were not fully satisfied with the project outcome. Your sponsor specifically asks you about the measures taken to ensure customer satisfaction. Which of your subsidiary plans would you refer him to? A. Risk Management Plan B. Quality Management Plan C. Scope Management Plan D. Communication Management Plan

Correct Option: B One of the aims of planning quality in the project is to ensure that the project meets all of the stated requirements of the customer. If all the customer requirements are met, there is no reason why the customer should not be happy. However, if the customer is still unhappy, the reason needs to be further investigated.

T4 - 3. How is a project lifecycle different from a product lifecycle? A. Project lifecycle talks about specific project management activities B. Project lifecycle is different for different industries C. Project lifecycle has no methodology D. Product lifecycle sees many products through their lifecycle

Correct Option: B Option C is wrong as a product lifecycle sees many projects through their lifecycle. Option D is also wrong. A project management plan has various project activities.

T4 - 28. Which of the following is NOT true regarding subdividing the work in the WBS? A. Subdivide until it has a meaningful conclusion B. Subdivide until it can be done by a single person C. Subdivide until it cannot be logically subdivided further D. Subdivide until it can be accurately estimated

Correct Option: B Options (a), (c), and (d) are important properties to be considered while creating a WBS.

T4 - 170. Leo supplies PCB to Ahoy Electricals Inc. A contract has been finalized with Ahoy Electricals Inc. and now the organization is conducting the procurement audit and updating the project records. Which process does this scenario refer to? A. Close Procurements B. Control Procurements C. Close Project or Phase D. Develop Project Management Plan

Correct Option: B Procurement audit is a technique of the control procurements process. The purpose of the procurement audit is to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project or on other projects within the performing organization. PMBOK® Guide - Sixth Edition has deprecated the Close Procurements process and its administrative activities are now part of Control Procurements.

T4 - 7. How is operational work different from project work? A. Operational work has a unique product or service as output B. Operational work is ongoing, whereas project work is a one-time endeavor C. Operational work is a one-time endeavor, whereas project work is ongoing D. There is no difference

Correct Option: B Projects are created with some objectives and have a definite start and end date. They are one-time activities. An operation is ongoing work. An example of operational work is manufacturing of standard products.

T4 - 63. Rob works for a consulting company that regularly acquires project teams for new assignments. Once the assignment is over, the team is dissolved. What kind of organization is Rob working for? A. Matrix B. Projectized C. Functional D. Balanced Matrix

Correct Option: B Refer PMBOK® Guide page 47, for more information on organization structures.

T4 - 142. You are managing a project, Your customer, Henry, comes to you and says that he has run out of money and cannot afford to pay for the project. What would you do in this case? A. Remove some resources so that the project gets delayed and the customer gets more time to pay B. Enter administrative closure C. Ask management for guidance D. Stop all work immediately

Correct Option: B Since the customer has specifically clarified that he has run out of money, you should first enter into administrative closure. Remember, PMI® expects certified Project Managers to follow the right process always, even in cases when the customer has run out of money.

T4 - 58. Henry is a contract manager and is in the process of signing a contract with a vendor for the installation of computer servers. He is aware of the entire scope of work. Which contract type would he sign with the vendor? A. Cost Plus Fixed Fee B. Fixed Price C. Time and Material D. Cost Plus a Percentage of the Cost

Correct Option: B Since the scope of the work is clear, Henry should go for a fixed price contract. Refer PMBOK® Guide - Sixth Edition, page 471 for different types of contracts.

T4 - 42. Rearranging resources so that the same number of resources work on the project each month is also called: A. Fast Tracking B. Leveling C. Crashing D. Floating

Correct Option: B Since you are making sure that the same number of resources work on the project each month, you are doing resource leveling.

T4 - 189. Brainstorming is an example of which group task type (Steiner (1972))? A. Optimization B. Additive C. Conjunctive D. Disjunctive

Correct Option: B You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 90. You have been sending project status reports to your customer every Monday morning. The project status report is an example of: A. Informal Verbal Communication B. Formal Written Communication C. Informal written Communication D. Formal Verbal Communication

Correct Option: B Status reports are shared with various stakeholders. Status reports are ideal for highlighting key project issues on a regular basis. They are an example of formal written communication. They also help in maintaining a communication record for future reference.

T4 - 87. John is a new Project Manager who has joined an existing powerhouse project midway through project execution. He wants to understand the use of creating a "lessons learned" database. What would you tell him? A. This should be done is order to be formally relieved from the Project B. It serves as historical record for future projects C. This should be done as it's a company policy D. The Project Manager can show this as his accomplishment

Correct Option: B The "lessons learned" database serves as a historical record for future projects.

T4 - 47. Your organization wants to build a new web-based HR management system. You are the Project Manager from the IT team, and the HR manager of the organization is expected to assign two of his team members to work on this project as functional experts. However, the HR manager assigns team members who do not have a good reputation for being knowledgeable. As a Project Manager, what should you do? A. Meet the HR manager's boss and explain your concerns to him/her B. Schedule a meeting with the HR manager and ask why he assigned those members to this project and share your concern regarding their competence C. Escalate the issue to the IT head D. Try to find out who the good HR team members are and request them to be a part of your project

Correct Option: B The best way to deal with this is to first meet the concerned person and convey your viewpoint. Only if there is no satisfactory action should you look at escalating the matter.

T4 - 69. A customer is well known for making a lot of changes to an ongoing project. You have been assigned as the Project Manager for a new project from this customer. What would you do in the beginning of the project to manage this customer? A. Send a copy of your company change control procedure B. Involve the customer as early as possible on the project C. Strictly say "No" to the customer a few times D. Inform your manager about the customer's past record

Correct Option: B The best way to handle this scenario is to involve the customer as early in the project as possible. Many stakeholders may create problems because of ignorance, so involving them early in the project makes them aware of the project benefits.

T4 - 49. Which of the following is NOT a technique to plan communication in the project? A. Communication Requirement Analysis B. Communication Management Plan C. Communication Methods D. Communication Technology

Correct Option: B The communication management plan is an output of the "plan communication" process. Refer PMBOK® Guide - Sixth Edition, page 377.

T4 - 34. An activity has an Early Start (ES) on day 5 and Late Start (LS) on day 10, an Early Finish (EF) on day 20 and Late Finish (LF) on day 25. What can be said about this activity? A. The activity is not progressing at all B. The activity is not on a critical path C. Not enough information to tell anything about the activity D. The activity is on critical path

Correct Option: B The formula to calculate float is LS-ES or LF-EF. This activity has a float of 5 days. Generally, if an activity has float, it is not on the critical path. Since there is no other information provided, Option B is the best answer. There is absolutely no information about the activity progress, so nothing can be said about Option D.

T4 - 50. A project has 10 team members spread across 4 different countries. How many channels of communication exist? A. 20 B. 45 C. 40 D. 10

Correct Option: B The formula to calculate the number of channels is (n*(n-1)/2), where n stands for the number of team members on the project.

T4 - 37. Which of the following project management tools is best suited to calculate the maximum time that a project will take to be completed? A. Flowchart B. Network Diagram C. Earned Value Technique D. WBS

Correct Option: B The other 3 options will not give information about the critical path, and without critical path information we will not be able to calculate the longest time period for a project.

T4 - 5. Which of the following is a disadvantage of a projectized organization? A. Efficient Project Organization B. No home after project completion C. Loyalty to the Project D. Better Communication

Correct Option: B The other three options are advantages of a projectized organization. Since projectized organizations are organized by project, they are efficient in terms of project organization. Also, there is loyalty to the project, and communication during project is good. In a functional organization, team members work on projects in addition to their regular functional work, and they get confused about priorities.

T4 - 122. Which of the following is a technique of "controlling project scope"? A. Expert Judgment B. Variance Analysis C. Alternative Identification D. Product Analysis

Correct Option: B The other three options are techniques of "define scope."

T4 - 127. You are the Project Manager of a new road construction project with a total budget of $500,000. During a status review meeting, you realized that your team has just completed 40% of the work when it should have completed 50% by now. The team has also spent $190,000 so far on the project. What's the best way to describe the project status? A. Too little information to come to a conclusion B. Project is behind schedule, but within the budget C. Project is ahead of the schedule and under budget D. None of the above

Correct Option: B The question says that 50% the project should have been completed, but only 40% has been complete, i.e., it's behind schedule. Also, if only 40% of the work is completed, the project should have used $500,000*0.4= $200,000. As the question says that only $190,000 has been spent, the project is within budget. This problem can be solved using the earned value technique.

T4 - 188. What is the formula for ROI? A. Cost of investment - Gain from investment B. (Gain from investment - cost of investment)/ cost of investment C. Gain from investment/cost of investment D. Cost of investment/Gain from investment

Correct Option: B You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 88. You are executing a project for an overseas customer. There are multiple stakeholders at the customer's end; however, your point of contact has not introduced you to the manager who is supposed to run an event at the customer's end and may have some requirements for your project. If you do address his requirement, he might ask for a change in the project. There is also a possibility that the change control board will approve the change. What should you do? A. Nothing, as your customer contact point has not formally introduced you to this stakeholder B. Schedule a meeting with this stakeholder to understand his requirements C. Add this issue as a potential project risk and address it at the appropriate time D. Call your boss for guidance on this matter

Correct Option: B The questions says that there is a stakeholder who has a requirement for your project, and it's most likely going to be approved by the change control board. As a proactive Project Manager, you should take the initiative to meet the customer and understand his requirement. If you do not meet the customer, you will not be proactively addressing the potential issues.

T4 - 62. The project scope baseline consists of: A. The scope management plan, the scope statement, and the WBS dictionary B. The scope statement, the WBS, and the WBS dictionary C. The scope management plan, the WBS, and the WBS dictionary D. The scope management plan, the scope statement, and the WBS

Correct Option: B The scope baseline is the approved version of the scope statement, WBS, and its associated WBS dictionary.

T4 - 110. Which of the following is NOT a technique used in "Acquire resources" process? A. Pre-assignment B. Delphi technique C. Negotiation D. Virtual teams

Correct Option: B The tools and techniques for the "Acquire resources" process can be found on Page 328 of PMBOK® Guide - Sixth Edition.

T4 - 35. After completing the schedule network analysis, you find out that your project schedule is taking too long and you also find that you cannot change your network diagram. In such cases, in order to get the project completed faster, what option do you have? A. Nothing can be done B. Crash the project C. Perform resource leveling D. Fast track the project

Correct Option: B There are two ways to do schedule compression: fast tracking and crashing. As the question clearly says that the network diagram cannot change, fast tracking is not possible, and you can solve the problem only by crashing the project. Also, resource leveling is not a schedule compression technique.

T4 - 141. There was a prescheduled project status review meeting and one of your team leads sent the report to you an hour before the meeting. You find many issues in the report. What would you do? A. Let him present the report and ridicule him in front of everyone to teach him a lesson B. Postpone the meeting and ask him to fix the issues C. Do nothing. Just wait and see what happens. D. Cancel the meeting and prepare the report yourself

Correct Option: B There is no point in wasting everyone's time. Also, it's not a good idea to scold a team member in front of others. Remember, you need to respect everyone, including your subordinates.

T4 - 129. Jenny is an assistant to the senior Project Manager. She has been asked to calculate the value of EAC (Estimate At Completion) using the Budget At Completion (BAC) value. Assist her in finding the correct formula. A. Multiply by CPI B. Divide by CPI C. Multiply by SPI D. Divide by SPI

Correct Option: B This is straight from the earned value formulas. CPI is Cost Performance Index and SPI is Schedule Performance Index.

T4 - 132. A Project Manager is encountering too many problems on his project. He wants to identify the root cause of the problems so that he can focus his attention on those causes. Which of the following tools should he use? A. Histogram B. Fishbone Diagram C. Control Chart D. Pareto Chart

Correct Option: B This will help him understand the root cause of the defect by plotting all of the possible reasons for the defect. The fishbone diagram is also called an Ishikawa diagram. This is one of the quality control tools.

T4 - 137. Which of the following is NOT a technique of managing the project team? A. Observation and conversation B. Training C. Conflict Management D. Project Performance Appraisals

Correct Option: B Training is a technique to develop the project team. You are expected to know the inputs, outputs, and tools and techniques of each of the 49 project management processes.

T4 - 118. Joshua is the Project Manager of a new telecom project. Soon after the project started, he realized that his team has not estimated enough for R&D on the project. Joshua prepared a change request to add the extra work in the project scope statement and updated the project schedule to reflect the change. The change request was approved by the change control board. What should be his next step? A. Start the work as it's approved by the Change Control Board B. Update the Scope and Schedule baselines to reflect the approved changes C. Perform Scope Verification again D. Perform Risk Identification to identify any Risk in the newly added work

Correct Option: B Update the Scope and Schedule baselines to reflect the approved changes. Although the plan has been approved by the change control board, the first thing you should do is update the scope and schedule baseline.

T4 - 150. A Project Manager is in the process of obtaining formal acceptance of the completed project deliverables through inspection, reviews, audits, and walkthroughs. Which process of project management is the Project Manager in? A. Create WBS B. Validate Scope C. Quality Assurance D. Quality Control

Correct Option: B Validate Scope is the process of formalizing acceptance of the completed project deliverables. It includes reviewing deliverables with the customer or sponsor to ensure that they are completed satisfactorily and obtaining formal acceptance. On the other hand, inspection during quality control is more focused on ensuring conformance to documented standards. Quality control usually precedes project scope verification and sometimes occurs simultaneously.

T4 - 104. You are working on a crucial project. You realize that you may miss the due date of the project. What do you do? A. Change the due date B. Evaluate options to meet the due date C. Ask your manager for guidance in such cases D. Remove the due date discussion in all stakeholder communication

Correct Option: B When you know that you are going to miss the due date, the right thing to do is to look at options to meet the due date. Only when you cannot find any options should you change the due date and inform all of the stakeholders. It is unethical to not to communicate the due date.

T4 - 191. Judy is in a company board meeting where the task is to generate as many ideas as possible to promote a new cleaning product. During the meeting, she hears an idea from another group member about television advertising, which makes her focus on ideas related to that. As a result, she fails to come up with ideas about another category, which she may have done had she been in an individual situation. What effect prevented Judy from generating ideas on the alternative category in the group situation, which she would normally have been able to do in the individual situation? A. Motivation Loss B. Cognitive restriction C. Cognitive stimulation D. Individual capability gain

Correct Option: B You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 194. When considering the level of potential performance of a party of climbers, which of the four learning processes within group collaborative settings places importance on each climber's pre-tour physical and mental training? A. Individual-to-individual (I-I) B. Group-level learning (G-G) transfer C. Group-to-individual-in-group (G-IG) D. Group-to-individual (G-I)

Correct Option: B You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 73. Which of the following is the BEST thing to do to complete a project three weeks ahead of schedule? A. Inform the customer that the critical path does not allow early completion B. Motivate the team to work hard and look for the status update the following month C. Meet the team and look for options for crashing or fast tracking the critical path D. Consult Project Sponsor

Correct Option: C

T4 - 53. Plan risk response focuses on: A. Identifying a comprehensive list of risks for the project B. Managing the contingency reserves C. Creating strategies to deal with the risks in a project D. Creating workarounds for unplanned risks

Correct Option: C A Plan risk response generates a plan that the Project Manager will use to deal with the risks.

T4 - 75. You have recently joined a new organization where there are many problems with project management. Projects are not completed on time. You have been assigned to help the senior management of the organization to understand these problems. Which of the following reports should you create? A. Bar Chart B. Detailed Cost Estimate C. Milestone Report D. Gantt Chart

Correct Option: C A milestone report has summary details about the project. Detailed Cost Estimate is not relevant to the question because the current problem that the senior management is facing is with projects not being completed on time. A Gantt Chart is created to communicate the project's schedule with the team.

T4 - 2. Which of the following is NOT a characteristic of a project? A. It is composed of interrelated activities B. It is temporary C. It is repeated every week D. It has a definite beginning and end

Correct Option: C A project is a one-time endeavor with a definite start and end date. It is not generally repeated every week.

T4 - 77. You are currently working as a Project Manager of a major software project that is facing severe time pressures. The quality department informs you that they have to perform a quality audit of the project. The team members are not cooperating. As a Project Manager, how do you explain to them the purpose of the quality audit? A. The audit checks if the customer is aware of the project process B. An audit is a management decision and must be performed C. The purpose of the audit is to check if the project is following any ineffective or inefficient policies D. The purpose of the audit is to check the time sheet of all team members

Correct Option: C A quality audit is a structured, independent review to determine whether project activities comply with the organizational and project policies, processes, and procedures. For more information, refer the PMBOK® Guide - Sixth Edition Page 294.

T4 - 172. Which of the following is NOT true about project closing? A. Distribute the final project report, including information related to project closure, project variances, and any issues, to provide the final project status to all stakeholders B. Archive project documents and material in order to retain organizational knowledge and comply with statutory requirements C. Close the project and let the Project Manager maintain ownership for the entire project D. Measure customer satisfaction at the end of the project by capturing customer feedback in order to assist in project evaluation and enhance customer relationships

Correct Option: C According to PMI's closing task, the ownership of deliverables should be transferred to the assigned stakeholders in accordance with the project plan in order to facilitate project closure. All of the other options are obviously true and need to be done during closing.

T4 - 113. Which of the following is NOT an example of the cost of quality? A. Training team members on effective ways to look for product defects B. Reviewing all the product requirements to ensure that everything is developed C. Assigning two team members to work on product development D. Testing the product for defects

Correct Option: C All of the other options come under the cost of quality. Refer PMBOK® Guide - Sixth Edition, page 274, for more information on cost of quality.

T4 - 179. How is the precedence diagramming model (also called activity on node) different from activity on arrow? A. Activity on Node uses only Finish to start activity dependency B. There is no difference C. Activity on Node uses all four types of activity dependencies D. Activity on Node uses Dummy Activities

Correct Option: C All of the other options listed are characteristics of "activity on arrow" network diagrams.

T4 - 180. There are four projects A, B, C, and D. One of them has to be selected for execution. Project A has an internal rate of return (IRR) of 22%, Project B has an IRR of 25%, Project C has an IRR of 19%, and Project D has an IRR of 17%. Which project will you take up for execution? A. Project D B. Project C C. Project B D. Project A

Correct Option: C An internal rate of return is similar to keeping your money in a bank account. You will choose the bank that gives the maximum return. The same is true for the project. You need to select the project that has the highest internal rate of return.

T4 - 89. You are the Project Manager of a project that has just closed a contract with one of the suppliers. You need to communicate the status of the contract to your stakeholders. What kind of communication method would you use for this communication? A. Formal Verbal B. Informal Verbal C. Formal Written D. Informal Written

Correct Option: C Any contractual matter has long-term implications, so well-documented and formal written communication is best suited for this purpose.

T4 - 115. One of the subcontractors on your team explains how he faked his PMI® certificate and got onto the project team. As a certified Project Manager, what should you do? A. Advise him not to do this in future B. Do nothing, as he is now a friend C. Report the matter to PMI® D. Inform your manager about him

Correct Option: C As a certified Project Manager, you are expected to be ethical. Since forging a PMP® certification is unethical, you should immediately inform PMI® about it.

T4 - 102. You are the Project Manager of a new complex software development project. Your team is facing major issues with software design. One of your team members, Susan, says that her friend, who is working in another company, uses a third party software for designing similar projects and that the software helped them to reduce their project timeline by at least 20%. You are running short of time and want to do everything you can to get the project back on track; however, your project does not have the budget to buy any third party software. Your team member says she can get a copy of the software from a friend and use it on the project. As a Project Manager, what would you do? A. Use a ready-made software to speed up the Project B. Ask Susan to use the software and not tell anyone about it C. Inform the team member about copyright policies and strictly tell her that the project cannot use unlicensed software D. Accept the fact that your project is delayed and look for other ways to speed up the project

Correct Option: C As a certified Project Manager, you are supposed to respect copyright laws and should not use unlicensed copies even if the project gets delayed

T4 - 100. You are sent by your company to execute a project in a foreign country. All of your equipment is detained at the airport, and the airport authority asks for a fee to release the equipment. You are also losing time on your project. What would you do? A. Don't pay as it's a bribe B. Pay and get the money from management reserve C. Establish whether such payment is legal in that company D. Ask your boss for the next step

Correct Option: C Before jumping the gun, establish whether the airport is asking for a fee or a bribe. If it's a bribe, don't pay. If it's an airport usage fee, go ahead and pay.

T4 - 78. Chris is the Project Manager of a new software development project. He finds a major issue with the project requirement management process, and can find a trend of requirement-related defects. He is using an Ishikawa diagram to come up with the root cause of the trend and to make recommendations to avoid problems in the future. What process is he implementing? A. Plan Quality Management B. Identify Risks C. Manage Quality D. Control Quality

Correct Option: C Cause and effect diagram or Ishikawa diagram is one of the tools used in the manage quality process.

T4 - 177. You have to catch a flight to submit a tender document for a strategic project for your company. You are running late for the flight, but there is a possibility that you can speed up and catch the flight. What would you do? A. Ask your Manager for guidance B. Speak to customer to postpone the last date of bid submission C. Don't speed because it's dangerous and against the law D. Speed up and catch the flight

Correct Option: C Don't speed because it's dangerous and against the law. PMI® is against violating any applicable law, including traffic laws.

T4 - 171. Which of the following is NOT an input to the close project or phase process? A. Organizational process assets B. Project Management Plan C. Expert Judgment D. Accepted deliverables

Correct Option: C Expert judgment is a technique for this process, and not an input.

T4 - 20. Which of the following is NOT an input to "develop project charter"? A. Business Case B. Contract C. Expert Judgment D. Agreement

Correct Option: C Expert judgment is a technique, not an input.

T4 - 114. Which of the following types of power is considered best when leading a team? A. Reward B. Penalty C. Expert D. Formal

Correct Option: C Expert power is the ideal type of power to lead a team.

T4 - 31. Product analysis is done during the development of: A. Project Charter B. Project Management Plan C. Project Scope Statement D. Project Schedule

Correct Option: C For projects that have a product as a deliverable, as opposed to a service or a result, product analysis is an effective tool.

T4 - 109. You are the Project Manager of a new portal development project. You want to integrate your portal with one of the online payment gateways, but you have been experiencing major issues in receiving payment. The remote support from the payment gateway company is not of much help. Your team suggests getting one of their engineers online so that you can speed up the work. However, this will increase the project costs, which have not been budgeted. According to your team, there is no other option at this stage. What should you do? A. Motivate your team members to solve the problem and integrate with this payment gateway B. Ask your senior management to help you make the decision C. Create a change request to ask for an engineer from the payment gateway company and present this to the change control board for approval D. Look for another gateway provider

Correct Option: C If you look at the question, there is a problem in the project, and the project team has not been able to find a solution. In this case, the only option left is to create a change request and ask for additional money to get the problem fixed.

T4 - 120. When is the best time to do scope verification? A. During administrative closure of the project B. At the beginning of the project C. At the end of each phase of the project D. At the end of the project

Correct Option: C If you think that Option A could be the right answer, please note that you should verify the product scope at the end of the project.

T4 - 33. A Project Manager is calculating the weighted average of activity duration estimates to do the schedule network analysis. Which schedule network analysis technique is the Project Manager using? A. "What-If" Scenario Analysis B. Critical Chain Method C. PERT D. Critical Path Method

Correct Option: C In the PERT technique, three estimates (Optimistic, Pessimistic and Most Likely) of each activity duration are calculated and then a weighted average of each duration estimate is arrived at.

T4 - 199. Functions such as training the group, setting standards, maintaining discipline, and appointing sub-leaders may be called: A. Task functions B. Individual functions C. Team functions D. Work functions

Correct Option: C You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 65. You have just started a new project as a Project Manager. A couple of stakeholders with whom you have worked in the past come to you raising concerns about the utility of the new project management package being used and the way project changes would be logged. What should you do? A. Assure the stakeholders that you will keep them engaged in the Project and that the new software will not in any way impact their functioning B. Since they are friends, conduct an informal training session C. Inform the Project Management Office about the stakeholders' concerns D. Supply with training material on the new Project Management Software

Correct Option: C Inform the Project Management Office; they control the project management procedures and tools. In directing stakeholders to the PMO, the Project Manager is referring them to the right authority.

T4 - 10. What is the main purpose of the project charter? A. It contains the initial scope of work B. It contains the list of risks that need to be addressed C. It authorizes the Project Manager to use organization resources to execute the project D. It identifies the project sponsor who will pay for the project

Correct Option: C It gives the Project Manager the authority to spend money and commit corporate resources to the project. In most project situations, the project team does not report to the Project Manager in the corporate structure. This reporting structure can lead to cooperation and performance issues. The project charter helps resolve these issues.

T4 - 185. Which are the four components of the Kano model that are used in prioritizing the Agile project requirements? A. Prioritizer, Delighters, Timely, Lately B. Must, Should, Could, Won't C. Must haves, dissatisfiers, satisfiers, and delighters D. Dissatisfiers, satisfiers, delighters, Sadists

Correct Option: C Must haves, dissatisfiers, satisfiers, and delighters. This is a dummy question. You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 21. Which of the following is NOT an element of the project charter? A. The product description or a reference to this document B. The business need that the project was undertaken to address C. Work package descriptions D. The formal authorization to apply organizational resources to project activities

Correct Option: C Of all the options listed, Option C, work package descriptions, is not an element of the project charter. It is an element of the Work Breakdown Structure (WBS).

T4 - 18. Which of the following is an input to the "identify stakeholders" process? A. Stakeholder Register B. Expert Judgement C. Change log D. Stakeholder Engagement plan

Correct Option: C Of the stated options, "Change log" is an input to the "Identify Stakeholders" process. Stakeholder register and Stakeholder engagement plan are outputs from the "Identify Stakeholders" process. Expert Judgment is a tool and technique for this process. For more information on this process, refer to page 507 of PMBOK® Guide - Sixth Edition.

T4 - 32. A Project Manager has received activity duration estimates from his team. Which of the following does he need in order to complete the schedule development? A. Change Request B. List of Preventive Actions C. Reserves D. Change Control Procedure

Correct Option: C Once the team members give their estimate, a good Project Manager should add some Reserves. This is also called padding the estimate.

T4 - 101. You were competing with another colleague to become the Project Manager of a prestigious new project in the organization. Unfortunately, your colleague got the assignment. At a later date, your colleague comes to you for a document. What would you do? A. Don't give him the document. Create a problem for him B. Just avoid him and let him keep coming to you C. Give him the document and also cooperate with him as much as possible D. Tell him that the document is not useful and that you have lost it

Correct Option: C Once your colleague has been selected as the Project Manager, you should cooperate with him as much as possible.

T4 - 41. In one of your projects, a team member, John, informs you that he works on user interface development, which is a very creative activity. He cannot estimate the time required to complete the activity. However, as a Project Manager, you need the activity's estimates. You decide to use the past data, i.e., the number of hours spent by him and the number of user interfaces designed by him in those hours. Which estimation technique are you using? A. Heuristics B. Analogous Estimation C. Parametric Estimation D. Three Point Estimation

Correct Option: C Parametric estimation is the technique of using a parameter to generate estimates. In this case, the Project Manager is using the parameter of the number of interfaces produced per hour to do the estimation.

T4 - 60. You are using a large number of subcontractors on your project. When you inspect the attendance register, you notice a lot of irregularities in time-in and time-out. Your project is within cost and time budgets, and your team leads claim that such irregularities would not impact the project. However, you see this as a potential risk. Where do you record this? A. Risk Register B. To do List C. Watch list D. Trigger List

Correct Option: C Potential problems that have not yet become risks are listed on the watch list. The watch list is regularly monitored to ensure that if any of the listed issues become risks, they are handled using the project risk management processes.

T4 - 44. As a Project Manager, what would you give the highest priority: quality, cost, or schedule? A. Completing the project according to schedule is most important B. Quality is of utmost important. Cost and Schedule come later C. It would depend upon the project D. Cost is most important. Everything else can be compromised.

Correct Option: C Quality, cost, and schedule are all part of triple constraints, so they are equally important.

T4 - 148. As a Project Manager, you have called for a risk review meeting. While going through the risk register, you found out that there is a risk that cannot be avoided or transferred and the impact or probability cannot be mitigated. What would you do? A. This is a residual risk. Look for another set of response strategies B. Re-calculate Risk Probability * Impact Value C. Just wait for risk to occur as you have already implemented all of the risk response strategies D. This is a secondary risk and secondary priority for you

Correct Option: C Since you have already implemented all of the risk management strategies, you can just wait for risk to occur. If it occurs, follow your contingency plan.

T4 - 178. Standard deviation is a measure of : A. How far the estimate is from the lowest estimate B. How far the estimate is from the highest estimate C. How far the measurement is from the mean D. How good the sample data is

Correct Option: C Standard deviation is the measure of how far the measurement is from the mean.

T4 - 59. You are the Project Manager of a project that involves the launch a new model of a car. The car has to hit the market before the festival season. However, you received information that the workers are planning to go on a strike at the same time. You try to come up with a strategy to get the new model of the car launched despite the strike. This is an example of: A. Risk Mitigation B. Risk Transfer C. Risk Acceptance D. Risk Avoidance

Correct Option: C The Project Manager knew about the workers' strike (the risk) and looked for a workaround. This is an example of accepting the risk and finding alternative options.

T4 - 19. Multiple classification models are available to prioritize the key stakeholders and to ensure efficient use of effort to communicate and manage their expectations. One such model is the Salience Model. Which of the following parameters is NOT considered by this model? A. Power B. Urgency C. Influence D. Legitimacy

Correct Option: C The Salience Model is a multiple classification model that describes classes of stakeholders based on their power, urgency, and legitimacy. Influence is a key parameter used in the Power/Influence grid and Influence/Impact grid. For more information on this process, refer to Page No: 513 of PMBOK® Guide - Sixth Edition.

T4 - 86. You were asked to sit as an observer on another project's status review meeting. You observed that everyone present in the meeting was talking at the same time about different issues. The whole meeting was chaotic. What do you think was not done? A. There were cultural issues as people of different backgrounds were attending the meeting B. The right people were not invited for the meeting C. The meeting agenda and ground rules were not set D. The Project Manager was ineffective

Correct Option: C The meeting agenda and ground rules need to be set for all meetings to avoid situations like the one mentioned in this question.

T4 - 130. Which of the following represents the estimated value of the work actually accomplished? A. PV B. AC C. EV D. CV

Correct Option: C The question is asking for the definition of earned value. This question also assumes that you are comfortable with terms like EV, SV, and CV, which are used in the earned value technique.

T4 - 40. You have been assigned as the Project Manager of a development project. The WBS has been completed and the activity sequencing has also been done. The activity duration estimate has also been received by each of the team members. What should be the next step in the project? A. Get cost estimate of each activity B. Create WBS dictionary C. Compress schedule D. Finalize schedule

Correct Option: C The question mentions that activities have been identified and sequenced. The duration estimate has also been received. Before going ahead and finalizing the schedule, you should look at compressing the schedule to optimize it. Option C is related to the WBS, and that's done before activities are sequenced. Option D is done once the schedule is finalized.

T4 - 93. You have to fast track your project to meet the schedule deadline, so you decide to use your current software development vendor to develop the e-learning content instead of going through the process of issuing the RFP and looking for the right vendor. What is the main concern in this scenario? A. Signing the Contract B. Too much dependence on the same vendor C. The qualification of the vendor D. Violation of the organization's code of conduct

Correct Option: C The software solution vendor might not be the right vendor to work on e-learning content.

T4 - 51. You have been assigned as the Project Manager of a new e-business project. There appear to be many risks involved in the project, but nobody has evaluated them to assess the range of possible outcomes. What was not done? A. Risk Identification B. Risk Register not updated C. Risk Analysis D. Risk Response Planning

Correct Option: C This can include qualitative or quantitative risk analysis.

T4 - 91. You are executing a project. The customer asks for a change that's going to increase the schedule risk. What should you do first? A. Inform your manager about the customer's request B. Inform the customer that the project would get delayed C. Analyze the impact of the change with your team D. Go ahead and accept the change

Correct Option: C This is the first thing that you should do. Unless you know the impact, you will not be sure about what to communicate to either your manager or the customer.

T4 - 106. You are working on a project when the customer calls to explain that he wants another feature added to the product. However, there is no additional budget for the new feature. What should you do? A. Ask your manager for guidance B. Inform the customer that he must provide additional funds for the new feature C. Follow the contract change control process D. Remove some other feature and add the new feature

Correct Option: C Whenever there is a change, the right process is to follow change control. It is quite possible that you can remove the old feature and add the new feature at the same cost, but it should be done following the change control process.

T4 - 187. Which of the following is NOT a step involved in the Agile version of model-driven development (AMDD)? A. Identify the high level scope B. Identify an architectural vision C. Identify the low level scope D. Identify initial "requirements stack"

Correct Option: C You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 192. Giving feedback and ensuring the continuous visibility of individual contributions promote: A. group process losses B. group composition C. group synchronization D. group learning

Correct Option: C You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 193. Which approach to the study of leadership emphasizes the role of situational factors and how these moderate the relationship between leader traits or behaviors and leadership effectiveness? A. Transformational approach B. Transactional approach C. Contingency approach D. Leader oriented approach

Correct Option: C You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 195. Which of these statements about team awareness is FALSE? A. Team awareness provides a context for group members' own activities B. Team awareness increases when leadership is shared C. Team awareness can only be improved by the group members themselves D. Team awareness reduces the effort needed to coordinate tasks and resources

Correct Option: C You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 119. One of your team members comes to you and proposes a change in the project that can reduce the project schedule by 3 months. As a Project Manager, what should you do? A. Advise the team member to just focus on his work B. Thank the team member and go ahead with the change C. Analyze the impact of the change on the other triple constraints D. Tell him that you cannot implement the change as the project deadline has already been communicated to the Customer

Correct Option: C You should not go ahead and implement a suggestion just because the schedule is reduced by 3 months. The best thing to do in such scenarios is to analyze the impact on the other triple constraints. It's quite possible that the cost may increase.

T4 - 24. Who does the project team report to in a projectized organization? A. The project team does not report to anybody B. CEO C. Functional Manager D. Project Manager

Correct Option: D

T4 - 94. A customer asked you to work on a contract scope of work for 6 months and come back to him when the work has been completed. As a Project Manager of the vendor organization, what should you do? A. Complete the work and also keep a written record that the customer has asked you not to contact him B. Ask your senior management to check if the customer is genuine C. Meet the customer at the end of six months with deliverables D. Complete the work as requested, but keep verifying the scope with the customer

Correct Option: D

T4 - 57. Which of the following is not a technique to plan procurements? A. Make or Buy Analysis B. Market Research C. Expert Judgement D. Bidder Conference

Correct Option: D A bidder conference is a technique to conduct procurements. The other three are techniques to plan procurements.

T4 - 140. You just started working on a contract, but the senior management of your organization decides to terminate the contract. What should you do? A. Follow the "Develop Project Charter" Process to start a new Project B. Follow the "Plan Procurement" Process and look for another vendor C. Follow the "Develop Project Management Plan" to re-plan the Project D. Follow the "Close Contract " to formally close the Contract

Correct Option: D A contract is either terminated or it's completed because the scope of work is completed. In either case, the contract closure needs to be followed to ensure that you have historical information about the contract.

T4 - 38. What is the duration of a milestone? A. Average of the activity before and after the milestone B. Twice the project duration C. Project duration D. Zero duration

Correct Option: D A milestone is defined as an activity with zero duration. Milestones are used on the project schedule to show completion of a set of activities and for reporting purposes. For example, all requirements-related activities can be grouped, and once all of them are completed, you can say that the requirement milestone has been achieved.

T4 - 11. A Project Manager is assigned to a new critical project, but the project charter itself is undergoing multiple changes. Whose primary responsibility is it to decide whether the changes to the project charter are required or not? A. Portfolio Manager B. Project Team C. Project Manager D. Project Sponsor

Correct Option: D A project charter should be created by the Project Sponsor and handed over to the Project Manager. The Project Manager can provide his inputs while the project charter is being prepared. It is the project sponsor's responsibility to avoid any unnecessary changes to the project charter.

T4 - 155. You've been hired by a large consulting firm to evaluate a software project. You have access to the CPI and EV for the project, but not the AC. The CPI is .92 and the EV is $172,500. How much money has actually been spent on the project? A. There is not enough information to calculate the actual cost B. 158700 C. 172500 D. 187500

Correct Option: D AC = EV/CPI = $172,500/.92 = $187,500

T4 - 161. During the closing process group, feedback should be collected from: A. Sponsor B. Customer C. Team D. Relevant stakeholders

Correct Option: D According to the new examination content outline, feedback should be collected from the relevant stakeholders.

T4 - 123. If Earned Value (EV) is $550, Actual Cost is $650, and Planned Value is $600, what is the Cost Variance (CV)? A. 100 B. -50 C. 50 D. -100

Correct Option: D Apply the formula (CV=EV-AC) to get the answer. Though planned value is also provided in this question, it is not used in solving this problem.

T4 - 76. Which of the following is an example of quality assurance? A. Fishbone Diagram B. Pareto Chart C. Inspection D. Process Analysis

Correct Option: D Audit and process analysis are key quality assurance tools.

T4 - 168. Which process group includes processes used to formally terminate all activities of a project or a project phase? A. Executing B. Monitoring and Control C. Planning D. Closing

Correct Option: D Closing includes processes used to formally terminate all activities of a project or a project phase.

T4 - 85. You have a team spread across five countries. What is the best communication method to follow? A. Formal Verbal B. Informal Verbal C. Informal Written D. Formal Written

Correct Option: D Communication is a big issue. If the team members are geographically distributed, it's a good practice to use formal written communication. Project Managers should spend 90% of their time in communication.

T4 - 173. Which of the following processes are performed in the closing process group and in what order? A. Administrative Closure and then Contract Closeout B. Contract Closeout and then Scope Verification C. Scope Verification and then Administrative Closure D. Contract Closeout and then Administrative Closure

Correct Option: D Contract closeout and administrative closure are the processes in the closing process group and are performed in that order.

T4 - 61. Which of the following is NOT a cost estimation tool or technique? A. Parametric B. Bottom-Up C. Analogous D. Cost Aggregation

Correct Option: D Cost Aggregation is a cost budgeting tool. The other three options are cost estimation tools.

T4 - 162. When do you mark a project as complete? A. Final payment has been received from the customer B. The Project is completed and the payment has been received C. Administrative closure is done and "lessons learned" are documented D. All project requirements mentioned in the contract are completed and the formal acceptance has been received from the customer

Correct Option: D Even if the customer pays all of the money, you should not treat the project as completed unless you have a written acceptance letter from the customer.

T4 - 36. Your Program Manager asks you to reduce the project duration. You look at the network diagram and start identifying the activities that can possibly happen in parallel. Which technique are you using? A. WBS B. Crashing C. Flow Charting D. Fast Tracking

Correct Option: D Fast tracking is the process of replacing the serial relationship of activities with a parallel relationship in order to reduce the project duration. This is one of the schedule network analysis techniques

T4 - 17. In a multi-phased project, when should the initiating processes be invoked? A. In the middle of each phase B. At the end of each phase C. Only during the first phase D. At the start of each phase

Correct Option: D In a multi-phased project, invoking the initiating processes at the start of each phase helps to keep the project focused on the business need for which the project was created.

T4 - 163. As a Project Manager, you delivered a new product to your customer, but the very next day, you got a call from the customer saying that some of the features that were expected were not present in the new product release. What is the first thing that you should do? A. Call for a team meeting and discuss the customer's concerns B. Ask your team members to immediately start building the missing features C. Review Project Contract and Identify the Possible Problem D. Request a meeting with the customer and try to understand what features were not present in the product

Correct Option: D In questions of this sort, you need to follow the basic principle of first getting clarity on what the problem is. In this case, the customer is talking about some missing features. As a first step, you should try to understand what is missing.

T4 - 164. As a Project Manager, you delivered a new product to your customer, but the very next day, you got a call from the customer saying that some of the features that were expected were not present in the new product release. What is the first thing that you should do? A. Call for a team meeting and discuss the customer's concerns B. Ask your team members to immediately start building the missing features C. Review Project Contract and Identify the Possible Problem D. Request a meeting with the customer and try to understand what features were not present in the product

Correct Option: D In questions of this sort, you need to follow the basic principle of first getting clarity on what the problem is. In this case, the customer is talking about some missing features. As a first step, you should try to understand what is missing.

T4 - 74. It is always important to understand what best can be done before going ahead with any other tasks. During the project execution, a large number of changes are made to the project. The Project Manager should: A. Wait for all the changes to happen and print a new schedule B. Make only the changes approved by the management C. Talk to management before any changes are made D. Make the approved changes and retain the schedule baseline

Correct Option: D Make the approved changes and retain the schedule baseline. It's not bad to have changes, but changes must be managed and the baseline should be maintained.

T4 - 157. Which of the following is NOT an output of the "monitor and control project work" process? A. Project document updates B. Change request C. Project management plan updates D. Project management plan

Correct Option: D Of all of the options listed, project management plan is not an output from this process. Project management plan is an output of the Planning stage.

T4 - 136. Kathy is a project expeditor and has recently been promoted to the role of Project Manager. Currently, she is undergoing training in project management and wants to understand how a performance appraisal is different from a team performance assessment. What would you tell her? A. It's a tool for team building B. It's a tool for reducing employee turnover C. Performance appraisal is an evaluation of the team's effectiveness D. Performance appraisal focuses on team member performance

Correct Option: D Performance appraisal focuses on team member performance, while a team performance assessment is an evaluation of a team's effectiveness. It is based on indicators such as improvement in skills that allows individuals to perform assignments more effectively, improvement in competencies that helps the team perform better as a team, and reduced staff turnover rate.

T4 - 23. Which statements describe the relationship between the project phases and the project lifecycle? A. The project lifecycle contains the iterative incremental elements of a project phase B. The project lifecycle contains the repetitive elements of a project phase C. The project lifecycle is regarded as a sequence of project activities, while phases are defined to control the overlapping of activities D. Collectively, the project phases are known as the project lifecycle

Correct Option: D Phases are divisions within a project where extra control is needed to effectively manage the completion of a major project deliverable. The high-level nature of project phases makes them an element of the project lifecycle. For more information, please refer to PMBOK® Guide - Sixth Edition Page No. 547.

T4 - 13. As a Project Manager, you present your cost estimate to the Project Sponsor. The sponsor asks you to cut the cost by 10%. What should you do? A. Replace the originally planned resources with new resources at lower rates B. Strongly say "No" to the Sponsor and walk out of the project C. Ask all team members to reduce the cost of their activities by 10% D. Cut some of the project activities and inform the Sponsor

Correct Option: D Play with triple constraint by cutting down the scope of work and obtain sponsor approval

T4 - 166. During the closing process, product verification is usually performed. Which of the following statements is true? A. Product verification is a method for quantifying qualitative data to minimize the effect of biases while selecting sellers B. Contract closure and manage stakeholders processes both perform product verification C. Product verification provides management with information on how effectively the seller is achieving the contractual objectives D. Product verification is used to verify that work was completed correctly and satisfactorily

Correct Option: D Product verification is used to verify that work was completed correctly and satisfactorily. Product verification is a part of the closing project activities wherein the final end product or service is verified to assist the Project Manager and his team to go ahead with the closing activities.

T4 - 124. The difference between a cost baseline and cost budget can be best described as: A. The Contingency Reserve B. The Sunk cost C. Project Cost Estimate D. The Management Reserve

Correct Option: D Refer PMBOK® Guide page 252, for more information on management reserves.

T4 - 45. A Project Manager is considering regulatory requirements such as government and industry standards, weather conditions, infrastructure, and economic factors that may impact the project outcome. Which of the following techniques is being used? A. Organizational and operational awareness B. Situational awareness C. Risk assessment techniques D. Regulatory and environmental impact assessment

Correct Option: D Regulatory and environmental impact assessment considers regulatory requirements like government and industry standards, weather conditions, infrastructure, and economic factors that may impact the project outcome. Organizational and operational awareness is situational awareness based on organizational practices. Situational awareness is understanding what is happening around you with reference to different parameters. Risk assessment technique involves identifying the risk, understanding qualitative and quantitative analysis, and choosing different risk responses.

T4 - 54. Tom is the Project Manager of a software project whose client is based in Brazil. The team is in the planning stage and is performing the processes of risk management. Tom has come to you for assistance in handling the response to identified and prioritized negative risks. Which of the following is not a strategy for handling negative risk? A. Avoid B. Transfer C. Mitigate D. Enhance

Correct Option: D Risks can be broadly classified into two categories: positive risks that have a positive impact on the project and negative risks that have a negative impact on the project. In this case, the first three options are strategies to deal with negative risks. Option D is a strategy to deal with positive risks. If the risks have positive impact on the project, then enhance their impact

T4 - 159. You're managing a construction project to install several hundred air conditioner panels in a new office building. Every floor has identical panels. The customer, a construction contracting company, has provided specifications for installation. The team is using a process to install and verify each panel. As the team completes each panel, your team's quality control inspector measures it and identifies defects. The root cause of each defect is identified. You want to identify the ongoing trends of defective installations. Which is the BEST tool to use for this? A. Pareto Chart B. Fishbone diagram C. Control chart D. Run chart

Correct Option: D Run charts tell you about trends in your project by showing you what your data looks like as a line chart.

T4 - 139. A buyer and a seller sign a contract. They define a clear scope of work. The seller completes the work, but the buyer is not happy with the work. What happens in such a contract? A. Contract is void as the buyer is not happy with the work B. Contract is suspended in such cases C. Contract is incomplete as the customer is not happy with the work D. Contract is considered complete as the scope of work has been completed

Correct Option: D Since the question says that buyer and seller get into a contract with a clear scope of work and the seller completed the scope of work, the contract should be marked as complete. However, if the buyer is not happy with the work, the contract will not be closed and the buyer and seller can decide upon additional work that might be required before closing the contract.

T4 - 169. Which of the following is NOT an input to the plan procurements process? A. Project Charter B. Project Management Plan C. Business Documents D. Procurement Management Plan

Correct Option: D The Procurement Management Plan is an output of the Plan Procurements process. The other answers reflect inputs into the process.

T4 - 71. You have been assigned as the Project Manager of a project that is halfway through execution. You meet the customer and inform him that the project is within the time and budget estimates; however, the customer informs you that he is not happy with the performance of the project. What should you do first? A. Show the customer the performance of other similar projects B. Meet the Project Sponsor and explain the customer's concerns C. Inform the customer that there are no shortcomings from the project team D. Meet with the project team to understand what can be done

Correct Option: D The answer depends upon the scenario. If you heard that the customer is unhappy from someone else, the best thing would be to meet the customer. In this case, the customer is letting you know that he is not happy. The best option is to meet with the project team and discuss the customer's concerns before doing anything else.

T4 - 176. Which of the following is NOT used in selecting between multiple competing projects? A. Pay Back period B. Internal Rate of Return (IRR) C. Net Present Value (NPV) D. Earned Value Technique

Correct Option: D The earned value technique is not a project selection method but a method to track the project progress. All of the others are project selection methods.

T4 - 145. You hired a Project Manager to manage one of your construction projects. This Project Manager is joining an ongoing project and wants to know the current status of the project in terms of the schedule, i.e. whether the project is behind or ahead of the schedule. Which of the following tools and techniques should the Project Manager use? A. Critical Path Method B. Parametric Estimation Technique C. Project Management Software D. Earned Value Technique

Correct Option: D The earned value technique is the best technique to find out how the project is progressing in terms of cost and schedule.

T4 - 108. One of your subcontractors sends a costly New Year's gift to you. What should you do? A. Accept the Gift as it's a new year gift B. Reject the Gift C. Inform your manager and accept the gift D. Establish whether accepting such a gift is against your company's policy

Correct Option: D The first step always is to identify what is right and what is wrong. If your company policy does not allow you to accept gifts, then do not accept it. If your company policy allows you to accept New Year's gifts, then accept it.

T4 - 97. Which of the following is NOT true about a contract? A. A contract should be formal B. A contract is a legally binding document C. A contract must be in writing D. Changes to a contract can be done by the buyer without consulting the seller

Correct Option: D The first three options are key characteristics of the contract. Once a contract is signed, any changes to be made in the contract must be agreed upon between the buyer and the seller in writing, so that it can be legally binding.

T4 - 72. The customer has asked you to get the project completed one week ahead of schedule. What is the best thing for you to do? A. Consult the PMO B. Fast Track C. Crash D. Advise the customer about the impact of the change

Correct Option: D The other options are used to reduce the project schedule, but the first thing to do is understand the impact of the change.

T4 - 117. You are managing a construction project using a firm fixed price (FFP) contract. The contract is structured so that your company will be paid a fee of $85,000 to complete the work. There was a $15,000 overhead cost that your company had to cover. You're now three months into the project, and your costs have just exceeded $70,000. The project has now consumed the entire fee, and your company will now be forced to pay for all costs on the project from this point forward. What's the BEST way to describe this situation? A. The project has ceased to be a profit center for the company B. The Project Manager has overspent the budget C. The project is overdrawn D. The project has reached the point of total assumption

Correct Option: D The point of total assumption is the point at which the seller assumes the costs. In a firm fixed price contract, this is the point where the costs have become so large that the seller basically runs out of money from the contract and has to start paying the costs himself.

T4 - 43. A Project Manager is allocating the overall cost estimates to individual activities to establish a baseline for measuring project performance. What process is the Project Manager performing? A. Cost Estimation B. Cost Management C. Cost Control D. Cost Budgeting

Correct Option: D The project Manager is performing the Cost Budgeting process.

T4 - 92. You are the Project Manager of an engineering project that is about to close. The customer asks for a major change. What would you do in this scenario? A. Discuss with the team to figure out the impact of the change B. Refuse the change request and proceed with closure C. Go ahead and accept the change D. Discuss the situation with your senior management

Correct Option: D The project is nearly complete (about to close), and the impact of the change is known to be major. Therefore, you need to get direction from your management before responding to the customer.

T4 - 68. In the middle of a project, you are informed that the resources promised at the beginning of the project are no longer available. What would you do? A. Assert that you can no longer execute the project B. Re-plan the project without promised resources C. Identify other resources that can be provided to you in compensation for earlier promised resources D. Evaluate the impact of not having the promised resources

Correct Option: D The right thing to do in this case is to first evaluate the impact.

T4 - 197. Britt claims that the effectiveness of a leader is dependent upon meeting ________ areas of need within the work group. A. One B. Four C. Two D. Three

Correct Option: D The three areas are the need to achieve common task, the need for team maintenance and the individual needs of the group members

T4 - 184. In the Blake Mouton managerial grid that is focused on task versus person, where would country club leadership fall? A. High Production High People B. High Production Low People C. Low Production Low People D. Low Production High People

Correct Option: D These leaders are most concerned about the needs and feelings of members of their team. They operate under the assumption that as long as team members are happy and secure, they will work hard. What tends to result is a work environment that is very relaxed and fun, but where production suffers due to lack of direction and control.

T4 - 66. John was assigned to a new software development project. At the end of a change control board meeting, the Project Manager asks John to complete the paperwork required to make the changes. Jon's position can be BEST described as: A. Project Coordinator B. Change Control Board Member C. Program Manager D. Project Expeditor

Correct Option: D This position is typically found in weak matrix organizations. Project expeditors do not have any authority, but they typically work as staff assistants to the Project Manager. If you look at the question carefully, John is assisting the Project Manager in doing the required paperwork.

T4 - 52. During risk response planning, you identified a few new risks. What should you do? A. Document the risks and let the contingency reserve take care of them B. Ask to increase the contingency reserve to take care of these new risks C. Discuss with your Program Manager D. Follow the risk management processes of calculating risk probability and impact

Correct Option: D When new risks are identified, you should follow the risk management processes. The next step is to analyze the probability and impact of the risks.

T4 - 105. One of your team members is not cooperative, and he has a reputation of getting into frequent problems with other team members. What should you do to handle this team member? A. Escalate the issue to your Senior Manager B. Ignore this team member C. Warn this team member a couple of times strictly D. Address this concern directly with the team member

Correct Option: D Whenever there is an issue, you should address it as you are the Project Manager. In this case, there is an issue with the behavior of the team member, and the right thing to do is to bring up the issue directly with the team member.

T4 - 198. Within an organization, leadership influence will be dependent upon the type of _______ that the leader can exercise over the followers. A. Friendship B. Delegation C. Knowledge D. Power

Correct Option: D You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 200. Tannenbaum and Schmidt's continuum of possible leadership behavior identifies four main styles of leadership by the manager. What are they? A. Commands, sells, consults and resists B. Tells, helps, joins and leads C. Commands, helps, joins and leads D. Tells, sells, consults, and joins

Correct Option: D You can see such questions in the PMI exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 182. Which of the following is a simple representation of a decision problem that offers an intuitive way to identify and display essential elements such as decisions, uncertainties, objectives, and how they influence each other? A. Mind tree B. EMV tree C. Intuitive tree D. Influence diagrams

Correct Option: D You can see such questions in the PMI® exam. These questions are included in the PMI® exam to judge the difficulty level.

T4 - 116. You are currently working on a web development project to develop a new user interface for a legacy mainframe banking application. You are under a time and material contract to develop a web-based interface for this application. You have finished the work 20 hours earlier than expected. This means the profit of your company will decrease. What should you do? A. Bill the customer for the expected amount as this is allowed by the provisions of your contract B. Tell the customer you'll be adding additional requirements to the project in order to meet profit estimates C. Add activities to the project to increase the number of billable hours D. Inform the customer that your project is complete

Correct Option: D You should truthfully inform the customer that you have completed the project.