Question: In your project, you are in the process of determining the project roles, responsibilities

and reporting relationships for your team members. Which of the following is not used for this
process?
Choice 1. Activity resource requirements
Choice 2. Enterprise environmental factors
Choice 3. Organizational process assets
Choice 4. Team performance assessments

Correct Choice: 4

Justification
Team performance assessments are the output of the Develop Project Team process.

Question: While identifying stakeholders, you plan to group project stakeholders based on their
level of authority and their active involvement in the project. You can do this by using:
Choice 1. Power/Interest grid
Choice 2. Power/Influence grid
Choice 3. Influence/Impact grid
Choice 4. Salience model

Correct Choice: 2

Justification
There are multiple classification models used for stakeholders analysis, such as:

Power/interest grid, grouping the stakeholders based on their level of authority (power) and their
level of concern (interest) regarding the project outcomes;

Power/influence grid, grouping the stakeholders based on their level of authority (power) and their
active involvement (influence) in the project;

Influence/impact grid, grouping the stakeholders based on their active involvement (influence) in
the project and their ability to effect changes to the projects planning or execution (impact); and
 Salience model, describing classes of stakeholders based on their power (ability to impose their
will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate).

Question: You are creating a cost performance baseline for your project. In this context, which of
the following statements related to cost performance baseline is incorrect?
Choice 1. It is a time-phased budget.
Choice 2. It is used as a basis for comparison to actual results.
Choice 3. It is developed as a summation of the approved budgets for the different schedule
activities.
Choice 4. It includes management reserves.

Correct Choice: 4

Justification
The cost baseline is the approved version of the time-phased project budget, excluding any
management reserves, which can only be changed through formal change control procedures and is
used as a basis for comparison to actual results. It is developed as a summation of the approved
budgets for the different schedule activities.

Question: You had earlier worked as a project manager in a firm specializing in manufacturing semi-
conductor chips. Now that you are working with a competitor,
Choice 1. You should not use the knowledge gained in the first company to improve the competitor`s
product quality
Choice 2. You can use the knowledge gained in the first company to improve your present
company`s product quality
Choice 3. You should get your first company`s approval before doing anything that may adversely
impact them
Choice 4. You should do nothing by way of competing with or undermining the products of the first
company

Correct Choice: 2

Justification
Knowledge gained in one company is not proprietary information and can be used in subsequent
jobs. This is acceptable as long as you do not unethically use any contacts or proprietary information
belonging to the first company.

Options 1, 3, and 4 are inappropriate, because they imply that knowledge and experience gained
from the first company, if used in the present company might adversely impact the former company`s
business interests.

Question: Your quality process did not meet the four sigma requirements desired by your customer.
So, some of your products were rejected and there is a possibility that you would not receive repeat
business from the customer. From a quality perspective, the costs associated with the rejected
products can also be categorized as:
Choice 1. Cost of conformance
Choice 2. Customer retention costs
Choice 3. Failure costs
Choice 4. Performance costs

Correct Choice: 3

Justification
Failure costs (cost of nonconformance) include costs to rework products, components, or processes
that are non-compliant, costs of warranty work and waste, and loss of reputation

Question: In your project, you are in the process of creating an activity list. This should contain
which of the following:

A. Activities not to be performed as part of the project

B. Activities that are to be performed as part of the project

C. Activity identifier and scope of work description for each schedule activity in sufficient detail

D. Activities that are required for the project

Choice 1. B, C and D
Choice 2. C, D and A
Choice 3. D, A and B
Choice 4. A, B and C
Correct Choice: 1

Justification
The activity list is a comprehensive list that includes all schedule activities required on the project.
The activity list also includes the activity identifier and a scope of work description for each activity in
sufficient detail to ensure that project team members understand what work is required to be
completed.

Question: You are working as a project manager in an automobile company. Recently the
government has amended the regulations to enforce stricter emission requirements for automobiles.
As a project manager, you are concerned that your project quality norms may not satisfy the revised
quality standards. So, you do an audit and try to remedy this problem through:
Choice 1. Quality assurance
Choice 2. Quality planning
Choice 3. Quality control
Choice 4. Modifications to quality management plan

Correct Choice: 1

Justification
Perform Quality Assurance is the process of auditing the quality requirements and the results from
quality control measurements to ensure that appropriate quality standards and operational
definitions are used.

Question: In your company, payback period is primarily used as the decision criterion for project
selection. Payback period is the:
Choice 1. Number of years a company takes to get back the invested amount
Choice 2. Discount rate on an investment that makes present value of all cash inflows equal to
present value of all cash outflows
Choice 3. Duration in which the project gets completed
Choice 4. Number of years a company takes to make profits equal to the amount invested
Correct Choice: 1

Justification

Payback Period

Number of years required for an organization to recapture an initial investment.

Discount rate is not taken into account in calculations for payback period.
Project Selection Criterion: Select a project with lower payback period.

Example: There are two projects. Project A has an investment of $500,000 and a payback period of
3 years. Project B has an investment of $300,000 and a payback period of 5 years. Using the
payback period criterion, which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller investment than project A
will not impact the selection.

Question: You are the project manager in a pharmaceutical company and you are involved in
managing stakeholders' engagement to satisfy their needs and addressing any issues as they are
identified. In this context, which of the following is NOT a relevant output?
Choice 1. Organizational process assets updates
Choice 2. Change requests
Choice 3. Project management plan updates
Choice 4. Stakeholder Management Plan

Correct Choice: 4

Justification
The Stakeholder Management Plan is created as part of the Plan Stakeholder Management process.
The other options are all outputs of the Manage Stakeholder Engagement process, which is the
process being described.

Question: You are working for a semi-conductor company. There have been several instances in the
past week when a few circuits have not been giving accurate results. You have been assigned the
task of determining the probable cause for the variations. Which tool would you use?
Choice 1. Control Chart
Choice 2. Ishikawa Diagrams
Choice 3. Pareto Diagrams
Choice 4. Inspection

Correct Choice: 2

Justification
Ishikawa diagrams is also known as Cause-and-effect diagrams or fishbone diagrams. The problem
statement placed at the head of the fishbone is used as a starting point to trace the problem`s
source back to its actionable root cause. The problem statement typically describes the problem as a
gap to be closed or as an objective to be achieved.

Question: As the Project manager of a Satellite Uplink project, you have created a Schedule
Management plan. You obtain the data shown in the table below about three of the many Tasks you
need to complete before Project Closure.(duration in days):

If these three tasks (i.e., Tasks A, B, and C) are not part of the critical path of a project, what is the
PERT estimate for the duration of the project?
Choice 1. 22.5 Days
Choice 2. 10.33 Days
Choice 3. 32 Days
Choice 4. Cannot be determined

Correct Choice: 4

Justification
Since the tasks are not on the critical path of the project, we cannot determine the PERT estimate for
the duration of the project. The PERT estimate can only be calculated for the critical path of the
project.

Question: In your project, you have reasons to believe that the current variances occurred because
of extraneous factors, and you do not expect similar variances to occur in future. What should be the
estimate at completion (EAC) for your project? BAC = $300,000; AC = $100,000; EV = $150,000;
CPI = 1.5
Choice 1. $250,000
Choice 2. $220,000
Choice 3. $280,000
Choice 4. $200,000

Correct Choice: 1

Justification
Since current variances are atypical, Estimate at Completion, EAC = AC + BAC - EV = $100,000 +
$300,000 - $150,000 = $250,000

Acrony
Term Description Formula
m

Forecast of most likely total project

cost based on project performance

1. Original estimating
assumptions no longer
Estimate valid 1. AC+ ETC
at
EAC 2. Current Variances are 2. AC + BAC EV
Completio
n atypical; similar variances
will not occur in the future 3. BAC/CPI

3. Current Variances are

typical of future variances
(DEFAULT)

Budget at
BAC Completio Budget for the whole project EAC x CPI
n
 Estimate
From this point, how much time is
ETC to EAC AC
required to complete the project
complete

Variance at
VAC Over or under budget BAC EAC
completion

Question: You recently took over the responsibilities of a project manager from another person.
While reviewing the project cost, you realize there has been an item of $100,000 waiting to be paid,
which, you think, is a disputed item. Your project CPI is 1.2. In this case:
Choice 1. Since this is a small amount compared to the total project value, it can be paid ignoring all
objections.
Choice 2. Since the project CPI is greater than one, you do not have any difficulties with the cost of
the project. You can, hence, bury the payment in contingency account and move on with the project.
Choice 3. You should inform your manager and ascertain the facts of the matter before making the
payment.
Choice 4. You must refuse the payment.

Correct Choice: 3

Justification
Option 3 is the best answer because, as a project manager, you are supposed to deal with any issue
or alleged unethical practice and not ignore it.

Option 1 and option 2 ask you to ignore the issue and hence are not recommended. Option 4 is
recommended only after ascertaining the facts of the matter as stated in option 3.

Question: You have reached the end of the design phase of your project. You decide to call a
"phase end review" for obtaining authorization to close the design phase and initiate the next phase
(i.e., execution phase) of your project. Your manager disagrees with your suggestion. He wants a
"kill point" to formally end the design phase of the project. In this context, you should:
Choice 1. Disagree with your manager because you know that phase end reviews should be used at
the end of each phase of the project
Choice 2. Agree with your manager as kill point is a phase-end review
Choice 3. Escalate this issue to the project sponsor
Choice 4. Take advice from a senior project manager about what should actually be done at the end
of each phase of the project

Correct Choice: 2

Justification
A phase end represents a natural point to reassess the activities underway and to change or
terminate the project if necessary. This point may be referred to as a stage gate, milestone, phase
review, phase gate, or kill point.
Question: The project manager has created the project schedule. In this context, which of the
following activities would the project manager NOT use schedule control for?
Choice 1. Influencing the factors that create schedule changes
Choice 2. Determining if the project schedule has changed
Choice 3. Determining planned start and finish dates for project activities
Choice 4. Managing actual schedule changes as they occur

Correct Choice: 3

Justification
Option 3 is an activity performed as part of the Develop Schedule process. The remaining options
are activities that are performed as part of the Control Schedule process.

Question: You are the project manager of a manufacturing firm that produces machine parts
required in automobiles. During a review, you discover some design requirements are not taken into
account. You should:
Choice 1. Instruct your team to incorporate the requirements and do an analysis to figure out the
potential impact.
Choice 2. Inform your project sponsor that the project may be delayed because of the missed
requirements.
Choice 3. Go ahead with production because incorporating the requirements may delay the
schedule.
Choice 4. Escalate this issue to your senior management.
Correct Choice: 1

Justification
Option 1: This is the only option that provides the solution to the problem. Since some requirements
are left out, you ask your team to incorporate the requirements and figure out the potential impact.
Option 2: This is a premature step; you should first do an analysis to figure out the impact of the
change before informing the project sponsor.
Option 3: This is not at all recommended, because it will result in a product, which does not satisfy
the requirements and hence will not be accepted by the customer.
Option 4: This is a premature step; you should first do an analysis to figure out the impact of the
change before informing senior management. Escalating an issue should be the last option.

Question: You are managing a project. Your company has set a pre-defined budget for you to work
with. In this context, a pre-defined budget is considered as a:
Choice 1. Risk
Choice 2. Assumption
Choice 3. Constraint
Choice 4. Stage point

Correct Choice: 3

Justification
Constraints: A limiting factor that affects the execution of a project or process. Constraints identified
with the project scope statement list and describe the specific internal or external restrictions or
limitations associated with the project scope that affects the execution of the project, for example, a
predefined budget or any imposed dates or schedule milestones that are issued by the customer or
performing organization.

Question: As a buyer, during Control Procurements, you have recently conducted an audit of your
seller to determine weaknesses in the seller`s processes that need to be corrected. You want to
document the results of the audit and the communications with the seller. This should be done using:
Choice 1. Performance reports
Choice 2. Correspondence
Choice 3. Change requests
Choice 4. Procurement audits

Correct Choice: 2

Justification
Correspondence: Contract terms and conditions often require written documentation of certain
aspects of buyer/seller communications, such as the need for warnings of unsatisfactory
performance and requests for contract changes or clarification. This can include the reported results
of buyer audits and inspections that indicate weaknesses the seller needs to correct.

Question: The project team has successfully delivered the final component of a year long project
on-budget and ahead of schedule. You, as the project manager, have been offered a promotion due
to this great success. The final product has been transitioned into production and post-
implementation support requirements have been completed. As part of project closure, what would
be done NEXT?
Choice 1. Create project closure documents
Choice 2. Release project team
Choice 3. Update Organizational Process Assets
Choice 4. Validate Scope

Correct Choice: 1

Justification
Project closure documents would be completed next, before the project team is released, and before
other Organizational Process Assets are updated.

Option 2: Releasing project team members should be one of the last activities in the Close Project or
Phase process. You may need them to help with the closure activities.

Option 3: Project closure documents are part of Organizational Process Assets updates. However, in
the given scenario, the most appropriate answer is to create the closure documents first and then
update Organizational Process Assets.

Option 4: Validate Scope is conducted prior to Close Project or Phase process.

Question: Control Quality is the process of monitoring and recording results of executing the quality
activities to assess performance and recommend necessary changes. To evaluate control quality
output data, the project team must ideally have a working knowledge of:
Choice 1. Prevention and inspection
Choice 2. Sampling and probability
Choice 3. Special causes and random causes
Choice 4. Tolerances and control limits

Correct Choice: 2

Justification
The project management team may have a working knowledge of statistical control processes to
evaluate data contained in the control quality outputs

Question: While managing a project, you decide to create a prototype of your product first to ensure
that it is acceptable to stakeholders before creating your product. This is an example of:
Choice 1. Risk mitigation
Choice 2. Risk avoidance
Choice 3. Simulation
Choice 4. Project assumptions testing

Correct Choice: 1

Justification
Mitigation may require prototype development to reduce the risk of scaling up from a bench-scale
model of a process or product.

Question: In your project team, you have developed a rule of thumb that scarce resources will have
to be allocated first to the critical path. This rule of thumb can also be referred to as:
Choice 1. Constraints
Choice 2. Assumptions
Choice 3. Best Practices
Choice 4. Heuristics

Correct Choice: 4

Justification
Heuristics (or rule of thumb), such as allocation of scarce resources to the critical path first, can be
applied to develop a schedule.

Question: Which of the following statements about the project management team and the project
team is inaccurate?
Choice 1. The project management team is also called the core, executive, or leadership team.
Choice 2. The project team is responsible for activities like planning, controlling, and closing.
Choice 3. The project management team is a subset of the project team.
Choice 4. For small projects, the project management responsibilities are shared by the entire team
or administered solely by the project manager.

Correct Choice: 2

Justification
The project management team is a subset of the project team and is responsible for the project
management and leadership activities such as initiating, planning, executing, monitoring, controlling,
and closing the various project phases. This group can also be referred to as the core, executive, or
leadership team. For smaller projects, the project management responsibilities can be shared by the
entire team or administered solely by the project manager.

Question: Which of the following is the most widely used contract type?
Choice 1. Cost plus incentive fee contracts
Choice 2. Fixed price incentive fee contracts
Choice 3. Cost plus award fee contracts
Choice 4. Firm fixed price contracts

Correct Choice: 4

Justification
The most commonly used contract type is the Firm Fixed Price Contract (FFP).

Question: If you would like to compare different suppliers and rate their proposals for the purpose of
procurements, you should use:
Choice 1. Bidder conferences
Choice 2. Selected sellers
Choice 3. Procurement documents
Choice 4. Source selection criteria

Correct Choice: 4

Justification
Source selection criteria are developed and used to rate or score seller proposals, and can be
objective or subjective.

Question: You have contracted some work to a vendor, and would like to identify successes and
failures that warrant recognition in the preparation or administration of other procurement contracts
within the performing organization. This can be performed through:
Choice 1. Procurement audit
Choice 2. Contract file
Choice 3. Contract performance reporting
Choice 4. Lessons learned documentation
Correct Choice: 1

Justification
A procurement audit is a structured review of the procurement process originating from the Plan
Procurement Management process through Control Procurements. The objective of a procurement
audit is to identify successes and failures that warrant recognition in the preparation or
administration of other procurement contracts on the project, or on other projects within the
performing organization.

Question: In your project, you are entering into a fixed-price contract in the form of a purchase
order. The contract is for a specified item to be delivered by a specific date for a specified price. In
the contract, the profit is:
Choice 1. Determined by the buyer during contract sign-off
Choice 2. Determined by the seller during contract sign-off
Choice 3. Provided by the buyer to the seller at the end of the project if defined performance criteria
are met
Choice 4. Not known at the time of the contract sign-off

Correct Choice: 4

Justification
Fixed-price contracts involve setting a fixed total price for a defined product or service or result to be
provided.

Question: In the Develop Schedule process, you create a distribution of probable durations for each
activity and use it to calculate the distribution of probable results for the total project. The technique
that you are using is:
Choice 1. Parametric estimating
Choice 2. Mathematical analysis
Choice 3. Simulation
Choice 4. Resource leveling
Correct Choice: 3

Justification
Simulation involves calculating multiple project durations with different sets of activity assumptions,
usually using probability distributions constructed from the three-point estimates to account for
uncertainty.

Question: Your organization has to follow some guidelines and policies while recruiting people.
From your project perspective, these guidelines and policies will be classified as:
Choice 1. Regulations
Choice 2. Best practices
Choice 3. Assumptions
Choice 4. Constraints

Correct Choice: 4

Justification
Most of the organizations involved in the project may have policies, guidelines, or procedures
governing staff acquisitions. When they operate, such practices act as a constraint on the staff
acquisition process.

Question: You are in the process of creating a risk management plan for your project. This plan will
describe how risk management will be structured and performed on the project. Your risk
management plan may include:
Choice 1. Avoid, transfer, mitigate, and accept risks
Choice 2. Risk audits, reserve analysis, and technical performance measurement
Choice 3. Risk audits, triggers, and inputs to other processes
Choice 4. Budgeting, timing, and risk categories

Correct Choice: 4
Justification
The risk management plan includes the following: methodology, roles and responsibilities,
budgeting, timing, and risk categories.

Reference: PMBOK Guide - Fifth Edition, pages 316 and 317

PMstudy.com comments:

Option 1: This is done during the Plan Risk Responses process

Option 2: This is done during the Control Risks process
Option 3: This is done during the Identify Risks process

Question: You are a project manager at a large software development organization. A primary
objective of your company is to deliver high-quality products to your customers, with a low rate of
errors and post-delivery fixes. The company has made significant investments in a robust quality
management system, including very detailed and thorough procedures and processes, designed to
support the quality objectives of the company. In software development projects, prior to submitting
software modules to the customer for user acceptance testing, your team uses a set of rigorous
scripts to test the code and functionality. In which process would the team use these scripts to test
the modules and in what process would the test scripts be audited to ensure they are valid and
produce the desired results?
Choice 1. Quality Assurance, Validate Scope
Choice 2. Validate Scope, Control Quality
Choice 3. Control Quality, Validate Scope
Choice 4. Control Quality, Quality Assurance

Correct Choice: 4

Justification
Control Quality is the process of monitoring and recording results from the project to assess
performance and recommend any changes. Deliverables are also inspected and checked to ensure
there are no defects. Auditing is a key tool of Quality Assurance.

Question: Which of the following statements related to Validate Scope and Control Quality
processes is accurate?
Choice 1. Validate Scope is concerned with correctness of the work results, while Control Quality is
primarily concerned with acceptance of the work results.
Choice 2. Validate Scope is concerned with acceptance of the work results, while Control Quality is
primarily concerned with correctness of the work results.
Choice 3. Validate Scope is done only after changes are approved by the change control board.
Choice 4. Both Validate Scope and Control Quality processes are always done sequentially.

Correct Choice: 2

Justification
The Validate Scope process differs from the Control Quality process in that the former is primarily
concerned with acceptance of the deliverables, while Control Quality is primarily concerned with
correctness of the deliverables and meeting the quality requirements specified for the deliverables.
Question: You are managing a Wind Energy Project. You have created the Network Schedule
Diagram given below (all units are in days):

What is the project float if management wants to complete this project within 13 days?
Choice 1. 0 days
Choice 2. - 3 days
Choice 3. 2 days
Choice 4. Cannot be determined, because information given in the question is incomplete

Correct Choice: 2

Justification
The possible paths are as follows:

Start Task1 Task2 Task4 End: 10 Days

Start Task3 Task5 Task7 End: 15 Days
Start Task6 Task7 End: 15 Days
Start Task1 Task2 Task3 Task5 Task7 End: 16 Days

Question: Your project stakeholder has asked you to create a financial plan for your project.
Preparing a financial plan will require:
Choice 1. Program management skills
Choice 2. Industry specific skills
Choice 3. Financial subject matter expertise
Choice 4. Both project management and industry specific skills

Correct Choice: 4

Justification
Preparing a financial plan requires both project management and industry specific skills. Although
the project manager need not have the industry-specific skills, she should talk with a person with
industry-specific skills in order to prepare the financial plan.

Question: In which of the following cases is a contract NOT legally binding?

Choice 1. The seller is not able to produce goods as part of the contract.
Choice 2. The signatory to the contract leaves the company.
Choice 3. The buyer is not able to satisfy financial obligations.
Choice 4. The contract violates the law of the land.

Correct Choice: 4

Justification
A contract is a legal relationship subject to remedy in the courts. A contract containing provisions that
violate the law of the land is not enforceable in the courts of law.

Question: As a project manager, you are interested in the personal activities of team members.
Other than working with you on the project, the team members love to go out with you for lunch or
play an occasional game of golf. The power that you have over the team members is:
Choice 1. Penalty power
Choice 2. Expert power
Choice 3. Legitimate power
Choice 4. Referent power

Correct Choice: 4

Justification
The five interpersonal influences are:

Legitimate Power: The ability to gain support, because project personnel perceive the project
manager as being officially empowered to issue orders.

Reward Power: The ability to gain support, because project personnel perceive the project manager
as capable of directly or indirectly dispensing valued organizational rewards such as salary,
promotion, bonus, and future work assignments.

Penalty Power: The ability to gain support, because the project personnel perceive the project
manager as capable of directly or indirectly dispensing penalties that they wish to avoid. Penalty
power usually derives from the same source as reward power, with one being a necessary condition
for the other.

Expert Power: The ability to gain support, because personnel perceive the project manager as
possessing special knowledge or expertise.

Question: Your project sponsor recently attended a project management conference where the
purposes of the Management-By-Objectives (MBO) approach were discussed. In this context, which
of the following is NOT a purpose of MBO?
Choice 1. Aligning project goals with organization goals
Choice 2. Aligning project goals with the goals of other sub-units of the organization
Choice 3. Aligning project goals with the goals of previous projects
Choice 4. Aligning project goals with individual goals

Correct Choice: 3

Justification
Management by objectives is a systems approach for aligning project goals with organizational
goals, project goals with the goals of other subunits of the organization, and project goals with
individual goals.

Question: As the project manager, you are currently involved in monitoring stakeholder relationships
and adjusting plans for their engagement. Which process are you currently working in?
Choice 1. Identify Stakeholders
Choice 2. Control Stakeholder Engagement
Choice 3. Manage Stakeholder Engagement
Choice 4. Plan Stakeholder Management

Correct Choice: 2

Justification
Control Stakeholder Engagement is the process of monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders.

Question: There are two projects:

Investment in project A is $1,000,000 and its NPV is $100,000

Investment in project B is $1,200,000, its net cash inflows are $2,000,000, and net cash outflows are
$1,900,000

Which project should be selected if net present value (NPV) criterion is used for selection?
Choice 1. Project A
Choice 2. Project B
Choice 3. The information in the question is inadequate
Choice 4. Either project A or project B

Correct Choice: 4

Justification

NPV of project A = $100,000

NPV of project B = $2,000,000 - $1,900,000 = $100,000.

Both projects have the same NPV; therefore, either project may be selected, if NPV criterion is used.

Net Present Value (NPV) = (Present value of all cash inflows) - (Present value of all cash outflows)

Project Selection Criterion: Select the project with the maximum Net Present Value. The time
value of money is already taken into account while calculating NPV.

Question: A project manager has to manage different stakeholder expectations. Project sponsor and
customer are two very important stakeholders in any project. In this context, which of the following is
NOT the responsibility of both the project sponsor and the customer?
Choice 1. Take into account risk tolerance
Choice 2. Provide key events, milestones, and deliverable due dates
Choice 3. Formally accept the product of the project
Choice 4. Provide financial resources for the project

Correct Choice: 4

Justification
Statements 1, 2, and 3 are correct.

Statement 4 is incorrect - A Sponsor is the person or group who provides resources and support for
the project and is accountable for enabling success....Customers are the persons or organizations
who will approve and manage the project`s product or service, or result.

Reference: PMBOK Guide - Fifth Edition, page 32

PMstudy.com comments: Customers do not always provide financial resources for the project.

Question: You are the project manager for XYZ company. The Quality Control team recently
identified a large number of defects in the project deliverables which the team had to repair. You
have been working for a few weeks with the Quality Assurance team to adjust some quality
procedures and address some training issues for your project which the team believes is the reason
for the defects. The project is now behind schedule due to the problems encountered. The CPI is
currently 1.12 and the SPI 0.82. While discussing the quality issues in a status meeting, a key
stakeholder comments that she is alarmed at the potential cost impact of one particular risk and is
wondering why it is of little concern to the project team. You are confident that her concern for that
particular cost risk is unwarranted at the moment; in fact, you believe there is another risk that is of
bigger concern. The following table displays the current risks for your project. Considering that
schedule is a concern right now, which risk are you going to tell the stakeholder and other meeting
participants is the greatest and is therefore the biggest concern of the team right now?

Probabilit Schedule
Risk Cost Impact
y Impact

A 0.4 2 8

B 0.4 6 3

C 0.3 2 3

D 0.2 4 9

Choice 1. A
Choice 2. B
Choice 3. A & B
Choice 4. D

Correct Choice: 1

Justification
For each risk identified, multiply the probability by the cost and schedule impact. Once you have
each P & I score, you can prioritize the risks. Risk A currently is the biggest threat to your schedule
and overall objectives.

Risk Probability Cost Schedule PI (Cost) PI Total

 Impact Impact (Schedule)

A 0.4 2 8 0.8 3.2 4

B 0.4 6 3 2.4 1.2 3.6

C 0.3 2 3 0.6 0.9 1.5

D 0.2 4 9 0.8 1.8 2.6

Question: You are creating a cost management plan for your Six-Sigma project. In this context,
which of the following statements relating to creation of the cost management plan is inaccurate?
Choice 1. Specifies the precision level to which the schedule activity cost estimates will adhere
Choice 2. Establishes variance thresholds for costs
Choice 3. Defines formats for various cost reports
Choice 4. Uses preferred tools for cost estimating

Correct Choice: 4

Justification
Cost management plan does not include cost estimation, i.e., tools for cost estimating are not used
for creation of cost management plan. These tools will be used in the Estimate Costs process.

Question: You are the project manager of a construction company. You know that the builders start
painting the walls 30 days after they start installing the drywall. This waiting time can also be referred
to as:
Choice 1. Lead time
Choice 2. Project float
Choice 3. Constraint
Choice 4. Lag

Correct Choice: 4
Justification
A lag directs a delay in the successor activity.

Question: You are the project manager in an aircraft manufacturing company developing a new
range of supersonic fighter planes. Since government approval and involvement are essential, you
hire a lobbying firm to get government support to prevent unnecessary changes in your project.
Which process is this an example of?
Choice 1. Perform Integrated Change Control
Choice 2. Risk Management
Choice 3. Cost Management Plan
Choice 4. Develop Project Management Plan

Correct Choice: 1

Justification
The Perform Integrated Change Control process includes influencing the factors that circumvent
integrated change control so that only approved changes are implemented.

Reference: PMstudy.com comments

Option 2 (Risk Management) and option 3(Cost Management Plan) are not processes. Option 4
(Develop Project Management Plan) is not valid because here we do not deal with factors that can
cause changes.

Question: The Scope Management Plan is an important component of the Project Management
Plan since it provides direction on how the project scope will be managed throughout the project life
cycle. The Scope Management Plan documents:
Choice 1. Which product requirements will be incorporated
Choice 2. How project scope will be defined, developed, controlled, and verified
Choice 3. Which stakeholders are most critical for defining the project scope
Choice 4. High-level project scope deliverables
Correct Choice: 2

Justification
The Scope Management Plan describes how the scope will be defined, developed, monitored,
controlled, and verified.

Question: In your project, you are in the process of determining the project roles, responsibilities,
and reporting relationships for your team members. Which of the following would you NOT
define/create at the end of this process?
Choice 1. Project staff assignments
Choice 2. Roles and responsibilities
Choice 3. Project organization charts
Choice 4. Staffing management plan

Correct Choice: 1

Justification
Project staff assignments are an output from the "Acquire Project Team" process and not the Plan
Human Resource Management process.

Question: Graphical representations of situations showing causal influences, time ordering of

events, and other relationships among variables and outcomes are also referred to as:
Choice 1. Cause-and-effect diagrams
Choice 2. System flow charts
Choice 3. Influence diagrams
Choice 4. Simulation diagrams

Correct Choice: 3
Justification
Influence diagrams. These are graphical representations of situations showing causal influences,
time ordering of events, and other relationships among variables and outcomes

Question: The responsibility of stakeholder expectations management usually lies with the:
Choice 1. Project management team
Choice 2. Project manager
Choice 3. Project team
Choice 4. Project manager, project sponsor, and project management team

Correct Choice: 2

Justification
The project manager is responsible for engaging and managing the various stakeholders in a
project.

Question: You are a project manager overseeing the construction of a Baseball Stadium. The
activity of laying the Grass Sod has an optimistic estimate of 10 days, pessimistic estimate of 16
days, and most likely estimate of 13 days. If your company has a quality requirement of Six Sigma,
what is the duration within which this task must be completed?
Choice 1. 10 days to 16 days
Choice 2. 7 days to 19 days
Choice 3. 12 days to 14 days
Choice 4. 11 days to 15 days

Correct Choice: 2
Justification
In a normal distribution, the PERT duration (also called mean)
= {Pessimistic + (4* Most Likely) + Optimistic}/6
= {16 + (4 * 13) + 10}/6
= 13

1 Standard Deviation (1 )
= (Pessimistic - Optimistic) / 6
= (16 - 10) / 6
=1

So, if the company has Six Sigma quality requirements,

Mean - 6 = 13 - 6 * 1 = 7
Mean + 6 = 13 + 6 * 1 = 19

The task can be completed within 7 days to 19 days.

Question: You are a project manager tasked with developing a new machine that will be used for
producing a unique style of reusable pop-off bottle cap. You are working with the Quality team to
identify potential quality issues with the machine during testing. When you collected the requirement
from stakeholders, the manager of manufacturing explicitly stated that it was important for the
number of defects to be kept to 2% or less. The sponsor asked for consistency and reliability in order
to avoid machine and employee downtime. The CFO said that the machine needed to last a
minimum of seven years without replacement. The customer's focus was on getting the bottle caps
produced in time for the launch of a new product which uses the new caps.

The team is currently assessing performance of the machine over time and would like to ensure that
the measurements of each bottle cap produced are within the set limits. You collect quality metrics
data for a number of bottle caps produced by the machine and would like to analyze the findings
using an appropriate tool. Which tool is the most appropriate for this?
Choice 1. A Histogram as it shows the number of defects
Choice 2. A Run chart; if the chart indicates a run, then you can use this to predict a trend in the
data
Choice 3. A Pareto chart as it will show which defects are the ones to focus on fixing
Choice 4. A Control chart as it will show whether the machine performance is stable and predictable

Correct Choice: 4

Justification
Option 1: This is a correct statement and although a histogram will help by showing the frequency of
each defect, it is not the most appropriate tool for assessing the performance stability of the
machine.

Question: In your project, you use product analysis to translate high-level product descriptions into
tangible deliverables and requirements. Which of the following techniques is not used in product
analysis?
Choice 1. Value engineering
Choice 2. Value analysis
Choice 3. Product breakdown
Choice 4. Alternatives identification

Correct Choice: 4

Justification
Product analysis includes techniques such as product breakdown, systems analysis, requirements
analysis, systems engineering, value engineering, and value analysis.

Question: In your project, you use product analysis to translate high-level product descriptions into
tangible deliverables and requirements. Which of the following techniques is not used in product
analysis?
Choice 1. Value engineering
Choice 2. Value analysis
Choice 3. Product breakdown
Choice 4. Alternatives identification

Correct Choice: 4
Justification
Product analysis includes techniques such as product breakdown, systems analysis, requirements
analysis, systems engineering, value engineering, and value analysis.

Question: Which document provides high-level cost information that is useful when planning for
project cost management?
Choice 1. Cost management plan
Choice 2. Project charter
Choice 3. Cost baseline
Choice 4. Requirements documentation

Correct Choice: 2

Justification
The Project charter is an important input to the Plan Cost Management process since it provides the
summary budget from which detailed project cost are developed.

Reference: PMBOK Guide - Fifth Edition, page 197.

PMstudy.com comments:

Option 1: The Cost Management Plan is an output of the Plan Cost Management process.

Option 3: The Cost baseline is not created until later during the Determine Budget process.

Option 4: The Requirements documentation is an output of the Collect Requirements process in

Project Scope Management.

Question: As a project manager during the Develop Schedule process, you are now deliberating on
the type of schedule presentations you are going to use. The difference between a milestone chart
and a bar chart is that unlike bar charts, milestone charts:
Choice 1. Show activity start and end dates
Choice 2. Show dependencies among tasks
Choice 3. Identify the scheduled start or completion of major deliverables only and not all the tasks
Choice 4. Show supporting details

Correct Choice: 3

Justification
Milestone charts are similar to bar charts, but they only identify the scheduled start or completion of
major deliverables and key external interfaces.

Reference: PMBOK Guide - Fifth Edition, page 182

PMstudy.com comments: Usually, milestone charts are used for presentations to senior
management but bar charts are used for presentations to middle and junior management.

Question: A company is considering three projects:

Project A has an NPV of $500,000

Project B has an NPV of $300,000

Project C has an NPV of $200,000

What is the opportunity cost if project A is selected?

Choice 1. $500,000
Choice 2. $200,000
Choice 3. $300,000
Choice 4. $0

Correct Choice: 3

Justification
Opportunity cost is the cost of passing up the next best option. The opportunity cost of choosing
project A (over project B, which is the next best option) is equal to NPV of the next best available
option. Net present value of project B is chosen = $300,000

Question: You are the project manager for a construction project, and 121 people report to you.
Your job requires that you allocate work to others and ensure that the work is done on time. The tool
you use is:
Choice 1. Work Breakdown Structure
Choice 2. Work Authorization System
Choice 3. PERT / CPM / Network diagrams
Choice 4. WBS dictionary

Correct Choice: 2

Justification
Work Authorization System: It is a collection of formal documented procedures that defines how
project work will be authorized (committed) to ensure that the work is done by the identified
organization, at the right time, and in the proper sequence. It includes the steps, documents, tracking
system, and defined approval levels needed to issue work authorizations.

Question: A contract where the buyer reimburses the seller the costs incurred by her and also
provides a fixed amount of profit is called a:
Choice 1. Cost plus incentive fee contract
Choice 2. Cost plus fixed fee contract
Choice 3. Time and material contract
Choice 4. Cost plus award fee contract

Correct Choice: 2
Justification
In Cost plus fixed fee contracts (CPFF), the seller is reimbursed for all allowable costs for performing
the contract work, and receives a fixed fee payment calculated as a percentage of the initial
estimated project costs. Fee amounts do not change unless the project scope changes.

Question: When does the project manager review prior phase documentation and customer
acceptance documentation from the Validate Scope process?
Choice 1. Close Project or Phase
Choice 2. Control Scope
Choice 3. Control Quality
Choice 4. Perform Quality Assurance

Correct Choice: 1

Justification
Option 1 is the correct answer.

Option 1: During project closure, the project manager reviews prior phase documentation, customer
acceptance documentation from the Validate Scope process and the contract (if applicable), to
ensure that all project requirements are completed prior to finalizing the closure of the project.

Option 2: Control Scope is the process of monitoring the status of the project and project scope and
managing changes to the scope baseline.

Option 3: Control Quality is the process of monitoring and recording results of executing the quality
activities to assess performance and recommend necessary changes.

Option 4: Perform Quality Assurance is the process of auditing the quality requirements and the
results from quality control measurements to ensure that appropriate quality standards and
operational definitions are used.

Question: You are in the process of identifying the relevant stakeholders in the project. In this
context, which of the following is/are relevant output(s) of this process?
Choice 1. Stakeholder register and Stakeholder Management Plan
Choice 2. Stakeholder Management Strategy
Choice 3. Organizational process assets updates
Choice 4. Stakeholder register

Correct Choice: 4

Justification
The output of the Identify Stakeholders process is the Stakeholder register.

Question: You recently took over the management of a construction project. The project is in the
executing phase and the previous project manager has left the organization. You realize the project
is seriously behind schedule and over budget. After talking with the project team, and discussions
with the project management team regarding the issues, you still have not been able to discern the
reason for the schedule variances.

The team is working well, and from what you can see, should be on schedule and within budget. As
you begin to review the progress that has been made so far, and compare that to the schedule, you
see that certain tasks have taken significantly longer and incurred more costs than originally
estimated. The site preparation work was estimated to take one month, but actually took two months
and cost 30% more than anticipated. Pouring the foundation was scheduled to take two weeks, but
actually took three weeks and again cost more than planned. Paving the parking area also took
longer than expected. Your analysis also indicates that the period during which these activities were
being carried out had much more rain than normal.

Based on this information, what would be the MOST LIKELY reason for the variances in the project
schedule and budget?
Choice 1. The scope was not well defined
Choice 2. The project manager was not ensuring that scope verification was being done
Choice 3. Assumptions used in the planning processes were not valid
Choice 4. Integrated Change Control was not being performed

Correct Choice: 3
Justification
Based on the scenario described, the variances appear to be related to weather issues, which
weren`t anticipated. Many time and cost estimates are based on assumptions, and if these
assumptions are not valid, actual project performance can and often will differ from what was
estimated.

Assumptions are taken into account when estimating both time and cost. PMI mentions documenting
the assumptions on which estimates are based, in both the Cost Management and Time
Management chapters. Assumptions are also a key part of the project scope statement.

Question: Planning the scope for a project occurs very early in the project life cycle. One of the first
steps is to document how the project scope will be defined, validated, and controlled. The output(s)
of the Plan Scope Management process are:
Choice 1. Scope management plan
Choice 2. Scope baseline and Requirements documentation
Choice 3. Scope management plan and Requirements documentation
Choice 4. Scope management plan and Requirements management plan

Correct Choice: 4

Justification
Both the Scope Management Plan and the Requirements Management Plan are outputs of the Plan
Scope Management process.

Reference: PMBOK Guide - Fifth Edition, page 106 (figure 5-1)

PMstudy.com comments:

Option 2: The Scope baseline is an output of the Create WBS process.

Option 3: The Requirements documentation is an output of the Collect Requirements process.

Question: Planning the scope for a project occurs very early in the project life cycle. One of the first
steps is to document how the project scope will be defined, validated, and controlled. The output(s)
of the Plan Scope Management process are:
Choice 1. Scope management plan
Choice 2. Scope baseline and Requirements documentation
Choice 3. Scope management plan and Requirements documentation
Choice 4. Scope management plan and Requirements management plan

Correct Choice: 4

Justification
Both the Scope Management Plan and the Requirements Management Plan are outputs of the Plan
Scope Management process.

Reference: PMBOK Guide - Fifth Edition, page 106 (figure 5-1)

PMstudy.com comments:

Option 2: The Scope baseline is an output of the Create WBS process.

Option 3: The Requirements documentation is an output of the Collect Requirements process.

Question: Please refer to the Decision Tree diagram given below. It shows the analysis of profit/loss
for the two alternatives (i.e., to build or buy).

What is the opportunity cost if the project manager decides to build instead of buy?
Choice 1. - $1,500
Choice 2. $3,500
Choice 3. $1,500
Choice 4. $5,000
Correct Choice: 2

Justification
Please refer to the diagram below :

Profit of build: $5,000

Profit of buy: $3,500

Opportunity cost of build = Profit you give up if you do not buy = $3,500

Question: You are managing a project to develop an emergency brake to an upcoming new model
of RV. In your project, you have to complete building a prototype before testing can begin. This is an
example of:
Choice 1. Mandatory dependency
Choice 2. Discretionary dependency
Choice 3. External dependency
Choice 4. Preferred logic

Correct Choice: 1
Justification
Mandatory dependencies are those that are legally or contractually required or inherent in the nature
of the work. Mandatory dependencies often involve physical limitations, such as on a construction
project where it is impossible to erect the superstructure until after the foundation has been built, or
on an electronics project, where a prototype must be built before it can be tested.

Question: You have managed to identify the five main tasks in your project. You represent the
dependency and duration in the table given below:

What is the slack of task 5?

Choice 1. 0
Choice 2. 1
Choice 3. 2
Choice 4. -1

Correct Choice: 1
The network diagram for the project tasks can be represented as shown below.

The lengths of different paths are:

Start 1 2 End: 10 months

Start 3 5 End: 11 months
Start 4 5 End: 12 months

Since the longest path is Start 4 5 End; this is the critical path.

Task 5 lies on the critical path; hence the slack for task 5 is "0".

Question: Which of the following statements about Control Quality is accurate?

A. Prevention refers to keeping errors out of the process, whereas inspection refers to keeping
errors out of the hands of the customer.
B. Attribute sampling determines whether the result conforms or not, and variables sampling
determines the degree of conformity.
C. Tolerances refer to a specified range of accepted results and control limits refer to thresholds,
which can indicate whether the process is out of control.
D. Control Quality is only performed during the Monitoring and Controlling phase of a project.
Choice 1. B, C and D
Choice 2. A, C and D
Choice 3. A, B and D
Choice 4. A, B and C

Correct Choice: 4

Justification
Quality control should be used during the project executing and closing phases to formally
demonstrate, with reliable data, that the sponsor and/or customer`s acceptance criteria have been
met.

Question: In your project, the project architect met with an accident and will not be available for the
next 3 months. You had not planned for this in risk planning - what should you do NEXT?
Choice 1. Create a Workaround
Choice 2. Create a Fallback Plan
Choice 3. Do additional risk response planning
Choice 4. Create a new risk register for this risk

Correct Choice: 1

Justification
Workaround. A response to a threat that has occurred, for which a prior response has not been
planned or was not effective.

Question: The following are all tools and techniques for the Plan Schedule Management process:
Choice 1. Expert judgment, Analytical techniques, Meetings
Choice 2. Expert judgment, Reserve analysis, Meetings
Choice 3. Expert judgment, Reserve analysis, Rolling wave planning
Choice 4. Analytical techniques, Meetings, Project management software,

Correct Choice: 1

Justification
The tools and techniques used in the Plan Schedule Management process are expert judgment,
analytical techniques, and meetings.

Options 2, 3, and 4: Reserve analysis is a tool for the Estimate Activity Durations process. Rolling
wave planning is a tool for the Define Activities process. Project management software is a tool for
the Estimate Activity Resources and Control Schedule processes

Question: Maximum intensity of conflicts occur over:

Choice 1. Priorities
Choice 2. Schedules
Choice 3. Personality
Choice 4. Cost

Correct Choice: 2

Justification

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling,

page 302

Question: You are a project manager overseeing a canal development project. The table given
below shows the time estimates for the different tasks involved. Please refer to it and answer the
question that follows.
What is the impact on the project if task 1 2 takes 2 months more than what was earlier planned?
Choice 1. The project duration will increase by 1 month
Choice 2. The project risk will increase
Choice 3. The project duration will increase by 2 months
Choice 4. The project float will increase by 2 months

Correct Choice: 2

Justification
Please refer to the diagram below:

The lengths of different paths are:

Start 1 2 End: 10 months

Start 3 5 End: 11 months
Start 4 5 End: 12 months

Since the longest path is Start 4 5 End, this is the critical path. Length of the critical path is 12
months.

If task 1 2 takes 2 more months,

length of Start 1 2 End : 12

Now we have 2 critical paths, i.e.,

Start 1 2 End: 12 months

Start 4 5 End: 12 months

Hence, the risk in the project increases, because delay in either of the critical paths will cause a
delay in the project.

Question: You want to identify quality requirements and standards relevant to your project and
product. For this, you will:
Choice 1. Perform Quality Assurance
Choice 2. Plan Quality
Choice 3. Perform Quality Control
Choice 4. Plan Quality Management

Correct Choice: 4

Justification
Plan Quality Management is the process of identifying quality requirements and/or standards for the
project and its deliverables and documenting how the project will demonstrate compliance with
quality requirements.

Question: One of your team members filed a critical report ten minutes before a bidder conference.
You notice some serious errors have crept into the report. You should:
Choice 1. Cancel the meeting and reschedule it at a later date
Choice 2. Go ahead with the meeting and tell the participants what is wrong with the report
Choice 3. Go ahead with the meeting, but ask your team member to make the presentation
Choice 4. Refer the team member`s report to management and ask them to cancel the meeting
Correct Choice: 1

Justification
Option 1 is the best choice. Option 2 and 3 can adversely impact the team morale and undermine
your position in the bidder conference. Option 4 is not recommended, as you should try to solve the
problem yourself.

Question: Which of the following statements is NOT true about a project life cycle?
Choice 1. All project life cycles are usually identical.
Choice 2. The level of risk is highest at the start of the project and decreases as the project
progresses.
Choice 3. The ability of the stakeholders to influence the final characteristics is highest at the start
and gets progressively lower as the project continues.
Choice 4. Cost and staffing requirements usually peak during the intermediate phases.

Correct Choice: 1

Justification
Although many projects may have similar phase names with similar deliverables, few are identical.

Further, look out for absolute statements with terms like "All", "None", "Never", "Always", "Must", etc.
Such options should be carefully evaluated because they may be incorrect.

Question: You have completed the process of developing options and actions to enhance
opportunities and to reduce threats to project objectives. What is your NEXT step?
Choice 1. Determine which risks may affect the project and document their characteristics.
Choice 2. Implement risk response plans, track identified risks, monitor residual risks, identify new
risks, and evaluate risk process effectiveness throughout the project.
Choice 3. Define how to conduct risk management activities for a project.
Choice 4. Assess the priority of identified risks using their probability of occurrence.
Correct Choice: 2

Justification
Plan Risk Responses is the process of developing options and actions to enhance opportunities and
to reduce threats to project objectives.

Control Risks is the process of implementing. risk response plans, tracking identified risks,
monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout
the project.

The other options take place prior to the Plan Risk Responses process:

Option 1: This refers to the Identify Risks process.

Option 3: This refers to the Plan Risk Management process.
Option 4: This refers to the Perform Qualitative Risk Analysis process.

Reference: PMBOK Guide - Fifth Edition, page 309

PMstudy.com comments: Please note that the Control Risks process should follow the Plan Risk
Responses process. So, option 2 is the correct answer.

Question: In your company, the project manager shares responsibility with the functional manager
to assign priorities and directs the team members of the project. In this case, it is NOT the
responsibility of the project manager to:
Choice 1. Plan resources
Choice 2. Manage cost and budget
Choice 3. Carry out performance appraisal of project team
Choice 4. Define tasks

Correct Choice: 3

Justification
In a matrix organization, the project manager shares responsibility with the functional managers for
assigning priorities and for directing the work of persons assigned to the project.
Reference: PMBOK Guide - Fifth Edition, page 546

PMstudy.com comments: In most matrix organizational structures, personnel performance

management is not the responsibility of the project manager; this task is usually done by the
functional manager. However, a project manager is always responsible for Plan resources (Option
1), Manage cost and budget (Option 2), and Define tasks (Option 4).

Question: In your project, you are monitoring and controlling communications throughout the entire
project life cycle to ensure the information needs of the project stakeholders are met. The
information typically provides status and progress information on the project at the level of detail
required by the various stakeholders. This is done through:
Choice 1. Plan Communications Management process
Choice 2. Control Communications process
Choice 3. Manage Communications process
Choice 4. Earned Value management

Correct Choice: 2

Justification
Control Communications is the process of monitoring and controlling communications throughout the
entire project life cycle to ensure the information needs of the project stakeholders are met. Work
performance information is an output of Control Communications process. Generally, this information
provides status and progress information on the project at the level of detail required by the various
stakeholders.

Question: After collecting requirements, one of your tasks as a project manager is to prepare a
scope statement for your project. The scope statement provides:
Choice 1. Authorization to the project manager for using organizational resources for project
activities.
Choice 2. Documentation of how the project scope will be managed and how scope changes will be
integrated into the project.
Choice 3. Definition for work breakdown structure.
Choice 4. Common understanding of the project scope among project stakeholders.

Correct Choice: 4
Justification
The project scope statement is the description of the project scope, major deliverables, assumptions,
and constraints...project scope among project stakeholders.

Reference: PMBOK Guide - Fifth Edition, page 123

PMstudy.com comments: Project scope statement provides a documented basis for making future
project decisions and for confirming or developing a common understanding of project scope among
project stakeholders.

Question: You have geographically dispersed team members, from whom you would like to
anonymously obtain expert opinion on the project you are managing. Which information gathering
technique should you use?
Choice 1. Brainstorming
Choice 2. Delphi technique
Choice 3. SWOT analysis
Choice 4. Checklists

Correct Choice: 2

Justification
The Delphi technique is a way to reach a consensus of experts. Project risk experts participate in
this technique anonymously.

Reference: PMBOK Guide - Fifth Edition, page 324

PMstudy.com comments: Brainstorming and SWOT analysis are not done anonymously. Checklists
are an output of the Plan Quality process.

Question: In the last project status meeting, a team member criticized some of his teammates and
undermined the status of work done by them. The role that was played by the person was that of:
Choice 1. Aggressor
Choice 2. Conflict Maximizer
Choice 3. Devil`s Advocate
Choice 4. Recognition Seeker

Correct Choice: 1

Justification

Roles that undermine project management implementation

The Aggressor

- Criticizes everybody and everything on project management

- Deflates the status and ego of other team members
- Always acts aggressively

The Dominator

- Always tries to take over

- Professes to know everything about project management
- Tries to manipulate people
- Will challenge those in charge for a leadership role

Question: Which project will be selected from the following options?

Choice 1. Project A: internal rate of return of 12%, opportunity cost $0
Choice 2. Project B: internal rate of return of - 2%, opportunity cost of $20,000
Choice 3. Project C: benefit cost ratio of 0.5, payback period of 6 months
Choice 4. Project D: internal rate of return of 0%, opportunity cost of $200,000

Correct Choice: 1

Justification
The only suitable option is option 1, because the internal rate of return is positive, i.e., 12%. All other
options exhibit unfavorable selection criteria. Opportunity cost is not a selection criteria.
Internal Rate of Return (IRR)

Discount Rate on an investment which makes Present value of cash inflows = Present value
of cash outflows

Project Selection Criterion: Select a project with higher IRR.

Example: There are two projects. Project A has an IRR of 15% and will be completed in 5 years.
Project B has an IRR of 10% and will be completed in 1 year. Which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller duration than project A does
not matter because time is already taken into account in IRR calculations.

Question: Since the buyer could not meet the requirements of the contract, you (the seller) want to
terminate the contract early. This is done in the:
Choice 1. Plan Procurement Management process
Choice 2. Control Procurements process
Choice 3. Close Procurements process
Choice 4. Conduct Procurements process

Correct Choice: 3

Justification
Early termination of a contract is a special case of procurement closure. Procurement closure takes
place in the Close Procurements process.