pmp answers

7/28/2019 PMP Answers

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1. Youare a projectmanagerworkingon a projectto marketa newproduct.The deliverablesof the project

havebeenestablished,and the project workhas begun.A contractto deliver the deliverableshas been

signed.The customerwhohas signedthe contracthas telephonedyou to requestadditionalworkto be done

on the project. This workwill affect the budgetbut not the scheduleof the project. This projecthas a high

priority with your company.Whatshouldyou so next?

a. Do what the customer asks you to do and add the additional requirements to the originalcontract

b. Refuse the request and send a memo to your management explaining the situation

c. Respondto the customersrequestby explainingthe changeprocedureand askingthathe or she submita

requestfor change

d. Arrange to meet with the project team to discuss this change

2. Youare the projectmanagerfor a highvisibility project. The marginon this projectis low,andit is extremely

importantthat the cost estimatesfor the workon the projectbe accurate. While reviewingthe cost estimates

for this project you noticethat one of the cost estimatesfor an elementin the WBSis 10%higherthantwo

previousprojectsfor very similar work. Whatshouldyou do?

a. Accept the estimate because you trust all of the people on your project team, and they areresponsible for estimates

b. Reduce the estimate and add the additional budget to the management reserve

c. Ask the personresponsiblefor the estimateto explainthe differenceand bringsupportinginformationtoyou

d. Reduce the estimate and add the additional budget to the contingency reserve

3. Youare managinga projectin a foreigncountry.In this countrythere is a normalpracticefor business

peopleto exchangegifts whenvery large contracts,suchas the one you are workingon, are signed.The gift

is of a greatervaluethan your companyspolicyfor gift exchangewill allow. Youhavegivena gift of similar

valueto the customersrepresentativealready.Whatshouldyou do?

a. Take the gift

b. Contactyour companysmanagementand seek for assistancec. Refuse the gift graciously, explaining your companys policy

d. Ask the customers representative to give the gift to your manager.

4. You are the manager of a research group that is developing a new chemicalmaterial.You hire a person from a competing company who has a great deal of expertise inthisarea. The person contributes greatly to the progress of your project.


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Duringconversation with the person you determine that many of this persons ideasweredeveloped by the competing company. What do you do?

a. Tell the person that he or she should not mention that the ideas came from anothercompanyb. Sign a nondisclosure agreement with this person before he or she leaves yourcompanyc. Accept the new ideas

d. Investigate the employee for security reasons

5. Youare managinga projectthat is in process.A largeand unexpectedproblemoccursthat will causea

delay in the schedulein excessof the contingencyschedulefor the project. Whatshouldyou do?

a. Lookat other tasksin the scheduleand see whichonesshouldbe reducedto allowtimefor this problemto

be worked

b. Reduce testing on the completed tasksc. Require mandatory overtime for the project team

d. Speak to the stakeholders about getting additional time and budget for the project

6. Youare the projectmanagerfor a largeproject. Somemembersof the projectteamhavecometo you and

askedthat they be permittedto workon a flexibleschedule.Someof the other teammembersfeel that it is

importantthat all teammembersbe on site at all timesunlessthey are absentfor businessreasons.What

shouldyou do?

a. Turn down the request for flexible time schedulesb. Accept the request for flexible time schedules

c. Arrangea meetingof the projectteammembersand allowthemto decide

d. Discuss this problem with your manager and act on the results of the meeting

7. Youare the projectmanagerfor a projectthat has highvisibility. Your managerwantsyou to preparea

presentationfor him to presentat a conference.Mostof the material in the presentationwill be facts that are

the resultsof your project. Your managerintendsto presentthe material underhis ownname.Your namewill

not appear. Whatshouldyou do?

a. Refuseto workon the presentationunlessyou are listedas a coauthor

b. Do the work as you were told by your manager

c. Present your own presentationd. Meet with your managers manager and discuss the problem

8. Youare managinga projectand the customersengineervisits your facility on an inspectionand general

gettingacquaintedtour. Duringthe tour they makethe commentthat the parts that are beingdesignedshould

be in stainlesssteel insteadof plain steel with enamel. Whatshouldyou do?


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a. Authorize the change in design to your engineersb. Continue with the present design

c. Speakto the visitingengineersand discusshavingan informalmeetingbetween

your engineersand the visitingengineers

d. Ask the visiting engineers to submit a change proposal to the change system

9. Whichof the followingis the exampleof a conflict of interest?

a. You are the fourth cousin of a vendor supplying parts to a project in your company

b. Youare the ownerof a companythat is supplyingparts to a projectthat you are managing

c. You receive a gift from a supplier of parts for your project

d. A supplier tells you sensitive information, in confidence, that allows you to select anothersupplier for your project

10. Youare the projectmanagerfor a large projectthat is completedon time and on budget. The customerand

all of the stakeholdersare pleasedwith the results. As a direct result of the successfulcompletionof the

project, your managerapprovesa bonusof $25,000for you. Thereare fifteenmembersof the project team.

One of the peoplein the project

teamhas beena very low contributorto the project; the other fourteenhaveall beenabovestandard.What

shouldyou do with the money?

a. Keep the money yourself; you deserve it. And the manager gave it to youb. Divide the money equally among all the team members

c. Ask the teammembershowthey woulddividethe money

d. Divide the money equally among the team members except for the substandardteam member

11. One of the membersof your projectteamcomesto you and says that he heardthat one of the suppliersto

the project had givena substantialgift to one of the projectteammembersin hopesthat the teammember

wouldfavor his companywith a purchaseorder. The companywas favoredwith a purchaseorder for the

parts. Whatshouldyou do?

a. Talk to the person and get him or her to give back the gift

b. Investigatethe matter completely

c. Cancel the purchase order with the supplierd. Meet with your manager and discuss the problem

12. Decomposingthe majordeliverablesinto smaller, moremanageablecomponentsto providebetter control

is called:

a. Scope planning

b. Scopedefinition

c. Scope baselining

d. Scope verification


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13. Any numberingsystemthat is usedto monitorprojectcosts by categorysuchas labor, supplies, or

materials, for example,is called

a. Chart of accounts

b. Work breakdown structure

c. Universal accounting standardd. Standard accounting practices

14. A personwhois involvedin or maybe affectedby the activitiesor anyonewhohas somethingto gain or

lose by the activity of the project is calleda:

a. Team member

b. Customer

c. Stakeholder

d. Supporter

The following should be used for questions 15 through 17.

A project manager is assigned to a project early in the project lifecycle. One of the things thatmust be done is to do a justification for the project. Since very little information is known about theproject, the estimates are considered to be rough estimates. The following table is the project

managers estimate of the cash flow that will take place over the next five years.

Endof Year CashFlowInCashFlowOut

1 0 500,0002 300,000 90,0003 400,000 100,000

4 100,000 175,0005 50,000 35,000

15. Whatis the paybackperiodfor this project?

a. One year

b. Two years

c. Threeyears

d. Four years

16. Whatis the net cashflow at the end of five years?

a. $50,000

b. - $50,000

c. $850,000d. $100,000

17. If the net presentvaluefor eachof the cashflowswerecalculatedat a 10%interestrate, the net present

valuecashflow at the end of five yearswouldbe:

a. Greater than the total cash flow without the net present value applied

b. Lessthan the total cashflow withoutthe net presentvalueapplied

c. The same as the total cash flow without the net present value appliedd. Unable to be calculated with the information supplied


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18. A groupof relatedprojectsthat are managedin a coordinatedwaythat usually includean elementof

ongoingactivity is calleda:

a. Major project

b. Project officec. Program

d. Group of projects

19. Duringthe full life cycle of the project, a plot of the projectsexpectedexpenditurewill usuallyfollowa

characteristicS shape. This indicatesthat:

a. There is a cyclic nature to all projectsb. Problems will always occur in the execution phase

c. There are high expenditure during closeout

d. The bulk of the project budgetwill be spent in the executionphase

20. A temporaryendeavorundertakento createa newproductor serviceis calleda:

a. New product development

b. Project

c. Programd. Enterprise

21. A project managermakesa narrativedescriptionof the workthat mustbe donefor her project. This iscalleda:

a. Project planb. Control chart

c. Statementof work

d. Project objective

22. An exampleof scopeverificationis:

a. Reviewingthe performanceof an installedsoftwaremodule

b. Managing changes to the project schedulec. Decomposing the WBS to a work package leveld. Performing a benefit-cost analysis to determine if we should proceed

23. The processof establishingclear and achievableobjectives,measuringtheir achievement,and adjusting

performancein accordancewith the results of the measurementis called


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a. Strategic planningb. Contingency planning

c. Detailed planning

d. Managementby objectives

24. Configurationmanagementis:

a. Used to ensure that the description of the project product is correct and complete

b. The creation of work breakdown structure

c. The set of proceduresdevelopedto ensurethat projectdesigncriteria are met

d. A mechanism to track budget and schedule variances

25. A project manageris employedby a constructioncompanyand is responsiblefor the furnishingof the

completedbuilding.Oneof the first thingsthat the projectmanagerfor this projectshoulddo is to write a:

a. Work breakdown structure

b. Budget baseline

c. Project charter

d. Project plan

26. A project manageris creatinga work breakdownstructurefor her project. In the workbreakdown

structure, the lowestlevel of the breakdownfor the project manageris called:

a. Activityb. Task

c. Workpackage

d. Cost account

27. A project manageris reviewingthe scopeof the projectand the scopebaselineof the project. This

includeswhichof the following?

a. The original project schedule, budget, and scope

b. The original project description and project charter

c. The original scopeof the projectplus or minusany scopechanges

d. The current budget of the project

28. A project managerhas just becomethe managerof a project. The documentthat recognizesthe existence

of the projectis called:

a. The statement of workb. The project assignment

c. The project charterd. The product description

29. A project manageris reviewingthe workbreakdownstructurefor her project. The WBSof the project

represents:

a. All the tangible items that must be delivered to the client

b. All the workthat mustbe completedfor the project


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c. The work that must be performed by the project teamd. All the activities of the project

30. A managerwhomanagesa groupof relatedprojectsis calleda:

a. Project managerb. Project expediter

c. Program coordinatord. Programmanager

31. A newprojecthas begun.The projectcharter has beenwrittenand the projectmanagerhas been

assigned.The projectmanageris preparingthe workbreakdownstructurefor the project. The WBSis typically

usedfor:

a. Explaining the scope of the project relevant to the client

b. The basis for organizingand definingthe total scopeof the project

c. Showing the resource conflicts that exist in the projectd. The logical relationship between tasks in the project

32. Duringthe life of a project, the projectwill go throughseveral phases initiating, planning,execution,andcloseout.Whichphaseof the projectis likely to havethe greatestamountof its fundingspent?

a. Initiatingb. Planning

c. Executing

d. Closeout

33. Duringthe courseof the projectit is importantthat the stakeholdersbe informedof the progressof the

project. One of the reportsthat is frequentlyusedis a progressreport. Whichof the followingis true about

progressreport?

a. Theyallowstakeholdersto judgethe performanceof the projectaccordingto its planb. They are generally considered to be overkill on very small projectsc. They require the use of earned value reports

d. They must be produced by the project manager

34. The coordinatedundertakingof interrelatedactivitiesdirectedtowarda specific goal that has finite period

of performanceis a:

a. Project charter

b. Project

c. Set of project objectivesd. Program

35. The documentthat is proofof uppermanagementscommitmentto the project and givesthe authoritytomanagethe projectto the project manageris called:

a. The project planb. The project goals and objectives

c. The project charter

d. The project definition


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36. A project managerworksin a companyfavoringthe weakestauthorityfor the projectmanagerthe type of

organizationthat holdsthe project managerto be the weakestis:

a. Projectized organizationb. Strong matrix organization

c. Weakmatrix organization

d. Balanced matrix organization

37. A project managerhas beenaskedby the client to meet the promisedate of the project. The project

manageranalyzesthe schedulebeforepromisinga date to the customer.The projectmanagerusesthe

programevaluationand reviewtechniqueto evaluatethe projectschedule.She decidesthat basedon the

PERTcalculationsshe can promisea deliverydate of June30. The expectedvalueof the projectcompletion

date is May30. If the projectmanageris willingto accepta 5% probabilitythat the projectwill be delivered

later thanJune30, what is the standarddeviationof the durationof the activitieson the critical path?Assume

a five-day workweek.

a. Ten days

b. Fifteen days

c. One-half monthd. One month

38. A project is proposedto a customer.Price and schedulefor deliveryare agreedupon.The work

breakdownstructureis agreedto as well. The customerrequeststhat one of the milestonesof the project be

completedby a certaindate. The projectscheduleis reviewed,and it is foundthat the expectedcompletion

date for this milestoneis considerablyearlier that the date requestedby the customer.The date for this

milestoneis whichof the following?

a. Considerationb. Summary activity

c. Constraint

d. Suggestion

39. A project manageris managinga project. The original scopebaselineof the project was budgetedat

$100,000.Sinceworkon the projectstartedthere havebeenseventeenauthorizedand approvedchangesto

the project. The changeshavea valueof $17,000and the cost of investigatingthemprior to their approvalwas

$2,500. Whatis the currentbudgetfor the project?

a. $100,000b. $114,500

c. $117,000

d. $119,500

40. In a very large projecthavinga budgetof $5 millionand a projectteamof over one hundredpersons,theprojectmanagerconstructsa workbreakdownstructure. The project managerwill do the WBSto the detail

level of whichof the following?

a. Taskb. Activityc. WBS element

d. Workpackage


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41. A project manager is managing a project that has reached the end of planning phase.The work scope has been agreed to and definitive cost estimates have been completed forthe project. The total estimated cost of the project is $100,000. It is reasonable to expectthat the project will not cost over which of the following value?a. $100,000b. $110,000c. $125,000d. $175,000

The following information and questions 42 through 51 refer to Figure 1

A schedule was developed for a project to install windows in an apartment building. The projectis a rush job, and the contractor has agreed to schedule the work on a single shift basis but willwork seven days per week until the job is done. The project is to begin on May 1.

42. What day in May will activity D have for its early finish date?a. May 13

b. May 6c. May 7d. May 5

43. What is the free float for activity F?a. 6b. 7c. 0d. 8

44. What is the free float for activity D?a. 6b. 7

c. 8d. 0

45. What is the critical path of the project?a. A B E G Hb. A B D F Hc. A C G Hd. A B E D F H
http://pmpbank.googlepages.com/11.jpg/11-full;init:.jpg


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46. What is the late start for activity F?a. May 10b. May 11c. May 12d. May 14

47. How long is the project in days?a. Nineteenb. Twentyc. Twenty-oned. Eighteen

48. What is the early start for activity F?a. May 7b. May 6c. May 5d. May 4

49. If there is a delay in activity F of six days, what is the effect on the project completiondate?a. Increases one dayb. No change to project completion datec. Increases two daysd. Increases three days

50. What is the early finish date for activity A?a. May 1b. May 2c. May 3d. May 4

51. The above diagram is called:a. Activity on arrow network diagram

b. Network diagramc. Precedence diagramd. Gantt chart

52. If a project manager were to make Thanksgiving dinner, two of the activities that mightbe of concern would be roasting the turkey and baking the sweet potatoes. In order toensure that these two items will be finished cooking and will come out of the oven at thesame time, what type of relationship should he or she use in the schedule between thesetwo activities?a. Finish finishb. Start startc. Finish startd. Start finish

Questions 53 through 56 refer to the diagram in Figure 2 and the table that follows.


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In a project to install concrete sewer lines there is a lot of uncertainty as to how long the durationsshould be for the tasks involved. The project manager has determined that the team will use thePERT technique to evaluate the projects completion date. The diagram shows nineactivities and the table shows the optimistic, pessimistic, and most likely estimates that the teamhas already made.

53. What is the expected value of the number of days to complete the project?a. 47.3b. 22.0c. 32.3d. 48

54. It is desirable to make an estimate that has a greater than 95% chance of being correct.Which of the following ranges of time for the impletion of the project best describes thisprobability of being correct?

a. 33.31 to 31.36b. 34.28 to 30.39c. 14.39 to 33.48d. 35.25 to 29.42

55. What is the expected value of the duration for activity B?a. 5.6

b. 2.8c. 3.0d. 2.6

56. What is the standard deviation for the duration of activity B?a. 1.000b. .133c. .166d. 1.413


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57. The project manager decided to improve the predicted completion date for the projectby doing in parallel several of the activities that were scheduled to be done in sequence.This is called:a. Crashingb. Increasing prioritiesc. Hurry up defensed. Fast tracking

58. Crashing the schedule means:a. Making the project shorter by any economic meansb. Running the project team on overtimec. Doing activities that were in sequence in paralleld. Getting out of town before the project is in trouble

59. The original schedule (for a project, a work package, or an activity). Plus or minusapproved changes, is called:a. The working scheduleb. The target schedulec. The performance scheduled. The baseline schedule

60. Schedules are used in many ways. In a project to build a bridge the project managerwants to use a tool that will show the scheduled activities in such a way that it is easy tosee when each activity starts and finishes and which activities are taking place at thesame time. Which tool should be used?a. PERT chartb. Gantt chartc. Precedence diagramd. GERT chart

61. Which of the following is true?a. The critical path is the path through the network that has the highest total duration

b. The critical path is the path with the least amount of free floatc. The critical path is the list of activities that have zero floatd. The critical path is the list of activities that have critical risks associated with them

62. Resource leveling will generally:a. Reduce the time needed to do the projectb. Increase the total time necessary to do all the tasksc. Reduce the over utilization of resourcesd. Reduce resources to the lowest skill that is possible

63. A task was scheduled to use two persons, full time, and take two weeks tocomplete.Instead, the project manager was only able to assign one person to this task. Atthe endof two weeks, the person assigned to the task was 75% complete. What is the

costperformance index?a. 0.75b. 1.5c. 1.33d. .5

64. Five tasks are scheduled to be completed in sequence. Each task has a finish-startrelationship with the next task. Each has one day of total float. As of today, task oneandtwo have been completed on schedule. How many days of float remain in thescheduleof these tasks?


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a. Two

b. One

c. Zerod. Four

65. Whichof the followingis consideredto be a simulationtechnique?

a. PERT analysisb. GERT analysis

c. MonteCarlo analysis

d. Critical path method

66. The maindifferencebetweenthe two types(ADM,arrowdiagrammingmethod,and PDM,precedencediagramming

method)of the critical path method(CPM)of schedulingis:

a. Placementof the activity on the logic diagramline

b. Arrow diagramming method (ADM) is a deterministic method, whereas theprecedence diagramming method (PDM) is a probabilistic methodc. Precedence diagramming method (PDM) is a deterministic method, whereas the arrow diagramming

method (ADM) is a probabilistic methodd. Precedence diagramming method (PDM) is a more accurate method

67. The projectscheduleis not usedto determine:a. The start and finish dates of the activities

b. Occasional changes to the activity listingc. The total float of the activities

d. The projectsbudget

68. A projectmanagerwantsto makea trip to Californiaby car. The projectmanagerknowshowmanymilesit will be to

drive to California,the currentprice of gasoline,and howmanymilesthe car will go on a gallonof gasoline.Fromthis

informationhe or she can calculatethe estimatedcost of the gasolinefor the trip. This is a formof what kind of estimating

technique?

a. Definitiveb. Analogous

c. Parametric

d. Quantitative

69. A projectmanagerwantsto makea trip to Californiaby car. The projectmanagerknowssomeonewhohas madethis

trip before. This personhas a similar car to the one that the projectmanagerhas, and the personhas kept goodrecordson

the moneyspentfor fuel on the trip. The distancethat the projectmanagerwill travel is 10%fartherthan the other persons

trip. By multiplyingthe cost of fuel reportedby the other personby 1.1, the projectmanageris performingwhat kindof

estimate?

a. Definitive

b. Analogous

c. Parametricd. Quantitative

70. To distinguishtop-downestimatesfrombottom-up estimates,it wouldbe correctto say that the bottom-up estimate

wouldbe:

a. Less accurateb. About equal in accuracy to the top-down estimate

c. Moreaccurate

d. No different to perform than the top-down estimate

71. A projectmanagerand the projectteamidentifyseveral specific risks in a project. The expectedvalueof theserisks is

estimatedat $10,000.The impacton the projectbroughtaboutby theserisks is estimatedat $40,000.Whatvalueshouldbe

enteredinto the managementreservefor theserisks?

a. $10,000


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b. $40,000

c. $0

d. $25,000

72. A projectmanagerand the projectteamidentifyseveral specific risks in a project. The expectedvalueof theserisks is

estimatedat $10,000.The impacton the projectbroughtaboutby theserisks is estimatedat $40,000.Whatvalueshouldbe

enteredinto the contingencyreservefor theserisks?

a. $10,000

b. $40,000c. $0d. $25,000

73. Whatcharacteristicbest describesthe cost baseline?

a. Total budget for the project

b. Time-phasedbudgetfor the project

c. Total budget for the project including the contingency budgetd. Total budget for the project including the contingency budget and the management reserve

74. A projectis formedto producea productthat will be usedfor transportingpeople.Coststhat are associatedwith the

projectthat occurafter the deliveryof the productto the customerare consideredto be what kind of cost?

a. Prorated costb. Expenses

c. Life cycle cost

d. Expected value

75. A projectteamreceivesan approvedchangerequestfromcustomer.The teamhas previouslyestimatedthat the cost

to implementthis changeis $10,000.The customerhas agreedto pay this amountfor the additionalwork. The customer

realizesthat there is a 50 percentchancethat this changewill not workand will later be removed.Whatchange,if any,

shouldbe madein the budget?

a. The project budget should not be increasedb. The project budget should be increased by $15,000

c. The projectbudgetshouldbe increasedby $10,000

d. The project budget should be increased by $5,000

76. The act of doinganythingthat will help to bringfutureproject performanceinto line with the projectplan is called:

a. Budget updateb. Revised cost estimate

c. Correctiveaction

d. Contingency planning

77. Whichof the followingchoiceswouldbe an acceptablecausefor rebaselininga $10 millionproject?

a. The monthly consumer price index on some of the commodities used on the project has been identified ashaving gone up by 1.6%, an increase of 46% over the 1.1% that had been budgeted

b. The client has authorizeda $10,000additionto the scopeof the projectc. The contractors company has instituted a quality program on which it has pledged to spend $1 million

during the next yeard. The productivity in the drafting department has been shown to be lower than anticipated, which has

resulted in 1,000 additional hours, a 78% increase over what was budgeted

78. In termsof earnedvaluereporting,a projectis consideredcompletewhen:

a. The BAC is equal to the PVb. The EV is equal to the ACc. The PV is equal to the AC

d. The BACis equal to the EV


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79. The time-phasedcost of the projectthat reflectsthe expendituresrather than the consumptionof a resourcethat will

be usedto measureand monitorcost performanceon a projectis the:

a. Spendingplan

b. Cost baselinec. WBSd. Schedule

80. A largepieceof equipmentis neededfor the project. It will be retainedand usedafter the projectis completed.The

equipmenthas a valueof $500,000,and it has a scrapvalueof $50,000at the end of its useful life of ten years. If the sumof

the years digits methodof depreciationis used, what is the depreciationthat is takenat the end of the third year?

a. $81,818b. $90,900

c. $65,250d. $72,500

81. Using the formula: Present value = S/(1+i)n where i is the interest rate in percentage, nisthe number of periods, and S is the starting amount, the following table is produced:Periods 10% 12% 14%1 0.909 0.893 0.8772 0.826 0.797 0.769

3 0.751 0.712 0.6754 0.683 0.636 0.5925 0.621 0.597 0.519

Based on the table, what is the value of an annual income flow of $1,300 each year overthenext three years at 12%?a. $3122.60b. $3900.00c. $3497.00d. 36%

82. Lifecycle costing:a. Is a method of including all of the cost associated with the project over its entire life

b. Is a federal government accounting methodc. Is a method of predicting the life of a projectd. Is a method of evaluating projects when they are complete

The following table and description refer to questions 83 through 89.A project manager is using the earned value reporting method to manage his project.Thefollowing table shows the data collected to date. The plan is for the project to becomplete aftereight weeks. The earned value report shows data collected for the first fourweeks of the project.The figure shown in the table are cumulative.Week PV AC EV1 1,000 1,000 1,0002 3,000 2,000 2,500

3 5,000 5,000 6,0004 7,000 9,000 7,0005 13,0006 17,0007 19,0008 20,000

83. What is the cost performance index for week 4?a. 1.000b. 0.777


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c. 1.286d. 1.250

84. What is the schedule performance index for week 3?a. 1.200b. 0.833

c. 1.000d. 1.500

85. What is the BAC for the project during week 4?a. 7,000b. 9,000c. 5,000d. 20,000

86. During week 5 it is found that some of the work that was reported complete in week2was considered unacceptable. It will require $500 to fix the problem and make thisworkacceptable. The work is scheduled to be done in week 6. No other work is reported tobecomplete during week 5. What is the EV for week 5?a. 7,000b. 6,500c. 9,000d. 5,000

87. What is the cost variance for week 4?a. 0b. -2,000c. 2,000d. 7,000

88. What is the schedule variance in week 2?a. 500b. 1,000

c. -500d. -1,000

89. What is the EAC at week 4?a. 20,000b. 15,555c. 25,740d. 17,717

90. The calculation of the EAC assumes that:a. The schedule performance index will remain the same for the remaining part of theprojectb. The cost performance index will remain the same for the remaining part of the projectc. The BAC will be different by the end of the project

d. The EAC will continuously increase for the remaining portion of the project

91. What factors need to be known in order to be able to calculate the ETC?a. Budget at completion, actual cost, and planned valueb. Budget at completion, earned value, and actual costc. Estimate at completion and planned valued. Estimate at completion and actual cost


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92. A construction company is being measured by the earned value reportingmethod.During the project one of the tasks, installing ten elm trees, was completed. Theplannedvalue for this task was $4,000, and it was completed two weeks ago. Unfortunatelyforthe contractor, maple trees should have been planted. The customer insists that mapletrees be planted and that the elm trees be removed. As of this time the elm trees are stillinthe ground, but the contractor has agreed to do the work of replacing them. Whatactionshould be taken on the earned value report?a. Reduce PV by $4,000b. Reduce AV by $4,000c. Reduce EV by $4,000d. Make no changes since the vendor has agreed to fix the problem

93. Learning curve theory emphasize that in producing many goods:a. Cost decreases as production rates increaseb. Average unit cost decreases as more units are producesc. Materials become cheaper when they are purchased in bulkd. Laborers become more productive because of technological advances

94. A project manager is considering applying learning curve theory to his project.Theproject involves designing a number of software modules that are very similar.

Accordingto the cost figures that have been collected the first unit required 100 person-hours todesign and test. The second unit required 90 person-hours to design and test.Howmany person-hours will the eighth module take to design and test?a. 90b. 100c. 73d. 172

95. The process required to ensure that the project will satisfy the needs for which itwasundertaken include all activities of the overall management function that determinesthequality policy, objectives, and responsibilities and implements them by means suchasquality planning, quality control, quality assurance, and quality improvement, withinthequality system. This is called:

a. Quality assuranceb. Quality controlc. Quality planningd. Quality management

96. Decisions as to the types of projects that should be accomplished and strategic plansasto the quality of the projects that are required should be the decision of which ofthefollowing?a. Project managerb. Procurement managerc. Upper managementd. Stakeholders

97. According to Deming and Juran most of the quality problems that exist are due toadefect or failure in processes that are controlled by:a. The project managerb. The procurement managerc. Upper managementd. Stakeholders

98. A project manager is managing a large project and must consider the application ofaquality management plan. One of the critical factors in such a plan is the costofimplementing the plan. The project manager should:


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a. Invoice the client for all quality improvementsb. Implement the highest quality possible regardless of costc. Implement quality improvements as long as the benefits outweigh the costsd. Rely on upper management to determine the quality budget

99. A project manager has discovered a problem and is trying to determine the cause.

Theprocess whereby he identifies the variables that have the most influence on theprojectby holding all the variables constant and changing one at a time is called:a. Product correlationb. Design of an experimentc. System integrationd. Output processing

100. A control chart is being used to control a manufacturing process. As part of thecontrol asample of five parts is taken from the manufacturing process each hour ofoperation.Each of the five parts is measured and the dimension is recorded on the worksheet. Thedifference between the highest and lowest measured dimension of the five partsisplotted on the control chart. This is called which of the following values?a. Rb. R bar

c. Xd. X bar

101. The totality of characteristics of an entity that bear on its ability to satisfy stated orimplied needs is the definition for:a. Modern quality managementb. Quality assurancec. Qualityd. Quality control

102. A large project is being worked on by a large company. The client is interested inknowing how the company will be able to meet the quality needs of the project. In order tosatisfy this request of the client the project manager arranges a meeting between the

client and the:a. General managerb. Quality control managerc. Quality assurance managerd. Chief designer

103. One of the fundamental tenets of quality management is that quality:a. Must exceed customer expectationb. Is planned in and not inspected inc. Will increase costd. Costs must all be passed onto the customer

104. A category or rank given to products that have the same functional use but different

technical characteristics is called the products:a. Qualityb. Functional characteristicsc. Graded. Technical characteristics

105. The quality manager of a company wishes to analyze the data that is coming to him inthe form of a list of defects that have occurred in the shipping department. The reportcomes with defects listed chronologically as they occurred, the cost of the repairnecessary to correct each defect, the person involved, and a description of the defect.


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The manager would like to determine which of the defects should be corrected firstaccording to the frequency of the defect occurring. He should use which of the followingquality tools?a. Cause and effect diagramb. Sampling inspectionc. Pareto diagramd. Quality critical path

106. A project manager from the quality control area is trying to categorize the number ofmistakes that are made in the area that paints the right front fender of the Mercedes 560SL. She list all the possible defects on a sheet of paper and asks the inspector to make amark each time one of the listed defects is found. This is an example of using which of thefollowing quality tools?a. Scatter diagramb. Statistical measurementsc. Check sheetd. Random sampling

107. The project management team should be aware that modern quality managementcomplements modern project management. For example, both disciplines recognize the

importance of:a. Completion in the shortest possible time frameb. Making a maximum profitc. Having lower cost than competitord. Customer satisfaction

108. In a manufacturing process that is being controlled by control charts there arevariables occurring that will affect the process output. Variations in the process that areconsidered to be normal process variables are called:a. Common causesb. Uncommon causesc. Special causesd. Random causes

109. Work results, quality checklists, operational definitions, and the management planare:a. Inputs to quality controlb. Outputs from quality controlc. Inputs to quality assuranced. Outputs from quality assurance

110. A control chart is being used to control a manufacturing process. As part of thecontrol a sample of five years is taken from the manufacturing process each hour ofoperation. Each of the five parts is measured, and the dimension is recorded on the worksheet. The average of the five parts is plotted on the control chart. This is called which ofthe following values?

a. Xb. X barc. Sample averaged. Control average

111. A project manager for the quality department is trying to solve a problem with amachine that makes die cast aluminum parts that are used in automobiles. These parts arefrequently made with defects. The project manager has decided to hold a meeting todiscuss the process of making the parts. He creates a diagram that has branches thatshow the possible causes of the problems. Each of the branches breaks the cause down


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into more and more detail. This diagram is called a:a. Pareto diagramb. Fishtank diagramc. Cause and effect diagramd. Scatter diagram

112. As the manager of the production department where electrical circuits are being madeyou observe the inspection station where the completed printed circuit assemblies arebeing inspected. In this operation the inspector takes the printed circuit assembly andputs it into a fixture. The fixture is part of the testing machine that has three digitalreadouts. The inspector records the readings on the three digital readouts on hisinspection report. This is an example of:a. Attribute inspectionb. Variable inspectionc. Sampling inspectiond. Process control

113. One of the important advantages of using control charts in managing a productionoperation is that the control chart tells you when to take corrective action on the processbeing controlled. Another important result of using control charts is:

a. The control chart identifies the special causesb. The control chart tells you when you should not take corrective actionc. The control chart shows how much the defects are costingd. The control chart shows who is responsible for the defects

114. According to the ideas behind modern quality management, quality improvementsshould be made:a. In large steps through detailed study of problems and then implemented as comprehensivesolutions when they are fundedb. In small incremental stepsc. By assignment of permanent quality improvement teamsd. By hiring ISO certification consultants to point out quality deficient areas

115. The Japanese developed a method of modern quality management that relies oncontinuing small improvements involving everyone from the top management to thelowest level worker in the organization. This is called:a. Kambanb. Kaizenc. PDCAd. Deming cycle

116. The primary benefits of meeting quality requirements are:a. Cost and delays are reduced, production improves, cost to customers goes up, and profits goupb. Cost and delays are reduced, production improves, market share increases, and profitsgo up

c. Cost and delays are reduced, capital expenditures go down, market share increases, andprofits go upd. Cost and delays are reduced, production improves, market share increases, and profits aremaintained

117. When the quality management discipline is implemented, the benefits to costs ratioshould at least be:a. Unable to be evaluatedb. Less than onec. Of little importance


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d. Greater than one

118. The quality management plan provides input to __________________ and addressesquality control, quality assurance, and quality improvement.a. The overall project planb. The WBSc. The project scoped. External stakeholders

119. Project quality assurance:a. Includes policing the conformance of the project team to specsb. Provides the project team and stakeholders with standards, by which the project performanceis measuredc. Is a managerial process that defines the organization, design, resources, and objectives ofquality managementd. Provide confidence that the project will satisfy relevant quality standards

120. What are the major advantages of the functional type of organization?a. Single point of contact for the customerb. Stable organizational structure

c. Project orientationd. Multifunctional teams are easy to form

121. The project managers leadership style should be matched to the correspondingdevelopmental level of the project team and should move through successive steps in thefollowing order:a. Disciplinary, autocratic, participativeb. Projectized, matrix, functionalc. Team building, team development, responsibility assignmentd. Directing, coaching, supporting, delegating

122. A company has signed a contract for new work that is different from work that it hasdone before. The companys strategic plan calls for much of this kind of work in the future.

It is important that it be able to bring the correct shared resources together to work ondifferent parts of the contract. The type of organization that this suggest is a:a. Functional organizationb. Contractor organizationc. Matrix organizationd. Pure project organization

123. The manager of a large corporation wants to sign a contract to build a nuclear powerplant in Botswana several thousand miles away from the home office. The project will takeseveral years to build and test. What type of organization will be best for managing thisproject?a. Functional organizationb. Contractor organization

c. Matrix organizationd. Pure project organization

124. In matrix management organizations, if the organization maintains many of thecharacteristic of the functional organization and the project managers are consideredmore like project coordinators or expediters, it is called a:a. Strong matrixb. Project teamc. Weak matrixd. Project office


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125. A project manager is selecting team members for her project team. She collects theresumes and past performance reviews for the potential team members and discusseseach with their functional manager. Which of the following is not a characteristic that theproject manager should use in selecting the team members?a. Previous experienceb. Personal characteristicsc. Personal interestd. Salary

126. A project manager is responsible for all that goes on in the project. One of the mostimportant duties that the project manage can perform is the function of:a. Risk managementb. Quality managementc. Cost managementd. Integration

127. The organization that is a formalized structure directed toward the support of theproject community within the organization is called:a. Matrix organizationb. Project office

c. Project teamd. Project management office

128. On a project team one of the team members has a problem collecting on a medicalinsurance claim. The team member comes to the project manager and explains theproblem. The problem is the responsibility of the:a. Project teamb. Project managerc. Executive managerd. Human resource department

129. The organization that is a formalized structure where the project teams and theproject managers reside is called:

a. Matrix organizationb. Project officec. Project teamd. Project management office

130. A conflict arises about the method to solve a difficult design problem. The projectmanager is seeking a method of resolving the conflict. In order to achieve the most longlasting resolution to project conflicts, which of the following approached should be used?a. Problem solvingb. Compromisec. Withdrawald. Smoothing

131. In a large organization a project expediter is being used to manage a project for animportant client. The position of project expediter would be found in what kind of anorganization?a. Strong matrixb. Weak matrixc. Functionald. Projectized

132. The project manager of a project is concerned with managing cost and improvingmorale and is also concerned about notifying other project managers when individuals


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from his project team will be available to work on other projects. This is best addressed inthe projects:a. Communications planb. Work breakdown structurec. Staffing pland. Project schedule

133. The beginning and the end of the project is defined by:a. The project planb. The project charterc. The team charterd. The project lifecycle

134. Herzberg divided motivation factors into two classes: satisfiers and dissatisfiers.Examples of satisfiers are:a. Vacation time, assignment of a personal staff assistantb. Work satisfaction, fringe benefitc. Plush office space, performance-based salary raised. Sense of personal achievement, work satisfaction

135. The skill of listening involves more than just hearing the sounds. One of thecharacteristics of a good listener is that he or she:a. Finishes the speakers sentencesb. Take good notesc. Repeats some of the things saidd. Agrees with the speaker

136. Primary outputs from team development are:a. Input to performance appraisalsb. High project team moralec. Reduced project costd. Greater customer satisfaction

137. An automotive oil change station was receiving complaints that service took too long.A coffee machine and television were installed in the waiting room and the complaintswent down. This is an example of:a. Smith-Carlisle methodb. Creative problem solvingc. Analytical problem solvingd. Decision analysis

138. A project manager is concerned about team building on her project. One of themandatory things that she must have in order to have good team building is:a. Commitment from top level managementb. Co-location of team membersc. Establishment of clear negotiated goals

d. Open discussion of poor individual performance

139. The project manager of a new project wants to get things started in a positive waywith the project team. The project manager wants the team members to get to know oneanother, to introduce the project team and the project manager to one another, to discussthe objectives and goals of the project, and to identify some of the potential problemareas. This meeting is called a:a. Project team meetingb. Project kick-off meeting


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c. Goal setting meetingd. Introduction meeting

140. A project manager is managing a project where there will be a number of personsworking together. She wants to enhance the ability of the team to work together andperform as a team. One of the things that she can do to maximize the ability of the team to

do this is:a. Cohabitationb. Co-locationc. Staffing pland. Work breakdown structure

141. A project manager is in need of a solution to a problem. He decides that the best thingwill be to arrange a meeting to solve the problem rather than solve the problem himself orby having one of the project team members solve it individually. Generally, this will resultin:a. The group taking more time than one individualb. The solution to the problem being less accuratec. The group taking less time than one individuald. In depends on the specific problem

142. A project manager will manage a large complicated project that is located in a remotepart of Africa. The project will last for five years and will have the product of producing anuclear reactor that will generate 900 megawatts of power at start-up. The best kind oforganization for managing this project is:a. Strong matrix managementb. Weak matrix managementc. Projectized organizationd. Functional organization143. Project human resources management is divided into which of the following?a. Organization planning, staff acquisition, and team development

b. Leadership, team building, and negotiationc. Recruitment, labor relations, and personnel administrationd. Team building, communication, and labor relations

144. A project manager wants to do as much as she can to help in developing her projectteam. A key barrier to project team development is which of the following?a. Strong matrix management structureb. Major problems that delay the project completion date or budget targetsc. Team members who are accountable to both functional and project managersd. Formal training plans that cannot be implemented

145. Which of the following media can a communicator use to present information?a. Visualb. Audio and visualc. Tactiled. Visual, audio, and tactile

146. The three principal interests in maintaining good document control are:a. Timely communication, collection of performance appraisal data, and assuring proper disposalof sensitive documents


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b. Timely communication, maintain proper approvals, and communication cost controlc. Effective communication, ability to reconstruct why decisions were made, and historicalvalued. Security, change management, and procedural documentation

147. A project manager wants to handle communications well in his project. In order to dothis he has chosen to write a communication plan. Of the items listed below, which one isnot part of the communication plan?a. Collection and filling structureb. Distribution planc. Method for accessing informationd. Project organization structure

148. Which of the following are filters that the receiver uses to filter messages?a. Language and knowledgeb. Distancec. Culture and distanced. Language, distance, culture, and knowledge

149. A project manager has many different ways of communicating. Which of the followingis a good communication tools for the project manager to use?a. Sending a videotape of the project progress to the clientb. Inputting a task into the project managers personal computerc. Writing notes on a handheld computerd. Putting the project budget into a spreadsheet150. The use of brainstorming as a communication technique encourages which of thefollowing?a. Team building and convergent thinkingb. Divergent thinking

c. Analytical resultsd. Use of the scientific method

151. Which of the following techniques allows for the participants to be anonymous?a. Brainstormingb. Nominal groupc. Delphi techniqued. Crawford slip

152. Which of the following is not a standard type of communication?a. Written

b. Verbalc. Nonverbald. Clairvoyant

153. During a project meeting a disagreement between two members of the project teambegan. The disagreement was over a technical detail of the project. The project managerwas in attendance in the meeting. It is important that the conflicting opinion of the twoteam members be resolved as quickly as possible. It is even more important that thedifference of opinion be resolve correctly. What should the project manager do?


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a. The project manager should make the decision right away to save time and not let the twodisagreeing parties stay in disagreement very longb. End the meeting and give everyone a few days to cool offc. Assign someone to find out more factual information about the problemd. The project manager should suggest a compromise between the two disagreeing teammembers

154. In the communication model, communications between the sender and the receiveroften are affected by communications barriers. These include all of the following except:a. Cultural differencesb. Differences in motivationc. Educational differencesd. Lack of a communications device

155. A project manager has one member of the project team working on a critical problem.The person working on the problem verbally communicates to the manager that thiscorrection to the problem will probably cost $1,000. Which form of communication shouldthe project manager use to respond to the team member?

a. Writtenb. Oralc. Form letterd. Formal156. Who is responsible for communications for the project team?a. The human resources representativeb. The representative from the management information systems departmentc. The project managerd. The communications department

157. Statements such as Its never been done before: or It will cost a fortune are

examples of:a. Feedbackb. Communication blockersc. Conflict generatorsd. Forcing

158. The project manager has a very complex communication to prepare for the programmanager. In order to ensure that the communication will be understood as completely aspossible, what method of communication should be used?a. Oralb. Writtenc. Nonverbal

d. Oral, written, and nonverbal

159. There are many ways to organize projects. The persons involved with these projectshave several titles that describe their management responsibilities. Which of the followingtitles describes a person who has a primary responsibility for communications?a. Project managerb. Project manager in a strong matrix environmentc. Project manager in a weak matrix environment


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d. Project expediter

160. A project manager is responsible for performance reporting. Which of the following isnot one of the tools and techniques that the project manager can use for performancereporting?

a. Variance analysisb. Earned value reportsc. Performance reviewsd. Past project review

161. A projectmanagerdiscoversthat there is a part of the project that containssomerisk. His strategywith

this risk is to subcontractthe work to an outsidesupplier by usinga firm fixed-price contract. Whichof the

followingmustthe projectmangerdo?

a. The project manager should make certain that the project team does not reveal the risk to the

supplier until the contract is signedb. The project manager should make every effort to make sure that the supplier is made aware of

the risk after the contract is signed

c. The project managershouldmakesure that the supplier understandsthe risk beforethe contractis signed

d. The project manager should assign a member of the project team to monitor the activity of thesupplier to make sure that the supplier deals with the risk properly if it occurs

162. A projectmanageris facedwith makinga decisionabout a risk that the teamhas identified. The risk

involvesthe designof a bicycle. It has beenfoundthat the neckof the bicycle, wherethe steeringbearingis

locatedand the two supportingbars of the framecometogether, will corrodein a highsalt environment.If this

takesplacethe neckmayfail and injurethe rider. The project teamdecidesthat the designof the bicycle

shouldbe modifiedby usingcorrosionresistantmaterialsin the designof the neck. This will eliminatethe risk

fromconsideration.This techniqueis called:

a. Risk avoidance

b. Risk acceptancec. Risk rejection

d. Risk deflection

163. A problemoccursin the designof a grocerycart. In this caseit is determinedthat the wheelswill wear

out muchquickerin areasof heavysnowand ice becausethe salt will corrodethe wheel bearings.Using

sealedbearingwheelswill significantlyincreasecost, and it is determinedthat the carts themselveswill be

rusty and damagedat aboutthe sametime the wheelbearingsbeginto fail. By injectingthe wheelbearings

with a hightemperaturegreasethe life of the wheel bearingsis increasedconsiderably.The project

recommendsusingthe hightemperaturegrease.This is called:

a. Risk acceptance

b. Risk avoidance

c. Risk mitigation

d. Risk deflection

164. The contingencybudgetwill:

a. Reduce the probability of scope changes

b. Reducethe probabilityof cost overruns

c. Increase the probability of a cost overrunsd. Increase the probability of scope changes

165. A risk has four possibleoutcomes.Giventhe followinginformation,what is the expectedvalueof this

risk?


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Probability Result of Risk0.4 -10,000

0.3 -7,5000.2 -5,000

0.1 +2,500a. -$20,000

b. -$14,500c. $7,000

d. -$7,000

166. The projecthas doneits risk analysis. In the processof risk identificationthe projectteamhas

determinedthat there are risks that will probablyhappenthat have not beenidentifiedor evaluatedexceptby

notingthat other projectsof this type havehistoricallyhad a certainamountof risk discussedin the lessons

learnedof the project. This projectteamshouldset asidemoneyto handletheserisksin whichfinancial

category?

a. Risk management fundb. Contingency budget

c. Managementreserve

d. Emergency fund

167. A projectmanagerobservesthat in one part of the projectseveral activitiesare beingcompletedlate. All

of theseactivitieshaveseveral daysof free float associatedwith them.Theseare early warningsof the risk

that the projectwill be late in completion.

Theyare called:

a. Risk triggers

b. Warning messages

c. Risk forecastsd. Schedule risks

168. The effect of risk on scheduledatesfor the project createsan arrayof datesthat are possiblefor project

completion.In a typical project the mostlikely date for the projectwill havewhichof the followingrelationshipswith the expectedvaluefor the projectcompletiondate?

a. The mostlikely date will be earlier thanthe expectedvaluedate

b. The most likely date will be later than the expected value datec. Both dates will have the same likelihood

d. The most likely date and the expected value date will occur at the same time

169. A projectmanageris reviewingthe risksof her project. Oneof the risks she is reviewinghas an impactof

$25,000and an associatedprobabilityof 10%. The risk is associatedwith an activity that is the predecessorto

sevenother activitiesin the schedule.All eight activitiesare on the critical path. The sevenother activities

havea budgetof $75,000.Whatis the expectedvalueof this risk?

a. $10,000

b. $100,000c. $25,000

d. $2,500

170. In probability theory, what is the probabilitythat if you roll two dice (cubeswith consecutivenumbers1 to

6 on eachof the six faces)you will haveat least one 6?

a. 1/3

b. 11/36


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c. 1/36d. 1/6

171. A projectmanageris lookingat the risk associatedwith the projectschedule.Realizingthat if the risks

occur the projectwill be deliveredto the stakeholderslate, the projectmanagerdecidesto considerthe risk

and promisedeliverylater than the mostlikely project completiondate. He then takesthe timebetweenthe

promisedate and the most likely completiondate and distributesit amongthe activitiesof the projectschedule.This createsfloat in the schedule.This processis called:

a. Schedule delay

b. Critical chain scheduling

c. Buffering

d. Contingency scheduling

172. A projectmanagerwantsto give someguidelinesto the projectteamas to howrisk eventsshouldbe

described.Whichof the followingitemswouldnot be appropriatein describinga risk event?

a. Probability that the risk will occur

b. The cost of the risk should it occurc. Expected timing of the risk when it is expected to occur

d. The clientsoutsourcingmethod

173. A projectmanagerand her projectteamare analyzingrisk in their project. Oneof the thingsthat they

might do to help identify potential risks or opportunitieswouldbe to review:

a. The project budget

b. The goals and objectives of the project

c. Lessonslearnedfromother similar projects

d. The monetary value of changes for similar projects

174. A projectmanagerholdsthe first risk meetingof the projectteam.The client is presentat the meeting.At

the meetingseveral risks are identifiedand assignedto membersof the projectteamfor evaluationand

quantification.The result of the meetingis:

a. Expected value of the risk eventsb. Strategies for the risk events

c. A list of potential risk events

d. General statements about risk for the project

175. In the MonteCarlotechnique,what is the critically index?

a. The numberof days the projectwill be late dividedby the projectduration

b. The percentof time a givenactivity will be on the critical path

c. The percent of time an activity will be lated. The sum of the duration of the critical path activities divided by the project expected value for

duration

176. The managementreservefor the projectcontains:a. Money to offset missing cost objectivesb. Money to offset missing schedule objectives

c. Moneyto offset missingcost or scheduleobjectives

d. Money to handle the effects of known risks in the project

177. A projectmanagerusesthe breakevenpoint to justify his project. He presentsthis as a justificationfor

buyinga newmachine.Whatrisk doesthe projectmanagerrun by usingthis techniqueto justify buyinga new

machinefor his company?


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a. Breakevenpoint will favor buyinga cheap, low-quality machine

b. Breakeven point will favor buying a machine that is too expensive for the work required

c. The company may not have the funds to buy the machine in spite of the justificationd. The machine may not be available because the justification method takes a long time to

calculate

178. Goldrattscritical chaintheorysays that in order to reducerisk in scheduleswe should:a. Start activities in the feeder chains as early as possible

b. Start activities in the feeder chains as late as possiblec. Start activities in the critical chains as early as possible

d. Addbuffer to the critical chains

179. In managingthe risk of the project schedulewe are managingthe risk that the projectwill not be

deliveredor completedon time. If we assumethat the projectspossiblecompletiondatesare normally

distributedand we promisethe client the mostlikely of the projectspossiblecompletiondates, what is the

probability that the projectwill be

deliveredlate?

a. 5%

b. 10%c. 50%

d. 77%

180. A risk event in a projectis somethingthat can havean effect on the project:

a. For the better only, a positive effectb. For the worse, a negative effect

c. Bothbetter or worse,a positiveor negativeeffect

d. Neither better nor worse, neither a positive nor a negative effect

181. The project team has put together a project plan for a project, and the plan has beenapproved by the stakeholders. The customer asks the project manager if the project canbe delivered seven weeks sooner. The customer offers sufficient monetary incentive forthe project manager. The project manager decides to fast track the project. This decisionwill:a. Increase riskb. Decrease riskc. Not affect riskd. Risk change cannot be determined

182. A project team evaluates risk in the project. As an outcome there are some positiveand negative risks that are identified and evaluated. To evaluate the worst case for theproject the project team should evaluate and summarize:a. All of the risks affecting the project

b. Only the negative risksc. The negative risks minus the positive risksd. The positive risks minus the negative risks

183. The Project Management Institute decided to hold its annual meeting in New Orleans,Louisiana. The conference represents a substantial amount of PMIs operating budget forthe year. PMI identified a risk of hurricanes during the month of September, when theconference was to be held. PMI decided to purchase convention insurance to offset theloss of convention revenue if a hurricane caused cancellation of the conference. This is a


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risk management strategy called:a. Avoidanceb. Deflection or transferencec. Acceptanced. Mitigation

184. During the project lifecycle, in which part of the lifecycle will risk be the lowest?a. Initiationb. Planningc. Executiond. Closeout

185. The Monte Carlo technique can be used to:a. Determine the amount of contingency budget needed for the projectb. Determine the amount of the management reservec. Determine the critically index for an activity in the scheduled. Determine the risk index for a risk in the project

186. A project manager must make a narrative description of the project. This narrativedescription covers the items that will be supplied under the contract with the client. It is

called:a. The project planb. The statement of workc. The exception reportd. The progress report

187. A project manager discovers that there is a part of the project that contains somerisk. His or her strategy with this risk is to subcontract the work to an outside supplier byusing a firm fixed-price contract. Which of the following is true?a. The supplier will include an allowance for the risk in the contracted priceb. The supplier will lose money on the contractc. The project manager will have to compensate the supplier if the risk occursd. The project manager will assist the supplier with the project team if the risk occurs

188. A project manager discovers that there is a part of the project that contains somerisk. His or her strategy with this risk is to subcontract the work to an outside supplier byusing a firm fixed-price contract. The project manager should:a. Make certain that the project team does not reveal the risk to the supplier until the contract issignedb. Make every effort to make sure that the supplier is made aware of the risk after the contract issignedc. Make sure that the supplier understands the risk before the contract is signedd. Assign a member of the project team to monitor the activity of the supplier to make sure thatthe supplier deals with the risk properly is it occurs

189. The project manager is considering contracting some of the work of the project to a

service bureau. The service bureau has been used in the past by this project manager. Themanager has several choices of contracts that can be used to subcontract this work.Which of the following is not a type of contract that the project manager might choose?a. Firm fixed priceb. Make or buyc. Cost plus incentive feed. Unit price

190. A project manager is employed by a construction company and is responsible for thefurnishing of the completed building. One of the first things that the project manager for


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this project should do is to write a:a. Work breakdown structureb. Budget baselinec. Project charterd. Project plan

191. A contractor is working on a fixed price contract that calls for a single, lump sumpayment upon satisfactory completion of the contract. About halfway through thecontract, the contractors project manager informs the contract administrator that financialproblems are making it difficult for the contractor to pay employees and subcontractors.The contractor asks for partial payment for work accomplished. Which ofthe following actions by the buyer is most likely to cause problems for the projects?a. Starting to make partial payments to the contractorb. Making no payments to the contractorc. Paying for work accomplished to dated. Negotiating a change to the contract

192. Under a blanket order arrangement, which of the following is correct?a. The cost of carrying the inventory is borne by the buyerb. The seller delivers all of the material ordered at one time

c. Payments for all of the material are made at one timed. At the end of the blanket order, prices are adjusted for the actual amount of materialdelivered

193. Forward buying will:a. Decrease storage costb. Decrease capital investmentc. Decrease transportation costsd. Decrease inventory

194. Which of the following would not be a part of the procurement management process?a. Purchasingb. Contract negotiations

c. Inspectiond. Marketing

195. The equivalent of cost-reimbursable contracts is frequently termed:a. Back-charge contractsb. Fixed-price contractsc. Progress payment contractsd. Cost-plus contracts

196. The project team has delivered a deliverable to the customer. The deliverablecontains defects that are easily correctable. There is a good relationship with thecustomer and the customer agrees to make the repairs and correct the defects on the itemand invoice supplier for the work that was done. This is considered to be a:

a. Bid cost reductionb. Payment authorizationc. Back charged. Release payment

197. A project manager decides to go out for bids on some of the project work that mustbe done as part of the contract to do a project for another customer. The bids are receivedand evaluated, and the seller with the lowest bid is selected. The cost of the contract to theproject can further be reduced by what action?a. Illegal methods


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b. Procurement leveragec. Selecting another sellerd. Contract negotiation

198. A buyer extends a formal invitation that contains a scope of work that seeks aresponse that will describe the methodology and results that will be provided to the buyer.

This is called:a. Invitation to bidb. Request for informationc. Request for proposald. Request for bid

199. A project manager wants to subcontract part of the project. This part of the project isquite complicated, and there are many ways that the work can be done. What method ofrequest for seller responses should be used by the project team?a. Request for bidb. Request for quotationc. Request for proposald. Request for information

200. The project team is considering whether to purchase a service or do it themselves.One of the items that should not be considered in their analysis is:a. The sellers priceb. The cost and availability of floor space at the teams facilityc. The sellers technical staffd. A competitors method of outsourcing

201. Duringtesting,multipledefectswereidentifiedin a product.The projectmanageroverseeingthis product's

developmentcan best use whichtool to help prioritizethe problems?

A. ParetoDiagram

B. Control Chart

C. Variance Analysis

D. Order of Magnitude estimate

202. You are the managerof an aircraft designproject. A significantportionof this aircraft will be designedby a

subcontractingfirm. Howwill this affect your communicationsmanagementplan?

A. More formal verbal communication will be required.

B. Performance reports will be more detailed.

C. Moreformatwrittencommunicationwill be required.

D. Official communication channels will significantly increase.


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203. Whatofficially createsthe project?

A. The project initiating document.

B. The kickoff meeting.

C. The projectcharter.

D. The statement of work.

204. Refer to the table. Whatis the critical path?

A . Start A B C I Finish

B. Start A B H I Finish

C. Start D E H I Finish

D. Start F G I Finish

205. The Delphitechniqueis a wayto:

A. Analyze performance.

B. Gatherexpert opinion.

C. Resolve conflict.

D. Estimate durations.

206. The workauthorizationsystemmakessure that

A. All the work and only the work gets performed.

B. Workgets performedin the right order and at the right time.


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C. Work is done completely and correctly

D. Functional managers are allowed complete control over who is assigned and when.

207. Yourteamis hard at workon their assignedprojecttaskswhenone teammemberdiscoversa risk that wasnot

identifiedduringrisk planning.Whatis the FIRSTthingto do?

A. Halt work on the project.

B. Update the risk management plan.

C. Look for ways to mitigate the risk.

D. Assessthe risk.

208. The activity durationestimatesshouldbe developedby:

A. The personor teamdoingthe work.

B. The project manager

C. Senior management.

D. The customer.

209. The projectplan shouldbe all of the followingEXCEPT:

A. A formal document

B. Distributed to stakeholders in accordance with the communications management plan

C. Approvedby all projectstakeholders.

D. Used to manage project execution.

210. You havebeenaskedto take chargeof projectplanningfor a newproject, but yo havevery little experiencein

managingprojects.Whatwill be the best sourceof help for you?

A. Your education.

B. You on-the-job training.

C. Historicalinformation.

D. Your functional manager.


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211. The majorityof the projectbudgetis expendedon"

A. Project plan development

B. Projectplan execution

C. Integrated change control

D. Project communication.

212. Correctiveactionis:

A. Fixing past anomalies

B. Anythingdoneto bringthe project'sfutureperformancein like with the projectmanagementplan.

C. The responsibility of the change control board

D. An output of project plan execution.

213. Outputsof Direct and ManageProjectExecutioninclude:

A. Deliverables and performance reports.

B. Deliverables and corrective action.

C. Deliverablesand workperformanceinformation

D. Performance reports and requested changes.

214. Youroriginalplan was to constructa buildingwith six storieswith eachstorycosting$150,000.This was to be

completedin 4 months.However,the projecthas not goneas planned.2 monthsinto the project, earnedvalueis $400,000.

Whatis the budgetat completion?

A. 450,000

B. 600,000

C. 800,000

D. 900,000

215. ProjectIntegrationis primarilythe responsibilityof"

A. The project team.

B. The projectmanager.


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C. Senior management.

D. The project sponsor.

216. Oneof your teammemberhas discovereda way to add an extra deliverableto the projectthat will haveminimal

impacton the projectscheduleand cost. The projectcost performanceidex is 1.3 and the scheduleperformanceindexis

1.5 The functionalitywasnot includedin the scope.Howshouldyou proceed?

A. Conformto the projectscopeand do not add the deliverable.

B. Deliver the extra work to the customer service since it will not increase their cost.

C. Reject the deliverable because you are behind schedule.

D. Ask senior management for a decision.

217. If a projectmanageris unsurewhohas the authorityto approvechangesin projectscope,she shouldconsult:

A. The customer.

B. The scope statement.

C. The sponsor.

D. the scopemanagementplan.

218. An end user has just requesteda minorchangeto the project that will not impactthe projectschedule.Howshould

you, the projectmanager, respond?

A. Authorize the change quickly to ensure that the schedule can truly remain unaffected.

B. Deny the change to help prevent scope creep.

C. Evaluatethe impactof changeon the other projectconstraints.

D. Submit the change request to customer for approval.

219. Whichof the followingtools is NOTusedin initiatinga project?

A. Project selection methods.

B. Project management methodology

C. Expert judgement

D. Earnedvalueanalysis.


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220. You overhearda causalconversationbetweentwo teammembersin whichone confidesto the other someproblems

he is havingin completinghis part of the projectwork. You realisethat the workbeingdiscusedin on the project'scritical

path and that the informationyou overheardcouldmeana significatintdelayfor the project. what shouldyou do?

A. Let the teammemberknowthat you heardhis conversationand discussthe workprobelmswith himimmediately.

B. Begin analysing ways to compress the project scheudle in anticipation of the potential delay.

C. Ask a third team member to get involved immediately and encourage the two other team members tocome to you with the delay.

D. Ask human resources for help in resolving the problem.

221. The processof ContractAdministrationfalls underwhichprocessgroup

A. Planning

B. Closing

C. Monitoring and Control

D. Executing

222. SamConsultancyhas a large internal projectto be initiated. To staff this project, SamConsultancyis

workingwith PeopleConsultancyto providethree resourcesfor six months.The resourceswill be part of the

teammanagedby SamConsultancyfor six months.Whichcontracttype shouldbe usedby Sam

Consultancy?

A. Purchase Order

B. Cost plus Fee

C. Fixed cost

D. Time and Material

223. SamConsultancyis planningto buy ten desktopsfor $1500eachfroma leadingcomputerstore. Which

type of contractwill get signedin this case?

A. Purchase Order

B. Cost plus Fee

C. Fixed cost

D. Time and Material


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224. Tree Consultancyis getting200 computersinstalledfroma vendor. The vendorwill be paid the cost

involvedand a 10%incentive.Whichcontractwill be usedin this case?

A. CPPC

B. CPIF

C. CPFF

D. Fixed Cost

225. Alice is a ProjectManager.She is coordinatinga bidderconferenceto allowvendorsto get clarification

on the workthat needsto be performed.Whichphaseof ProjectManagementis in progress.

A. Request Seller Process

B. Plan Contracting

C. Select Sellers

D. Contract Administration

226. ProcessAnalysisis a functionof:

A. Performance Analysis

B. Quality Metrics

C. ProcessImprovementPlan

D. Quality Improvement Plan

227. Root CauseAnalysisrelatesto:

A. ProcessAnalysis

B. Quality Audits

C. Quality Control Measurements

D. Performance Measurements

228. TrendAnalysisis oftenperformedusing:

A. Cause and Effect Diagram

B. Control Charts

C. Pareto Chart


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D. RunChart

E. Scatter Diagram

229. A Paretodiagramcan be best describedas:

A. Cause and Effect Diagram

B. Scatter Chart

C. Control Chart

D. Histogram

230. A planningphasefor an engineeringcomponentgenerated80 engineeringdrawings.The QA teamrandomly

selected8 drawingsfor inspection.This exercisecan BESTbe describedas example of:

A. Inspect ion

B. StatisticalSampling

C. Flowcharting

D. Control Charting

231. ReserveAnalysisa techniqueNOTusedin:

A. Cost Estimating

B. Cost Budgeting

C. Cost Control

D. Estimating Activity Duration

232. A Projectwith a total fundingof $100,000finishedwith a BACvalueof $95,000.Whattermcan BESTdescribethe

differenceof $5,000?

A. Cost Variance

B. Management Overhead

C. ManagementContingencyReserve

D. Schedule Variance

233. ProjectCost ManagementPlan is createdas a part of:

A. DevelopProjectManagementPlan process


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B. Cost Estimating process

C. Cost Budgeting process

D. Cost Control process

234. A particularprojectin the domainof civil constructionrequiresthat everyon-site workerbe insured.Whichof the

followinginputsBESTconveysthis requirementto the Cost Estimationprocessso that the insurancecost is estimated

and subsequentlybudgeted:

A. Enterprise Environmental Factor

B. Organizational Process Assets

C. ProjectScopeStatement

D. Project Management Plan

235. _____________is not a part of the projectcost baselinebut is includedin the projectbudget:

A. Activity Cost Contingency Reserve

B. ManagementContingencyReserve

C. Management Overheads

D. Project Management Planing

236. ___________is not part of the EarnedValuecalculations.

A. Known Unknowns

B. UnknownUnknowns

C. Project Budget

D. Amount of work completed

237. Whatis the BESTwayto makean accurateforecastingof ETC?

A. ManualForecastingof cost of remainingwork.

B. BAC EV

C. (BAC EV)/CPI

D. EAC - AC

238. If the EarnedValueis equal to Actual Cost, it means:


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A. Project is on budget and on schedule

B. Schedule Variance Index is 1

C. There is no schedule variance

D. Thereis no cost variance

239. TrendAnalysisis BESTdescribedas:

A. Analyzing performance of similar projects over time

B. Examiningprojectperformanceover time

C. Calculating Earned Value

D. Calculating Cost Variance

240. Whichof the followingis not doneas part of PerformanceMeasurements?

A. Calculating Planned Value

B. CalculatingEarnedValue

C. Calculating ETC

D. Calculating Cost Varianc6e

241. Jeff always delivers his projects on time and within budget. He believes that his success canbe explained by the fact that he makes all of the project decisions himself and then enforces thosedecisions with an iron hand. His management style is best described by

A. Kurt Lewins Force Field theory.

B. McGregors Theory X.

C. Elizabeth Duffys Arousal Theory.

D. McGregors Theory Y.

242. One of the following items is not used in assessing the completion of the project scope. Whichone?

A. The product requirements.

B. The project management plan.

C. The project scope statement.

D. The WBS and WBS dictionary.


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243. Hard logic is also known as

A. Mandatory dependencies

B. Preferred dependencies

C. External dependencies

D. Discretionary dependencies

244. Contract negotiation is the process

A. of clarifying and developing a mutual agreement on the structure and requirements of thecontract.

B. of clarifying and developing a mutual agreement on the responsibilities and authorities that will governcontract administration.

C. in which parties with different interests reach an acceptable agreement through communication andcompromise.

D. bargaining with the seller concerning resources, information and activities in order to come to terms thatcan be incorporated into the final contract.

245. A checklist is

A. an ordered listing of quality items that must be verified before the quality control step is completed.

B. an inspection list that is used when no evidence exists that the quality level of the product beingsubmitted is better or worse than the specified quality level.

C. a technical list of measured variables or counted data for decision making in a quality process review.

D. a structured tool used to verify that a set of required steps has been performed.

246. Developing the answers to questions such as Who needs what information, What form isappropriate and Who is responsible for its preparation is part of which process?

A. Communications planning

B. Information distribution

C. Project plan execution

D. Scope planning

247. Questions such as What products are available in the marketplace and What is the currentbalance between supply and demand are related to what input to procurement planning?

A. Availability assessment.


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B. Cost/benefit analysis.

C. Market conditions.

D. Competitive fit analysis.

248. Inspections are

A. a statistical sampling and examination.

B. activities undertaken to determine whether results conform to requirements.

C. recorded data concerning the results of inspection actions.

D. performed during the manufacturing or repair cycle to help prevent defects from occurring.

249. Which process in integration management uses inputs from the largest number of of otherPMBoK processes?

A. Develop Project Management Plan.

B. Direct and Manage Project Execution.

C. Monitor and Control Project Work.

D. Integrated Change Control.

250. The cost baseline is usually not changed unless

A. the basis for the original cost estimate is found to be false and the project must be re-estimated.

B. significant cost deviations have been reported and it is desired to have future cost reports be based on anas of date.

C. the revision is the result of an approved scope change.

D. the time baseline is also changed.

251. Qualitative numbers

A. cannot be measured numerically.

B. cannot be meaningfully added together.

C. are ones that are measured by reference to a standard that is external to the system.

D. are less reliable than quantitative numbers.


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252. In estimating the total amount of material resources required for a project you must firstestimate the amount of waste to be expected. You will most likely find this information in whichprocess input?

A. Resource requirements

B. Historical information

C. Parametric modeling

D. Supporting detail

253. Which of the following statements is not true about stakeholder analysis?

A. A methodical and logical view of the stakeholders information needs should be made.

B. Care should be taken to include all information that may be of interest to one or morestakeholders.

C. The analysis should consider methods and technolgies suited to the project that will provide theinformation needed.

D. The sources needed to meet stakeholder information needs should be identified.

254. The project plan is usually developed by

A. senior management of the performing organization.

B. the customer.

C. the project manager.

D. the project management team.

255. Which of the following is not true about error in project quality management?

A. It is an unavoidable component of all project work.

B. It is more costly than the design and planning work that would be necessary to prevent it.

C. It is a source of learning rather than a basis for disciplinary warnings or actions.

D. It is a reflection of inadequate project planning.

256. Which of the following inputs to contract administration is not based on the sellers workdeliverables?

A. Reports on what work has been started, is in progress or is finished.


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B. Change requests.

C. Reports on cost, schedule and technical performance.

D. Inspection reports.

257. Doing activities in parallel that would normally be done sequentially in order to achieve project

pmp answers

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