pmp exam set 2 - questions.pdf

8/18/2019 PMP Exam Set 2 - Questions.pdf

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PMP Exam Set 2 - Questions

Copyright 2013 The Knowledge Academy Ltd - All rights reserved. Page 1 of 34


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1. During which project management process group is the rough order of magnitude estimate

created?

a. Initiating

b. Planning

c. Executing

d. Closing

2. In a simple Project lifecycle, the activities like Acceptance, Handover and Archiving of

records will occur during,

a. Concept

b. Development

c. Execution

d. Finish

3. Which of the following process develops the document that formally authorizes the project?a. Direct and Manage Project Execution

b. Monitor and Control Project Work

c. Develop Project Charter

d. Develop Project Management Plan

4. Calculate the Payback period for the data available in the table below. This is the project

manager’s estimate of the cash flow that will take place over the next five years.

End of Year Cash Flow In Cash Flow Out

1 0 5,00,0002 300,000 90,000

3 400,000 1,00,000

4 100,000 1,75,000

5 50,000 35,000

a. 1 year

b. 2 years

c. 3 years

d. 5 years

5. Philips has ventured into a small business and intends to calculate the ROI for his project.

The original investment was $10,000,000and the average annual profit is $400,000.

Calculate the ROI for the project.

a. 4%

b. 40%

c. 25%

d. 2.5%

6. Whose job is it to determine the priorities among projects in a company?

a. Project Manager



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b. Sponsor

c. Senior Management

d. Project Team

7. One of the functional manager in your organization is arguing that operations and projects

are same therefore require similar planning techniques. What would be your best argument

to stress your view point that the two are different?

a. Resources consumed by operations are different than the resources consumed by

projects

b. Projects incur large expenses in comparison to operations

c. Projects are done by combining the efforts of various departments while the operations

are done only by one department

d. Projects have a definite start and end date while operations do not

8. You are the Project Manager for an underpass construction project in Scotland. While

planning the project risks, which of the following will you NOT select as a strategy for dealing

with negative risks or threats?

a. Exploit

b. Avoid

c. Transfer

d. Mitigate

9. In which document will you find the code of account identifier, description of work,

responsible organization, and list of schedule milestones?

a. WBS

b. WBS Dictionaryc. PERT / CPM Charts

d. Role and Responsibility Matrix

10. A matrix organization begins a new project. Project manager knows that the team is more

responsive to their functional managers than to PM. To overcome this, PM decides to

prepare,

a. Project plan

b. Project charter

c. Scope statement

d. Human resource management plan

11. The activity “Ship Container” in your network diagram has an early

start of day 17, a late start of day 22 and a late finish of day 37. What is the activity

duration?

a. 15 days

b. 16 days

c. 59 days

d. 14 days

12. In your new project, you have to provide a critical deliverable within five months and do nothave time to go through the Conduct Procurements process. You decide to sign a contract



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with a supplier with whom your company has done some work in the past. The risk you are

accepting in this situation is:

a. The ability of the supplier to deliver the goods

b. Collusion between the supplier and your team

c. Lack of proper scope definition

d. Lack of a legally binding agreement

13. As a project manager, achieving customer satisfaction is an important objective for you.

Which of the following will help you in attaining your objective?

a. Defining requirements

b. Providing more features than what the customer has asked for

c. Identifying project related risks

d. Providing project justification

14. Which of the following is an ongoing and coordinated management of a group of projects

that are interrelated and/or independent and contribute to a common strategic objective?a. Project Management

b. Program Management

c. Portfolio Management

d. Personal Management

15. Which of the following is NOT a function of the Program Management Office?

a. Administrative support to project managers and team members

b. Consolidation of individual project status reports into program and corporate reports

including exception reporting

c. Responsible for quality audit and assurance across the organization

d. Coordination of resource allocation across all projects

16. Which of the following is never true about ‘Define Scope’ process?

a. It is critical to project success.

b. It is a detailed description f the project and the product

c. It never involves negotiation with the stakeholders

d. It could be iterative

17. Your project has just been approved by management. You have developed the project

charter and identified the project stakeholders. This information from the initiating phase is

input into which of the following processes?

a. Executing

b. Planning

c. Controlling

d. Back to Initiating

18. As a project manager, you need to manage the stakeholders for your project. What is not

true for stakeholders?

a. Individuals and organizations involved in the project are stakeholders

b. Individuals and organizations that support the project are stakeholders



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c. Individuals and organizations that get effected by the project are stakeholders

d. Individuals and organizations that provide finance to the project are stakeholders

19. During the planning phase of your project, your project team has discovered another

method to complete a part of the project scope. This method is more secure with an

additional cost to the client. This is an example of :a. Risk assessment

b. Alternatives Identification

c. Alternative Selection

d. Product analysis

20. As the time in the Project Lifecycle passes by, the ability to influence risk and cost in the

project,

a. Increases

b. Decreases

c. Increases and decreasesd. There is no fixed pattern

21. After a large amount of effort, the project team has finally determined the specifications for

a major scope change to be made in the project. In light of this, what should the project

manager do FIRST?

a. Look for other changes

b. Gain sign off on this change

c. Calculate the risks associated with this project

d. Start execution of the said work

22. The project has been initiated and the project manager is in the process of defining and

documenting stakeholders' needs that are required to meet the project objectives. He is

very careful in performing this process as he is aware that the project's success is directly

influenced by the effort taken in capturing and managing project and product requirements.

All of the following are tools and techniques that can assist him in preparing the

requirements documentation except,

a. Facilitated workshops

b. Group decision making

c. Prototypes

d. A-beta technique

23. John provides a list of key risks and states their risk response strategies to his manager as his

Risk Management Plan. Why is his manager, Jeff, a PMP, asking him to redo his plan?

a. A list of project risks is an output of risk identification

b. The risk management plan defines the approaches, tools, and data sources used to

perform risk management, roles and responsibilities, budgeting, timing, risk categories,

revised stakeholders’ tolerances, reporting formats and tracking but not the risks

c. The risk list should also include triggers

d. John has not involved the project team



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24. You have to ensure that appropriate tools & techniques are used for performing the process

of Monitor and Control Risks. Which one of the following is not a tool & technique for this

process?

a. Risk reassessment

b. Risk Audits

c. Risk Registerd. Technical Performance Measurement

25. A project of $1.5 million has an adverse event that has the probability of 60% of occurrence

and a potential loss of $25,000. This represents an expected negative value of:

a. $1,50,000

b. $15,000

c. $1,500

d. $90,000

26. Sensitivity analysis is of the tools involved in performing quantitative risk analysis. What arethe advantages of using sensitivity analysis?

a. It determines the risk to public only

b. It allows for independent answers

c. Management understands that there is a range of possible outcomes

d. It provides insight into the project that the PM may be lacking

27. You are currently in the planning process and have identified the risks associated with this

project and are ready for the next step. What is the next step?

a. Assign probability and impact values using qualitative or quantitative analysis

b.

Use the Delphi technique to confirm the identified risksc. Identify the response strategies for the identified risks

d. Start working on the creation of the project schedule

28. You are the project manager in the aviation industry and are engaged in a project that will

create a new and improved product for your company. Currently, your company has over 5

million users around the globe and this product will impact them also. Your organization has

high expectations from your project. What technique among the options given will be the

right one to have the opinions on the impact?

a. Identify Risks

b. Anonymous trigger

c. Risk Mitigation

d. Delphi Technique

29. Which is the tool that displays the values of Probability and Impact and assists in prioritizing

the risks qualitatively and quantitatively?

a. Probability and Impact

b. Probability and Impact Matrix

c. Probability Analysis

d. Exposure Matrix



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30. Upon evaluation, a newly appointed project manager identifies that the LDR project has

many risks with high-risk impact scores, but has an overall low risk score. How is this

possible?

a. The risk scores are graded on a bell curve.

b. The risks are rated High, Medium, and Low

c. The impact of each risk is not accounted for until it comes to fruitiond. The probability of each risk is low

31. Which of the following techniques is used to evaluate the degree to which the data about

risks is useful for risk management?

a. Decision Tree

b. Probability impact matrix

c. Simulation

d. Data Quality Assessment

32. What action should a project manager FIRST take when an unidentified risk event occurs?a. Inform the customer of the possible consequences

b. Inform the senior management of the possible consequences

c. Redo the risk identification process to get prepared for other ‘known unknowns’

d. Create a work around

33. What type of contract would the owners or buyers want to issue for a relatively new

technology oriented project in order to reduce or eliminate as much risk as possible for

them?

a. Lump sum

b. Cost plus percentage of Costc. Cost plus Fixed Fee

d. Fixed Price plus Incentive fee

34. If a project has a 90% chance of having the scope defined by a certain date and an 80%

chance of obtaining approval for the scope by a certain date, what is the probability that the

delivered scope will both be defined and accepted as per the schedule dates?

a. 1.7

b. 0.1

c. 0.72

d. 0.9

35. Rolling wave planning is a form of progressive elaboration planning where the work to be

accomplished in the near term is planned in detail and future work is planned at a higher

level of the WBS. Which process uses Rolling Wave Planning as a tool & technique?

a. Define Activities

b. Sequence Activities

c. Estimate Activity Resources

d. Develop Schedule



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36. You are examining the network paths for your project. Path A's duration is: 1-2-3-5-8; Path

B's duration is 1-3-5-6-7; Path C's duration is 1-2-5-4-9; and Path D's duration is 2-3-4-4-8.

Which of the following is the critical path for this project?

a. Path A

b. Path B

c. Path Cd. Path D

37. Rahul, the project manager has recently earned his PMP Certification and is planning quality

standards for his project with his team. Since it is the first time he is performing this activity,

kindly help him identify which of the following quality planning tools he will NOT require to

plan quality in his project,

a. Cost Performance baseline

b. Affinity diagrams

c. Force field techniques

d. Cost Benefit analysis

38. Which of the following is also known as Failure costs?

a. Internal costs

b. Prevention costs

c. Cost of defects

d. Cost of poor quality

39. You are the project manager for the ABC Project. Initially you have identified 5 stakeholders

in your project. As the project moved ahead, 5 more stakeholders got involved in the

project. Assuming that they all need to communicate with each other, how many additionalcommunication channels are there?

a. 5

b. 45

c. 35

d. Cannot be evaluated

40. Which of the following signifies the time an activity may be delayed or extended without

affecting the total project duration?

a. Lag

b. Lead

c. Total Float

d. Free Float

41. Which of the following is NOT Crosby’s 4 Absolutes of Quality?

a. Aim is zero defects

b. Conformance to requirements

c. Cost of Quality cannot be measured

d. Quality comes from prevention

42. You are in charge of developing a new product for an organization. Your quality metrics are

based on the 17th percentile of the last three products developed. This is an example of:



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a. Statistical Sampling

b. Metrics

c. Benchmarking

d. Operational definitions

43. There are five stages of development that teams may go through. Which of the following is

the correct order in which these stages occur?

a. Forming, Storming, Norming, Performing, Adjourning

b. Norming, Storming, Forming, Performing, Adjourning

c. Forming, Norming, Performing, Storming, Adjourning

d. Forming, Performing, Norming, Storming, Adjourning

44. The Project Manager can exercise different powers during the project lifecycle on need

basis. Which of the following represents the power that is a subset of Legitimate Power and

involves the ability to reward people in exchange for positive achievements?

a. Legitimate Powerb. Coercive Power

c. Reward Power

d. Referent Power

45. Tim is the Project Manager for the Doom project. Two key team members have come to him

for assistance in resolving their conflict. Tim intends to use a conflict resolution strategy that

results in a win-win situation, where both the parties strive for consensus and commitment.

Which is this conflict resolution strategy?

a. Compromising

b. Confrontationc. Smoothing

d. Collaborating

46. Which leadership style throws open the problem to the group for discussion and

simultaneously allows or encourages the entire group to make the relevant decision?

a. Autocratic

b. Democratic

c. Laissez Faire

d. Consultative Autocrat

47. What is NOT true about Management by Objectives (MBO)?

a. It is a system of managerial leadership that defines individual managerial responsibilities

in terms of corporate objectives.

b. Managers are set individual goals that contribute to the achievement of those corporate

objectives.

c. Goals and objectives should reflect project goals and align well with the client's goals.

d. It works well only when it is driven by the lower staff.

48. In the Power/Influence Model, who are the powerful people who are actively supportive of

the project?a. Blockers



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b. Champions

c. Supporters

d. Detractors

49.

The project phases are collectively known as, (54)

a. Slack

b. Float

c. Lifecycle

d. Implementation time

50. Which is a phased budget used to measure and monitor cost performance on the project?

a. Cost baseline

b. Cost management plan

c. EAC

d. Chart of accounts

51. Which of the following is NOT true about the Project Management Plan (PMP)

a. It is a living document and is subject to version control

b. It forms the baseline against which future actions are measured

c. Primary purpose of the Project Management Plan is to communicate the project

manager’s intentions to the stakeholders

d. Primary purpose of the Project Management Plan is to communicate the project

manager’s intentions to the sponsor and the management



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52. The diagram below is the Work Breakdown system (WBS) for an Engineering project. The

WBS Item 1.1.2 could be a,

a. Control Point

b. Planning package

c. Code of Accounts

d. WBS Dictionary

53. You have been assigned a high priority project. Your organization is pioneering in new

technology with this project and has no previous experience in building a similar product.

Management has requested that your estimates should be accurate. Which technique

should be used?

a. Top down estimating

b. Top down budgetingc. Bottom up estimating

d. Bottom up budgeting

54. Which of the following is most true in regard to the Code of Accounts?"

a. It allows to easily identify the breakdown level of the item in the resource breakdown

structure.

b. It describes the coding structure used by the performing organization to report financial

information in its general ledger

c. It is the collection of unique identifiers generally assigned to WBS items

d. It defines ethical behaviour in the project and the responsibilities to the customer and

the profession

55. As the project manager, you are currently estimating costs for your project. You are using

the analogous estimating technique that is best described as:

a. Least accurate

b. Bottom up estimating

c. Regression analysis

d. Most accurate



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56. The sponsor has asked you to provide the project cost estimation for development,

installation, maintenance and customer support for as long as the project exists? What kind

of estimate is this referred to as?

a. Lifecycle costing

b. Depreciation

c. Project cost baselined. Payback estimate

57. The project manager has asked John to estimate the cost of his activity so as to complete

project cost estimating. He is not confident of the cost estimations and seeks help from his

colleague who asks him to identify the optimistic, pessimistic and most likely values for cost

estimation of his activity. John has identified the following values.

Pessimistic = $450K

Optimistic=$330K

Most Likely=$360K

Help John evaluate the estimated cost for his activity,a. 370

b. 190

c. 355

d. None of the above

58. Which of the following is NOT a tool and technique for Determine Budget process?

a. Cost Aggregation

b. Reserve Analysis

c. Funding Limit Reconciliation

d. Resource calendars

59. According to Herzberg’s theory, all of the following are motivating factors EXCEPT:

a. Recognition

b. Responsibility

c. Advancement in career

d. Salary

60. In your project, you invest a lot of time in team development to increase the team’s

performance, which in turn increases the likelihood of meeting project objectives. Which of

the following indicators will you NOT use to evaluate your team’s effectiveness?a. Improvement in skills of team members

b. Improvement in competencies and morale that help the team to perform better as a

group

c. Decrease in staff-attrition (i.e., fewer people leaving the project team)

d. Delivery of project deliverables before time

61. Which of the following coordinates the project resources to carry out the project as per the

project plan?

a. Resource planning

b. WBSc. Monitoring work progress



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d. Executing process

62. The performing organization has a policy of air travel by a particular airline to specified

destinations. However, the project manager has a frequent flier program with another

airline, which also flies to the particular destination that he is required to travel. What

should the project manager do?a. Make his own travel arrangements

b. Travel by the company approved airline

c. Secure an approval for travel by his preferred airline

d. Get the organization to make an arrangement with the airline of his choice

63. You are managing a project with one year duration. During the middle of the project, it is

found that quality of the project is not as planned or expected. Who is responsible for this

situation?

a. Project champion

b.

Project teamc. Stakeholders

d. Customers

64. WBS for your project has been prepared and distributed to the project team members.

When execution begins, which document will be providing the detailed descriptions of the

WBS elements?

a. WBS Dictionary

b. Scope statement

c. Project Management plan

d. Project statement of work

65. The management wants to be sure that a project is following defined quality standards.

Which one, from the following, would they use?

a. Risk Management Plan

b. Work Breakdown Structure (WBS)

c. Statement of Work

d. Quality Audit

66. If an employee is working towards the satisfaction of his/her safety needs, which of the

following is the highest need, he/ she have already satisfied?

a. Physiologicalb. Need for approval from the society

c. Need for self-esteem

d. Social

67. Post the mid review of your project, EV is 42% against PV of 50%. The project manager

intends to makeup for the 5%. The project sponsor has set aside Rs.100, 000 as management

reserve. Instead of using it to hire temporary labour or pay overtime, the project manager is

using it as an incentive for the team to catch up in 60 days. If the team achieves the

deadlines, the money will be used to take the team members and their guests to Miami for

an all expenses paid weekend. What type of power is the project manager referencing?a. Referent



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b. Reward

c. Coercive

d. Expert

68. You are managing a project and cannot get enough attention for your project. Resources

are working on more than one project at the same time and their priorities keep onchanging. Most likely you are working in what form of organization?

a. Matrix

b. Functional

c. Expeditor

d. Coordinator

69. Project information may be distributed using a variety of methods including project

meetings, hard copy document distribution, and shared access to networked electronic

databases, fax, electronic mail, voice mail, video conferencing and electronic tools for

project management. These are known as –a. Project controls

b. Project information management system

c. Project distribution systems

d. Information distribution tools

70. You are in the process of selecting a seller from the shortlisted ones and awarding a

contract. The process will involve receiving bids or proposals and applying defined selection

criteria to select the seller(s) who is/are qualified to perform the work. All of the following

are inputs to this process except?

a. Teaming Agreements

b. Make or buy decisions

c. Bidder conferences

d. Source selection criteria

71. A project manager is managing a project where there will be a number of persons working

together. She wants to enhance the ability of the team to work together and perform as a

team. One of the things that she can do to maximize the ability of the team to do this is:

a. Cohabitation

b. Co-location

c. Staffing plan

d. Work Breakdown structure

72. Which of the following is a “hygiene factor” under Herzberg’s Motivation-Hygiene Theory?

a. Recognition for excellent work

b. Self-actualization

c. Good relations with co-workers and managers

d. Clean clothing



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73. Tom is a project manager on an industrial design project. He is always watching when his

team members come into the office, when they take their breaks, and when they leave. He

periodically walks around the office to be sure that everyone is doing work when they are at

their desks and he insists that he make every project decision, even minor ones. What kind

of manager is he?

a. Theory Xb. Theory Y

c. Cost Cutter

d. Effective Theory X

74. There is probably more man hours lost through ineffective meetings than any other cause.

The application of some simple rules can make meetings much more effective. Which of the

following does NOT contribute in making the meetings effective?

a. Have a meeting policy defined in the Communications Plan

b. Meet at least once a week

c. Circulate an agenda before the meeting and stick to itd. Make all actions personal and timely and follow them up

75. Which of the following is an input to the Quality Assurance process?

a. Approved change requests

b. Quality metrics

c. Resource calendars

d. Grade

76. Which type of cost is team training?

a. Directb. Fixed

c. NPV

d. Indirect

77. A cost baseline is an output of which cost management process?

a. Estimate Costs

b. Estimate Activity Durations

c. Determine Budget

d. Control Costs

78. Which of the following is the most probable result of communication blockers?

a. Conflict occurs

b. Trust level is enhanced

c. Project is delayed

d. Senior management is displeased

79. When is formal written correspondence required with the customer?

a. When the customer requests additional word not covered under the contract

b. When the project has cost overruns

c. When the project has a schedule slippage that includes changes to the critical path



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d. When defects are detected

80. Which of the following is NOT a tool and technique for Acquire Project Team process?

a. Pre-assignment

b. Virtual teams

c. Resource calendars

d. Acquisition

81. Which one of the following documents determines the method and timing of releasing the

team members and also helps to mitigate human resource risks that may occur during or at

the end of the project?

a. Staff acquisition

b. Staff release plan

c. Compliance

d. Safety

82. Project Staff assignments is an output from the ‘Acquire Project Team’ process. It is an input

to,

a. Develop Project Team process

b. Human Resource Management process

c. Staff Planning process

d. Human Staffing process

83. Nonverbal communication skills are of ____________________ when the project manager is

engaged in negotiations.

a. Major importanceb. Little importance

c. Importance only when cost and schedule objectives are involved

d. Importance only to ensure he wins the negotiation

84. Establishing minimum requirements of performance for evaluation criteria is also known as,

a. Entry Level Screening

b. Estimating system

c. Screening system

d. Weighting system

85. Which of the following is known as the formal procedure for sanctioning the project work to

ensure that it’s done at the right time?

a. Project Planning

b. Cost Estimation

c. Work Authorization System

d. Organizational procedures

86. Which of the following coordinates the project resources to carry out the project as per the

project plan?

a. Resource planningb. WBS



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c. Monitoring work progress

d. Executing process

87. Which of the following stands true when the ratio between Earned Value and Planned Value

is greater than one?

a. You have completed less work than the planned work.

b. You have completed more work than the planned work.

c. You are earning less than spending.

d. You are earning more than spending.

88. Your project has an allocated budget of $720,000. 8 months down the project time, you

have exhausted $515,200 of your budget. You have completed 70 percent of the work

against your plan of 82%. What is the CPI for this project?

a. 0.97

b. 1.02

c. 0.7

d. 0.85

89. During the project review, you learn that your project has a high likelihood of experiencing a

schedule overrun. You know this because the cumulative EV is ________

a. Lower than the cumulative actual cost

b. Higher than the cumulative PV

c. Lower than the cumulative PV

d. Lower than the cumulative CPI

90. What are the graphical displays of accumulated costs and labour hours, plotted as a function

of time known as?

a. Variance reports

b. S curves

c. Trend analysis

d. Earned value reports

91. Your organization uses Earned Value Management to assess project health. As a project

manager, you will use EVM during which of the following?

a. Controlling processes

b. Executing processes

c. Entire project

d. Closing processes

92. You are in the process of monitoring the various project processes and their performance.

Which of the following are the LEAST appropriate tool/ technique to use in this process?

a. Expert judgment

b. Earned value technique

c. Project management methodology

d. Variance analysis



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93. Your team has completed the project and the customer has accepted the completed project

scope. The Project management office has reverted back to you, the Project Manager saying

that the lessons learned have not been completed. What is the status of your project NOW?

a. The project is complete because the customer has accepted the deliverables

b. The project is incomplete because the project needs to be re-planned

c. The project is incomplete until all project and product deliverables are complete andaccepted

d. The project is complete because the project has reached the due date

94. Your project was just completed. Because of some unfortunate circumstances, the project

was delayed, causing cost overruns at the end of the project. Which of the following

statements is true?

a. You should document the circumstances as lessons learned.

b. You should pay particular attention to archiving the financial records for this project.

c. Your project ended because of starvation because of the cost overruns.

d. You should document the circumstances surrounding the project completion during the

Scope Verification process.

95. Procurement audits review which of the following?

a. The procurement processes from Plan Procurements through Administer Procurements

b. The procurement processes from Plan Procurements through Close Procurements

c. The Plan Procurements and Conduct Procurements processes

d. The procurement processes from Plan Procurements through Close Project or

Phase process

96. Your construction project has 190 specifications, 350 blueprints and multiple parts. Which

tool would you use to apply technical and administrative direction to identify the functional

and physical characteristics of items, and control changes to those characteristics?

a. Change control system

b. Configuration management

c. Inventory control

d. Operational definitions

97. As part of finishing her project notebook, Carmen is compiling the paperwork for the project

auditor to review. As she completes her final reports for the project closeout, she realizes

that she has mistakenly included the,

a. Performance measurement documentation

b. Return on Investment (ROI)

c. Contract documentation

d. Lessons Learned

98. Project closing is the last phase of the project life cycle and Dan is excited to be near to the

project completion. He finds that while doing project closing he needs to concentrate his

efforts on many areas. They are:

a. Control Schedule and Perform Quality Control

b. Distribute Information and Administer Contracts

c. Define Activities and Sequence Activities

d. Close Procurements and Close Project or Phase



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99. Project A has an Internal Rate of Return (IRR) of 20%, Project B has an IRR of 12%, Project C

has an IRR of 22%, and Project D has an IRR of 10%. Which of these would be the BEST

project?

a. Project A

b. Project B

c. Project Cd. Project D

100. Given the following values, calculate the Variance at Completion for the project :

PV=300, AC=358, EV=324, EAC=454, BAC=420

a. Negative Variance at 34

b. Positive variance at 130

c. Positive Variance at 34

d. Negative Variance at 130

101. Tools and Techniques for Perform Integrated Change Control include:

a. Expert Judgment

b. Expert Judgment, Change control meetings

c. Change control meetings

d. Change control meetings, Project management plan

102. Verify Scope is the process of formalizing acceptance of the completed project deliverables.

When should this process be done?

a. At the beginning of the project

b. During the Planning processes

c. At the end of each phase of the project

d. At the end of the project

103. For the company review meeting, you have to prepare graphical charts to show the project

performance trends. Which of the following two charts will help you to do that?

a. Pareto chart & Control Chart

b. Control chart & Run Chart

c. Gantt Chart & Control Chart

d. Histogram & Run Chart

104. Johnny is the project manager of the Galaxy Project. Quality audits of the deliverables show

there are several problems in the product. The organization has asked Johnny to create a

chart showing the distribution of problems and their frequencies. Which of the following is

the right tool to assist Johnny?

a. Pareto diagram

b. Ishikawa chart

c. Control chart

d. Flowchart

105. As a project manager, you are deciding the tools & techniques that you need to use on your

project. Which process uses Issue Log as one of the tool & technique?

a. Develop Human Resource Plan

b. Manage Project Team

c. Distribute Information

d. Report Performance



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106. A customer has been consistently late with approvals on design documentation. The project

manager has raised the subject in the past but the practice of delayed approval has not

changed. The project manager has just been documenting the delays. Which conflict

resolution technique has the project manager been following?a. Confronting

b. Withdrawal

c. Smoothing

d. Compromising

107. Senior Management needs to be informed regarding the progress on your project. You will

be making progress reports based on the scope, schedule and cost details provided in the:

a. Project Management Plan

b. Project Charter

c. Earned Value calculations

d. PERT and CPM

108. In your organization, a project management team has subcontracted work to a service

company. The process of ensuring that this service company's performance meets

contractual requirements is called:

a. Plan Procurements

b. Administer Procurements

c. Procurement Management Plan

d. Staffing Management Plan

109. Which of the following is the Output from the 'Report Performance' process?

a.

Communication methodsb. Organizational process assets updates

c. Reports

d. Budget forecasts

110. Your most recent project status report contains the following information:

EV = 3,000, AC = 3,500, and PV = 4,000. The schedule variance is:

a. "+1000"

b. "+500"

c. "-500"

d. "-1000"

111. Cost control outputs include all of the following except:

a. Estimate at completion

b. Budget estimates

c. Revised cost estimates

d. Cost Baseline

112. You have just been informed by the Project sponsor that the customer intends to terminate

the project in the middle of the execution process group. Which of the following will you do

FIRST as a project manager?

a. Share this information with all stakeholders by email

b. Evaluate the impact of project closure

c. Initiate the Close Project or phase process



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d. Meet the sponsor to discuss the course of actions

113. Which of the following is a Tool and Technique for the 'Close Project' process?

a. Expert Judgment

b. Accepted deliverables

c. Project charterd. Project management plan

114. One way the Close Project or Phase process differs from Close Procurement is:

a. "Procurement closure involves verification that all work and deliverables are acceptable,

where Close Project or Phase does not"

b. Close Project or Phase is only a subset of Close Procurement

c. "Procurement closure means verifying that the project is complete or terminated; Close

Project or Phase is the process of tying up all of the activities for every management

process group"

d. Procurement closure is performed by the seller; Close Project or Phase is performed by

the buyer

115. Your client has terminated your project before it is complete. Which of the following is true?

a. You must stop all work and release the team immediately

b. You must work with the team to document the lessons learned

c. "You must keep the team working on the project to give your senior management time

to talk to the client"

d. You must update the project management plan to reflect this change

116. Which of the following is NOT an input of the Close Project or Phase process?

a. Project management plan

b.

Project management methodologyc. Accepted deliverables

d. Organizational process assets

117. Which of the following is an input to the 'Close Procurement' process?

a. Project management plan

b. Project documentation

c. Expert Judgment

d. Accepted deliverables

118. During procurement closure, a procurement audit includes all of the following EXCEPT:

a. Reviewing the contract terms to ensure that they have all been met

b. Identifying successes and failures that should be recognized

c. Documenting lessons learned

d. Using the payment system to process consideration as per the terms of the contract

119. Which of the following BEST describes when you perform the Monitor and Control Project

Work process?

a. Continuously throughout the project

b. As soon as every deliverable is completed

c. At scheduled milestones or intervals during the project

d. At the end of every project phase



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120. You are the project manager for a construction company. You are currently working on a

project for building a new dam across a river. A recent change in a law governing Ecological

Preservation will impact your project and change your project scope. What should PM do?

a. Proceed as planned, and ignore the change in the law

b. Create a documented change request

c. Consult with the project sponsor and the stakeholdersd. Stop all project work until the issue is resolved

121. You are listing down the possible reasons that can cause scope change in your project.

Which one of the following will not be a valid reason for scope change?

a. Customer has changed the specifications for the deliverables

b. Change in government regulations

c. Change in the estimation approach from top down to bottom up

d. A change in the design because new technology needs to be implemented

122. What is the MOST important thing that a project manager should ensure during the 'Verify

Scope' process?a. Accuracy

b. Timeliness

c. Acceptance

d. Completeness

123. You, as a project manager are in the process of midway review at the end of the first year of

a $50K project, the earned value analysis shows that the PV is $25K the EV is $20K and the

AC is $15K. What can be determined from these figures?

a. The project is behind schedule and over budget.

b. The project is ahead of schedule and under budget.

c.

The project is ahead of schedule and over budgetd. The project is behind schedule and under budget.

124. At what level of the WBS should the budget be estimated to assist in budget control during

the Monitoring and Controlling process group?

a. Highest

b. Lowest

c. Third

d. Major work effort

125. As a project manager, you are ensuring that project cost control is done on your project. All

of the following is mostly true about Project Cost Control except:

a. The cost base line is updated all the time

b. Appropriate stakeholders are informed about the approved changes to the project cost

c. All the changes to the project cost are recorded pre and post their approval

d. Cost performance is monitored to detect the variance between the cost base line and

actual cost performance

126. A customer has been consistently late with approvals on design documentation. The project

manager has raised the subject in the past but the practice of delayed approval has not

changed. The project manager has just been documenting the delays. Which conflict

resolution technique has the project manager been following?

a. Confronting

b. Withdrawal



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c. Smoothing

d. Compromising

127. If a project manager wants to examine project results over a period of time to analyse the

improvement in performance, what would she use?

a. Trend Reportb. Forecasting Report

c. Status Report

d. Variance report

128. Senior Management needs to be informed regarding the progress on your project. You will

be making progress reports based on the scope, schedule and cost details provided in the:

a. Project Management Plan

b. Project Charter

c. Earned Value calculations

d. PERT and CPM

129. You have to ensure that appropriate tools & techniques are used for performing the process

of Monitor and Control Risks. Which one of the following is not a tool & technique for this

process?

a. Risk reassessment

b. Risk Audits

c. Risk Register

d. Technical Performance Measurement

130. In your organization, a project management team has subcontracted work to a service

company. The process of ensuring that this service company's performance meets

contractual requirements is called:a. Plan Procurements

b. Administer Procurements

c. Procurement Management Plan

d. Staffing Management Plan

131. Which of the following is not a Quality Control Tool?

a. Audit

b. Pareto Charts

c. Ishikawa Diagrams

d. Inspection

132. Which of the following is the Output from the 'Report Performance' process?

a. Communication methods

b. Organizational process assets updates

c. Reports

d. Budget forecasts

133. An example of scope verification is:

a. reviewing the performance of an installed software module

b. managing changes to the project schedule

c. decomposing the WBS to a work package level

d. "performing a benefit/cost analysis to determine if we should proceed with the project"



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134. There are five stages of development that teams may go through. Which of the following is

the correct order in which these stages occur?

a. Forming, Storming, Norming, Performing, Adjourning

b. Norming, Storming, Forming, Performing, Adjourning

c. Forming, Norming, Performing, Storming, Adjourning

d. Forming, Performing, Norming, Storming, Adjourning

135. The Staffing Management Plan, which is part of the Human Resource plan, describes when

and how human resources requirements will be met. Information in the staffing

management plan may vary according to the application area and project size. Key areas

may be the following except,

a. Staff acquisition

b. Resource calendars

c. Compliance

d. Work Items

136.

In a matrix organization, two projects have a concurrent need for identical skills in limitedavailability with the functional manager in charge of the skill in demand. Who is responsible

for resolving this conflict over resources?

a. Senior management

b. Sponsor

c. Project Manager

d. Functional Manager

137. You are the project manager for the Moon project. As part of quality management, you have

listed the cost of quality, both for conformance and non-conformance. Which of the

following is not an attribute of the cost of non-conformance?

a.

Safety measuresb. Downtime

c. Loss of customers

d. Rework

138. An International Project consists of 150 project team members around the world. Each

project team will be upgrading a piece of software in different facilities. The Project

Manager need to address quality of the overall delivery. Which of the following is the most

suitable quality planning tool?

a. Work Breakdown Structure

b. Checklists

c. PND

d. WBS Dictionary

139. As a project manager, you are ensuring that quality standards should be followed on your

project. In which PMBOK process are the quality standards that need to be followed on the

project are identified?

a. Develop Project Charter

b. Collect Requirements

c. Plan Quality

d. Perform Quality Assurance



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140. You as a project manager want a detailed cost estimation to be developed for your project.

Which one of the following technique are you most likely to use?

a. Analogous estimating

b. Expert Judgment

c. Bottom up estimating

d. Numerical estimating

141. The duration of an activity has the following estimates - optimistic: 25 days, most likely: 48

days, and pessimistic: 65 days. Which of the following is the time estimate of this activity

based on the Beta distribution?

a. 43 days

b. 49 days

c. 47 days

d. 48 days

142. You are managing a project in which your team members are uncertain as to how much time

will be needed for each activity. Which of the following technique is considered to be themost useful in this case?

a. Precedence diagramming method (PDM)

b. Arrow Diagramming method (ADM)

c. Project Evaluation and Review Technique (PERT)

d. Critical Path Method (CPM)

143. The standard deviations for the four tasks at the critical path are 3, 5, 10, and 3. What is the

standard deviation for the entire critical path?

a. You can not determine the standard deviation on critical path.

b. 11.95

c.

5.8d. 143

144. A project manager is using a single duration estimate to calculate activity duration. Which

type of mathematical analysis, from the following, is he using?

a. Critical Path Method (CPM)

b. Project Evaluation and Review Technique (PERT)

c. Monte Carlo

d. Graphical Evaluation and Review Technique (GERT)

145. A logical relationship between tasks that allows an acceleration of the successor task is

represented by:

a. Float

b. Free Float

c. Lag

d. Lead

146. The calculation of pricing for a project can be extremely complex in the perspective of valid

cost estimates and price quotes from vendors. The tool that facilitates the pricing of a

project by a structured decomposition of the total effort into individual activities and by

defining cost elements of labour, material, and equipment is?

a. Cost Estimation Plan

b. Cost Management Plan

c. WBS



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d. Bottom up estimating

147. Which of the following are the project constraints defined by PMI?

a. Scope, Quality, Schedule, Budget, Resources and Risk

b. Quality, Procurement, Schedule, Budget, Resources and Risk

c. Scope, Quality, Communication, Budget, Resources and Riskd. Scope, Quality, Schedule, Budget, Communication and Risk

148. Of the following, which is not TRUE about Project Life cycle?

a. Cost and staffing levels are low at the start, peak as the work is carried out and drop

rapidly as the project draws to a close.

b. Stakeholder influences are greatest towards the end of the project

c. Risk and Uncertainty are greatest at the start of the project

d. Cost of changes increases as the project approaches completion

149. You are a project manager for your organization. Joe, a project manager in training, wants to

know when the project manager needs to be assigned to a project. Your BEST answer is:a. During the initiation stage

b. During the Planning stage

c. When the stakeholders approve the budget

d. After the project is proven feasible

150. Of the following, which is an example of external factor for Enterprise environmental

conditions?

a. Company methodology and organization

b. Company culture

c. Company infrastructure and capability

d.

Government and industry standards and regulations

151. For projects that are carried out under a formal contract, the principal inputs are,

a. Statement of Work and Business Plan

b. Statement of Work and Project Charter

c. Project Charter and Business Plan

d. Statement of Work and Project Document

152. All of the following are TRUE about Statement of Work except,

a. It is a formal document that describes the activities, deliverables, and timescale for the

performance of specified project work.

b. Detailed requirements are usually included in the Statement of Work (SOW), along with

standard regulatory and governance terms and conditions.

c. Where the work is by a contractor on behalf of a client, then the SOW becomes part of

the binding contract.

d. It is the responsibility of the sponsoring management to create it

153. The discount rate at which the Net Present Value of future cash flows is zero is known as,

a. Return on Investment (ROI)

b. Payback Period

c. Internal Rate of Return (IRR)

d. Net Present Value (NPV)



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154. A key tool of project monitoring and control that defines tools, procedures and processes

necessary to collect, collate and disseminate the information generated as an outcome of

the project management processes is known as,

a. Earned Value

b. Project Management Information System

c. Project Management Pland. Project Charter

155. As the project progresses, the cost of change is expected to,

a. Reduce

b. Increase

c. Increase and later reduce

d. Has no effect

156. Close Project or Phase process involves all of the following except,

a. Contract Completion

b.

Financial accountingc. Handover of deliverables

d. Admin Management

157. Failure to properly archive can have severe consequences. An archiving system should not,

a. Cater for every document and record type e.g. book, drawing, report, letters, minutes,

specifications, e-mails, etc.

b. List and index all documents and state where they are stored and the media type.

c. Have slow retrieval access controls.

d. Ensure that electronic media is future proof.

158.

Which of the following make use of Workflow Diagramming?a. Total Quality Management

b. Project Charter

c. Project Management Plan

d. ISO 9000

159. A graphical hierarchical decomposition of project into products, products into composition,

etc that helps clarify scope is known as,

a. Work Breakdown Structure

b. Product Breakdown Structure

c. Acceptance Criteria

d. Scope Statement

160. Perform Integrated Change Control process is the principal tool for controlling scope

variances. Scope is also controlled by regular performance reviewing and Performance

Reports. All are TRUE about Performance Reports except,

a. Are used to determine if the project is on track.

b. Compares actual with planned time, cost, quality, and scope.

c. Will have an acceptance test

d. Provides audit trail and project history.

161. Precedence Diagramming Method creates a network of activities and uses boxes to show

the activities and arrows to link them. They are also known as,

a. Activity on Node



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b. Activity on Arrow

c. Critical Path Method

d. None of the above

162. What is the purpose of Dummy Activities?

a. They can incorporate lead / lagb. Dummy activities are used to show complete relationships between tasks

c. Represents an improvement to Activity-on-Line by adding other relationships to

activities

d. Used by the Project Manager and team

163. A resource constrained critical path that places a buffer at the end of a critical chain as a

time contingency to allow for uncertainty is known as,

a. Buffers

b. Critical Chain Method

c. Critical Path Method

d.

Float

164. A schedule compression technique with overlapping phases or activities that would normally

happen sequentially is known as,

a. Crashing

b. Fast Tracking

c. Float

d. Lag

165. Repeatable elements of a network are known as,

a. Fragnet

b.

Heuristicc. PERT

d. CPM

166. A bar chart representation that summarizes related items of work but does not show

individual task details is known as,

a. Detailed schedule

b. Milestone Schedule

c. Summary Schedule

d. Time Management

167. If the Project Manager wants to analyse the performance of the project, viz. deteriorating or

improving, which kind of progress report should he/she use?

a. Performance Reviews

b. Variance Analysis

c. Trend Analysis

d. Earned Value Analysis

168. Sunk cost is the money already spent and cannot be recovered. When should the sunk cost

be ignored?

a. When making decisions about whether to continue investing in a continuing project

b. When calculating the investment opportunity lost in Project B

c. When Opportunity cost is calculated

d. When Direct and Indirect costs are calculated



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169. Instead of rejoicing project end, the stakeholders are breathing a sigh of relief. None of them

were confident that the project would meet the end date. Which of the following is NOT one

of the reasons that this project had difficulty?

a. Lack of a payback period

b. Lack of milestones

c. Lack of a communication pland. Lack of a stakeholder management plan

170. Which type of leadership style is most appropriate when managing large number of low

skilled workers?

a. Autocratic

b. Paternalistic

c. Democratic

d. Paradorma

171. Which of the following best describes any measurable, tangible, or verifiable item that mustbe produced to complete the project?

a. Deliverable

b. Data item list

c. Work package

d. Code of accounts

172. Which of the following is not a measure of the profitability of a project or program?

a. Return on original investment

b. Net present value

c. Depreciationd. Discounted cash flow

173. A cost-plus-percentage-cost (CPPC) contract has an estimated cost of $120K with an agreed

profit of 10% of the costs. The actual cost of the project is $130K. What is the total

reimbursement to the seller?

a. $143K

b. $132K

c. $142K

d. $130K

174. As you develop your project closeout documents, you begin to review the project

deliverables and develop your checklist of project requirements. You can typically find the

requirements for contract closure in:

a. Project Plan

b. Contract terms and conditions

c. Work Breakdown structure

d. Project charter

175. You are currently planning your project activities. Some members in your organization are

against taking up the project because they state that it's better to buy the same product

from an outside source. Others within the organization feel that building the product in-



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house will provide exposure to new technologies. What tool should the project manager use

to choose between the options available?

a. Make-or-Buy Analysis

b. Fish Bone model

c. Ishikawa diagram

d. ROI analysis

176. You are the project manager of a time-critical project. One of your sellers is giving you too

much trouble as most of the seller's deliverables are late and below set quality levels and

you have little confidence in his company's ability to complete the project. What should you

do?

a. Meet with the seller to discover the cause of the problem

b. Assign a group within your team to meet with the seller and reassign project work so

that the seller has easier work to accomplish

c. Terminate the seller for convenience and hire another seller

d. Provide some of your own staff to augment the seller's staff

177. Which of the following contract needs the buyer to specify the requirement correctly at the

time of contract signing?

a. Fixed Firm Price

b. Time and Material

c. Cost Reimbursable

d. CCP

178. Part of your project plan has to be outsourced. You are engaged in creating source selection

criteria for your contract. Which process are you in?a. Plan Procurements

b. Close Procurements

c. Conduct Procurements

d. Administer Procurements

179. As a project manager, you are evaluating the better option between buying and making a

WOODEN FURNITURE. If you buy, the cost would be USD 225,000 and the cost of

procurement and other related costs is USD 5,000. If you make the product yourself, you

need 19 workers working for 6 months. Salary of each of the workers would be USD 1800

per month, and the overhead cost is USD 65,000. What should you do?

a. Buy the wooden furnitureb. Make the wooden furniture

c. Partly buy and partly make

d. Go for opportunity cost logic

180. The management wants to be sure that a project is following defined quality standards.

Which one, from the following, would they use?

a. Risk management plan

b. Work Breakdown Structure

c. Statement of work

d.

Quality Audit



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d. Warranty costs

187. Once the project team completes the planning phase of the project, they should have the

following identified/developed to monitor and control quality :

a. Operational definitions or metrics and procedures

b. Benchmarksc. Flowcharts

d. Pareto diagrams

188. As a project manager, you are looking at defects in all the inspection runs for the past year

and you identify that there are more and more defects per inspection as time goes on. You

create a quality task force to try to figure out what is causing these defects. Which process

are you in?

a. Perform Quality Control

b. Perform Quality Assurance

c. Plan Qualityd. Quality Planning

189. Design of Experiments (DoE) is a tool for Quality Planning which you will be using to

determine which factors might influence specific factors? Which of the following variable

can you use in your analysis?

a. Weight

b. Dollars

c. Pounds

d. Meters

190. Which of the following is NOT a tool and technique for Plan Quality?

a. Control chart

b. Cost of Quality

c. Design of Experiments

d. Scatter diagram

191. "Maximize the value of the portfolio by careful examination of candidate projects and

programs for inclusion in the portfolio and the timely exclusion of projects not meeting the

portfolio’s strategic objectives" - which concept of project management is stated here?

a. Project Risk Management

b. Organizational strategy

c. Project Portfolio Management

d. Project Plan Management

192. At times, the project manager has very less formal authority and he/she basically acts as a

staff assistant to an executive who is ultimately responsible for the project. This type of

organization is called:

a. Functional Organization

b. Expeditor organization

c. Weak Matrix Organization



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d. Poor Project Management Organization

193. Project sponsors have the GREATEST influence on the scope, quality, time, and cost of the

project during the:

a. Concept phase

b. Development phase

c. Execution phase

d. Close - down phase

194. Which type of organization experiences the least amount of stress during project closeout?

a. Functional

b. Projectized

c. Weak Matrix

d. Strong matrix

195. Two stakeholders have begun fighting over functionality on your project. Who should

resolve this conflict?a. Senior management

b. Project Manager

c. Sponsor

d. Customer

196. Which of the following statement related to Standards and Regulations is not correct?

a. Standard is a document approved by a recognized body - there can be multiple

standards for one product.

b. Regulations are mandatory but Standards are not mandatory

c. Standards after widespread adoption may become de facto regulationsd. The influence of standards and regulations for a project is always known

197. You are working in the Project Office of your organization. What is your job responsibility?

a. Managing the different activities of a project

b. Always being responsible for the results of the project

c. Providing support functions to Project Managers in the form of training, software, templates

etc.

d. Providing Subject Matter Expertise in the Functional areas of the project

198. Of the following, which usually exhibits the slowest rate of change?a. People

b. Technology

c. Organizations

d. Environment

199. Which conflict resolution technique should be used when the deadline is critical and tasks

are at risk of slipping?

a. Accommodating

b. Forcing

c. Problem Solving



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d. Compromising

200. As a project manager, you are explaining your project team the difference between resource

histogram and responsibility assignment matrix. What does a resource histogram show that

a responsibility assignment matrix does not?

a. Timeb. Activity

c. Inter-relationships

d. Person in charge of each activity

pmp exam set 2 - questions.pdf

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