1. of the following, which one is the best example of progressive elaboration?

1. Of the following, which one is the best example of progressive elaboration?

A. It is a process of decomposing the work into small, management tasks.

B. It is the process of taking a project from concept to completion.

C. It is the process of taking a project concept to a project budget.

D. It is the process of identifying the business needs of a potential project.

B. It is the process of taking a project from concept to completion. According to the PMBOK, progressive elaboration means developing in steps and then continuing by increments.

5/30, 6/6, and 6/13/09 www.TAPaPM.org 1

2. A PM and he team identify several specific risks in a project. The EMV of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000.

What value should be entered into the management reserve for these risks?

a.$10,000

b.$40,000

c.$0

d.$25,000

C.

Solution: The management

reserve is the money that is

set aside for dealing with

unknown risks. These

unknown risks can not be

specifically identified. The

risks mentioned in the

question are identified and

therefore no money should

be put in the management

reserve for them.


3. Which of the following is an example of operations?

A. Creating a new community park.

B. Designing a new car.

C. Sending monthly invoices to an organization's 25,000 customers.

D. Removing an old server and replacing it with a new one.

C. Sending monthly invoices to an organization's 25,000 customers because that is work that is done every month.


4. The Triple Constraints of Project Management is a theory which posits that _____ , and _____, and _____ are three constraints that every project has.

A. time, cost, integration management

B. risk, procurement, time

C. cost, scope, quality

D. time, cost, scope

D. time, cost, scope


5. Five activities are to be completed in sequence. Each has a Finish-Start relationship with the next activity. Each has one day of total float. As of today, task one and two have been completed on schedule.

How many days of float remain in the schedule for these tasks?

a.Two

b.One

c.Zero

d.Four

B.

Solution: Although total float is assigned to each activity in the sequence, the total float can be used by anyone of them and it can be used only one time by any of them. If the activities are A B C D E and each has one day of float, id A is delayed by one day, the total float at B C D E reduces to Zero.


6. Following is the cash flow estimates of a project:

Year Cash-In Cash-out

1$ 0 500,000

2300,000 90,000

3400,000 100,000

4 100,000 175,000

5 50,000 35,000

What is the net cash flow at the end of 5 years?

a.$ 50,000

b.-$50,000

c.$850,000

d.$100,000

b.

Solution: Net cash flow is total of all Cash-Flows in and out caused by the project. i.e.

Total Cash Flow In

= $850,000

Total Cash Flow Out

= $900,000

Net= Out is greater by

$50,000 (-ve)5/30, 6/6, and 6/13/09 www.TAPaPM.org 6

7. Which one of the following is NOT a characteristic a project's cultural and social environment?

A. Economics

B. Time zone differences

C. Demographics

D. Ethics

B. Time zone differences


8. Which of the following is not true about the Close Project process? A.Contract closeout must be performed after the Administrative Closeout.B.The risk is the lowest at this stage of the project.C.The probability of completion is the highest at this stage of the project.D.Stakeholders have least amount of influence at this stage.

A. Contract Closeout is performed before administrative Closeout

5/30, 6/6, and 6/13/09 www.TAPaPM.org

9. You have an excellent idea for a new project that can increase productivity by 20% in your organization. Management, however, declined to approve the proposed project because too many resources are already devoted to other projects. You have just experienced what?

A. Parametric modeling

B. Management by exception

C. Project Portfolio management

D. Management reserve

C. Project Portfolio management is the management, selection, and assignment of projects that support an organization's business objectives.


10 . As a PMP, you are required to comply with the PMP Code of Professional Conduct. Part of your responsibility concerns applying professional knowledge. All of the following are part of applying professional knowledge except for which one?A.Developing relationships based on mutual respectB.Staying abreast of project management practicesC.Keeping up with industry trends and new technologyD.Honestly reporting your project management experience

A. Applying professional knowledge involves staying abreast of project management practices, industry trends, and new technology and honestly reporting your experiences.


11. Which of the following processes serve as inputs to each other?

A.Executing, and Monitoring and ControllingB.Executing and ClosingC.Planning, and Monitoring and ControllingD.Executing and Initiation

A. The Executing process group and Monitoring and Controlling process group serve as inputs to each other.


12. A PM and he team identify several specific risks in a project. The EMV of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000.

What value should be entered into the contingency reserve for these risks?

a.$10,000

b.$40,000

c.$0

d.$25,000

A. Solution: The contingency reserve is

the money that is set aside for dealing

with known risks. These known risks can

be specifically identified. The risks

mentioned in the question are identified

and therefore money should be put in

the contingency reserve for them. It

would not make sense to budget for the

impact of every risk, since all risks have

a probability associated with them that

means there is a chance that the impact

will not occur; therefore, the expected

value should be used.


13. A project team has a programmer on the team. The programmer will work on the project for 26 weeks as a full time member. Her utilization is 72%, productivity is 80%, basic wages are $50 per hour, fringe benefits are 30%, and overhead costs are 50% of wages plus fringe benefits. Use a 40-hour work week.

What is the cost of this employee for the project?

a.$136,760

b.$126,750

c.$176,041

d.$101,400

d.

Solution: The programmer will be paid for 26-weeks of work. The productivity and utilization factors affect the amount of time that someone is paid in comparison to the hours of effort required to complete the work. In this case the utilization and productivity are not required to calculate the cost:

26 weeks x 40 hours per week x $50 per hour x 1.3 fringe benefits x 1.5 overhead = $101,4005/30, 6/6, and 6/13/09 www.TAPaPM.org 13

14. A project team has a programmer on the team. The programmer will work on the project for 26 weeks as a full time member. Her utilization is 72%, productivity is 80%, basic wages are $50 per hour, fringe benefits are 30%, and overhead costs are 50% of wages plus fringe benefits. Use a 40-hour work week.

One of the activities this person is assigned requires 100 hours of effort. What is the cost of the activity?

a.$12,187

b.$16,927

c.$9,750

d.$13,541

b.

Solution: To calculate the cost of 100 hours of effort we must adjust for the person’s utilization and productivity. People of lower productivity take longer to do work and make more mistakes but usually cost less since they are usually younger and less experienced. This can often be economical. The calculation is:

100 hours x 0.72 x 0.8 x $50 per hour x 1.3 fringe benefits x 1.5 overhead = $16,927


15. You are a project manager for a growing dairy farm. It offers its organic dairy products regionally and is expanding its operations to the West Coast. It’s in the process of purchasing and leasing dairy farms to get operations under way. The subproject manager in charge of network operations has reported some hardware problems to you. You’re also having some other problems coordinating and integrating other elements of the project. Which of the following statements is true?A.You are in the Direct and Manage Project Execution process.B.Your project team doesn’t appear to have the right skills and knowledge needed to perform this project.C.You are in the Information Distribution process.D.Your project team could benefit from some team-building exercises.

A. The most difficult aspect of the Direct and Manage Project Execution process is coordinating and integrating all the project elements. The clue to this question is in the next-to-last sentence.


16. Theory Y managers believe which of the following?

A.People are motivated only by money, power, or position.B.People will perform their best if they’re given proper motivation and expectations.C.People are motivated to achieve a high level of competency.D.People are motivated by expectation of good outcomes.

B. Theory Y managers believe that people will perform their best if they’re provided with the proper motivation and the right expectations.


17 . An activity was scheduled to use two persons, full time, and take two weeks to complete. Instead, the PM was only able to assign one person to this activity. At the end f two weeks, the person assigned to the task was 75% complete.

What is the cost performance index?

a.0.75

b.1.5

c.1.33

d.0.5

B.

Solution: At the two weeks

this activity is 75% complete.

The PV was to be 4 person-

weeks, two persons working

full time for two weeks. The

EV is therefore 3 person

weeks, 0.75 x 4. The AC is 2

person-weeks. The cost-

Performance Index CPI is:

CPI= EV/AC = 3 p-w/2 p-w =1.5


18. Your upcoming project includes project team members from a foreign country. In order to make certain that cultural differences don’t interfere with team performance, thereby affecting the success of the project, your first course of action is to do which of the following?

A.Provide diversity training to all the team members.B.Collocate the project team.C.Perform team-building exercises.D.Inform the team members of the organization’s rules and standards.

A. The most correct response is to first provide training to your team members to teach them how to respect and work with others from different cultures. Collocation may not be possible when you’re working with team members from two different countries. Team-building exercises are a good idea as well but are not your first course of action.


19. On a Software Development Project, there is a new computer available which will speed up the development process considerably. The new computer costs $50,000 including shipping, installation, and start-up. The computer will cause a gross savings of $100,000. What is the NPV of the savings if they occur one year after the expenditure of the computer with a 10% interest rate?

a.$90,000

b.$40,909

c.$45,555

d.$91,110

b.

Solution: NPV formula is:

FV = PV (1+r)ⁿ

Thus NPV = FV / (1+r)ⁿ

Substituting the values:

NPV =100,000/1.1 = 90,909

Net Savings are thus:

$90,909 - $50,000 = $40,909

NOTE: All negative cash flow

occurs at the beginning of the

year when the machine is

purchased and that the +ve

cash flows all occur at the end

of one year.


20. Which of the following is likely to be part of an operation?

A. Providing electricity to a community

B. Designing an electrical grid for a new community

C. Building a new dam as a source of electricity

D. Informing the public about changes at the electrical company.

A. Providing electricity to a community is the best example of operations as it is an ongoing activity.


21. As a project manager, you’re responsible for maintaining and ensuring integrity for all of the following except which one?

A.Personal integrity of othersB.Project management processC.Personal integrityD.Product integrity

A. You are not responsible for the personal integrity of others, but as project manager you do have influence over others, such as your project team members.


22. Which of the following best describes the purpose of a war room?

A.A war room is used for meetings between the Project Manager and the customer.B.A war room is used for important meetings between the Project team and the senior management.C.A war room is used for collocationD.Whenever there is a resource conflict between different Project Managers, they meet in a war room.

C. War room is used for collocation to facilitate communication within the team.


23. Given the following estimates (O,M,P) which is likely the highest risk activity?

a.2, 3, 8

b.3, 5, 7

c.4, 6, 9

d.8, 9, 11

A.

The activity with the highest variance is most risky, i.e.

Te and V for these are:

a. 3.6, 1

b.5.0, 0.4

c. 6.1, 0.7

d.9.2, 0.25


24. A PM is using the earned value reporting system to manage his project. At this point in time the EV is $24,000, the BAC is $97,000, the PV is $29,000, and the AC is $45,000.

What is the percent complete?

a.30%

b.25%

c.46%

d.53%

b.

Solution: The percent

complete is the work

completed, earned value

divided by the total work to be done.

EV / BAC = percent complete

PC = $24,000/$97,000 = 25%


25. Where will a project manager most likely get project management mentoring?

A. Project Management International

B. American Society for Quality

C. The PMO

D. Subject matter experts

C. The PMO


26. In which process group will the project team be acquired?

A. Initiating

B. Planning

C. Executing

D. Monitoring and Controlling

C. The project team is required in executing process group. A, B, D are all incorrect because the team is not acquired during these groups.


27. You (PM) are working at a large company. You have a 24-person team working on a project with five major sponsors. The company announces layoffs, and your team is reduced to half its size. How many lines of communication are on your new team?

A. 66B. 153C. 276D. 406

B. 12 team members, 5 sponsors and a project mgr. That’s 18 people.

n*(n-1)/2 is 18*17/2=153


28. You are planning to buy ten desktops for $1500 each from a leading computer store. Which type of contract will get signed in this case?

A.Purchase OrderB.Cost plus FeeC.Fixed costD.Time and Material

A. Purchase Order


29. Which communication processes are in the Monitoring & Controlling process domain?

A.Information distribution, Performance ReportingB.Manage Stakeholders, Information distributionC.Communication Planning, Performance ReportingD.Performance Reporting, Manage Stakeholders

D


30. Alice is a Project Manager. She is coordinating a bidder conference to allow vendors to get clarification on the work that needs to be performed. Which phase of Project Management is in progress.

A.Request Seller ProcessB.Plan ContractingC.Select SellersD.Contract Administration

A. During the Request Seller process, bidders can clarify their doubts using bidder conference.


31. Pass on the next phase, no process at the moment.

Free Pass.Collect $25,000 from the CFO and proceed to the next phase.


32. A project team receives an approved change request from the customer. The team has previously estimated that the cost to implement this change is $10,000. The customer has agreed to pay this amount for the additional work. The customer realizes that there is a 50% chance that this change will not work and will later be removed.

What change, if any, should be made in the budget?

a.Budget should not be increased

b.Should be increased by $15,000

c.Should be increased by $10,000

d.Should be increased by $5,000

c.

Solution: The project budget

should be increased by $10,000

because the only work actually

approved at this time is the change

notice for the work to be done. If

the work done must be undone at a

later time and additional work is

required to do it, another change

notice must be approved and

funding added to the project

budget.



33. You are holding end-of-phase meetings with your team members and key stakeholders to learn what has hindered and helped the project team’s performance of the work. All of the following are true regarding this situation except for which one?

A. The information learned from these meetings concerns processes and activities that have already occurred, so it should be documented because the information is only useful for future projects.

B. These meetings are called lessons learned meetings and they’re a tool and technique of the Information Distribution process. They’re also a good team-building activity.

C. Project reports, part of the organizational process output of the Information Distribution process, include status meetings and lessons learned (which this question describes).

D. These meetings should be documented as part of the lessons learned documentation, which is an element of the organizational process assets updates output of the Information Distribution process.

Ans. For 33.

A. Lessons learned (which is what this question describes) are useful for future processes and activities for the current project as well as future projects.

34. When is a project manager selected?

A. Planning phase

B. Executing phase

C. Initiation phase

D. When the project charter is approved

C. Project manager is selected during initiation process group.

• A, B, D are all false because they don't define when project manager is selected.


35. A construction company is being measured by the earned value reporting method. During the project one of the activities, installing ten elm trees, was completed. The planned value for this activity was $4,000, and it was completed two weeks ago. Unfortunately for the contractor, maple trees should have been planted. The customer insists that maple trees be planted and that the elm trees be removed. As of this time the elm trees are still in the ground, but the contractor has agreed to do the work of replacing them. What action should be taken on the earned value report?

A. Reduce PV by $4,000

B. Reduce Ac by $4,000

C. Reduce EV by $4,000

D. Make no change sine vendor has agreed to fix the problem

C. Solution: The EV should be

reduced by the amount of $4,000 already credited to the earned value report for planting the trees. The AC should not be reduced and since there is no increase in budget the PV will not be changed. When the vendor installs the new trees, the $4,000 will be added to the EV once again.


36. Using PERT calculations for a project the Variance is 25 and Duration is 169 days. What is the range of values for 95% probability actual completion?

a.164 – 173 days

b.144 – 194 days

c.119 - 219 days

d.159 – 179 days

D.

Solution:

D = Te +/- Z x Sqrt. V

D(95%) = 169+/-2x 5

= 169+/-10

= 159 – 179

Remember:

Z=Prob. Factor (95%)

= 2 (approx)

V= 25, thus SQRT(V)=55/30, 6/6, and 6/13/09 www.TAPaPM.org 37

37. You are the project manager of the KHGT Project, which will span 4 countries around the world. You will need to consider all of the following characteristics of the international and political environment EXCEPT for which one?

A. International, national, regional, and local laws

B. Customs

C. Customers

D. Holidays

C. Customers


38. Which process aims to eliminate causes of unsatisfactory performance?

A. Scope verification

B. Scope validation

C. Quality control

D. Cost control

C.

Quality control aims to eliminate causes of unsatisfactory performance; process is part of monitoring and controlling process group.

• A aims for scope acceptance decisions

• B is not a valid PMI term

• D is concerned with controlling project costs.


39. What is the probability of risk with an expected value of $3000 and impact of $5000?

A. 0.40

B. 0.50

C. 0.60

D. 0.80

C.

Use the formula:

EMV= Prob. X Impact

Probability: EMV

Impact

= 3000/5000

= 0.60


40. You are the project manager of a new project. You have worked with management to identify initial assumptions and constraints for your project. Where will these items be documented?

A. Project management plan

B. Project scope statement

C. Project charter

D. Risk management plan

C. Initial constraints and assumptions are documented in the project charter. A, B, D are all incorrect choices because the initial constraints and assumptions are documented in the project charter, not the project management plan, project scope statement, or risk management plan.



Year Cash-In Cash-out 1 $ 0 500,000

2300,000 90,000

3400,000 100,000

4100,000 175,000

5 50,000 35,000

What is the payback period?

a.One Year

b.Two Years

c.Three Years

d.Four Years

C.

Solution: It is between 2-3 years. It is 2 and 29/30th of a year.

Cumulative Cash Flow in years are:

Year 1: -500,000

Year 2: -290,000

Year 3: +10,000


42. Which problem solving technique is the best for most project management situations?

A. Confronting

B. Compromising

C. Forcing

D. Avoiding

A: Confronting is the best problem-solving technique because it meets problems directly.

• B is incorrect; compromising requires both sides on an argument to give up something.

• C is incorrect; forcing requires project managers to force a decision based on external inputs such as seniority, experience, etc.

• D is incorrect; avoiding ignores the problem and doesn't solve it.


43. The Work Authorization System:

A.Ensures that every work pkg is performed at the right time & in the proper sequence.

B.Authorize the project mgr to spend $$ on work.

C.Is a set of processes & tools that aids project mgr in effectively guiding the project to completion.

D.Is a formalized, written description of how to carry out an activity.

A.

See glossary, Pg. 379 in PMBOK.


44. When does the vast majority of a project's budget get expended?

A. During planning process group activities

B. During execution process group activities

C. During initiation process group activities

D. During procurement process group activities

B. During execution process group activities

• A, C, D are all incorrect because the vast majority of a project's budget isn't consumed during these process groups.


45. Which process group can provide feedback between project phases?

A. Planning

B. Executing

C. Monitoring and controlling

D. Closing

C. Monitoring and controlling

• A , B, and D are all incorrect because these process groups do not provide feedback between process phases.


46. A PM looks at her schedule and sees that there has been a delay in completing an activity. It seems practical to move a person from another activity who is an expert on the work that is behind. There is a choice of using two different persons who are working two different activities. One person is working on an activity that has 5 days of free float and the other is working on an activity that has 8 days of total float and no free float.

Which person should be used to help out?

A.Person w/ free float of 5 days

B.Person w/ total float of 8 days

C.Either person

D.Person from outside the project

A.The person w/ 5 days of

free float can be used

on the activity in trouble for 5

days w/o affecting the other

activity schedules in the project.

The person with total float of 8

days can be used but since he

has zero free float for his task,

there will have to be a

rescheduling of other activities

to allow this.


47. You’ve just received a change request. This means:

A.The project charter is complete, but the work cannot begin yet because you need to make a change to the prelim scope statement.B.You are in Direct & Manage Execution process, and you can implement the change now.C.The change needs to be approved before it can be implemented.D.There is a defect in a deliverable that must be repaired.

C. Really a question on inputs/outputs. The only process that takes ‘requested changes’ as an input is Integrated Change Control. That’s where changes get approved. Other answers refer to other processes. A is Developing Prelim Scope statement, B & D are both Direct & Manage Execution.


48. A PM is considering applying learning curve theory to his project. The project involves designing a number of software modules that are very similar. According to the cost figures that have been collected the first unit required 100 person-hours to design and test. The second unit required 90 person-hours to design and test.

How many person-hours will the eighth module take to design and test?

A. 90

B. 100

C. 73

D. 172

C. According to the learning

curve theory, the cost of a unit of production, the software module, will decrease by a fixed percentage for each doubling of the units produced. Since from 1 to unit 2 there was a 10% change in cost, the fix percentage of reduction in cost was 90%. For unit 4, cost would be 81 person-hours, 90% of 90 person-hours. For unit 8, it would be 90% of 81, or 73 person-hours.


49. The outputs of the Close Project process include all of the following except for which one?

A.Administrative closure procedureB.Formal acceptanceC.Lessons learnedD.Closed contracts

D. Closed contracts are an output of the Contract Closure process. Formal acceptance is part of the final product, service, or result output. Lessons learned are part of organizational process assets updates.


50. Your project team consists of 12 people in the same building you’re located in, 4 people from the West Coast office, 2 people from the Kansas City office, and 6 people from the London office. Your office works different hours than all the other offices. Additionally, not all of the resources in your building are available at the same times during the day. Three of the 12 team members work swing shift hours. You use tools like web conferencing and e-mail to distribute information to the team. Which of the following is true?

A. This question describes the staffing management plan from the Acquire Project Team process and communication skills from the Information Distribution process.

B. This question describes resource availability from the Develop Project Team process and information distribution methods from the Information Distribution process.

C. This question describes virtual teams from the Acquire Project Team process and information distribution methods from the Information Distribution process.

D. This question describes project staff assignments from the Develop Project Team process and communication skills from the Information Distribution process.


Ans. To question 50:

C. Virtual teams are teams that don’t necessarily work in the same location or have the same hours but all share the goals of the project and have a role on the project. The web conferencing and e-mail references describe the information distribution methods tool and technique of the Information Distribution process.


Year Cash-In Cash-out

1$ 0 500,000

2300,000 90,000

3400,000 100,000

4 100,000 175,000

5 50,000 35,000

If the net present value of the cash flows

is calculated at a 10% interest rate, the

net present value cash flow after 5 yrs be:

A.> total cash flow w/o NPV applied

B.< total cash flow w/o NPV applied

C.Same as the cash flow w/o NPV

D.Unable to be calculated with the info. available

b.

Solution: Calculating the

NPV of the cash flows

involves adjusting the future

cash flows to allow for the

diminishing value due the

time that we must wait to

get them. Money received

today is more valuable than

received in the future.


52. You are a project manager working on contract with a company in a foreign country. At the project kickoff meeting, you are given an expensive-looking gift. The person who presented this to you said that it is customary in their country to give their business partners gifts. What is the most appropriate response?A.Thank them and decline. Explain that this is considered personal gain, which is unacceptable in your country.B.Thank them and accept. You don’t believe there is a conflict of interest or an integrity issue at stake.C.Thank them and decline. Explain that this is considered a conflict of interest, which is unacceptable in your country.D.Thank them and accept since you know that it would be considered offensive to decline the gift in their culture. Immediately report the acceptance of the gift to the appropriate parties at your company so that your actions are not called into question later.

D. The best response in this case is to accept the gift because it would cause great offense to the other party if you were to decline. Report the gift and the circumstances as soon as possible to the appropriate parties at your company.


53. A project has reached the end of the planning phase. The work scope has been agreed to and definitive cost estimates have been completed for the project. The total estimated cost of the project is $100,000. It is reasonable to expect that the project will not cost over which of the following values?

A. $100,000

B. $110,000

C. $125,000

D. $175,000

B.

Solution: It is generally

accepted that for most

projects, once a project’s

definitive estimate has been

completed, the actual project

cost will not be more than

5% below the definitive

estimate and not more than

10% above.

Tolerance thus is:

-5% to +10%


54. You are a project manager for Dutch Harbor Consulting. Your latest project involved the upgrade of an organization’s operating system on 236 servers. You performed this project under contract. You are in the Closing process and know that product verification is for what purpose?A.To verify the goals of the project and ensure that the product of the project is completeB.To evaluate all the work of the project and compare the results to project scopeC.To verify that all the work was completed correctly and satisfactorilyD.To evaluate project goals and ensure that the product of the project meets the requirements

C. Product verification examines all the work of the project and verifies that the work was completed correctly and satisfactorily.


55. The original scope baseline of a project was budgeted at $100,000. Since work started there have been 17 authorized and approved changes with a value of $17,000 and the cost of investigating them prior to their approval was $2,500. What is the current budget for the project?

A. $100,000

B. $114,500

C. $117,000

D. $119,500

D.

Solution: The current budget

contains all the authorized

funding for the project

including additions to the

project since the setting of the

original baseline. This includes

any and all authorized work

done on the project, including

the investigation of work that

may be done to investigate the

feasibility of changes.


Sources of questions:

- Kim Heldman, PMP Study Guide

- PMI.org website

- Heads First, PMP Study Guide

- PMP Question Bank

- PreparePM

- CAPM/PMP Project Management All-in-One Exam Guide
