PMP Mock Exam

7/13/2019 PMP Mock Exam

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Question - 1

Your company has been hired to configure software in 500 computers. All computers need equal time to

configure. You calculate the time to configure each computer as 5 hours. The cost for labor is calculated at

$500 each computer. Your Project Sponsor disagrees with your labor estimate. Why is so?

1.You haven't completed one computer yet, so you don't know how long the work will actually take.

2.You have not factored in all of the effort applied to the work.

3.You have not considered the law of diminishing returns.

4.You have not considered the learning curve.

Correct Answers are : 4

Explanation : 4 is the best choice. As the project team completes more and more units, the time to configure

a computer should take less and less time.

Question - 2

You have been asked to provide Cost estimates for a project which would be responsible for the complete

electrical installation in warehouses. As a project manager - you have had past experience in similar projects

in your previous organization.The organization you have joined - also has recently done a similar project -

and there is an urgency in providing the estimate as mandated by executive management - so what

estimation technique would you adopt ?

1.Ask your prior organization for the estimates.

2.Use Parametric Estimating technique.

3.Use Bottom Up Estimating.

4.Analogous Estimates


Explanation : The correct answer is Analogous estimates - since it relies on previous similar project as the

basis of execution - which is available - so it relies on historical information.This technique is used when

there is limited amount of detailed information like during early phases of the project , it is less costly and

less time consuming - and as time is a constraint stated in the question - this is the best choice.

Question - 3

An estimate is required for a new project of an R & D nature - and it has been decided to create the estimates

using WBS - with an emphasis on accuracy of the estimates.Your project manager also indicates sufficient

time is being made available to provide the estimates - what would be the best estimation approach in this

case ?

1.Parametric Estimation approach

2.Analogous Estimation approach

3.Top Down Approach

4.Bottom Up Approach


Explanation : Parametric and Analogous are clearly not the right choices.Being a new project - we do not

have any historical data to rely on - so Analogous estimation is not an option.We also dont have any data of

costs per unit - so Parametric estimation is also not an option.Now between Top down and Bottom up - both

of these approaches use the WBS to come up with the estimates.Here we start with the high level and then


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drill down into the lower levels. Bottom-up estimates are more accurate as compared to Top down.Bottom up

is also a more expensive and time-consuming type of estimate - however the question clearly indicates that

time is not a concern - so the correct answer is Bottom up approach. Top down approach is used only if we

have enough historical information on the Project which is not true.

Question - 4

You are in the process of making a cost estimate for a large prestigious project. You decide to use the Three

Point Estimation technique with Triangular Distribution. Based on your analysis and understanding you are

confident that the project would be completed with a total cost of 108,000 $.You also estimate that a best

case estimate would be 90000 $ while a worst case scenario would result in the costs incurred to shoot up to

138000 USD. What would the Three point Cost estimate be using Triangular Distribution ?

1.112000 $

2.111000 $

3.11000 $

4.26000 $


Explanation : The correct answer is A.The question states we should use Three point estimate using

triangular distribution. The formula for this estimation technique is a + b + c / 3 where a = Most Likely

estimate , b = Estimate based on analysis of the Best case scenario and c = Estimate based on analysis of

the Worst case scenario. So the Three point estimate using Triangular distribution is 108000 + 90000 +

138000 / 3 = 336000/3 = 112000 $

Question - 5

Rather than use Triangular Distribution while doing Three Point Estimation you choose to use Beta

Distribution.Based on your analysis and understanding you are confident that the project would be

completed with a total cost of 108,000 $.You also estimate that a best case estimate would be 90000 $ while a

worst case scenario would result in the costs incurred to shoot up to 138000 USD. What would the Three

point Cost estimate be using Beta Distribution ?

1.110000 $

2.112000 $

3.1100000 $

4.140000 $


Explanation : The correct answer is B.The question states we should use Three point estimate using Beta

distribution. The formula for this estimation technique is 4a + b + c / 6 where a = Most Likely estimate , b =

Estimate based on analysis of the Best case scenario and c = Estimate based on analysis of the Worst case

scenario. So the Three point estimate using Beta distribution is (4 *108000) + 90000 + 138000 / 3 = 660000/6 =

110000 $

Question - 6

You are a project manager and you are currently finalizing requirements with two stakeholders BUT both

stakeholder have different views on requirements for the same project. How can you resolve the issue ?


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1.look at why there is different view on requirements and discuss with both of them

2.look at why there is different view on requirements and finalize which looks good to you

3.ask your manager to deal with this

4.finalize requirement which looks good to you


Explanation : Best is "look at why there is different view on requirements and discuss with both of them and

try to resolve the issue". Option is C is an example of avoidance. Option B and D is example of forcing.

Question - 7

You are managing a project. This project must satisfy industry standards in order to be accepted by the

customer. You and your team have studied the requirements and have created a plan to implement the

deliverables with the level of quality. This process is called ________.

1.Quality Control

2.Quality assurance

3.Plan Quality

4.All of the above


Explanation : Plan Quality: Identifying the quality standards that are relevant to the project and determining

how to meet them.

Question - 8

You have just completed developing the Schedule Network Diagram for a project that deals with building

super sonic state of the art Jet planes.You have identified your critical path which includes building a wind

tunnel.You see that in addition there is another path which deals with building the tail of the plane - whose

duration is close to the critical path.You also notice considerable floats on the other paths.You now need to

assign resources to the tasks - you have a few team members who are highly skilled and a team of resources

who are relatively enexperienced.What would be the best course of action while assigning resources ?

1.It is irrelevant which resources are assigned to tasks - resource skills and critical paths have nothing in

common

2.Assign all the skilled resources to building the wind tunnel which is the critical path - all other tasks can be

ignored

3.Assign the inexperienced staff to the task of building the wind tunnel - and assign the skilled task to all

other tasks

4.Assign one half of the skilled resources to the task of building the wind tunnel and the other half to

building the tail and assign the less experienced staff to all the other tasks


Explanation : Option 4 is the best option.Option 1 and 3 are just plain wrong - you should always ensure

actvities on the critical path do not get delayed - so having the best equipped staff on critical path activities

is important.While Option 2 is an optin - it cannot be the BEST choice since if we assign all the experienced

staff on building the wind tunnel - the critical path activities are taken care of - but the question also states of

a path which is near Critical - building of the tail.Not paying attention to this path by assignining

inexperienced staff is not a good option.Amongst the choices option 4 is the best fit - where you are paying


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attention to both the critical path and near critical path by assigning your best and most skilled or

experienced resources to the activities on the Critical path and Near Critical Path.

Question - 9

You are in charge of a large software development project.As a part of the project schedule - it was okanned

to complete two core components by the end of October.You are now in August and you realize that the

project is falling behind schedule.You do a quick review and decide that the schedule can be met by adding

additional staff to the activities on the critical path. This is an example of :

1.Fast Tracking

2.Resource Levelling

3.Crashing

4.Scope Creep


Explanation : The correct answer is option 3 - As the project is falling behind schedule and deliveries cannot

be impacted - the manager has chosen to add additional resources to activities on the critical path.This is an

example of Crashing - NOTE Crashing may result in increasef risk and rework.

Question - 10

You have replaced a project manager on a project that is already in the execution phase.The project is

behind schedule and you have been specifically been brought in to ensure the project meets its

schedule.You decide to review the schedule network diagram created by the earlier project manager and you

realize that the project is 3 weeks behind schedule. After reviewing the activities and the network diagram

you decide to Crash the schedule.So this means you

1.Decrease the scope of the project after discussing with the sponsors

2.Add additional resources to the activities on the Critical path

3.Perform activities in Parallel to decrease the schedule

4.Discuss with the sponsors and explain how it is not going to be possible to meet the schedule


Explanation : Option 2 is the correct answer.Crashing is a technique used to shorten the schedule by adding

resources. Option A and D are clearly not correct - and Option C is really an example of Fast Tracking.

Question - 11

Your project has a budget of $240,000 and is expect to last for 1 year, with the work and budget spread

evenly across all months. The project is now in the fourth month, the work is on schedule, but you have

already spent $120,000 of the project budget. What is your COST Variance in this case?

1.-$40,000

2.$40,000

3.$240,000

4.$2300



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Explanation : Cost Variance = Earn Value - Actual Cost Earn Value = (Total Cost/total project months) * total

months completed = ($240,000 / 12)*4=$80,000 CV = $80,000 - $120,000 = -$40,000

Question - 12

Your company has won a project to build a school playground with specific toys and a sandpit.The school

has mandated that the project be completed prior to start of the school after Holidays .You review the plan

and see that the estimated completion date is nearly a month after the desired completion date.As resources

are sparse you do not have the option to add additional resources.However you see that the sand pit work

can start in parallel to the play kits being installed.Your analysis tells you that by performing these activities

in parallel - the project would meet its schedule.This is an example of :

1.Scope Creep

2.Resource Levellings

3.Crashing

4.Fast Tracking


Explanation : The correct answer is 4 - Crashing deals with adding additional resources which is not an

option here.Crashing is a schedule compression technique by performing activities in parallel if they can be

overlapped.NOTE Fast Tracking may result in increasef risk and rework.

Question - 13

An activity which is in critical path is delayed. What should you do ?

1.Compress the schedule

2.Scope cut

3.Inform customer about delay

4.Deliver uncompleted activity


Explanation : A is the correct answer. Compress the schedule is the best option.

Question - 14

Given the following estimates: Optimistic 3 days, Pessimistic 9 days, and most likely 6 days. What is the

PERT weighted average?

1.6

2.4

3.6.3

4.6.1


Explanation : Optimistic = Co, most likely = Cm, Pessimistic = Cp. PERT weighted average = (Co + 4Cm +

Cp)/6 = (3+4*6+9)/6 = 36/6 = 6

Question - 15


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Which plan describes when and how human resources will be brought onto, and taken off of, the project

team?

1.Scope management plan

2.Risk management plan

3.Staffing Management Plan

4.All of the above


Explanation : C is the correct answer. Staffing Management Plan - Describes when and how human

resources will be brought onto, and taken off of, the project team.

Question - 16

You are project manager of a software project. Your team member want to technical change to a activity

which will add more time to that activity. What should you do ?

1.Check the activity is in critical path

2.Allow team member to change the activity

3.Report to senior management

4.Ignore change in activities.


Explanation : A is the correct answer. Check the activity is in critical path is the best option.

Question - 17

As a project manager of a project , you have just completed Schedule network diagram. What should you do

NEXT time management activity?

1.Estimate Activity Resources

2.Sequence Activities

3.Estimate Activity Durations

4.Develop Schedule


Explanation : A is the correct answer. Schedule network diagram is an output of Sequence Activities, NEXT

process is Estimate Activity Resources.

Question - 18

Your project activity float is negative 10. What is your course of action ?

1.add more resources

2.ask more time to complete the project

3.use less experienced team members

4.Ignore It.



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Explanation : A is the correct answer. negative activity float means your project is behind. Add more

resource is best option.

Question - 19

You have been successfully completed a project.You have now been assigned a project which is midway

into its execution.You have had to take this project due to non availability of the current project manager due

to health.This is a complex project involving multiple contractors and teams at various geographical

locations.You decide to look up the requirements of the types of reports and frequency of sending

them.Where would you find this information?

1.Project Management Plan

2.Scope Management Plan

3.Communciation Management Plan

4.Stakeholder Analysis


Explanation : The correct answer is Communication Management Plan.This Plan provides information such

as frequency of communication , type of communication , who is responsible for communication.Hence this

is the correct answer.

Question - 20

A data point in a control chart that requires investigation is called:

1.a special cause

2.a quality fault

3.a rule of seven

4.a rule of five


Explanation : A data point in a control chart that requires investigation is called a special cause.

Question - 21

You are in charge of a project that deals with laying out a lavish 18 hole golf course.The project work is in

progress.You also have a number of contractors working on the project.Being an experienced manager you

know that communication is key to success of the project.You have identified that you have 10 stakeholders

with whom you need to communicate.Due to some internal and external organizational changes at the client

end three new stakeholders have been added with whom you need to communicate with.You also had to

reduce one of the contractors with whom you were communicating.How many communication channels do

you have now?

1.66

2.67

3.68

4.74


Explanation : Originally you had 10 stakeholders to communciate with - so number of communication


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channels are 10 * (10-1) /2 = 45.However the question states that 3 new stakeholders got added while 1

stakeholder got reduced.So total number of stakeholders = 10 + 3 -1 = 12 So the total number of

communciation channels are (12 * ( 12-1 )) /2 = 66 So the correct answer is option 1.

Question - 22

__________includes all activities designed to enhance the skills, knowledge, and capabilities of the project

team.

1.Training

2.Ground Rule

3.Reward and Recognition System

4.Recognition System


Explanation : A is the correct answer. Training: Includes all activities designed to enhance the skills,

knowledge, and capabilities of the project team. Ground Rules: Ground rules establish clear expectations

regarding acceptable behavior by project team members.

Question - 23

Some risks that are output of ________ will be the candidates for further study.

1.Perform qualitative risk analysis

2.Perform quantitative risk analysis

3.Plan Risk Management

4.Identify Risks


Explanation : Some risks that are output of Qualitative Risk Analysis will be the candidates for further study

during the Quantitative Risk Analysis.

Question - 24

Which of the following is NOT the input of Direct and Manage Project Execution process?


2.Approved Change Requests

3.Enterprise Environmental Factors

4.Project Charter


Explanation : Project Charter is not an input of Direct and Manage Project Execution process. Inputs of

Direct and Manage Project Execution process are: Project Management Plan, Enterprise Environmental

Factors, Approved Change Requests, and Organizational Process Assets (PMBOK Page no, 104)

Question - 25

You are project manager of a project and you have decided to CRASH the project. Which of the following is


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the most likely outcome of this ?

1.increased cost

2.added risk

3.increased project time

4.doing activities in parallel


Explanation : A is the correct answer. CRASHING is reducing project time by expending additional

resources. Therefore option A is true.

Question - 26

Changing the project plan to eliminate the risk and protect the project objectives is called ____________.

1.Avoidance

2.Transference

3.Mitigation

4.Share


Explanation : Changing the project plan to eliminate the risk and protect the project objectives is called

Avoidance.

Question - 27

Make-or-Buy Analysis is done in the_______.

1.Plan Procurements

2.Conduct Procurements

3.Administer Procurements

4.Close Procurements


Explanation : Make-or-Buy Analysis is done in the Plan Procurements process.

Question - 28

Which of the following helps to determine the probability of completing the project?

1.Monte Carlo Analysis

2.Impact Analysis

3.Qualitative Risk Analysis

4.Quantitative Risk Analysis


Explanation : Monte Carlo Analysis: A schedule risk assessment technique that performs a project

simulation many times in order to calculate a distribution of likely results.

Question - 29


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You have an urgent requirement on your project and you hire a vendor to start the work immediately. What

contract is needed now?

1.Letter contract

2.Fixed fee

3.Incentive contract

4.Fixed Budget


Explanation : For an immediate work, a letter contract may be sufficient.

Question - 30

Work Performance Information is output of________.

1.Define Scope

2.Perform Integrated Change Control

3.Direct and Manage Project Execution

4.Monitor and Control Project Work


Explanation : Work Performance Information is output of Direct and Manage Project Execution. (PMBOK

page no, 115)

Question - 31

_________are similar to control chart without displayed limits.

1.Run charts

2.Pareto charts

3.Ishikawa diagrams

4.Histograms


Explanation : Run chart is similar to control chart without displayed limits. PMBOK Page no 242.

Question - 32

SWOT analysis is done in _________.

1.Perform Qualitative Risk Analysis

2.Identify Risks

3.Plan Risk Responses



Explanation : SWOT analysis is done in Identify Risks process. (PMBOK page no 305.)

Question - 33


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Which of the following is NOT Tools and Techniques in Quantitative Risk Analysis?

1.Expected Monetary Value Analysis

2.Decision Tree Analysis

3.Sensitivity Analysis

4.Influence Diagram


Explanation : Influence Diagram is a technique to identify risks.

Question - 34

Which estimating technique is most accurate?

1.Bottom-up estimating

2.Analogous estimating

3.Parametric modeling

4.None of the above


Explanation : Bottom-up estimating: Estimating the cost of individual work items and then rolling up the

costs to arrive at a project total is more accurate.

Question - 35

Performance appraisal, recruitment, retention, regulatory issues, and labor relations are generally used in

the________ area.

1.General management

2.Administrative

3.Project Management

4.Accounting


Explanation : Skills such as performance appraisal, recruitment, retention, regulatory issues and labor

relations are generally considered more administrative than management oriented.

Question - 36

Probabilistic Analysis of a project, probability of achieving cost and time objectives and trends in

Quantitative Risk Analysis results are done during _______.


2.Perform Quantitative Risk Analysis


4.Identify Risks


Explanation : Probabilistic analysis of a project, probability of achieving cost and time objectives and trends

in Quantitative Risk Analysis results are done during Quantitative Risk Analysis.


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Question - 37

You are the project manager for the large Project. You are currently busy with approximating number of work

periods required to complete individual activities with estimated resources. Which of the following inputs

you need for this ?

1.Activity List

2.Activity resource requirements

3.Resource Calendars

4.All of the above


Explanation : C is the correct answer. Approximating number of work periods required to complete individual

activities with estimated resources is done in Estimate Activity Duration process. Activity List,Activity

resource requirements and Resource Calendars are inputs of Estimate Activity Duration process. PMBOK

Page no 177.

Question - 38

You are newly appointed as a project manager of an ongoing project. You want to see the role, authority,

responsibility and competencies of all the resources working in the project. Which of the following document

lists all the above information?

1.Scope statement

2.Project Charter

3.Human Resource Plan

4.WBS


Explanation : C is the correct answer. Human Resource Plan lists role, authority, responsibility and

competencies of all the resources working in the project. PMBOK Page no 253.

Question - 39

One activity will be delay three weeks and that will affect the project completion date. Who will approve the

change ?

1.Change control board

2.project manager

3.Senior management

4.Team member


Explanation : A is the correct answer. Change control board approve the change.

Question - 40

Cost benefit analysis is done in the ___________process:


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1.Plan Quality

2.Perform Quality Assurance

3.Perform Quality Control

4.All of the above


Explanation : Cost benefit analysis is done in the Plan Quality process.

Question - 41

Which of the following are output of the Collect Requirements Process?

1.Requirements Documentation

2.Requirements Management Plan

3.Requirements Tractability Matrix

4.All of the above


Explanation : The output of Collect Requirements Process are: requirements documentation (stakeholders

needs), the requirements management plan (how the requirements will be analyzed and documents), and the

requirements traceability matrix (tracking of requirements throughout the project).

Question - 42

In which of the quality management process, cause and effect diagram is used to illustrate how various

factors might be linked to potential problems or effects?

1.Plan Quality



4.Quality


Explanation : The cause and effect diagram is a tool and technique to perform Quality Control . PMBOK Page

no 222.

Question - 43

You are a project manager of a large project and you are identifying some alternative techniques to generate

different approaches to execute and perform the work of a project. You are doing it as a part of:

1.Collect Requirements

2.Control Scope

3.Verify Scope

4.Define Scope


Explanation : This is call an Alternative Identification in the Define Scope process.


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Question - 44

At what part of the Procurement Management process does procurement negotiations happen?

1.Plan Procurements





Explanation : The negotiations happen at the Conduct Procurements of the Procurement process.

Question - 45

Which type of contract has the highest risk for the seller?

1.Reimbursed time

2.Time and materials

3.Fixed price

4.Reimbursed cost


Explanation : In Fixed price contract, the seller assumes the greatest risk because the price is fixed and not

going to change. Fixed price- A fixed total price for a well-defined product may include incentives for

meeting or exceeding selected project objectives.

Question - 46

Which of the following is NOT part of the Perform Quality Control process?

1.fishbone diagram

2.Quality audits

3.Pareto Diagram

4.Histogram


Explanation : Quality audits are part of the Perform Quality Assurance process.

Question - 47

Who should be consulted when establishing communication requirements in addition to stakeholders?

1.The customer

2.The project manager

3.The sponsor

4.Management


Explanation : The project manager should be consulted when establishing communication requirements in

addition to stakeholders because project manager has very important role in establishing communication

requirements.


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Question - 48

You are a project manager of a company and you are assigned to a project that has already decided to be

outsourced. As a project manager, you need to organize a formal bid process and select the vendor for this

project. You own stock in one of the vendor companies who also participated in the bidding process. What is

the BEST course of action for you?

1.Get the vendor company selected for the project.

2.Keep the information to yourself.

3.Tell your manager and remove yourself from the vendor selection committee.

4.Ask other members of the selection committee to select your vendor company.


Explanation : The best option is to tell your manager and remove yourself from the vendor selection

committee.

Question - 49

Which of the following communication method is widely used to explain complex problems?

1.Written

2.Verbal

3.Formal

4.Non formal


Explanation : Written is the best option.

Question - 50

You are the project manager and you have to choose the best project from available choices. Which of the

following is the BEST choice?

1.Benefit cost ratio (BCR) of project A is 2.5

2.Benefit cost ratio (BCR) of project B is 2.1

3.Benefit cost ratio (BCR) of project C is 0.6

4.Benefit cost ratio (BCR) of project D is 1.5


Explanation : Benefit cost ratio (BCR) : A ratio describing the relationship between the cost and benefits of a

proposed project. A BCR less than 1 is unfavorable; the higher the BCR, the better.

Question - 51

You are project manager and need as many as inputs is possible in the initiation phase. Which of the

following is the best source of information for your project?

1.Historical Information

2.WBS


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3.Business Plans

4.Project Closure Document


Explanation : Historical information is the best input for the initiation phase. WBS is incorrect as the WBS

would not be ready. Business is incorrect as business plans are not a likely input to the initiation process.

Question - 52

In which of the following contract types the seller's profit is limited?

1.Cost-plus-percentage-cost contract

2.Cost-plus-fixed-fee contract

3.Firm Fixed price contract

4.Fixed-price-incentive fee contract


Explanation : Cost-plus-fixed-fee contract and Cost-plus-incentive-fee contract where seller's profit is limited

Question - 53

You have elected to use parametric modeling in your Estimate Costs for the project. Which one of the

following is an example of parametric modeling?

1.$120 per kg

2.Historical information from a similar project

3.Estimates built from bottom-up based on the WBS

4.Estimates based on top-down budgeting


Explanation : A is correct; $120 per ton is an example of parametric modeling. Parametric modeling: Using

project characteristics (or parameters) in a mathematical model to predict costs (e.g., price per square foot).

B is incorrect, as historical information is analogous, not parametric. C is incorrect; bottom-up estimating is

not a parametric modeling. D is incorrect, top-down budgeting is related to analogous estimating .

Question - 54

When the performing organization lacks in-house staff to complete a project, the required services can be

acquired from outside. This is called ________.

1.Virtual Teams

2.Acquisition

3.Pre-Assignment

4.All of the above


Explanation : B is the correct answer. Acquisition: When the performing organization lacks the in house staff

needed to complete the project, the required services can be acquired from outside sources.


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Question - 55

A project manager determines the number and types of tests and their impact on cost of quality. This task

belongs to ___ process.

1.Plan Quality



4.Identify risk


Explanation : Determining the number and types of tests and their impact on cost of quality is called Design

of experiments which is done in Plan Quality process. PMBOK page no 228.

Question - 56

Control chart helps:

1.determine if the process is "in control"

2.how various elements of a system are interrelated

3.show trends in a process over time

4.shows the pattern of a relationship between two variables


Explanation : Control Charts: Control charts are graphic display of the results over a time of a process. They

are used to determine if the process is "in control".

Question - 57

You are a project manager for a project. While reviewing the cost estimates for the project, you notice that

one of the cost estimates for an element in the WBS is 20% higher than the previous project for a very similar

work. What should you do next?

1.Accept the estimate.

2.Ask the person responsible about the difference.

3.Ignore it.

4.Reduce the estimate.


Explanation :

Best option is to ask the person responsible about the difference and create the most accurate estimate that

is practical.

Question - 58

Which of the following is a common problem in administrative closure?

1.Completing a project charter

2.Retaining resources to complete the project

3.Completing a project plan

4.Completing a QA plan


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Explanation : The biggest problem is retaining team members until closure of the project.

Question - 59

A unilateral contract under which the seller is paid a preset amount per unit of service is called __________

1.A cost reimbursable contract

2.A lump sum contract

3.A time and material contract

4.A fixed price contract


Explanation : A unilateral contract under which the seller is paid a preset amount per unit of service is called

time and material contract.

Question - 60

Your project has a budget of $10,000 and is expect to last for 1 year, with the work and budget spread evenly

across all months. Right now CPI is 0.8. What is Variance at Completion in this case?

1.-$2,500

2.$10,000

3.$12,500

4.$12,000


Explanation : Variance at Completion = BAC - EAC Estimate at Completion (EAC) = BAC / CPI = $10,000 / .8 =

$12,500 Variance at Completion = $10,000 - $12,500 = -$2,500

Question - 61

You are the project manager of a project which is scheduled to last for 18 months. You have elected to rent a

piece of equipment for the duration of a project, even though you will need the equipment only for 6 months.

The costs of the equipment rental per month are $120. This is an example of ___________.

1.Fixed Costs

2.Parametric Costs

3.Variable Costs

4.Parametric Budget


Explanation : This is an example of Fixed Costs because $120 per month is fixed.

Question - 62

Three estimates are : Pessimistic (P) : 30 Most Likely (M) : 25 Optimistic (O) : 14 What is activity duration

(PERT) ?


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1.24

2.20

3.18

4.32


Explanation : A is the correct answer. Activity duration (PERT)= (P + 4M + O) / 6 then (30+4*25+14)/6 = 144/6 =

24

Question - 63

If you are the project manager of a project and you changed the scope of a project by dropping some parts,

you have ______________ the project.

1.Rewritten

2.Truncated

3.De scoped

4.Deleted


Explanation : When you change the project plan by removing parts of the final deliverable, you have de-

scoped the project.

Question - 65

___________ is the process of performing the work defined in the project management plan to achieve the

project's objectives.

1.Define Scope





Explanation : Direct and Manage Project Execution is the process of performing the work defined in the

project management plan to achieve the project's objectives. (PMBOK page no, 114)

Question - 66

You are the project manager for the large Project. You are identifying external dependencies for the activities

with management team. Identifying external dependencies are done in ______?

1.Define Activities


3.Develop Schedule

4.Control Schedule


Explanation : B is the correct answer. Identifying external dependencies are done in Sequence Activities.


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Question - 67

You are the project manager and decided to outsource a part of the project to a vendor. You have offered a

bonus to the vendor if the work is completed in two months. This is an example of _____________.

1.project incentive

2.project goal

3.fixed price contract

4.fixed budget


Explanation : This is an example of project incentive.

Question - 68

Development activities of a software projects is depends on the third party vendor, who provides hardware

for this activity. Is called ______.

1.external dependencies

2.internal dependencies

3.Discretionary dependencies

4.All of the above


Explanation : A is the correct answer. external dependencies are usually outside of project team control.

PMPBOK Page no 171.

Question - 69

You are the project manager of the MKTG Project. This project will last for 1 year and it has many

stakeholders. How often should Identify Risks take place?

1.Once at the beginning of the project

2.Throughout the execution processes

3.Throughout the QA processes

4.Throughout the project


Explanation : Identify Risks is an iterative process that should happen throughout the project life. Identify

Risks is an iterative process, involving the project team, management team, stakeholders and subject matter

experts.

Question - 70

Overtime associated with the execution effort of a project is estimated at 120 hours with probability 0.5, 250

hours with probability 0.6, and 300 hours with probability 0.3. What is the monetary value of the amount of

overtime?

1.300 hours


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2.670 hours

3.250 hours

4.100 hours


Explanation : The Monetary Value of the amount of overtime is (120 x 0.5) + (250 x 0.6) + (300 x 0.3) = 300

hours.

Question - 71

If you are the project manager of a project and you break down the WBS into smaller _______ to get detail so

that you can construct a schedule.

1.Work packages

2.Section

3.Issues

4.Time


Explanation : A is the correct answer. The work packages give you the detail you need to construct a

schedule.

Question - 72

Which of the following tools are used in the quality plan?

1.Quality Checklists

2.Quality audits

3.Histogram

4.Process Analysis


Explanation : Quality Checklists are used in the quality plan.

Question - 73

You are a project manager of a construction company. You want to know with whom you will be

communicating during the project. Which of the below document you should refer to?

1.Project Plan

2.Scope Statement

3.Statement of Work

4.Project Charter


Explanation : The project plan say what, when, and how much you will communicate. It also says with whom

you will communicate during the project.

Question - 74


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You are the project manager for a project to create a new product for the marketing industry. You recently

came to know that a competitor is also working on a similar project with an additional web-based tool, which

your project does not offer. You initiate a change request to update your project. This is an example of:

1.A change due to an external event

2.A change due to an error and omission in the initiation phase

3.A change due to an error or omission in the planning phase

4.A change due to a legal issue


Explanation : The change is requested to remain competitive with the competition an external event.

Question - 75

A project team member, on his own initiative, added a new tool which was not part of the project plan.

However, the team member decided that the tool was necessary to increase productivity. The project team's

experts were in agreement with the decision. This is an example of _________?

1.Ineffective change control

2.Control Costs

3.Self led teams

4.Value added change


Explanation : The project team member did not follow the change management plan's method of

incorporating changes into the scope. This is an example of Ineffective change control.

Question - 76

You are the project manager for the large Project. You have identified and documented relationship among

the project activities and created project schedule network diagram. What is your NEXT step ?

1.Define Activities


3.Develop Schedule

4.Control Schedule


Explanation : C is the correct answer. project schedule network diagram is input of Develop Schedule.

PMBOK Page no 168.

Question - 77

You are a project manager and the project is to install ACs into hotel rooms. You did project cost and time

estimates and informed the customer that the project estimates will be accurate if the requirements such as

wooden coating are met. This is an example of which of the following?

1.Risk

2.Assumption

3.Constraint


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4.Budget analysis


Explanation : This is an example of assumption because estimates provided will be accurate if the rooms

meet the requirements like (wooden coated). A and C are incorrect because the scenario did not describe a

risk or constraint.

Question - 78

Change Request is an input of _________.

1.Define Scope





Explanation : Change Request is an input of Perform Integrated Change Control. (PMBOK page no, 104)

Question - 79

If the project is terminated early, then the level and extent of completion should be documented. This is done

as a part of:


2.Control Scope

3.Verify Scope

4.Define Scope


Explanation : Verify Scope

Question - 80

You are the project manager and have been assigned a new project. You have a good relation with the

sponsor and senior management. Your senior management and sponsor forcing you to start the project

immediately. What is your response ?

1.Start project immediately because your senior management is asking the same.

2.Require a project charter be written and signed off on by all stakeholders before proceeding.

3.Suggest that a scope statement be written.

4.Suggest that a project plan should be written.


Explanation : The project should be start with a project charter that authorizes the project to begin, assigns

the project manager, and describes the project objectives and business need for the project.

Question - 81


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Estimating the number of work periods likely to be needed to complete each activity is called :




4.Define Activities


Explanation : C is the correct answer. Estimating the number of work periods likely to be needed to complete

each activity is called Estimate Activity Durations .

Question - 82

Which of the following is NOT Tools and Techniques in Monitor and Control Risks?

1.Risk Audits

2.Reserve Analysis

3.Sensitivity Analysis

4.Risk Reassessment


Explanation : Sensitivity analysis is NOT Tools and Techniques in Monitor and Control Risks .

Question - 83

Starting a new task before finish the old one is an example of a __________ dependency.

1.Start-to-finish

2.Finish-to-start

3.Start-to-start

4.Finish-to-Finish


Explanation : A is the correct answer. Start-to-finish An activity must start before the next activity can finish.

Question - 84

This project was originally scheduled for completion in 1 year but 2 years have already passed and even now

the project is in execution phase. Which statement is TRUE about the project?

1.It is a temporary project

2.The requirements were added later, hence the delay

3.A key resource has left the organization, hence the delay

4.The company has a limited development license environment, hence the delay


Explanation : Project is continuing to expand means it is temporary project. Other options can be achievable

to complete the project if it is important for organization.

Question - 85


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You are the project manager for the large Project. You are identifying and documenting relationship among

the project activities. This process is called ______?

1.Define Activities


3.Develop Schedule

4.Control Schedule


Explanation : B is the correct answer. Sequence Activities - identifying and documenting relationship among

the project activities. PMBOK Page no 167.

Question - 86

You are a project manager and now you are comparing proposals received from sellers. Comparing

proposals received from sellers is done in _______ .

1.Plan Procurements





Explanation : Comparing proposals received from sellers done in the Conduct Procurements.

Question - 87

During the project execution phase, one of the team member asked about his or her work. Which of the

following document you will ask the person to refer?

1.Work Breakdown Structure (WBS) dictionary

2.Scope Statement

3.Activity List

4.Project Charter


Explanation : The WBS dictionary defines each element in the WBS. Therefore, descriptions of the work

packages are in the WBS dictionary.

Question - 88

Who is primarily responsible for creating design and test specifications?

1.Quality Control

2.Engineering

3.Support

4.Management


Explanation : Engineering is primarily responsible for creating design and test specifications.


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Question - 89

Project Management Plan is an input to all of the following processes EXCEPT_________.

1.Direct and Manage Project Execution process


3.Close Project or Phase

4.Develop Project Charter


Explanation : Project Management Plan is NOT an input to Develop Project Charter. (PMBOK page no, 104)

Question - 90

The market conditions are a part of the________.

1.Enterprise environmental factors

2.Project management concerns

3.Organizational process assets

4.Project Charter


Explanation : The market conditions will influence all factors of procurement.

Question - 91

You are a project manager of a project. Till today you have actually completed $34,000 of work, but based on

the cost plan it should be $50,000. What is percentage Schedule Variance (SV) in this case?

1.-32%

2.-16%

3.32%

4.10%


Explanation : Schedule Variance (SV): Any difference between the scheduled completion of an activity and

the actual completion of that activity. SV % = (EV - PV) / PV SV % = ($34,000 - $50,000) / $50,000 = -32%

Question - 92

Which is the least risky phase of a project?

1.Planning

2.Closing

3.Execution

4.Control



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Explanation : The Planning phase is the phase with the least risk attached because you have not committed

the major part of your project.

Question - 93

Which of the following project management process gets MOST of a project's budget expended?

1.Project Executing

2.Project Planning

3.Project Closing

4.Project Monitoring


Explanation : Most of the resources are involved in the project executing process, therefore most of a

project's budget are expended on this process.

Question - 94

In which of the following situation network diagram is better than bar chart ?

1.to show inter dependencies between activities

2.analysis of schedule progress

3.analysis of WBS

4.analysis of project plan


Explanation : A is the correct answer. network diagram is best to show Interdependencies between activities.

Question - 95

You are a project manager of a company. You have been assigned as the project manager in the middle of

the project. The customer is not happy with the performance of the project. What is the FIRST thing you

should do?

1.Talk to customer about the concerns.

2.Try to achieve the performance.

3.Ignore the customer.

4.Leave the project and ask your manager to assign another project.


Explanation : The best option is to talk to the customer about the concerns.

Question - 96

The purpose of a contract is to distribute a reasonable amount of ____________between the buyer and seller.

1.Risk

2.Responsibility

3.Reward

4.Quality


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Explanation : A fair contract shares a reasonable amount of risk between the buyer and the seller.

Question - 97

If there are two people in the communication system, then how many communication channels will there be?

1.1

2.5

3.8

4.4


Explanation : Number of communication channel will be calculated using formula n*(n-1)/2 where n is the

number of people involved in the communication. Then Number of communication channel = 2(2-1)/2=2*1/2=1

Question - 98

A project manager has created a document and wants some of the team member should have read access

and some of them should have write access also. The project manager should create __________.

1.Configuration Management System

2.Project Management Information System

3.Project Management System

4.Control Management System


Explanation : Configuration Management System addresses controlling documents.

Question - 99

Teamwork is a critical factor for project success. Who is responsible to create an environment that facilitates

teamwork?

1.Team lead

2.Team members

3.Project Manager

4.Sponsor


Explanation : C is the correct answer. Project Manager is responsible to create an environment that

facilitates teamwork. PMBOK Page no 260.

Question - 100

In the quality management process, which of the following is not an attribute of the cost of non-

conformance?

1.Rework


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2.Safety measures

3.Downtime

4.Uptime


Explanation : Safety measures are not an attribute of the cost of nonconformance.

Question - 101

You are the project manager for the Project. You are updating the WBS during Define Activities, are often

called ________?

1.Refinements

2.Updates

3.Activities

4.Supporting detail


Explanation : A is the correct answer. updating the WBS during Define Activities, are often called

Refinements. It occurs with riskier projects.

Question - 102

You are the project manager of a marketing project. You want a vendor to offer you one price to do all the

detailed work. Which type of document are you looking for?

1.IFB

2.Proposal

3.RFI

4.RFP


Explanation : An IFB is a sealed document that lists the seller's price to complete the detailed work.

Question - 103

Which of the following document justify the project - whether the project is worth or not?

1.Business Case

2.Project Charter

3.Project Management plan

4.Scope statement


Explanation : Business Case contains business need and cost-benefit analysis. Business Case document

justify the project - whether the project is worth or not. PMBOK page no , 106

Question - 104


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If project manager can approve the changes, this is still part of the ___________.

1.Project Plan

2.Change Control System

3.Charter

4.Scope Statement


Explanation : Any change requests must go through review process, and so need to be part of Change

Control System.

Question - 105

A project team with members located in the India, the US, and the UK would be called a ___________. They

don't spent time meeting face to face.

1.Virtual team

2.Scattered team

3.Universal team

4.None of the above


Explanation : A is the correct answer. Virtual Teams: Virtual teams can be defined as groups of people with a

shared goal, who fulfill their roles with little or no time spent meeting face to face.

Question - 106

You are a project manager of MKTG project. The customers of the project have requested additions to the

project scope. You have to do additional risk planning and need to add it to the project schedule. Why is so?

1.Risk planning should always occur whenever the scope is adjusted.

2.Risk planning should only occur at the project manager's discretion.

3.Risk planning does not need to happen at every change in the project.

4.All of the above


Explanation : Risk Planning should always occur whenever the scope is change and adjusted.

Question - 107

You are a project manager of a company and your project is currently in execution phase. The customer has

requested you for additional work. This work will affect the budget, but not the schedule of the project. What

should you do next?

1.Add the additional requirements to the project plan.

2.Ignore the request.

3.Explain the change procedure and ask to submit a request for change.

4.Discuss with the project team about the change.


Explanation :


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Explain the change procedure and ask to submit a request for change is the best choice.

Question - 108

Comparing target dates with the actual or forecast start and finish dates is called :

1.Variance Analysis

2.Earned Value

3.Progress Reporting

4.Crashing


Explanation : A is the correct answer. Variance Analysis : Comparing target dates with the actual or forecast

start and finish dates.

Question - 109

You are the project manager and are considering recommending a project that costs $210,000; expected

inflows are $5,000 per month for the first three years and then $6,000 per month thereafter. What is the

payback period?

1.41 months

2.36 months

3.45 months

4.21 months


Explanation : Payback period : The number of time periods required until inflows equal, or exceed, costs.

Total inflows for first three years is 36 months * $5000 = $180,000. Money left = $210,000 - $180,000 = $30,000.

Months need for $30,000 is ($30,000/$6,000)=5 months Total payback period = 36 + 5 = 41 months.

Question - 110

A risk is ____________ occurrence that has a positive or a negative effect on a project .

1.Known

2.Uncertain

3.Known

4.Potential


Explanation : Risks are not planned, they are left to chance.

Question - 111

The OBS (Organization Breakdown Structure), WBS, and RBS (Resource Breakdown Structure) are all

examples of ________.

1.Control charts

2.Hierarchical charts


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3.Project standard

4.Run chart


Explanation : B is the correct answer. The OBS (Organization Breakdown Structure), WBS, and RBS

(Resource Breakdown Structure) are all examples of Hierarchical charts.

Question - 112

Project Performance Appraisal is part of the:

1.Acquire Project Team

2.Develop Project Team

3.Develop Human Resource Plan

4.Manage Project Team


Explanation : D is the correct answer. Project Performance Appraisal is part of the Manage Project Team.

Question - 113

A project has three critical path. How this affects the project ?

1.It increased project risk.

2.It need more resources.

3.It need more time.

4.It costs more.


Explanation : A is the correct answer. It increased project risk.

Question - 114

What is the purpose of a status meeting?

1.Exchange information about the project.

2.Get the status from each team member

3.Review of the activities

4.Create status report


Explanation : Best option is exchange information about the project.

Question - 115

Your company policy allow to gift exchange with customer within certain limit. By mistake, you have given a

gift to the customer's representative already which is beyond the limit mentioned in your company policy.

What should you do?

1.Forget it and don't tell anyone.


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2.Contact your company's senior management and ask for assistance.

3.Ask your customer to return the gift.

4.Ask your customer to give you a gift which has the same cost


Explanation :

Best option is to contact your company's senior management and ask for assistance.

Question - 116

You are a project manager of a project and want to report the actual project result and the planned status.

You should use?

1.Forecasting report

2.Trend reports

3.Status report

4.Variance report


Explanation : variance report: An actual project result and planned status of a project.

Question - 117

Which of the following is NOT the activity in Define Activities ?

1.Decomposition

2.An activity list from a previous project

3.Progressive elaboration planning

4.Create project charter


Explanation : D is the correct answer. Create project charter is activity in initiation phase.

Question - 118

Make-or-buy decisions measure the cost of both options. What are these two options?

1.Direct, Indirect

2.Tactical, Strategic

3.Management, Project

4.Direct,Management


Explanation : Make-or-buy decisions measure the cost of both options. When doing this analysis, it should

include both direct and indirect costs so that the final decision is based on comparisons that are equal.

Question - 119

An organization's quality policy should come from the_________.


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1.Project manager

2.Top management

3.Customers

4.All of the above


Explanation : An organization's quality policy should come from the top management.

Question - 120

You are project manager of a software project. You have just analyzed activity sequences, durations,

resource requirements , schedule constraints and created project schedule. The above task belongs to

which process?

1.Define Activities


3.Develop Schedule

4.Control Schedule


Explanation : C is the correct answer. analyzing activity sequences, durations, resource requirements ,

schedule constraints and created project schedule is belongs to Develop Schedule process.

Question - 121

All of the following are inputs of Perform Qualitative Risk Analysis EXCEPT ________.

1.Risk Register

2.Project Scope Statement

3.Risk Management Plan

4.Stakeholder Register


Explanation : Stakeholder Register is input of Identify Risks.

Question - 122

You were the project manager of X company for a long time, and had done lots of project management

practices. Recently, you have joined another company Y and assigned to a project. You should _________.

1.Use the forms of company Y

2.Use the forms of company X and instruct about the good project management practices

3.Talk to change control board

4.Use the forms of company Y and instruct about the good project management practices


Explanation : The best option is to use the forms of company Y and instruct about the good project

management practices.


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Question - 123

If a project has an 80% chance of activity will take 2 weeks or less. what is the probability of the event?

1.75%

2.65%

3.50%

4.20%


Explanation : 20% probability of exceeding 2 weeks - 80% chance of activity will take 2 weeks or less

Question - 124

Risk Probability and Impact Assessment, and Risk Categorization are done during ________.


2.Perform Quantitative Risk Analysis


4.Identify Risks


Explanation : Risk Probability and Impact Assessment, and Risk Categorization are done during Qualitative

Risk Analysis.

Question - 125

The ___________ shows departments or units of the organization and is not organized the deliverables.

1.OBS

2.WBS

3.RBS

4.Scope statement


Explanation : A is the correct answer. OBS(Organization Breakdown Structure) shows departments or units

of the organization and is not organized the deliverables. OBS(Organization Breakdown Structure) shows the

organization's units and departments as a top-down graph.

Question - 126

The buyer and seller are bound by a________.

1.Contract

2.Responsibilities

3.WBS

4.Identification


Explanation : The buyer and seller are bound by a contract.


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Question - 127

The Scope Statement does not provide___________?

1.Project Justification

2.Project Product

3.Project Manager Authority

4.Project Objective


Explanation : The project charter provides the project manager with authority.

Question - 128

You are a project manager of a company and you have been assigned to a project. You are now comparing

actual project performance against project management plan. This belongs to which process?

1.Define Scope





Explanation : Comparing actual project performance against project management plan belongs to Monitor

and Control Project Work process.

Question - 129

As a project manager of a project , you have just completed Schedule network diagram. Which of the

following time management activity you have completed?




4.Develop Schedule


Explanation : B is the correct answer. Schedule network diagram is an output of Sequence Activities.

Question - 130

Comparing your project with actual or planned project practices to generate ideas for improvement is called:

1.Benchmarking

2.Benefit/Cost analysis

3.Quality audits

4.Process Analysis



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Explanation : Comparing your project with actual or planned project practices to generate ideas for

improvement is called Benchmarking.

Question - 131

You are a project manager of a pharmaceutical company. A new pharmaceutical regulation is passed that

changes your project scope. For the project to be in accordance with the new regulation, what should be

your next action?

1.Present the change to the Change Control Board (CCB)

2.Notify Management

3.Prepare a new baseline to reflect the changes

4.No need to do anything


Explanation : You must present the change to the Change Control Board (CCB) for new changes.

Question - 132

A project manager has created a document and wants to track the changes made in the document. The

project manager should create _______.

1.Configuration Management System

2.Project Management Information System

3.Project Management System

4.Control Management System


Explanation : Control Management System tracks the changes.

Question - 133

Your project has a budget of $10,000 and is expect to last for 1 year, with the work and budget spread evenly

across all months. Right now CPI is 0.8. What is Estimate at Completion (EAC) in this case?

1.$12,500

2.$10,000

3.2.5

4.3.0


Explanation : Estimate at Completion (EAC) = BAC / CPI = $10,000 / .8 = $12,500

Question - 134

You are a project manager of a Project. Which of the following techniques will you use to create the Risk

Management Plan?

1.Planning Meetings

2.Status Meetings


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3.Variance Meetings

4.Risk Tolerance


Explanation : Planning meetings are used to create the Risk Management plan. Planning Meetings and

Analysis: Attendees are the PM, leadership team, key stakeholders and those in the organization responsible

to manage project risks.

Question - 135

The Pareto chart helps:

1.Focus on critical issues to improve quality.

2.Determine how various factors are linked to potential problems

3.Determine whether or not process is stable and within set limits.

4.Focus on root cause analysis


Explanation : Pareto chart: Focus on critical issues to improve quality Fishbone diagram/Ishikawa:

Determines how various factors linked to potential problems or effects, root cause Control chart: Determines

whether or not process is stable and within set limits .

Question - 136

You are a project manager of a company. You are taking over a project during the planning process, and you

discovered that many individuals have signed the project charter. Which of the following should be areas of

concern for you?

1.Who will be a member of the change control board?

2.Who are the stakeholders for the project?

3.Need to spend more time on configuration management.

4.Determining the reporting structure.


Explanation : Because of many individual signed in the project charter, areas concerned with this project are

many. You should be concern with communications requirements, competing needs and requirements

impacting your efforts on configuration management.

Question - 137

If a customer requests for additional work that is not in the contract, then what type of communication the

customer should use?

1.Formal Written

2.Verbal

3.Informal Verbal

4.Noise


Explanation : The formal written is the best for this type of request.


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Question - 138

You are the project manager of a new project and you have collected the necessary input information and

delivered the project charter to the stakeholders. What should you do next?

1.Get the project charter signed.

2.Start the initial project planning process.

3.Develop the project scope statement.

4.Start to create project plan


Explanation : After delivered the project charter to the stakeholders, First thing you have to do get the

project charter signed.. Project charter is the only authorized document to start project.

Question - 139

3 sigma is equal to ______ percentage of fall between two control limits.

1.99.99%

2.99.73%

3.95.46%

4.68.26%


Explanation : memorize 3 sigma = 95.73% 1 sigma = 68.26% 2 sigma = 95.46% 6 sigma = 99.99%

Question - 140

The project quality policy should be written by ________.

1.Project team

2.Customer

3.Management

4.Accounting


Explanation : The project team, led by the project manager, must write the quality policy for each project.

Question - 141

All of the following are examples of Acquire Project Team EXCEPT:

1.Negotiations

2.Acquisition

3.Pre-assignments

4.Training



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Explanation : D is the correct answer. Training is part of Develop Project Team, others are part of Acquire

Project Team. PMBOK Page no 248.

Question - 142

Which of the following chart shows position and relationships in top-down format?

1.Hierarchical-type chart

2.Matrix-based charts

3.Text-Oriented format

4.All of the above


Explanation : A is the correct answer. Hierarchical-type chart shows position and relationships in top-down

format. PMBOK Page no 253.

Question - 143

Which of the following document can be used to guide all the work in both project executing and project

monitoring and controlling phase of a project?


2.Project Risk Plan

3.Project QA Plan

4.Project Charter


Explanation : Project Management plan can be used to guide all the work in both project executing and

project monitoring and controlling phase of a project.

Question - 144

Which of the following is NOT an example of Cost of Conformance?

1.Rework

2.Testing

3.Equipment

4.Training


Explanation : Rework is part of Cost of Nonconformance. Others are part of Cost of Conformance. PMBOK

Page no 226.

Question - 145

Budget forecasts are inputs of ___________.

1.Identify Stakeholders

2.Plan communications

3.Manage stakeholder expectations


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4.Reports performance


Explanation : Budget forecasts are inputs of Reports performance. PMBOK page no 275.

Question - 146

You are a project manager of a construction company. You want to manage the variance between what was

planned and what actually occurred. Which of the following methodology you should use?

1.Earned Value Management (EVM)

2.Earned Value (EV)

3.Planned Value

4.Accounting


Explanation : There could be confusion between Option A and Option B. Earned Value Management (EVM) is

the methodology and Earned Value (EV) is the technique. And so Option A is true.

Question - 147

You are a project manager of a company and you are assigned to a project that has already been decided to

out source. As a project manager, you need to organize a formal bid process and select the vendor for this

project. Your senior management is forcing you to select a vendor which has good relation with your senior

management. What is the BEST course of action for you?

1.Follow the formal bid process, and show the senior management about why the favored vendor is or is not

the best choice.

2.Report to legal department of your company.

3.Report to your Manager about this.

4.Get a written permission from your senior management to bypass the formal bid process.


Explanation : The best option is to follow the formal bid process, and show the senior management about

why the favored vendor is or is not the best choice.

Question - 148

What is the purpose of fishbone diagram?

1.To illustrate how various factors might be linked to potential problems or effects

2.Are used to determine if the process are in control

3.Show trends in a process over time

4.Shows the pattern of relationship between two variables


Explanation : Fishbone diagram : To illustrate how various factors might be linked to potential problems or

effects.


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Question - 149

Which of the following tool help you determine the most common cause of problems in a process by number

?

1.Status Reports

2.Pareto Charts

3.Ishikawa Diagrams

4.Histogram


Explanation : Histogram: ordered by frequency of occurrence, that shows how many results were generated

by type or category of identified cause. PMBOK Page no 241.

Question - 150

As a project manager it is important to collect project records at the end of the project. What is the use of

"collect project records"?

1.Recall what happened on the project, good or bad.

2.Recall decisions made on the project.

3.To see cost decisions.

4.To support the risks on the project.


Explanation : The best use of "collect project records" is to recall what happened on the project, good or

bad.

Question - 151

You are the project manager of a large project. Your project sponsor and management want portions of the

project to be outsourced and you have been given the responsibility to outsource. The project sponsor and

management have approved you to outsource portions of the project. Who must ensure that all of the project

work is authorized, contracted properly, and funded?

1.Project sponsor

2.Management

3.Vendor

4.Project Manager


Explanation : Project manager has the responsibility to ensure that the project work is authorized,

contracted, and funded.

Question - 152

You area project manager of a project and have done risk response plan. What should you do NEXT?

1.Update Project Management Plan

2.Update Risk Identification Check list

3.Root causes of risks


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4.Corrective action


Explanation : Update Project Management Plan is an output of risk response plan.

Question - 153

Performance Report is input of the:

1.Acquire Project Team

2.Develop Project Team

3.Develop Human Resource Plan

4.Manage Project Team


Explanation : D is the correct answer. Performance Report is input of the Manage Project Team.

Question - 154

You are a project manager of a company and you have been assigned to take over managing a project that

should have been 60 percent complete according to the schedule. After evaluation, you discover that the

project is running far behind schedule, and that the project will probably take double the time originally

estimated by the previous project manager. However, the sponsor has been told that the project is on

schedule. What is the BEST course of action you will take?

1.Add new resource to the project and complete the project on schedule.

2.Show your evaluation to sponsor.

3.Ask your senior manager to deal with this.

4.Turn the project back to the previous project manager.


Explanation : You can't turn the project back to the previous project manager because he or she may be

busy with other project. The best option is to show your evaluation to sponsor.

Question - 155

The Create Procurement document is done in the_______.

1.Plan Procurements





Explanation : The Create Procurement document is done in the Plan Procurements process.

Question - 156

The ___________ is used to document changes that occur during a project?


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1.Issue Log

2.Change Log


4.Scope statement


Explanation : The Change Log is used to document changes that occur during a project. PMBOK page no

294.

Question - 157

Finding out all people or organizations impacted by the project is called_________.

1.Identify Stakeholders

2.Plan communications

3.Manage stakeholder expectations

4.Reports performance


Explanation : Finding out all people or organizations impacted by the project is called Identify Stakeholders.

PMBOK page no 277.

Question - 158

You are the project manager of a company and currently doing strategic planning with senior management.

What is the best reason for doing strategic planning?

1.To determine which projects will be sponsored in order to achieve the organizational goals

2.To determine the project resources

3.To determine the project deliverables

4.To determine the functional activities


Explanation : The strategic planning conducted by an organization's management determines which projects

will be sponsored in order to achieve the organizational goals.

Question - 159

You are the project manager of a Project. Your project will cost your organization $50,000 to complete over

the next 3 months. Once the project is completed, the deliverables will let the company earn $5000 per

month. What is the time to recover the costs of the project?

1.10 Months

2.1 Year

3.2 Years

4.3 Years


Explanation : This is calculated by dividing the ROI of $5000 per month into the project cost. 50000/5000 = 10

months


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Question - 160

The line in the middle of a control chart is called:

1.mean

2.rule of seven

3.rule of five

4.specification limit


Explanation : The line in the middle of a control chart is called mean.

Question - 161

You are a project manager of a project. How you determine whether it is better to make a product or buy a

product?

1.Decision Tree Analysis

2.ROI Analysis

3.Ishikawa Diagram

4.None of the above


Explanation : A Decision Tree model can separate the pros and cons of buying product versus building

product. Ishikawa Diagram shows cause and effect, not pros and cons.

Question - 162

You are a project manager and you are working for a large project with more than hundreds of

stakeholders.Which of the following is the BEST course of action you are going to take ?

1.Consider needs of all stakeholders.

2.Consider needs of important stakeholders.

3.Eliminate some of them.

4.Ask your manager to manage the stakeholders.


Explanation : Consider needs of all stakeholders is the best choice.

Question - 163

You are working in an organization where all the employees are divided into groups by specialty such as

sales, support and engineering. In which type of organization you are working in ?

1.Functional

2.Strong matrix

3.Weak matrix

4.Tight Matrix


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Explanation : In a functional organization, all employees are divided into groups such as sales, support and

engineering. Projects in a functional organization generally only involve one department.

Question - 164

Which of the following is a part of the Project Scope Management?

1.Verify Scope


3.Control Scope

4.All of the above


Explanation : Verify Scope, Collect Requirements and Control Scope are all part of the Project Scope

Management.

Question - 165

___________ is a group of process required to purchase or acquire products, services, or results needed

from outside the project team to perform the work.

1.Procurement Management

2.Planning Management

3.Scope Management

4.Control Management


Explanation : Procurement Management is a groups of processes required to to purchase or acquire the

products, services, or results needed from outside the project team to perform the work.

Question - 166

You have just started a project. The project team member reported that 20 percent of the project is done. You

agree with their completion status, but do not change any of the progress in your report to the customer.

This is an example of which one of the following?

1.0/100 Rule

2.50/50 Rule

3.Percent Complete Rule

4.20/20 rule


Explanation : The 0/100 Rule allows for zero percent credit on an activity until it is 100 percent complete. B is

wrong (50/50 rule): 50 percent completion when the work begins and 50 percent when the work is completed.

Question - 167

During the project execution phase, a risk is found which was not included in the Risk Register. What should


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you do?

1.Ask senior management to deal with this.

2.Keep with yourself.

3.Find workaround.

4.Re-evaluate Risk Management process.


Explanation : The best option is to find a workaround and solve the issue.

Question - 168

You are the project manager of a global project having team members in the US and India. The client has a

budget not exceeding $12 million. Due to global concerns, the final budget must be in the U.S. dollars. This is

an example of which of the following?

1.Internationalization

2.Budget constraint

3.Management constraint

4.Technical constraint


Explanation : This is an example of a budget constraint. The budget must not exceed $12 million.

Question - 169

Your company has been hired to configure software in 500 computers. All computers need equal time to

configure. The contract for the project is set at a fixed cost, and the incentive based on how fast the project

work is going to be completed. Management has requested that you study the work method to determine a

faster, less costly, and a better method to complete the project. This scenario is an example of _________.

1.Time Constraint

2.Schedule Constraint

3.Value Analysis

4.Learning Curve


Explanation : Value Analysis is a systematic approach to find less costly ways to complete the same work. A

and B are incorrect, as this situation does not describe a specific time or cost constraint. D is incorrect: the

learning curve happens as the project team completes the work.

Question - 170

A Heuristics is best described as :

1.thumb rule.

2.activity diagram.

3.workaround.

4.control tool.


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Explanation : A is the correct answer. Heuristics is thumb rule. Examples are cost per square feet etc.

Question - 171

Project X has a payback period of 26 months. Project Y has a cost of $500,000, with expected cash inflows of

$200,000 the first year and $50,000 per quarter after that. Which project should you recommend?

1.Project X because of lower payback period.

2.Project Y because of higher payback period.

3.Project Y because of payback period 25.

4.Project Y because of payback period 30.


Explanation : Project Y has a cost of $500,000. After 1 year r

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