Full Length Mock Test 03.

Resources: Based on PMBOK 5th Edition

Info:

 Maintainer: TechFAQ360
 Home page: http://www.techfaq360.com
 Version: 2

Questions
Question - 1

A project is overbudget - which of the below statements is true ?

A. CPI < 1

B. CPI and SPI > 1

C. SPI < 1

D. CPI > 1

A is the correct answer. CPI = EV / AC. If the actual cost expended is more than the value
earned CPI < 1 - project is over budget.

Question - 2

You are in charge of a software development project.In your last project you were able to
decrease the defects by 15% by ensuring the development and Quality Control team members
worked together in the Unit testing phase to better understand the application.In your current
project you set the limit of defects to be 15% lower than the company average - This is an
example of :

A. Benchmarking

B. Cost of Quality

C. Design of Experiments
D. Quality Checklists

A is the correct answer.This is an example of Benchmarking - it is the process of setting goals to

your project using results of Quality Planning of other projects.By benchmarking in advance they
act as good reference points to calibrate your projects performance - even prior to getting
started.The correct answer is option A

Question - 3

Two of your project team members are having an arguement over who was exactly responsible
for the task.They have been debating long and hard and no one seems to be wanting to give an
inch.You decide to find out who was really responsible for the task - in which document would
you find this information ?

A. Project Management Plan

B. RACI Matrix

C. Resource Smoothing

D. Resource Leveling

B is the correct answer.The correct answer is option B - RACI Matrix.Resource Leveling is a

technique used to balance the demand of resources while Resource Leveling is the technique in
which schedule is adjusted in such a way that resource requirements do not exceed certain
limits.While the project management plan consists of multiple plans and could be an option - a
more accurate answer is the RACI Matrix - which clearly defines the responsibility and tasks of
each role or person

Question - 4

You have replaced an earlier project manager.The project is already in its third month of
execution.You need to determine if the project is ahead or behind schedule.What would be the
BEST source of this information ?
A. Work performance data

B. Work performance Measurement

C. Project Management software

D. Pareto Chart

B is the correct answer.Work performance measurement provides details of planned Vs actual

values which helps in determining the health of the project .Work performance data is the at
actuals information that helps in measuring performance.Project management software helps
facilitate tracking of data while Pareto chart is used in Quality Control.The correct answer is
Option B - Work performance Measurement

Question - 5

The product description of a project can help to create procurement details. Which one of the
following best describes product description?

A. The product description defines the contracted work, based on the requirements of the project
customer

B. The product description defines the contracted work

C. The product description defines the requirements for the contract work

D. All of the above

A is the correct answer. The product description defines the contracted work, based on the
requirements of the project customer.

Question - 6

Which of the following involves estimating the cost of individual work items:

A. Computerized
B. Bottom up estimating

C. Analogous estimating

D. Square foot

B is the correct answer. Bottom-up estimating : Estimating the cost of individual work items and
then rolling up the costs to arrive at a project total , more accurate

Question - 7

If you are a project manager and a change request has been denied, you should:

A. Record it and save it.

B. Pass on to the project team.

C. Forget it

D. None

A is the correct answer. You have to keep track of all change requests.

Question - 8

One of your colleagues is managing a project.You find that he routinely discriminates against the
minority community.What should you do ?

A. Stop talking to him anymore

B. Ignore as it is none of your business

C. Learn from him and applaud him

D. Report the issue to senior management

D is the correct answer.It is never ok to discriminate against anyone - be it on gender , caste ,
creed or religion or ethnicity.The correct option is D

Question - 9

A Reserve Analysis involves:

A. Estimating by multiplying the quantity of work by productivity rate

B. Adding resource reserves to the activity resource estimates

C. Developing project schedule with contingency reserves as a recognition of the schedule risk

D. Incorporating time buffers into the activity duration estimates

D is the correct answer. Reserve Analysis ( Contingency ): Project teams may choose to
incorporate an additional time frame, called time reserve, contingency or buffer, that can be
added to the activity duration or elsewhere in the schedule as recognition of schedule risk.

Question - 10

The client has rejected some of the deliverables.On further analysis these are found to be defects
- what should you do next ?

A. Fix them immediately so that the deliverables get accepted

B. Discuss with the client and try and negotiate - so that deliverables get accepted

C. Write up a change request

D. Identify the impact of the defect repair and write up a change request

D is the correct answer.Options A and B are wrong.Option C is partial - but the best choice is D
where you file a change request - but first identify the impact to the triple constraints and then
write up a change request for defect repair

Question - 11

You have been asked to manage a project midway into its execution as the prior manager has left
the organization.While reviewing the project with team members they inform you that one of the
problems being faced is the ambiguity in work packages.Many a time staff is confused about
work packages since they dont know who is responsible for its execution and lack of clarity on
what exactly needs to be done.This has often been causing unnecessary delays.You decide to fix
this by updating these details - where would you update this information?

A. RACI

B. Resource Histogram

C. Scope Management Plan

D. WBS Dictionary

D is the correct answer.Information regarding work packages such as assignment , start and end
date , details of work is documented in WBS dictionary.RACI is a responsibility assignment
matrix but does not specify what exactly needs to be done - it just states who is accountable .The
correct answer is option D

Question - 12

Adjusting Leads and Lags is a technique for:

A. Develop Schedule

B. Estimate Activity Durations

C. Estimate Activity Resources

D. Sequence Activities
A is the correct answer. Adjusting Leads and Lags: Since the improper use of leads or lags can
distort the project schedule, the leads or lags are adjusted during schedule network analysis to
develop a viable project schedule. Tools and Techniques for Develop Schedule are :
Mathematical analysis,Duration compression,Simulation,Resource-leveling ,Project management
software,Adjusting Leads and Lags and Coding structure.

Question - 13

Which is the most risky phase of a project?

A. Planning

B. Closing

C. Execution

D. Control

C is the correct answer. The Planning phase is the phase with the least risk attached. The
Execution phase of the project is when you are using your resources at their highest level .

Question - 14

Who is responsible to ensure the Project Charter's objectives are met ?

A. Project Manager

B. The Project team

C. Business Stakeholders

D. PMO

A is the correct answer.This clearly is the project manager's responsibility to ensure project
achieves its objectives .The project team works to achieve these - but it is primarily the project
manager's responsibility.
Question - 15

Stakeholder registers from previous projects are part of ______.

A. Organizational process assets

B. Project Charter

C. MOM

D. Risk Register

A is the correct answer. Stakeholder registers from previous projects are part of Organizational
process assets .

Question - 16

You have started work on a project.The project is expected to take about 7 months to
complete.You want to ensure all best practices being implemented are identified earlier - rather
than at the end of a phase or at end of project.What tool or technique should you use ?

A. Perform Quality Control

B. Conduct a Lessons Learnt exercise

C. Quality Audits

D. Inspection

C is the correct answer.Quality Audits are useful to identify best practices and can be be
performed intermittently and independently.While Lessons Learnt definitely can provide this
information - it is generally done at the end of the project r phase.However the question states
that this information be made available earlier - so Lessons Learnt is not the correct
choice.Quality Control and Inspection are both useful to identify defects and ensure conformance
to standards - they are not useful for identifying best practices.So the correct answer is option C
Question - 17

Which of the following statements about contract type is correct?

A. A fixed price contract contains the most risk for the buyer.

B. Cost reimbursable contracts offer sellers the highest profit potential.

C. Lump sum contracts offer sellers the greatest profit potential.

D. Unit price contracts are illegal in many jurisdictions.

C is the correct answer. Lump sum contracts offer sellers the greatest profit potential. A fixed
price always loss for seller if project scope changes.

Question - 18

After working on a couple of projects and building algorithms to calculate distances based on
latitude and longitude - you are somewhat of an expert.Your company hopes to win many
projects that will need this expertize.Which of the following is the RIGHT thing to do ......

A. Purposefully not train anyone - this will make you invaluable

B. Go about your job - training others is not your responsibility

C. Volunteer to train others in the organization so that others can also learn

D. None of the above

C is the correct answer.Contributing to the Project Management body of knowledge is the correct
answer - so training others is what you should do

Question - 19
You are project manager and now in middle of creating RFP (Request for proposal). RFP
(Request for proposal) is done in _______.

A. Plan Procurement Management

B. Conduct Procurements

C. Control Procurements

D. Close Procurements

A is the correct answer. RFP (Request for proposal) is done in Plan Procurement Management
process.

Question - 20

Which of the following statement is NOT true regarding Product Analysis ?

A. It is a Technique used to Define Scope

B. It is a common technique used for projects that deliver a service

C. It is used to translate High Level product descriptions into tangible deliverables

D. It includes using techniques such as Value Engineering and Value Analysis

B is the correct answer.Option B is not true regarding Product Analysis.This technique is used
for projects that have a product as a deliverable rather than a service or result.

Question - 21

You are managing a project and to ensure things run smoothly - you have decided to provide
project information periodically to all the stakeholders.You have decided that you would report
against the baselines for scope , cost and schedule.Which of the following would be the best
choice ?
A. Performance reporting

B. Status reports

C. Forecasts

D. Risk Register

A is the correct answer.The best choice is Performance reporting with respect to the triple
constraints - Scope,Schedule and Cost.Forecasts are future projections while risk register deals
with risks which are not the right options.While status reports could be an option the best answer
is Performance reporting.

Question - 22

With 6 people in your team , 2 sponsors within your company and a client .All of these need to
be communciated with and kept informed about the project.How many communication channels
?

A. 81

B. 36

C. 45

D. 72

C is the correct answer.Did you choose 36 ? Did you forget yourself ?! The correct answer is 45

Question - 23

One of the seller is offering a gift.It is beyond the gifting limits set by your company.What
should you do?

A. Refuse the gift.

B. Give the seller a gift of equal value.

C. Politely decline the gift indicating to the supplier that it would violate your company policy.

D. It does no harm - accept the gift and enjoy!

C is the correct answer.It is best to decline but in a tactful manner without hurting anyone.So it is
best to decline citing company policy which is a fact!

Question - 24

The work that must be done in order to deliver a product with the specified features and
functions included in the __________?

A. Execution Plan

B. Project Scope

C. Product scope

D. Statement of work.

B is the correct answer. Product scope - The features and functions that are to be included in a
product or service. Project scope - The work that must be done in order to deliver a product with
the specified features and functions.

Question - 25

Which of the following is not a part of Performance Measurements?

A. Calculating Earned Value

B. Calculating ETC

C. Calculating Cost Variance

D. Calculating Planned Value

A is the correct answer. Calculating Earned Value is not done as part of Performance
Measurements.

Question - 26

Of the following types of contracts - which has the HIGHEST risk for the buyer ?

A. Cost plus fixed fee - CPFF

B. Time and Material

C. Firm Fixed Price Contract - FFP

D. Fixed Price Incentive Fee Contracts - FPIF

A is the correct answer.The riskiest for the buyer in the options stated above is - Cost plus fixed
fee.This is because its a Cost-reimbursable type of contract in which total costs are unknown - so
there is an element of risk involved as total scope of work is not clear.Time and material have
medium risk from the perspective of the buyer and are typically used for smaller dollar
amounts.Of the options the Fixed price options are the least risky for the buyer since the cost will
not change no matter what for the buyer ! The correct answer is option A

Question - 27

The project schedule is being developed.You now have the work broken down into work
packages.You are now building a relationship between work packages and the resources .Which
tool would you use ?

A. Responsibility Assignment Matrix

B. Control Accounts

C. Tight Matrix
D. Requirements Traceability Matrix

A is the correct answer.This is an example of Responsibility Assignment Matrix where we are

associating the work packages with the resources.

Question - 28

The activity that is most concerned with the current status of the project schedule is called
___________.

A. Project time management

B. Control Schedule

C. Monitoring and controlling

D. All of the above

B is the correct answer. Control Schedule: The activity that is most concerned with the current
status of the project schedule.

Question - 29

How much time does the typical project manager spend communicating both formally and
informally?

A. 40-60%

B. 50-70%

C. 60-80%

D. 75-90%

D is the correct answer. Maximum time project manager should involve in communicating both
formally and informally.

Question - 30

Which describes how cost variances will be managed?

A. Cost management plan

B. Cost baseline

C. Cost estimate

D. Chart of accounts

A is the correct answer. Cost management plan describes how cost variances will be managed.

Question - 31

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

A. Direct and Indirect

B. Tactical and Strategic

C. Management and Project

D. Only Tactical

A is the correct answer. Make-or-buy decisions measure the costs 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 - 32

Which of the following process involves measuring a project, product scope performance and
managing scope baseline changes?

A. Collect Requirements

B. Define Scope

C. Validate Scope.

D. Control scope

D is the correct answer. Control scope process involves measures project and product scope
performance and managing scope baseline changes.

Question - 33

You have recently joined an organizations project management office.After reviewing the
organizational assets you realize that project managers have not routinely documented lessons
learned for their projects.A few new projects are about to start - You decide to call up a meeting
of all the project managers and explain the need of Lessons Learned.In order to get a buy in from
your managers - What would you focus on as the best use of this document

A. It helps the team to plan tasks

B. It helps in performance reporting

C. It will help the manager to better control the project

D. The historical information can be used for other projects

D is the correct answer.Note that the question states that new projects are about to start - and past
lessons learned of projects could have served as good inputs for the other projects.Not having
lessons learned handicaps the managers.So here the correct answer is D

Question - 34

Staffing requirements do not define:

A. What types of skills are required

B. What time frames

C. What kinds of individuals or groups

D. What type of resource planning is required

D is the correct answer. Staffing requirements do not define What type of resource planning is
required.

Question - 35

______________ provides details about how the project scope may be changed.

A. Control Scope system

B. Validate Scope

C. Scope Charter

D. Scope Management plan

D is the correct answer. The scope management plan provides details about how the project
scope may be changed.

Question - 36

Which of the statement is true about Lessons learned?

A. Used to collect information about good and bad outcomes throughout the project

B. Best collected at the end of the project

C. Only necessary at the end of the project

D. All of the above

A is the correct answer. Lessons learned: Used to collect information about good and bad
outcomes throughout the project

Question - 37

Stakeholder classification done in __________ process.

A. Identify Stakeholders

B. Plan Stakeholder Management

C. Manage Stakeholder Engagement

D. Control Stakeholder Engagement

A is the correct answer. Stakeholder classification done in Identify Stakeholders process

Question - 38

You are in charge of a large construction project which deals with building of a shopping
mall.You have been actively monitoring your risks and work performance information.Overall
the project has been running smoothly.Suddenly one day, the chief on site engineer takes ill and
will not be able to report to work till after the project.This was not considered in the Risk
Register - what is the best way to handle the situation ?

A. Look for an alternative person who can handle the Onsite Engineer's duties

B. Lookup the risk probability and impact

C. Perform a Qualitative Risk Analysis

D. Perform a Quantitative Risk Analysis

A is the correct answer.This risk was not considered so no amount of risk planning is of any use
as the risk has already occurred.It is no longer a risk - it is an issue.The best way to deal with this
situation is to find an alternate person who can perform the work of the site engineer - Option A

Question - 39

John and James are arguing over what constitutes a project and an operation.John had to make a
change on a screen where he added an additional field to capture the user's age.This was done to
an existing screen which was live.John was citing this example as a project - James disagreed
and felt this to be an operational function - who is correct ?

A. John

B. James

C. Neither

D. Hard to tell

B is the correct answer.This is not an example of a Project - but of operations.A project involves
planning while what John is stating is regular maintenance which might involve planning but not
enough to warrant it to be called a project.So option B is the correct answer

Question - 40

The primary output of the project closing process ____________.

A. To formalize and distribute all information pertaining to the project closing

B. Lessons learned

C. To get customer and sponsor approval

D. Milestone list
A is the correct answer. The primary output of the project closing process is to formalize and
distribute all the information pertaining to the closing of the project.

Question - 41

Market conditions are a part of ________.

A. Enterprise environmental factors

B. Project management concerns

C. Organizational process assets

D. Cost factor

A is the correct answer. Market conditions will influence all factors of procurement.

Question - 42

Tomorrow there is a possibility of a strike which will affect all transport.Staff may not be able to
reach office because of the strike.You decide to declare the next day as a holiday and make up
for this time in the future.Which risk response strategy did you adopt ?

A. Transfer

B. Accept

C. Mitigate

D. Avoid

D is the correct answer.This is an example of risk avoidance - you have taken steps to avoid it in
totality by declaring a holiday

Question - 43
Which of the following best describes Achievement Theory of Motivation ?

A. Employees given a reward are most likely to be motivated

B. People cannot be trusted and must be governed and monitored regularly to ensure tasks get
done

C. People are motivated by achievement , power and affiliation

D. Employees will put in an effort in direct proportion to the perceived review and reward

C is the correct answer. Option A and Option D are related to Expectancy theory , Option B is
related to Theory X style of management - so these options are not the correct answers. Option C
- is the correct answer - this theory states - there are three types of motivational needs: Need for
achievement , need for authority and power , need for affiliation. As per this theory a strong
'affiliation-motivation' undermines a manager's objectivity, because of their need to be liked, and
that this affects a manager's decision-making capability. A strong 'authority-motivation' will
produce a determined work ethic and commitment to the organisation. such people are attracted
to the leadership role, though they may not possess the required flexibility and people-centred
skills. People with strong 'achievement motivation' make the best leaders, although there can be a
tendency to demand too much of their staff in the belief that they are all similarly and highly
achievement-focused and results driven, which of course most people are not. As per this theory
achievement-motivated individuals set goals which they can influence with their effort and
ability, and as such the goal is considered to be achievable. This determined results-driven
approach is almost invariably present in the character make-up of all successful business people
and entrepreneurs. Achievement is more important than material or financial reward. Achieving
the aim or task gives greater personal satisfaction than receiving praise or recognition. Financial
reward is regarded as a measurement of success, not an end in itself. Security is not a prime
motivator, nor is status. Feedback is essential, because it enables measurement of success, not for
reasons of praise or recognition (the implication here is that feedback must be reliable,
quantifiable and factual). Achievement-motivated people constantly seek improvements and
ways of doing things better.

Question - 44

Which of the following is not a part of the Earned Value calculations?

A. Unknown Unknowns

B. Project Budget

C. Known Unknowns

D. Amount of work completed

A is the correct answer. Unknown Unknowns is not part of the Earned Value calculations.

Question - 45

Which is a valid response to negative risks?

A. Exploit

B. Share

C. Enhance

D. mitigation

D is the correct answer. Risk mitigation is a response to negative risks and not positive risks.
Positive risks may be responded by - "Exploit", "Enhance", "Share", "Accept".

Question - 46

During the planning phase of your project, your project team members have discovered another
way to complete a portion of the project scope. This method is safer for the project team, but
may cost more for the customer. This is an example of _______.

A. Alternative identification

B. Risk assessment

C. Alternative selection
D. Product analysis

A is the correct answer. Alternative identification is a planning process to find alternatives to

completing the project scope.

Question - 47

Which is not an example of formal communication?

A. Contract

B. email

C. Project status report

D. Status meeting

B is the correct answer. Communication via email is not considered a formal communication.

Question - 48

If the Earned Value is equal to the Actual Cost, What does it mean?

A. There is no cost variance

B. There is no schedule variance

C. Schedule Variance Index is 1

D. Project is on budget and on schedule

A is the correct answer. Cost Variance = EV - AC . Therefore if EV = AC, the Cost Variance is
zero .
Question - 49

The tools and techniques used in the initiation process are:

A. Product analysis

B. Project Develop Schedule

C. Expert judgment

D. Project budget

C is the correct answer. Expert judgment is required in the initiation process

Question - 50

You have completed Schedule network diagram. So which time management activity have you
completed?

A. Develop Schedule

B. Estimate Activity Duration

C. Sequence Activities

D. Estimate Activity Resources

C is the correct answer. Sequence Activities is where you are actually creating the schedule -
activity sequencing and duration etc .

Question - 51

Most change requests are a result of _______.

A. Value added change (enhancements)

B. Schedule constraints

C. Regulatory constraints

D. Improvement to the project scope

A is the correct answer. Most change requests (CRs) are a result of Value added change
(enhancements).

Question - 52

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 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 :

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

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

C. Perform activities in Parallel to decrease the schedule

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

B is the correct answer.Option B 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 - 53

As a project manager - you are expected to calculate the cost of Poor Quality - the project work
is in progress - what costs would you consider ?

A. Cost of Hiring.
B. Prevention costs.

C. Appraisal costs.

D. External and Internal Failure costs.

D is the correct answer. Cost of Hiring has nothing to do with cost of Poor Quality - so it is not
the correct answer.Cost of Poor Quality is just another term for Failure Costs. Failure Cost is
generally categorized into External & Internal Failure costs - so option D is correct.Prevention
and Appraisal costs are actually costs of conformance - which is the cost incurred to avoid
failures - so these are not considered as cost of Poor Quality.

Question - 54

Projects are initiated in response of which of the following?

A. Stakeholder's pressure

B. Business needs

C. Technological obsolescence

D. All of the above

D is the correct answer. All of the above are the reasons for project initiation.

Question - 55

If a project with a CPI of 1.2, what you tell?

A. The project is consuming fewer resources than anticipated

B. The project is using fewer resources than anticipated.

C. The project is falling behind.

D. The project is running ahead of schedule.

A is the correct answer. If your cost performance index is above 1.0, it indicates that you have
costs that are less then estimated; so doing good. Option A is BEST fit for this CPI = EV/AC
(Earned value/ Actual cost)

Question - 56

You notice clear violations of PMP Code of conduct in your current organization . You are a
PMP - what should you do ?

A. Confront senior management with the details

B. Ignore - and continue with your daily job

C. Keep a tab on the situation , discuss with other PMP managers and then decide future course

D. Resign from current organization

D is the correct answer. It is a difficult situation.It is best to gather details - consult other PMP's
and then decide the future course of action.

Question - 57

You are managing a gaming software targetted towards High school students.One of the most
important and critical piece of this project would be the animation and visual effects
involved.You know you would require an 'A' team of designers for this task.John is a top notch
designer in your company but he is working on another project.You discuss this need with his
manager.His manager informs you that John wold be available only after two more months -
which document would John's manager have referred to?

A. Resource Calendars

B. RACI Matrix
C. Resource Histogram

D. Pre-assignment

A is the correct answer.Resource calendars specify when resources are free and available so this
is the best source of this information.RACI Matrix is used to define the roles and responsibilities
- which is already known by you - You need a good designer who would be responsible for the
art work.The need of reources and their timing is available in the Resource Histogram - which is
not what you want.Pre-assignment - when resources are already available for the project which
again is not the case - you do want to assign John but you first need to find when he is
available.So option A is the correct answer

Question - 58

Which of the following plans is not done during the writing of a project plan?

A. Executive Communication

B. Risk Management

C. Quality Management

D. Scope Statement

A is the correct answer. Executive Communication may be a part of your communication process
but not in project plan.

Question - 59

Your company executes massive turnkey projects.Any slippages have dollar

ramifications.Considering the impact and understanding the importance of having PMI certified
PMP managers on-board - your organization decides to invest in getting its managers certified.A
project undertaken by your company to get their managers PMI certified is an example of .....

A. Market Demand
B. Business need

C. Customer request

D. Legal requirement

B is the correct answer.Your company realizes the benefit of having PMI certified PMP
profesionals.It is envisioned that such staff would help the business.Hence this undertaking of
the project is an example of Business need

Question - 60

Your team members are making fun of a new colleague as his english is not upto scratch - what
should you do ?

A. Let it be - things will settle down gradually

B. Ask the new team member to improve his english

C. Discuss with team members and educate them to ensure it does not happen again.

D. Report the incident

C is the correct answer.As a manager you should not ignore such issues so option A is not
correct.Option B puts the onus on the new team member which is wrong.Option D is not the best
option.Option C is best where first you consult and discuss with the team.Option D is the option
to be taken if team continues and shows no improvement.

Question - 61

One team member suggests a change in an activity that would significantly improve the quality
of the software.However this may add additional time - what is the best course of action ?

A. If quality is improved - go ahead and make the change

B. Check impact of the change to Critical Path

C. Do not make the change.

D. If team member is confident of making the change - go ahead and make the change

B is the correct answer.The correct answer is option B.The impact to Critical Path must be
checked - since any impact to Critical Path will impact schedule

Question - 62

Which of the following is an output of a Validate Scope process?

A. Formal acceptance

B. WBS template

C. SOW acceptance

D. Rework

A is the correct answer. Output of Validate Scope is formal acceptance.

Question - 63

You are a manager who subscribes to the Theory X style of management - what qualities are you
most likely to exhibit ?

A. You believe that employees want to give their best at work.

B. You believe that employees are self motivated and enjoy doing their work.

C. You consider employees to be trustworthy.

D. You believe employees need to be closely monitored otherwise work will not get done.
D is the correct answer. Theory X looks down upon employees and shows no faith in them.It
believes in complete control and monitoring as the only way to get work done.So the correct
answer is option D.All the other options are what 'Theory Y' believes in !

Question - 64

Contingency planning is a means to _____ risks to the project through a formal process and
provides the resources to meet the risk events.

A. Address

B. Classify

C. Assign

D. Resolve

A is the correct answer. Contingency Planning:The development of a management plan that

identifies alternative strategies to be used to ensure project success if specified risk events occur.

Question - 65

You are creating a Project Charter - in which Process group is this done ?

A. Planning

B. Closing

C. Executing

D. Initiating

D is the correct answer. The charter is created in the initiating process group.Without a charter a
project cannot be executed.It provides the business justification of the project.Hence the charter
is the start of the project and it is created in the 'Initiating' phase.
Question - 66

You are managing a project which involves building software for the aeronautical domain.The
nature of the work is complex and needs a lot of research.During Quality assurance both the
development team and testing team suggest that the quality assurance process be changed to also
include White Box testing and not rely only on Black box testing.The team wants to make this
shift in approach as they believe this would lead to better quality of deliverables - what is the
best course of action ?

A. As the changes will help improve quality - execute white box texting

B. Create a change request

C. Refuse to adopt this change as this would mean a change in agreed process

D. Analyze the impact of the change to scope , schedule and cost and then write up a Change
Request

D is the correct answer.This is a question meant to test your understanding of change

management.Any change however small or big should always be first analyzed for its impact to
the constraints - scope , cost and schedule and then should be submitted to change control for
approval.Changes without formal approval should not be implemented.

Question - 67

You are in charge of a software development project catering to a large insurance firm.In one of
the inspections you find a defect - which to rectify would cause a significant impact to the
schedule and cost as well.With the project under contract any delay will invoke severe penalties
.You are also fairly confident that the client would not detect the issue and could be safely
ignored . What is the best course of action for you as a project manager ?

A. Release the deliverable to the client without fixing the issue or informing the client

B. Discuss with the client regarding the situation

C. Update lessons learned so future projects do not face similar issues

D. Fix the issue immediately informing the customer of the delay

B is the correct answer.A project manager should always do the right thing.Releasing the
deliverable without fixing the issue nor informing the client is unethical.Updating the lessons
learned is always something that needs to be done but that is not something that is to be done
immediately.The project is under contract so any delay will cause penalties - so the best option is
to discuss with the client - and also with complete disclosure regarding the issue observed - so
option B is the best answer.

Question - 68

Which of the following is NOT an example of a project ?

A. Constructing a bridge across a river

B. Daily bottling of milk

C. Writing an algorithm for an aviation software

D. Setting up a manufacturing plant for plastic bottles

B is the correct answer.The question is really testing your knowledge of what is a Project and
what is an operation.The correct answer is option B - since it is repetitive and is unending -
which is why it is not a project but an operation. All the other choices are actually project
examples

Question - 69

You are part of a Quality Assurance team and have scheduled a Quality Audit for one of the
projects - what would not be a goal or objective of performing this audit ?

A. To determine if the project activities comply to the organizations policies , processes and
procedures

B. Identify all the good and best practices being implemented

C. Identify all gaps , non conformity and shortcomings

D. Identify the root cause of the Quality issues

D is the correct answer. Option A , B and C are the objectives or goals of this exercise.The
purpose of the audit is to identify what is working well , what is missing but never to find root
cause of issues - which is done in Process analysis.Since the question is asking what is not a goal
or objective of performing a Quality Audit - option D is the correct answer.

Question - 70

Given a project which reports a CPI < 1 - you have asked one of your managers to generate the
TCPI - what formula should the project manager use in this case ?

A. ( BAC - EV ) / ( BAC - AC )

B. ( BAC - EV ) / ( EAC - AC )

C. EV / AC

D. EV / PV

B is the correct answer. The correct answer is Option B - Option A is to be used when the project
is within budget - in our case the CPI value is < 1 so - the project is not within budget.Option B
is to be used when the project is over budget - which is the case for us - so it is the correct
formula to use. Options C and D are not TCPI formulaes - they are the CPI and SPI calculations
so they are not the correct choice.

Question - 71

You are managing a project that deals with the construction of a football stadium for the next
NFL season.It consists of laying out tonnes of concrete around the stadium for constructing the
seating of spectators.As it would be impossible to verify the quality of concreting for each square
foot - you decide to do some random tests per square meter to ensure quality is maintained.This
is an example of:
A. Benchmarking

B. Statistical sampling

C. Design of Experiments

D. Kaizen

B is the correct answer.This is an example of Statistical Sampling - which is a great way of

verifying random samples where it is not humanely possible to measure each and every square
foot of the pouring of concrete.

Question - 72

A complex project will fit best in what type of organization?

A. Functional

B. Cross-functional

C. Matrix

D. Balanced

C is the correct answer. MATRIX Organization: Attempt to maximize the strengths and
weaknesses of both the functional and project forms. The team members report to two bosses:
the project manager and the functional manager.

Question - 73

Your project is running smoothly.In a meeting - client wants additional changes without which
deliverables will not be approved.You look up the acceptance criteria and find that all
deliverables are inline with the acceptance criteria.What should you do ?

A. Refuse to make the change

B. Make the requested change so that deliverables get approved

C. Ask the client to submit a change request

D. Analyze the impact of the change to 'Triple constraints' and discuss with the client to submit a
change request

D is the correct answer.Options A and B are not correct - no decision should be taken without
proper analysis and details.Option C is partially correct - option D is the best choice - where you
identify the impact of the change and then discuss and ask the client to submit a change
request.This ensures discussion is data driven and factual rather than based on perception.

Question - 74

At what point in a project do you have the highest probability that it will fail?

A. The beginning of the project

B. Just before the end of the project

C. QA phase

D. Execution phase

A is the correct answer. Risk and uncertainty are the highest at the beginning or a project.

Question - 75

ISO Stands for __________.

A. International Organization for Standardization

B. International Standardized Organization

C. In Standardized Organization
D. Indiana Standardized Organization

A is the correct answer. ISO Stands for International Organization for Standardization.

Question - 76

The project baseline is _______.

A. Original plans plus the approved changes

B. Important in the project initiation phase

C. Initial estimates for tasks and resource utilization

D. Original plans and the approved major changes

A is the correct answer. The project baseline: original plans plus the approved changes.

Question - 77

Which of the following statements is NOT true regarding a Contract ?

A. Legally binding in nature

B. Obligates buyer to provide compensation and obligates seller to provide some product or
service in return

C. By careful administration of terms and conditions the buyer can transfer some of the risks to
the seller

D. Contracts undergo an approval process as any other plan

D is the correct answer.This question tests your knowledge about contracts and procurement.At
the onset all the answers seem to be correct with respect to the contract.A contract is legally
binding in nature , its an agreement of seller providing some service or product and buyer
compensating the seller.Some of the risks can indeed be transferred to the seller through terms
and conditions.Because of the legal nature of a contract - generally contracts are subject to a
more intensive approval process - much more intense than our other plans - hence in the context
of the question - option D is the right answer

Question - 78

Project selection criteria cover management concerns such as _________.

A. Financial return

B. Market share

C. Public perception

D. All of the above

D is the correct answer. All points need to consider to select project.

Question - 79

Your colleagues keep talking about a certain PMP not honouring the PMP code of conduct. What
should you do?

A. Report to senior management.

B. Confront the person.

C. Ignore the rumours.

D. Get your facts right before taking any action

D is the correct answer.The best option is to gather facts.

Question - 80
While Estimating costs - you are expecting some rework in deliverables.However the amount of
rework is not known.This is an example of

A. Management reserves

B. Contingency Reserves

C. Three-Point Estimation

D. Bottom Up Estimation

B is the correct answer. Expecting rework is a known.However the 'amount' of rework is

unknown - which is an 'unknown'.Contingency reserves are meant for 'known unknowns' such as
- risks which are identified and accepted.The correct answer is option B

Question - 81

Create Procurement document is done in _______.

A. Plan Procurement Management

B. Conduct Procurements

C. Control Procurements

D. Close Procurements

A is the correct answer. Create Procurement document is done in Plan Procurement Management
process.

Question - 82

Which of the following is NOT an input of Estimate Costs?

A. Earn Value Analysis

B. Scope Baseline

C. Risk Register

D. Human Resource Plan

A is the correct answer. Earned value analysis is used during the execution of the project to
determine resource consumption versus planned.

Question - 83

You are hiring and have identified a bright candidate.However it turns out many of the details
provided by her are false.Her claim of being a PMI certified PMP is not true.What should you do
?

A. Report the incident to PMI and reject jer candidature

B. Confront her

C. Hire her - for all you care - she is good

D. Reject her

A is the correct answer.The correct answer is to report the incident to PMI and reject her
candidature

Question - 84

Your company has won a very prestigious project.The success of this project could lead into
multiple large projects in the future.Considering the significance you decide to cancel all other
meetings for the day and decide to spend some time with the project manager of this project.You
ask her to provide details on how she plans to ensure customer's needs are met and customer
satisfaction is achieved - which document or plan would you be reviewing ?

A. Stakeholder Management Plan

B. Procurement Management Plan

C. Quality Management Plan

D. Scope Management Plan

C is the correct answer.Customer satisfaction is all about keeping customers happy.That does not
mean being unethical!The best way to ensure customer satisfaction is to ensure the customer is
happy is to ensure the project delivers what the customer wants.This is handled in the Quality
Management Plan - Quality is a measure of how closely the product meets its requirements.The
correct answer is option C

Question - 85

You are hiring project managers for your company.After discussions with a few candidates you
have narrowed down your search on one potential candidate.However in the background
verification it is found that the candidates claim to be a PMP certified project manager is
false.What should you do ?

A. Reject the candidate

B. Report the incident to PMI

C. Do nothing

D. It does not matter if the candidate has lied - if he is good hire him

B is the correct answer.While rejecting the candidate is an option it is not the most immediate
step to be taken.Selecting an unethical candidate is also unethical.Anyone falsely claiming to be
a PMI certified project manager should be reported to the PMI.The correct answer is option B

Question - 86

Which of the following activities would you find in the Planning Process Group ?
A. Creating a Business case

B. Determining if project activities comply with organizational and project policies

C. Documenting lessons learned

D. Requirement gathering

D is the correct answer.Creating a Business case is performed by the project sponsor at the start
of the project - which is in the Initiating Process group.If you need to determine compliance of
project activities with organizational and project policies - you perform a 'Quality Audit'.This is a
part of 'Perform Quality Assurance' - which is an 'Executing Process Group'.Lessons learned or
learnt is performed at the end of a phase or at the end of the project - which is the 'Closing
Process Group'. Requirement Gathering is done during 'Collect Requirements' which is a part of
the 'Planning Process Group'.The correct answer is option D.

Question - 87

How does a 'Lead' differ from a 'Lag' ?

A. Lead applies to Successor activities while Lag applies to Predecessor activities

B. Lag applies to Successor activities while Lag applies to Predecessor activities

C. Lead represents the 'early start'of Successor activity , Lag represents the minimum delay for
start of Successor activity

D. Lag represents the 'early start'of Successor activity , Lead represents the minimum delay for
start of Successor activity

C is the correct answer.Option C is the correct answer

Question - 88

You are the project manager of a project .You have just completed the Collect Requirements and
Define Scope. What should you do next?
A. Create WBS

B. Validate Scope

C. Value analysis

D. Control Scope

A is the correct answer. Create the WBS is the process that follows Collect Requirements and
Define Scope.

Question - 89

Control Costs ...

A. Monitors cost performance to identify variance.

B. Manages changes to the cost baseline.

C. Prevents unapproved changes .

D. All of the above

D is the correct answer.All of the above statements are true regarding Cost Baseline

Question - 90

Weighted average is used in :

A. CPM

B. PERT

C. Pareto chart
D. GERT

B is the correct answer. PERT uses weighted average to calculate the estimate.It takes into
consideration Optimistic , Pessimistic and Most Likely duration into consideration to calculate
the estimate as: PERT = (Optimistic duration + 4 * Most Likely Duration + Pessimistic
Duration) / 6

Question - 91

You are responsible for managing a project that deals with laying out a freeway connecting two
major port cities.Progress in the past has been smooth but lately in the past few months you have
observed a schedule and budget overrun.You decide to hold a meeting with your team
members.On discussions you realize team members went ahead and made changes at the behest
of client requests on site.You are pretty sure the changes were not a part of the project scope
statement - this is an example of:

A. Scope Creep

B. Gold Plating

C. Integrated Change Control

D. Fast Tracking

A is the correct answer.This is an example of Scope Creep.Integrated change control deals with
formally approving or rejecting changes before they are implemented so it is not the correct
answer.Fast tracking is a schedule compression technique - so it too is not the correct
answer.While Gold Plating is related to change in scope it is generally done intentionally or
knowingly for some strategic purpose.Scope creep relates to uncontrolled changes in product or
projects scope and is often due to client interference.

Question - 92

Which of the following is output of the Plan Communications process?

A. Project records
B. Communications management plan

C. Performance reports

D. Formal acceptance

B is the correct answer. Communications management plan and Project document updates are
output of Plan Communications process.

Question - 93

As a project manager of a large product - you and your team have shipped the deliverables to
your customer.However the customer has reported a number of serious issues in the quality of
deliverables - as a result of which the cost of quality of your project is deemed high. In the above
scenario which type of cost would have caused the cost of quality to increase ?

A. Less Rework.

B. Higher productivity.

C. Lower costs.

D. Increased stakeholder satisfaction.

D is the correct answer. Options A , B and C are benefits of meeting Quality Requirements.The
question states what has contributed to increased cost of Quality.As the stakeholder is not
satisfied with the deliverables - there is rework involved , there is an impact on productivity and
increases cost.It also decreases stakeholder satisfaction - so amongst the choices option D is the
correct option.

Question - 94

You are the project manager of a project. If there are approved changes to the original scope,
what you do with the old original scope?
A. Save the old versions

B. No need to save old version

C. Scrap the old version

D. Old version is not required

A is the correct answer. All the version you should keep in version control system.

Question - 95

The work that must be done in order to deliver a product with the specified features and
functions is:

A. Project scope

B. Project verification

C. Project control

D. Product scope

A is the correct answer. Project Scope: The work that must be done in order to deliver a product
with the specified features and functions.

Question - 96

A colleague of yours meets you over lunch.He has been managing a project that has been long
and challenging.With good project management skills and good teamwork he and the team have
delivered deliverables as per timelines and within the baselines.However the client is not pleased
with the deliverables and has reported a large number of problems.He indicates he is
overwhelmed with the number of issues.Being an experienced project manager you advise him to
identify the most commonly occuring issues and identify the cause of these issues - what tool did
you suggest to your friend ?
A. Scatter Diagram

B. Pareto Chart

C. Trend Analysis

D. Ishikawa Diagrams

B is the correct answer.The best tool to be used in this scenario is Pareto Chart - option B.Pareto
charts are based on the principle that a large number of problems are caused by a small number
of causes.This is also known as the 80 - 20 rule : 80% of the defects are caused by 20% of the
causes.In the above question considering that a large number of issues have been reported - by
using the Pareto chart - we can identify which cause is causing the largest number of
defects.These can then be addressed to mitigate the situation.So the correct answer is option B

Question - 97

You are the project manager for a Project. Project is a global project. Some peoples are working
from US and some are from India. Client says budget should not cost more than $12 million.
Because of the global concerns, the final budget must be in U.S. dollars. This is an example of
which of the following?

A. Internationalization

B. Budget constraint

C. Management constraint

D. Quality constraint

B is the correct answer. This is an example of a budget constraint. The budget must not exceed
$12 million.

Question - 98

You have been with the organization; you constantly hear rumours about a certain PMP failing to
live up to the PMP Code. What you should do?

A. You can gather as much information as you can before proceeding

B. Confront the person immediately

C. Ignore the rumours

D. Pass the rumours along

A is the correct answer. You can gather as much information as you can before proceeding.

Question - 99

The key difference between Work performance data and Work performance Measurement is :

A. There are no differences - both are the same

B. Work performance data is the 'as of now' status of deliverables while Work performance
measurement is a comparison between planned Vs Actuals

C. Work performance measurement is the 'as of now' status of deliverables while Work
performance data is a comparison between planned Vs Actuals

D. Work performance data is nothing but the planned objectives

B is the correct answer.Work performance data is a key output of 'Direct and Manage Project
Work'.The key difference between the two is that the Work performance data consists of raw
observations and measurements while (DURING) the activities are being performed.It is the 'as
of now' status while Work performance measurements is used to compare actual performance
aganst what was planned.The correct answer is Option B

Question - 100

Project Managers have maximum authority in which type of organization?

A. Weak Matrix organization

B. Strong Matrix

C. Balanced Matrix organization

D. None

B is the correct answer. Weak Matrix : Power reset with Functional Manager. Strong Matrix:
Power rest with Project Manager. Balanced Matrix:Power is shared between both Functional and
Project Manager.

Question - 101

Why are project deliverables and performance reviewed at the conclusion of a project phase ?

A. To update the baselines based on actual performance

B. To determine resource requirements to complete the project as compared to earlier plan

C. To decide if project is approved to move to the next phase

D. To identify low performing team members

C is the correct answer.This is a very important activity which is useful to determine if the
project can move to the next phase .It is a timely check to confirm if project objectives are being
achieved and if they would continue to be achieved.

Question - 102

Which is the most important element of a Project Management Plan that is useful in the Plan
Human Resource Management process:

A. Risk Management activities

B. Activity Resource requirements

C. Budget Control activities

D. Quality Assurance activities

B is the correct answer. Activity Resource requirements is a primary input to Plan Human
Resource Management process.

Question - 103

You are the project manager for the software Project. This project must be completed within one
year. This is an example of which of the following?

A. Schedule

B. Assumption

C. Constraint

D. Planning process

C is the correct answer. A project that must be completed by a deadline is dealing with time
constraints. A is incorrect since the condition does not offer a schedule. B is incorrect because
the condition is not an assumption. D is also incorrect because this is not a planning process.

Question - 104

Who gives project acceptance?

A. Sponsor

B. Customer

C. Project Manager

D. Team Lead
B is the correct answer. Customer gives project acceptance. Customer may be person or
organization.

Question - 105

Which of the following is NOT true about Analogous Estimate Costs ?

A. Does not require high expertise on part of estimators as estimates are based on previous
projects

B. Uses Expert Judgment

C. Useful in early phases of the project

D. Used when reference projects are similar

A is the correct answer. Analogous Estimate Costs is Generally less accurate . Analogous
Estimate Costs Uses Expert Judgment . It is used when reference projects are similar . It is useful
in early phases of the project.

Question - 106

Which of the following statement is true?

A. Product scope - The features and functions that are to be included in a product or service.

B. Project scope - The work that must be done in order to deliver a product with the specified
features and functions.

C. Both of the above are true

D. None

C is the correct answer. Product scope - The features and functions that are to be included in a
product or service. Project scope - The work that must be done in order to deliver a product with
the specified features and functions.

Question - 107

A complete set of indexed project records is called __________.

A. Project archives

B. Index

C. SOW

D. Project History

A is the correct answer. A complete set of indexed project records for archiving by the
appropriate parties.

Question - 108

Which is a valid response to positive risks?

A. Exploit

B. Share

C. Enhance

D. All

D is the correct answer. Risk mitigation is a response to negative risks and not positive risks.
Positive risks may be responded by - "Exploit", "Enhance", "Share", "Accept".

Question - 109
Project management processes can be organized into __________.

A. Initiating, planning, executing, controlling, and closing

B. Designing, developing, testing, and implementing

C. Initiating, designing, planning, executing, controlling, and implementation

D. Initiating, planning, executing, controlling, testing and closing

A is the correct answer. Project management phases are: Initiating, planning, executing,
controlling, and closing.

Question - 110

How many communication channels exist in a team of 10 members?

A. 45

B. 10

C. 30

D. 20

A is the correct answer. formula (N)(N - 1)/2 where N = no of people. Therefore calculation is
(10*9)/2.

Question - 111

Acceptance of the product should be ________.

A. Formal

B. Consistent
C. Personal

D. Verbal

A is the correct answer. The acceptance should be formal.

Question - 112

A colleague of yours meets you over lunch.He has been managing a project that has been long
and challenging.With good project management skills and good teamwork he and the team have
delivered deliverables as per timelines and within the baselines.However the client is not pleased
with the deliverables and has reported a large number of problems and wants to know the root
cause of the issues.Being an experienced project manager what tool would you suggest to your
friend ?

A. Scatter Diagram

B. Pareto Chart

C. Trend Analysis

D. Ishikawa Diagrams

D is the correct answer.The best tool to be used in this scenario is Ishikawa Diagram - option
D.It is also known as Cause-and-effect diagrams or fishbone diagrams.The root cause is
identified by repeatedly asking 'why' regarding the problem statement and digging deeper till an
actionable root cause is identified.Ishikawa Diagrams also prove useful in unearthing undesirable
effects such as special variation.

Question - 113

Stakeholder classification model which takes into consideration a stakeholders ability to impose
their will , their need of immediate action and their legitimacy is ....

A. Salience Model
B. Influence/Impact grid

C. Power/influence grid

D. Power/interest grid

A is the correct answer.Salience model is what is described in the question

Question - 114

Building a virtual team for a project will limit the usability of which of the following tools and
techniques of a team development:

A. Team Building

B. Reward and Recognitions

C. Working together on Co-Location

D. Establishing Ground Rules

C is the correct answer. Virtual team for a project will limit the usability of Working together on
Co-Location.

Question - 115

You are managing a project which involves building a web application.Having previously
worked on web applications - you decide to develop the authorization routine.While you are
busy in developing this module - your senior manager calls you over and advises you that as a
manager you should be spending more time in Planning than in actual Execution.Where should a
Project Manager be spending his maximum time ?

A. Quality Management

B. Cost Management
C. Communication

D. Risk Management

C is the correct answer. A Project Manager should spend maximum time communicating - option
C is the correct answer .

Question - 116

Project scope is _____________.

A. The features and functions that are to be included in a product or service

B. The work that must NOT be done in order to deliver a product with the specified features and
functions

C. Part of the project charter

D. Part of SOW

D is the correct answer. Project scope : The features and functions that are to be included in a
product or service. The work that must be done in order to deliver a product with the specified
features and functions.

Question - 117

You are creating your WBS and keep decomposing tasks into smaller units. How can you tell
when you are done?

A. Keep decomposing tasks until you reach an amount of work that is small enough to reliably
estimate required resources and duration.

B. Keep decomposing work until you reach a predetermined number of hierarchy levels to keep
the WBS balanced.

C. Keep decomposing tasks until you reach an amount of work that can be accomplished in one
DAY.

D. Keep decomposing tasks until you reach an amount of work that can be accomplished in one
WEEK.

A is the correct answer. Keep decomposing tasks until you reach an amount of work that is small
enough to reliably estimate required resources and duration.

Question - 118

__________ is providing detailed plans for tasks that are about to start in the near future using
the most current information and revisiting future activities when they near their starting dates.

A. Rolling wave planning

B. Progressive elaboration

C. Milestone detail planning

D. Expert judgment

A is the correct answer. Rolling wave planning is providing detailed plans for tasks that are
about to start in the near future using the most current information and revisiting future activities
when they near their starting dates.

Question - 119

John is assigned as a project manager to build a skyrise in the heart of the city.He is worried
about the exact scope - so he decides to get a better understanding of the details of the skyrise
.He breaks down the requirements into components such as construction , electrical cable layout ,
furnishing and other sundry details.This is an example of ?

A. Expert Judgement

B. Alternative Generation
C. Requirements documentation

D. Product Analysis

D is the correct answer.The correct answer is Product analysis - since what John is trying to do
here is - gain a better understanding of the product - the skyrise.

Question - 120

Administrative closure is the process that ________.

A. Closes all activities pertaining to a specific project

B. Collects user acceptance of the project product or service

C. Includes all the activities needed to validate the project products and services

D. All of the above

A is the correct answer. Administrative closure: Closes all activities pertaining to a specific
project.

Question - 121

What does 'point of total assumption' for a contract mean ?

A. The total cost of a CR contract

B. The total cost of a T and M contract

C. The point in a fixed price contract where the seller has to assume all costs going forward

D. None of the above

C is the correct answer.Option C is the correct answer

Question - 122

In order to determine the details of the work to be performed in work packages - which of the
following can be used ?

A. WBS

B. WBS Dictionary

C. Control Account

D. Work Packages

B is the correct answer.The correct answer is Option B - WBS Dictionary.It provides details such
as description of work to be done for each work package , any schedule milestones , statement of
work.It is also used to prevent scope creep.

Question - 123

The process of identifying and defining a product or a service is called:

A. Procurement planning

B. Source selection

C. Contract administration

D. Contract closeout

A is the correct answer. Procurement planning : Determining what project needs can best be met
by procuring products or services outside the organization

Question - 124
The closing process scope includes:

A. Contract closeout

B. Final reporting

C. Activity List

D. Exit interview

A is the correct answer. closing process scope includes Contract closeout.

Question - 125

Assumptions in the project plan should be _________.

A. Written down

B. Understandable

C. Not understandable

D. No need to write

A is the correct answer. Assumptions that are not written down are the most dangerous.

Question - 126

You are managing a software development project catering to the Mutual Funds financial
domain.In one of your reviews with the team - one of the team member suggests usage of a new
development IDE which he feels will greatly accelerate the progress of work.However the
company is not in a position to make this additional purchase with a very clear mandate on Cost
Control .Unfortunately the project is behind on schedule and any help in speeding up work
would help.The team member indicates that he has a copy from his friend which he would like to
use . What should be your approach as a Project Manager of the project ?
A. Ask the team member to NOT use the software

B. Ask the team member to share the software with other team members

C. Ask the team member to NOT use the software and try and find ways of compressing the
schedule

D. Purchase a licenced copy of the software

C is the correct answer.Any usage of unauthorized software is a copyright violation.As the

question clearly indicates the project having a clear impetus on cost control - an additional cost
of purchasing the software is not an option.Options A and C both sound correct but option C is
better where in addition to ensuring you do not violate any copyrights you also try and attack the
root problem of trying to accelerate work- option C is the correct answer

Question - 127

Stakeholder influence is greatest at the ______ of the project.

A. Beginning

B. Closing

C. Controlling

D. Executing

A is the correct answer. Stakeholder influence is greatest at the beginning of the project

Question - 128

Which of the following is NOT an input of close project process?

A. Project management plan

B. Contract documentation
C. Deliverables

D. WBS

D is the correct answer. WBS is NOT inputs of close project process.

Question - 129

How many communication channels will be required in a project in which 5 individual are
participating?

A. 10

B. 12

C. 4

D. 5

A is the correct answer. No of communication channels: n*(n-1)/2 where n = individual. In this

case 5*(5-1)/2 = 10

Question - 130

You are in the contract negotiation phase with one of your clients.Your company has won a
contract where your company would be providing custom built junction boxes which would then
be integrated into the clients layout.Your senior management has stressed the need of incentives
to be included in the contract - which of the following statements would best explain the need of
incentives ?

A. So that your company makes a handsome profit

B. So that all the risk is borne by the buyer - your client

C. So that the seller has some goal to target

D. To ensure that both buyer and seller are on the same page regarding objectives and to ensure
project success

D is the correct answer.By buyer agreeing to pay an incentive - one cannot ascertain the risk
involved.Making profits is definitely a seller objective and that is why sellers are providing
services in the first place with or without an incentive - so these two are not the right options.By
providing an incentive seller definitely has greater motivation - but the real advantage of having
an incentive is both the buyer and seller have greater shared interests - as the buyer would be
paying an incentive would be more closely involved in defining the requirements and
performance measurement criteria and the seller in ensuring these requirements and perfrmance
criteria are met or exceeded.Thus by adding an incentive can increase the amount of
collaboration between buyer and seller - option D

Question - 131

The project sponsor has just sent you the approved project charter.You are very happy because as
the project manager you now have been formally given authority to run the project.You were
waiting for this moment in anticipation so that you could kick start the project.What would be
the BEST course of immediate action ?

A. Start developing the various management plans

B. Acquire Project team

C. Perform Quality Assurance

D. Scope Verification

A is the correct answer.From initiation which is the charter we go into planning .The other
options provided such as scope verification , perform quality assurance , acquire project team all
deal with execution and monitor and control.This happens after the planning phase - so in the
context of the question - the next BEST course of immediate action would be in the planning
phase - which is creation of various management plans - starting with the Project Management
plan.Correct answer is Option A
Question - 132

At the end of the project teams daily status meeting - you send out minutes and action items to
the team - this is an example of which form of communication ?

A. Internal and informal

B. Internal and formal

C. External and formal

D. Unofficial

B is the correct answer.The correct answer is - Internal and formal.This is because the
communciation is within the project team and also being Minutes - it is formal

Question - 133

A resource pool description provides:

A. The unit cost for each resource

B. What are the resources are available, at what times and in what patterns

C. Performance of the pool resources

D. Duration of the project

B is the correct answer. A resource pool description : What are the resources are available, at
what times and in what patterns

Question - 134

The customer has requested additional work. This work will affect cost, but not the schedule of
the project. What should you do next?
A. Analyze the impact of the change.

B. Explain the details of the impact to client and submit the request to the change control board.

C. Ignore the client request.

D. Start work on the additional items.

B is the correct answer.Option B is the best answer.

Question - 135

Which of the following best describes 'Good practice' ?

A. The knowledge and practices that are applicable to most projects all the time

B. The knowledge and practices that are applicable to all projects most of the time

C. The knowledge and practices that are applicable to all projects all the time

D. The knowledge and practices that are applicable to most projects most of the time

D is the correct answer.What did you choose ? - this question was meant to confuse you - almost
all of them sound right with subtle differences between 'all' and 'most' of the times! The correct
answer is option D - because nothing in this world is absolute - which is why 'most of the
projects most of the time'.'Good practice' means there is a general agreement - that by applying
this knowledge , skills , tools and techniques CAN enhance the chances of success for many
projects.That said it does NOT mean that this knowledge be applied uniformly to ALL
projects.Each project will differ and would have its own characteristics.

Question - 136

Which of the following is an output of the Control Scope process ?

A. Scope statement
B. Change Requests

C. Formal acceptance

D. Work breakdown structure

B is the correct answer. Change Requests is output of Control Scope process.

Question - 137

A good WBS(Work Breakdown Structure):

A. Helps pull the team together

B. roadmap for the project

C. Defines the scope

D. All of the above

D is the correct answer. WBS includes: Level one is the project. Level two is subprojects or
deliverables. Level three is deliverables or activities. Remaining levels are activities. Last level
of WBS is the work package level where time and cost estimates can be defined in the next
process.

Question - 138

Which of the following is not provided by Activity Attributes

A. Provide details regarding predecessor and successor activities.

B. Provide details regarding Leads and Lags

C. Provide details regarding who and where the activity will be performed

D. Provide details regarding root causes of issues

D is the correct answer.All the options are correct - except option D Activity attributes do not
provide details of root causes of issues.

Question - 139

A project Manager's communciation with the customer should ideally be ?

A. Informal

B. Formal and written

C. Verbal

D. Legal

B is the correct answer.When communciating with a client a project Manager's communciation

should be formal and written and preferably not Informal and verbal.Legal is related to contract
handling

Question - 140

Which of the following is not correct about the initial phase of a project?

A. The cost associated at the initial phase of the project is highest.

B. Stake holders have maximum influence during this phase

C. The highest uncertainty is at this stage of the project.

D. All of the above

A is the correct answer. minimum cost at the project initiation stage because minimum
requirement of resources .
Question - 141

You are project manager of a project. During the process of selecting the sellers, you reject one
vendor because it doesn't have the manufacturing capability. This is an example of which
selection tool?

A. Weighting system

B. Screening system

C. Seller rating system

D. Expert judgment

B is the correct answer. A screening system rejects sellers that does not meet minimum
requirements for the project.

Question - 142

Which of the following activities is not part of Plan Risk Management?

A. Updating risk register

B. Determining risk roles and responsibilities

C. Identifying risk categories

D. Developing a risk management plan

A is the correct answer. Updating the risk register first happens in Identify Risks phase.
Determining risk roles and responsibilities, Identifying risk categories and developing a risk
management plan are part of Plan Risk Management.

Question - 143
Which of the following technique to identify the underlying cause of a problem and take steps to
prevent further occurrence?

A. Root cause analysis

B. Quality audits

C. Project audits

D. Risk audits

A is the correct answer. Root cause analysis: A technique to identify the underlying cause of a
problem and take steps to prevent further occurrence.

Question - 144

Your company has won a project to construct a road connecting some remote locations in
Siberia.The team is excited as they would get to visit remote and distant places.However as an
experienced Project Manager you know due to severe weather it would impose a risk where
work would be slowed down due to severe winters.You decide to mitigate the risk by employing
double the staff during the winters to ensure work is not impacted.However now a lot of people
are reporting sick and not turning up to work - this is an example of ?

A. Risk Mitigation

B. Risk Identification

C. Secondary Risk

D. Residual Risk

C is the correct answer.In the above question you have identified the possible risk of slowness of
work due to severe winters.You also implemented risk mitigation by planning double the number
of staff to work during winters.The additional risk that is now exposed because of employing
extra people is that many more people are now reporting sick - this is an example of Secondary
Risk
Question - 145

Another term for top down estimating is:.

A. Analogous estimating

B. Life-cycle costing

C. Parametric modeling

D. Bottom up estimating

A is the correct answer. Analogous estimating is also called top-down estimating and uses the
actual cost of a previous, similar project as the basis for estimating the cost of the current project.

Question - 146

Which of the following is developing an approximation of the costs of the resources needed to
complete project activities.

A. Resource planning

B. Estimate Costs

C. Determine Budget

D. Control Costs

B is the correct answer. Estimate Costs:Assessing how much it will cost the organization to
provide the product or service

Question - 147

You have contracted an external agency to build the perimeter wall.The agency is charging you
$10 per hour per employee .What kind of contract is this ?
A. CR

B. T & M

C. FP

D. CPAF

B is the correct answer.This is an example of Time and Materials as the billing is at a rate for the
labour.

Question - 148

Joel is a project manager.Jill is a senior manager in Joel's company.She is insisting that Joel start
the project without a Project Charter - what is the FIRST thing that Joel should do ?

A. Refuse to start the project

B. Explain the disadvantages of starting a project without a charter

C. Start working on the project

D. Report Jill to senior management

B is the correct answer.Did you choose option B ? or C ? You should never start working on a
project without a charter. Why ? Since a project without a charter has nothing benchmarked - so
performance is difficult to measure .With no specific business objectives defined - it is a recipe
for disaster.Reporting is a knee jerk reaction and as a Project Manager communication and
negotiation is a skill to be utilized.While refusing is fine - explaining the disadvantages could
help Jill understand .The correct answer is option B

Question - 149

The Project Procurement Management includes:

A. Procurement planning

B. Solicitation planning

C. Solicitation

D. All of the above

D is the correct answer. Project Procurement Management includes: Plan Purchases and
Acquisitions. Plan Contracting. Request Seller Responses. Select Sellers. Contract
Administration. Contract Closure.

Question - 150

Stakeholder expectation management is ......

A. Responsibility of Project Team

B. Responsibility of Project Manager

C. Responsibility of Executive Management

D. Responsibility of Project Sponsor

B is the correct answer.This is the primary responsibility of Project Manager.

Question - 151

What is the role of Sponsor ?

A. Approves Project Management Plan

B. Assigns resources to the project

C. Is responsible to issue a Project Charter

D. Issues Project Management Plan

C is the correct answer. A Project Manager is responsible for creating the Project Management
Plan and getting it approved.The sponsor is responsible for issuing the charter.The charter
formally authorizes the project and gives the project manager the authority to assign resources to
the project.The correct answer is option C

Question - 152

You are in charge of a painting contract for a shopping mall.It is imperative that the work gets
done a week before Christmas.However you are running behind schedule.You call up a team
meeting and explain the need of getting the work completed.You indicate to the team that they
would need to work extra everyday and also over the weekends.Hearing some discontent
amongst the team you warn them of dire consequences should they not comply - what kind of
power are you using ?

A. Expert

B. Referent

C. Reward

D. Punishment

D is the correct answer.You are using the punishment power where on hearing a discontent you
warn the team of dire consequences.This is not an example of Expert power where team follows
you or you demonstrate your expertize and neither is it Referent.This is also not a case of
Reward power - since on the contrary you are resorting to warning team members - so the correct
answer is option D

Question - 153

Root Cause Analysis is related to ________.

A. Process Analysis
B. Quality Audits

C. Performance Measurements

D. All of the above

A is the correct answer. Root Cause Analysis relates to Process Analysis.

Question - 154

As a manager in an organization - which believes in the Theory X style of management - which

of the following describes correctly the assumptions of this theory ?

A. Employees are inherently lazy , dislike work and will avoid work if they can.

B. Employees are motivated and enjoy doing their work.

C. Employees want to do well at work.

D. Employees are trustworthy and are motivated by doing a good job.

A is the correct answer. Theory X assumes employees cannot be trusted and will only work if
rewarded or under threat and coercion.This theory does not consider an employee to work on
their own - so the correct option is A.The other options consider an employee to be self
motivated and self starter - which is not what Theory X is based on.

Question - 155

Your team is in its second month of development.You are managing a software development
project for a banking product.In one of the team meetings a debate arises if defects found during
Quality control need to undergo change control.Some team members are convinced that all
defects should undergo change control while the other half is equally convinced that defects do
not need to undergo change control.Which of the following statements are untrue ?

A. Defects to deliverables need to undergo change control

B. Defects to deliverables need not undergo change control

C. Corrective actions need to undergo change control

D. Preventive actions need to undergo change control

B is the correct answer.Defects to deliverables , corrective actions and preventive actions - all of
these need to undergo change control.So all the above statements are true except option B

Question - 156

Which of the following provides the least accurate in estimating?

A. Rough order of magnitude

B. Budget estimate

C. WBS estimate

D. Definitive estimate

A is the correct answer. The rough order of magnitude is the least accurate approach, as it may
vary from -25 percent to +75 percent.

Question - 157

In which process is Risk Impact identified?

A. Risk Identification

B. Quantitative Risk Analysis

C. Qualitative Risk Analysis

D. SWOT Analysis
B is the correct answer.Risk impact takes place after Risk Identification and Prioritization.SWOT
analysis is a technique to identify risks.Quantitative Risk analysis is used to identify numerically
the impact of identified risks.So it is Quantitative Risk analysis that is used to identify the impact
of risks numerically.

Question - 158

Which of the following are three major causes of change on a project?

A. Replacement of the project manager or key project team members, changes in priorities by
management, and contractual difficulties

B. Changes in the relative importance of time, resources, or cost, new knowledge about the
deliverable, and technological uncertainty

C. Errors in the initial assessment, new information about the project deliverable, and a new
mandate

D. Unavailability of resources promised by the functional managers, cost overruns, and changes
in customer requirements

C is the correct answer. Errors in the initial assessment; new information about the project
deliverable; and a new mandate can cause change on a project

Question - 159

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 :

A. Scope Creep
B. Resource Levelling

C. Crashing

D. Fast Tracking

D is the correct answer.The correct answer is D - Crashing deals with adding additional
resources which is not an option here.Fast Tracking is a schedule compression technique by
performing activities in parallel if they can be overlapped.NOTE Fast Tracking may result in
increased risk and rework.

Question - 160

You have replaced an earlier project manager in a project .The earlier project manager has left
the organization and you are now responsible for the project.On reviewing the project
management plan you are disturbed because a number of procurement contracts have been
signed and they all turn out to be Cost plus fixed fee types of contracts - why are you worried ?

A. All the risk is now with the seller

B. Contracts should always be T & M

C. Seller has no motivation to control cost and infact cost could spiral

D. Contracts should always be Fixed Price

C is the correct answer.As a project manager - you indeed have a reason to be worried if your
project has already signed off on Cost Plus Fee type of contracts.This is because in such
contracts - you the buyer needs to pay the seller for all the costs and in addition an agreed
percentage of the cost.As a result there is no motivation on the seller's part to control the costs -
infact it is in the interest of the seller to increase the costs! It is not necessary that all projects
should always be T & M or Fixed Price.Option A is clearly wrong since all the risks are infact
with the buyer not the seller! The correct answer is Option C

Question - 161
Which of the following is not part of the Earned Value calculations ?

A. Unknown Unknowns

B. Project Budget

C. Known Unknowns

D. Amount of work completed

A is the correct answer. Unknown Unknowns is not part of the Earned Value calculations.

Question - 162

A document or tool which describes when and how human resources will be brought onto and
taken off the project team is called _____________.

A. Staffing Management Plan

B. Responsibility Assignment Matrix

C. Organizational Breakdown Structure

D. Resource Assignment Chart

A is the correct answer. Staffing management plan- Describes when and how HR requirements
will be met, including acquisition approach, timing, training, and recognition.

Question - 163

You are working on a project with a very aggressive customer.The customer has known to get
additional things slipped in under the guise of defect repair without proper change control.You
decide to ensure no scope creep occurs and pay extra attention to Scope control.Now a number
of Change Requests have been submitted to the Change Control Board.You see a number of
defect repair items included.What should the Change Control Board do ?
A. Verify if the defects are true defect repair

B. Reject the defect repair as client has in the past got extra work done in this manner

C. Reject the defect repair since Change Requests can only contain corrective actions

D. Reject the defect repair since Change Requests can only contain preventive actions

A is the correct answer.You should definitely learn from past experiences but not get
influenced!So Option B is not a good choice.Change Requests can contain defect repair ,
preventive or corrective actions - so options C and D are wrong too.Option A is correct

Question - 164

The process of communicating and working with the stakeholders to meet their expectations,
address issues and foster appropriate stakeholder engagement in project activities throughout
project lifecycle is called ____________?

A. Plan Stakeholder Management

B. Identify Stakeholders

C. Manage Stakeholder Engagement

D. Control Stakeholder Engagement

C is the correct answer. The process of communicating and working with the stakeholders to
meet their expectations, address issues and foster appropriate stakeholder engagement in project
activities throughout project lifecycle is called Manage Stakeholder Engagement

Question - 165

Which of the following statement is NOT true for a Control Chart?

A. Control Charts represent the health of processes

B. Control Charts have a lower control limit

C. Control Charts have a upper control limit

D. Control charts are used to identify root causes

D is the correct answer.All of the statements are true regarding Control charts except option D -
since Control charts are used to verify if processes need corrections - they are not used for root
cause identification.

Question - 166

Who applies project selection methods to decide whether to accept or reject a project?

A. Project sponsor

B. Project team

C. Project manager

D. Senior Management

A is the correct answer. The project sponsor must have the authority to select and fund the
project.

Question - 167

A project with a total funding of $70,000 finished with a BAC value of $60,000. What term can
best describe the difference of $10,000?

A. Cost Variance

B. Management Overhead

C. Management Contingency Reserve

D. Schedule Variance

C is the correct answer. The difference between the Cost Baseline and Funding requirement at
Project completion is Management Contingency Reserve. BAC represents the revised Cost
baseline for the project. So C is true.

Question - 168

A Define Activities process is typically performed by which of the following:

A. Project Manager who created the WBS

B. Management

C. Project Team Members

D. Project Stakeholder

C is the correct answer. Define Activities is typically performed by Project Team Members.
identify the activities that need to be done to complete the project.

Question - 169

A planning phase for an engineering component generated 100 engineering components. The QA
team randomly selected 5 components for inspection. This exercise can best be described as an
example of:

A. Statistical Sampling

B. Flowcharting

C. Inspection

D. None
A is the correct answer. entire process of random selection and inspecting a work product is
known as Statistical Sampling.

Question - 170

Key Management skills include:

A. Leading

B. Communicating

C. Negotiating

D. All of the above

D is the correct answer. All options are key management skills.

Question - 171

Which devises and maintains a worktable scheme to accomplish the business need that the
project was undertaken to address.

A. Development process

B. Scoping process

C. Planning process

D. Information development process

C is the correct answer. Planning process

Question - 172

The type of Cost Estimate which is least accurate is ......

A. Analogous Estimating

B. Parametric Estimating

C. Bottom-up Estimating

D. Three-Point Estimating

A is the correct answer.Analogous Estimating is the least accurate of the estimating forms.It is a
gross value estimating approach which is frequently used when not much is known about the
project - particularly during the early phases.It relies on historical data such as actual costs of
previous similar projects - which is used as a basis.

Question - 173

A scope management plan In which of the following scope management processes is the scope
management plan prepared?

A. Initiation

B. Collect Requirements

C. Define Scope

D. Validate Scope

A is the correct answer. A Schedule Management Plan is developed as part of "Develop Project
Management Plan".

Question - 174

From whom do you need to gain the formal acceptance at project closure?

A. The customer
B. The qualify director

C. Project management office

D. Project manager

A is the correct answer. need to gain this formal acceptance at project closure from the customer
and sponsor.

Question - 175

What is Team Development?

A. Enhancing the ability of stakeholders to contribute as individuals

B. Reducing the ability of the team to function as a team

C. Reducing the ability of stakeholders to contribute as individuals

D. Status meeting

A is the correct answer. Team Development: Enhancing the ability of stakeholders to contribute
as individuals. Enhancing the ability of the team to function as a team.

Question - 176

You are Project Manager of a project ad during the project kick-off meeting. You confidently
state the vision and mission for the project. You are exhibiting which of the following leadership
style?

A. Hierarchal

B. Authoritarian

C. Charismatic
D. Associative

C is the correct answer. Charismatic leadership style: The Charismatic Leader gathers followers
through dint of personality and charm, rather than any form of external power or authority.

Question - 177

Engagement of stakeholders is documented in ....

A. Stakeholder Register

B. Stakeholder Management Plan

C. Stakeholder Engagement Assessment Matrix

D. Salience Model

C is the correct answer.The correct answer is option C.

Question - 178

The Critical Path Method of scheduling is:

A. A mathematical analysis technique for Develop Schedule

B. A technique that uses weighted averages to calculate project duration

C. A technique that uses sequential network logic for schedule

D. A technique that allows for probabilistic treatment of both network logic and activity duration
estimates

C is the correct answer. Critical Path Method (CPM): Calculates a single, deterministic early and
late start and finish date for each activity, to be used to determine which activities must be
completed on time to avoid impacting the finish date of the project
Question - 179

You are the project manager and have just completed the Collect Requirements and Define
Scope processes. What should you do next?

A. Create WBS

B. Validate Scope

C. Value analysis

D. Control Scope

A is the correct answer. Create the WBS is the process that follows Collect Requirements and
Define Scope.

Question - 180

Which type of network diagram is also referred to activity-on-arrow (AOA) diagrams?

A. Precedence Diagramming Method (PDM)

B. Gant Chart Diagram (GCD)

C. Dependency Diagramming Method (DDM)

D. Arrow Diagramming Method (ADM)

D is the correct answer. The arrow diagramming method (ADM) is also referred to as activity-
on-arrow (AOA) diagramming method. Precedence diagramming method (PDM) is also referred
to as activity-on-node (AON) diagramming method

Question - 181
Which of the following is an output of the Define Scope process?

A. Accepted deliverables

B. Change Requests

C. Project document updates.

D. Project scope statement

D is the correct answer. Project scope statement is an output of Define Scope.

Question - 182

You are in charge of a project which has 9 stakeholders.How many communication channels are
present ?

A. 45

B. 36

C. 4

D. 81

B is the correct answer.Number of communication channels = n * (n-1)/2 where 'n' is the number
of stakeholders.In the above question the number of stakeholders are 9 . So 9 * (9-1) /2 = 36.We
have 36 communication channels

Question - 183

Which of the following is a critical element in a project's communication system?

A. Progress report

B. Project directive
C. Project manager

D. Customer

C is the correct answer. Project manager is the critical element in a project's communication
system. In PMP Exam you can select Project manager as the best option if you don't know the
answer.

Question - 184

You are managing a project that will implement a new MARKETING software package. You
have assigned the resources and want to keep the IT manager in the loop by informing him or her
of your decisions. Which type of organizational structure are you working in?

A. Projectized

B. Strong Matrix

C. Weak Matrix

D. Functional

B is the correct answer. Projectized Organization: Any organizational structure in which the
project manager has full authority to assign priorities and to direct the work of individuals
assigned to the project. Strong Matrix: The project manager is assigned full time and has a full
time support staff. Project manager has the preeminent position of authority. Weak Matrix:
Power reset with Functional Manager. Functional: In this organization Project Manager has least
power and all management is taken care by functional manager like marketing engineer, sales
engineer.

Question - 185

Your company has won a large project for one of the fund houses to administer their funds.The
project work has been going on smoothly and the customer has been singing praises about the
work done so far.The client has planned a visit the next month - intending to go over the plans
for the next phase of the project as well as to meet with the project team.Your senior
management realizes that this client could potentially need additional capabilities in the
derivatives segment.Your company happens to have a strong exposure to this segment having
executed numerous such projects.Your senior manager also invites key managers from the
derivatives segment to showcase the organizations abilities in the derivates vertical - this is an
example of ?

A. Mitigating the risk

B. Avoiding the risk

C. Transferring the risk

D. Exploiting the risk

D is the correct answer.This is an example of exploiting the risk.As the question states the client
is happy with the work progress and also there might be an opportunity that the client might be
interested in the derivatives segment.So this is an Opportunity that could lead to more
business.By inviting key managers from the other segment - you are enhancing the possibility of
generating additional revenue - so this is an example of exploiting the risk.Note that this is a
positive risk.

Question - 186

A project is behind schedule - which of the below statements is true ?

A. CPI < 1

B. CPI and SPI > 1

C. SPI < 1

D. CPI > 1

C is the correct answer. CPI = EV / PV. If the planned value is more than the value earned SPI <
1 - project is behind schedule.
Question - 187

What are the disadvantages of a Virtual team ?

A. They do not consume office infrastructure such as cubicles

B. They are not real entities - so one cannot communciate with them

C. People with mobility limitations can work virtually

D. Communciation can be a challenge leading to complications

D is the correct answer.One of the major challenges with Virtual teams is communciation as it
can easily lead to misunderstandings and confusion.Hence option D is the right answer.

Question - 188

In an optimal organization structure, the project manager is:

A. Functional

B. Weak matrix

C. Projectized

D. Dedicated project team

D is the correct answer. Dedicated project team

Question - 189

_________ is always the lowest risk for the buyer if the scope of work is not well defined.

A. Cost plus incentive fee

B. Fixed price

C. Time and material

D. Risk is not related to price

A is the correct answer. Cost plus incentive fee is always the lowest risk for the buyer if the
scope of work is not well defined. Fixed price and purchase order are the best choice for buyer
when the item is well defined.

Question - 190

Which of the following relationship is used in the Arrow Diagramming Method [ADM] :

A. Start-to-Finish

B. Finish-to-Start

C. Start-to-Start

D. Finish-to-Finish

B is the correct answer. Dummy activities are used to show complete relationships between
tasks, and the fact that ADM uses only finish-to-start dependences.

Question - 191

Which of the following BEST describes Quality ?

A. A product is said to be of good quality which has a lot of features

B. A product is said to be of good quality when all the defects have been resolved

C. A product is said to be of good quality when it satisfies all the requirements

D. A product is said to be of good quality when it is built with a lot of attention to detail
C is the correct answer.Quality is a measure of how closely the product meets its requirements.A
product may have a lot of features,it may have no defects or it may have been built with a lot of
attention - but unless it meets the requirements it is not good quality.No doubt paying attention to
details and a defect free product can contribute to good quality but if the requirements are not
being met then it is not good quality.The correct answer is option C

Question - 192

If a project with a SPI of 0.8, what you tell?

A. The project is running ahead of the schedule

B. The project is running behind of the schedule

C. Resources assigned to the project cost 1.8 units

D. None

B is the correct answer. The SPI equals the earned value divided by the planned value. SPI =
EV/PV A schedule performance index of 1 or greater suggests that the project is ahead of
schedule.

Question - 193

You need to provide estimates for activities on the project.You and your team discuss and
conclude that as detailed information is not yet available - the best option would be to use
Parametric Estimates.The various ways to create Parametric Estimates are:

A. Critical Path Method

B. One Time Estimate

C. Regression Analysis and Learning Curve

D. Monte Carlo Analysis

C is the correct answer.The correct answer is C - Regression analysis and Learning Curve are
ways of creating a Parametric Estimate.Regression analysis is also known as Scatter
Diagram.Scatter diagrams consist of a graphical representation of two variables from a data
set.They are used to detect the corelation between the variables being examined.Learning curve
takes into consideration that if the nature of the work is repetitive - the person will perform
subsequent work faster as efficiency improves.Option A has nothing to do with Parametric
Estimates while Option D though is an estimation technique - it uses simulation and three time
estimates - so it is not the correct answer.

Question - 194

Which of the below engagement level is true about "Aware project and potential impacts and
actively engaged in ensuring the project is a success"?

A. Leading

B. Neutral

C. Supportive

D. Resistant

A is the correct answer. Leading - Aware project and potential impacts and actively engaged in
ensuring the project is a success.

Question - 195

Likely schedule durations for Estimate Activity Durations are available from historical
information that is derived from the following sources except:

A. Commercial duration databases

B. Project files

C. Project team knowledge

D. Outside consultants

D is the correct answer. All are inputs to Estimate Activity Durations except Outside consultants.

Question - 196

You are the Project Managers of ABC company. The Project team members are from the finance
and accounts. The team members report to Finance and Account Managers respectively, and you
have limited control over them. What type of organizational hierarchy does ABC company
follow?

A. Matrix organization

B. Projectized organization

C. Functional organization

D. None

C is the correct answer. Projectized organization : The project manager has total control of
projects. Personnel are assigned and report to a project manager. Functional organization :
Project Manager has least power and all management is taken care by functional manager like
Finance and Account Managers. Matrix organization : The team members report to two bosses
the project manager and the functional manager.

Question - 197

Customer formally accepts the deliverables of each project phase. This process is known as
________.

A. Validate Scope

B. Quality Assurance

C. Quality Control
D. Quality Measurement

A is the correct answer. Validate Scope is the process of formally accepting the deliverable of a
project or phase. A is incorrect because EVM measures project performance. C is incorrect
because quality control is concerned with the correctness of the work, not the acceptance of the
work. QA is incorrect because this described the quality program for the organization as a whole.

Question - 198

Project just went into inclusion mode. This means that project __________.

A. Has become part of the business processes

B. Has been accepted by the sponsor and the client

C. Will be closed due to lack of resources

D. None of the above

A is the correct answer. inclusion mode: Has become part of the business processes.

Question - 199

You are managing a project which is building a software algorithm for managing the traffic
signals.The team has been working hard and extending over weekends to ensure deliverables are
completed as per schedule.The project has now completed and well received by the client.Your
team members approach you with a request for a couple of compensatory offs considering the
various weekends that they have put in extra effort.However your company has no such
compensatory off policy - what should you do ?

A. Allow the employees compensatory off since they have really worked hard

B. Decline the compensatory offs

C. Decline the request as it is against company policies and work with your senior management
in the best way possible to reward the employees

D. Escalate to senior management

C is the correct answer.Rewarding employees where it is due is always a good thing which
ensures motivation and appreciation.However that does not mean that we should bend the
rules.A project manager must always do the right thing and giving a compensatory off is against
the company rules - so that would be unethical.Escalating to senior management is a reactive
approach and in this case would act as a demotivator where as you are trying to reward
employees ethically.Option B is a good choice but a better choice is option C where in addition
to ensuring you are not compromising on your social and ethical responsibility - you are still
trying to find ethical ways to reward your employees!

Question - 200

Which of the following statements is not true regarding Scope Verification ?

A. Consists of conducting inspections , reviews and audits.

B. Used to determine if results conform to requirements

C. Used to get formal sign off from clients

D. Used to determine schedule variance

D is the correct answer.All the options except schedule variance are true regarding scope
verification.Note that this process can also be done at the end of each project phase in the project
lifecycle.So the correct answer to the question is option D since scope verification has nothing to
do with schedule variance