pmp questions 300

8/10/2019 PMP Questions 300

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1. You are a project manager working on a project to market a new product. The deliverables of

the project have been established, and the project work has begun. A contract to deliver the

deliverables has been signed. The customer who has signed the contract has telephoned you to

request additional work to be done on the project. This work will affect the budget but not the

schedule of the project. This project has a high priority with your company. What should you so

next?

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

contract

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

c. Respond to the customers request by explaining the change procedure and askingthat he or she

submit a request for change

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

2. You are the project manager for a high visibility project. The margin on this project is low,and it

is extremely important that the cost estimates for the work on the project be accurate. While

reviewing the cost estimates for this project you notice that one of the cost estimates for an

element in the WBS is 10% higher than two previous projects for very similar work. What should

you do?

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

responsible for estimates

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

c. Ask the person responsible for the estimate to explain the difference and bring supporting

information to you

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

3. You are managing a project in a foreign country. In this country there is a normal practice for

business people to exchange gifts when very large contracts, such as the one you are working on,

are signed. The gift is of a greater value than your companys policy for gift exchange will allow.

You have given a gift of similar value to the customers representativealready. What should you

do?

a. Take the gift

b. Contact your companys management and seek for assistance

c. Refuse the gift graciously, explaining your companys policy

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


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c. Present your own presentation

d. Meet with your managers manager and discuss the problem

8. You are managing a project and the customers engineer visits your facility on an inspection and

general getting acquainted tour. During the tour they make the comment that the parts that are

being designed should be in stainless steel instead of plain steel with enamel. What should you

do?

a. Authorize the change in design to your engineers

b. Continue with the present design

c. Speak to the visiting engineers and discuss having an informal meeting between

your engineers and the visiting engineers

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

9. Which of the following is the example of a conflict of interest?

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

b. You are the owner of a company that is supplying parts to a project that you are managing

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

d. A supplier tells you sensitive information, in confidence, that allows you to select another supplier

for your project

10. You are the project manager for a large project that is completed on time and on budget. The

customer and all of the stakeholders are pleased with the results. As a direct result of the

successful completion of the project, your manager approves a bonus of $25,000 for you. There

are fifteen members of the project team. One of the people in the project

team has been a very low contributor to the project; the other fourteen have all been above

standard. What should you do with the money?

a. Keep the money yourself; you deserve it. And the manager gave it to you

b. Divide the money equally among all the team members

c. Ask the team members how they would divide the money

d. Divide the money equally among the team members except for the substandard

team member

11. One of the members of your project team comes to you and says that he heard that one of the

suppliers to the project had given a substantial gift to one of the project team members in hopes

that the team member would favor his company with a purchase order. The company was favored

with a purchase order for the parts. What should you do?


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

b. Investigate the matter completely

c. Cancel the purchase order with the supplier

d. Meet with your manager and discuss the problem

12. Decomposing the major deliverables into smaller, more manageable components to provide

better control is called:

a. Scope planning

b. Scope definition

c. Scope baselining

d. Scope verification

13. Any numbering system that is used to monitor project costs by category such as labor,

supplies, or materials, for example, is called

a. Chart of accounts

b. Work breakdown structure

c. Universal accounting standard

d. Standard accounting practices

14. A person who is involved in or may be affected by the activities or anyone who has something

to gain or lose by the activity of the project is called a:

a. Team member

b. Customer

c. Stakeholder

d. Supporter

The following should be used for questions 15 through 17.

A project manager is assigned to a project early in the project lifecycle. One of the things that must

be done is to do a justification for the project. Since very little information is known about the

project, the estimates are considered to be rough estimates. The following table is the project

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

End of Year Cash Flow In Cash Flow Out

1 0 500,000

2 300,000 90,000

3 400,000 100,000

4 100,000 175,000

5 50,000 35,000


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15. What is the payback period for this project?

a. One year

b. Two years

c. Three years

d. Four years

16. What is the net cash flow at the end of five years?

a. $50,000

b. - $50,000

c. $850,000

d. $100,000

17. If the net present value for each of the cash flows were calculated at a 10% interest rate, the

net present value cash flow at the end of five years would be:

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

b. Less than the total cash flow without the net present value appliedc. The same as the total cash flow without the net present value applied

d. Unable to be calculated with the information supplied

18. A group of related projects that are managed in a coordinated way that usually include an

element of ongoing activity is called a:

a. Major project

b. Project office

c. Program

d. Group of projects

19. During the full life cycle of the project, a plot of the projects expected expenditure will usually

follow a characteristic S shape. This indicates that:

a. There is a cyclic nature to all projects

b. Problems will always occur in the execution phase

c. There are high expenditure during closeout

d. The bulk of the project budget will be spent in the execution phase

20. A temporary endeavor undertaken to create a new product or service is called a:

a. New product development

b. Project

c. Program

d. Enterprise


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Answers

1. C

Respond to the customers request byexplaining the change procedure and asking that he or shesubmit a request for change

2. C

Ask the person responsible for the estimate to explain the difference and bring supporting

information to you

3. B

Contact your companys management and seek for assistance

4. C

Accept the new ideas

5. A

Look at other tasks in the schedule and see which ones should be reduced to allow time for this

problem to be worked

6. C

Arrange a meeting of the project team members and allow them to decide

7. A

Refuse to work on the presentation unless you are listed as a coauthor

8. C

Speak to the visiting engineers and discuss having an informal meeting between your engineers and

the visiting engineers

9. B

You are the owner of a company that is supplying parts to a project that you are managing

10. C

Ask the team members how they would divide the money

11. B

Investigate the matter completely

12. B

Scope definition

13. A

Chart of accounts

14. C

Stakeholder


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25. A project manager is employed by a construction company and is responsible for thefurnishing of the completed building. One of the first things that the project manager for thisproject should do is to write a:

a. Work breakdown structureb. Budget baselinec. Project charterd. Project plan

26. A project manager is creating a work breakdown structure for her project. In the workbreak down structure, the lowest level of the breakdown for the project manager is called:

a. Activityb. Taskc. Work packaged. Cost account

27. A project manager is reviewing the scope of the project and the scope baseline of theproject. This includes which of the following?

a. The original project schedule, budget, and scopeb. The original project description and project charterc. The original scope of the project plus or minus any scope changesd. The current budget of the project

28. A project manager has just become the manager of a project. The document thatrecognizes the existence of the project is called:

a. The statement of workb. The project assignmentc. The project charter

d. The product description

29. A project manager is reviewing the work breakdown structure for her project. The WBS ofthe project represents:

a. All the tangible items that must be delivered to the clientb. All the work that must be completed for the projectc. The work that must be performed by the project teamd. All the activities of the project

30. A manager who manages a group of related projects is called a:a. Project managerb. Project expediterc. Program coordinatord. Program manager

31. A new project has begun. The project charter has been written and the project managerhas been assigned. The project manager is preparing the work breakdown structure for theproject. The WBS is typically used for:

a. Explaining the scope of the project relevant to the clientb. The basis for organizing and defining the total scope of the projectc. Showing the resource conflicts that exist in the projectd. The logical relationship between tasks in the project


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32. During the life of a project, the project will go through several phasesinitiating, planning,execution, and closeout. Which phase of the project is likely to have the greatest amount of itsfunding spent?

a. Initiatingb. Planningc. Executingd. Closeout

33. During the course of the project it is important that the stakeholders be informed of theprogress of the project. One of the reports that is frequently used is a progress report. Whichof the following is true about progress report?

a. They allow stakeholders to judge the performance of the project according to its planb. They are generally considered to be overkill on very small projectsc. They require the use of earned value reportsd. They must be produced by the project manager

34. The coordinated undertaking of interrelated activities directed toward a specific goal thathas finite period of performance is a:

a. Project charterb. Projectc. Set of project objectivesd. Program

35. The document that is proof of upper managements commitment to the project and givesthe authority to manage the project to the project manager is called:

a. The project planb. The project goals and objectivesc. The project charterd. The project definition

36. A project manager works in a company favoring the weakest authority for theprojectmanager the type of organization that holds the project manager to be the weakest is:

a. Projectized organizationb. Strong matrix organizationc. Weak matrix organizationd. Balanced matrix organization

37. A project manager has been asked by the client to meet the promise date of the project.The project manager analyzes the schedule before promising a date to the customer. Theproject manager uses the program evaluation and review technique to evaluate the projectschedule. She decides that based on the PERT calculations she can promise a delivery date ofJune 30. The expected value of the project completion date is May 30. If the project manager iswilling to accept a 5% probability that the project will be delivered later than June 30, what isthe standard deviation of the duration of the activities on the critical path? Assume a five-dayworkweek.

a. Ten daysb. Fifteen daysc. One-half monthd. One month

38. A project is proposed to a customer. Price and schedule for delivery are agreed upon. Thework breakdown structure is agreed to as well. The customer requests that one of the


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milestones of the project be completed by a certain date. The project schedule is reviewed,and it is found that the expected completion date for this milestone is considerably earlier thatthe date requested by the customer. The date for this milestone is which of the following?

a. Considerationb. Summary activityc. Constraintd. Suggestion

39. A project manager is managing a project. The original scope baseline of the project wasbudgeted at $100,000. Since work on the project started there have been seventeen authorizedand approved changes to the project. The changes have a value of $17,000 and the cost ofinvestigating them prior to their approval was $2,500. What is the current budget for theproject?

a. $100,000b. $114,500c. $117,000d. $119,500

40. In a very large project having a budget of $5 million and a project team of over one hundredpersons, the project manager constructs a work breakdown structure. The project managerwill do the WBS to the detail level of which of the following?

a. Taskb. Activityc. WBS elementd. Work package

Answers:

21. CStatement of work

22. AReviewing the performance of an installed software module

23.DManagement by objectives

24.CThe set of procedures developed to ensure that project design criteria are met

25. CProject charter

26. CWork package

27. CThe original scope of the project plus or minus any scope changes

28. CThe project charter


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

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

a. May 13b. May 6c. May 7d. May 5

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

44. What is the free float for activity D?a. 6b. 7c. 8

d. 0

45. What is the critical path of the project?a. A B E G Hb. A B D F Hc. A C G Hd. A B E D F H

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

47. How long is the project in days?

a. Nineteenb. Twentyc. Twenty-oned. Eighteen

48. What is the early start for activity F?a. May 7b. May 6
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activities and the table shows the optimistic, pessimistic, and most likely estimates that the team hasalready made.

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

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

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

55. What is the expected value of the duration for activity B?a. 5.6b. 2.8c. 3.0d. 2.6

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

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

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

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

60. Schedules are used in many ways. In a project to build a bridge the project manager wantsto use a tool that will show the scheduled activities in such a way that it is easy to see wheneach activity starts and finishes and which activities are taking place at the same time. Which


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

d. Precedence diagramming method (PDM) is a more accurate method

67. The project schedule is not used to determine:a. The start and finish dates of the activitiesb. Occasional changes to the activity listingc. The total float of the activitiesd. The projects budget

68. A project manager wants to make a trip to California by car. The project manager knowshow many miles it will be to drive to California, the current price of gasoline, and how manymiles the car will go on a gallon of gasoline. From this information he or she can calculate theestimated cost of the gasoline for the trip. This is a form of what kind of estimating technique?a. Definitiveb. Analogousc. Parametric

d. Quantitative

69. A project manager wants to make a trip to California by car. The project manager knowssomeone who has made this trip before. This person has a similar car to the one that theproject manager has, and the person has kept good records on the money spent for fuel onthe trip. The distance that the project manager will travel is 10% farther than the other personstrip. By multiplying the cost of fuel reported by the other person by 1.1, the project manager isperforming what kind of estimate?a. Definitiveb. Analogousc. Parametricd. Quantitative

70. To distinguish top-down estimates from bottom-up estimates, it would be correct to saythat the bottom-up estimate would be:a. Less accurateb. About equal in accuracy to the top-down estimatec. More accurated. No different to perform than the top-down estimate

71. A project manager and the project team identify several specific risks in a project. Theexpected value of these risks is estimated at $10,000. The impact on the project brought aboutby these risks is estimated at $40,000. What value should be entered into the managementreserve for these risks?a. $10,000b. $40,000c. $0

d. $25,000

72. A project manager and the project team identify several specific risks in a project. Theexpected value of these risks is estimated at $10,000. The impact on the project brought aboutby these risks is estimated at $40,000. What value should be entered into the contingencyreserve for these risks?a. $10,000b. $40,000


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80. A large piece of equipment is needed for the project. It will be retained and used after theproject is completed. The equipment has a value of $500,000, and it has a scrap value of$50,000 at the end of its useful life of ten years. If the sum of the years digits method ofdepreciation is used, what is the depreciation that is taken at the end of the third year?

a. $81,818b. $90,900c. $65,250d. $72,500

Answers:

61. CThe critical path is the list of activities that have zero float

62. C

Reduce the over utilization of resources

63. B1.5

64. BOne

65. CMonte Carlo analysis

66. APlacement of the activity on the logic diagram line

67. D

The projects budget

68. CParametric

69. BAnalogous

70. C

More accurate

71. C$0

72. A$10,000

73. BTime-phased budget for the project

74. CLife cycle cost

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75. CThe project budget should be increased by $10,000

76. CCorrective action

77. BThe client has authorized a $10,000 addition to the scope of the project

78. DThe BAC is equal to the EV

79. ASpending plan, which is the plan for the flow of money to pay for the project

80.C$65,250

81. Using the formula: Present value = S/(1+i)n where i is the interest rate in percentage, nisthe number of periods, and S is the starting amount, the following table is produced:Periods 10% 12% 14%1 0.909 0.893 0.8772 0.826 0.797 0.7693 0.751 0.712 0.6754 0.683 0.636 0.5925 0.621 0.597 0.519

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

82. Lifecycle costing:a. Is a method of including all of the cost associated with the project over its entire lifeb. Is a federal government accounting methodc. Is a method of predicting the life of a projectd. Is a method of evaluating projects when they are complete

The following table and description refer to questions 83 through 89.A project manager is using the earned value reporting method to manage his project.Thefollowing table shows the data collected to date. The plan is for the project to be completeaftereight weeks. The earned value report shows data collected for the first four weeks of theproject.The f igure shown in the table are cumulat ive.Week PV AC EV1 1,000 1,000 1,0002 3,000 2,000 2,5003 5,000 5,000 6,0004 7,000 9,000 7,0005 13,0006 17,0007 19,0008 20,000

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


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task was $4,000, and it was completed two weeks ago. Unfortunately forthe contractor, mapletrees should have been planted. The customer insists that mapletrees be planted and that the elm trees be removed. As of this time the elm trees are stillin theground, but the contractor has agreed to do the work of replacing them. Whataction should be

taken on the earned value report?a. Reduce PV by $4,000b. Reduce AV by $4,000c. Reduce EV by $4,000d. Make no changes since the vendor has agreed to fix the problem

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

94. A project manager is considering applying learning curve theory to his project. Theprojectinvolves designing a number of software modules that are very similar. Accordingto the costfigures that have been collected the first unit required 100 person-hours todesign and test. The

second unit required 90 person-hours to design and test. Howmany person-hours will theeighth module take to design and test?a. 90b. 100c. 73d. 172

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

d. Quality management

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

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

98. A project manager is managing a large project and must consider the application ofaquality management plan. One of the critical factors in such a plan is the cost ofimplementingthe plan. The project manager should:a. Invoice the client for all quality improvementsb. Implement the highest quality possible regardless of costc. Implement quality improvements as long as the benefits outweigh the costsd. Rely on upper management to determine the quality budget


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99. A project manager has discovered a problem and is trying to determine the cause.Theprocess whereby he identifies the variables that have the most influence on the projectbyholding all the variables constant and changing one at a time is called:a. Product correlation

b. Design of an experimentc. System integrationd. Output processing

100. A control chart is being used to control a manufacturing process. As part of the controlasample of five parts is taken from the manufacturing process each hour of operation.Each ofthe five parts is measured and the dimension is recorded on the work sheet. Thedifferencebetween the highest and lowest measured dimension of the five parts isplotted on the controlchart. This is called which of the following values?a. Rb. R barc. Xd. X bar

Answers:

81. A$3122.60

82. AIs a method of including all of the cost associated with the project over its entire life

83.B0.777

84. A1.200

85.D20,000

86. B6,500

87. B-2,000

88. C-500

89. C25,740

90. B

The cost performance index will remain the same for the remaining part of the project

91. BBudget at completion, earned value, and actual cost

92. CReduce EV by $4,000


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113. BThe control chart tells you when you should not take corrective action

114. BIn small incremental steps

115. BKaizen

116. BCost and delays are reduced, production improves, market share increases, and profits go up

117. DGreater than one

118. AThe overall project plan

119. DProvide confidence that the project will satisfy relevant quality standards

120. BStable organizational structure

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

122. A company has signed a contract for new work that is different from work that it has done

before. The companys strategic plan calls for much of this kind of work in the future. It isimportant that it be able to bring the correct shared resources together to work on differentparts of the contract. The type of organization that this suggest is a:a. Functional organizationb. Contractor organizationc. Matrix organizationd. Pure project organization

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

d. Pure project organization

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


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c. Staffing pland. Project schedule

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

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

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

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

137. An automotive oil change station was receiving complaints that service took too long. Acoffee machine and television were installed in the waiting room and the complaints went

down. This is an example of:a. Smith-Carlisle methodb. Creative problem solvingc. Analytical problem solvingd. Decision analysis

138. A project manager is concerned about team building on her project. One of the mandatorythings that she must have in order to have good team building is:a. Commitment from top level managementb. Co-location of team membersc. Establishment of clear negotiated goalsd. Open discussion of poor individual performance

139. The project manager of a new project wants to get things started in a positive way withthe project team. The project manager wants the team members to get to know one another, to

introduce the project team and the project manager to one another, to discuss the objectivesand goals of the project, and to identify some of the potential problem areas. This meeting iscalled a:a. Project team meetingb. Project kick-off meetingc. Goal setting meetingd. Introduction meeting


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140. A project manager is managing a project where there will be a number of persons workingtogether. 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-locationc. Staffing pland. Work breakdown structure

Answers:

121. DDirecting, coaching, supporting, delegating

122. CMatrix organization

123.DPure project organization

124.CWeak matrix

125. DSalary

126. DIntegration

127. BProject office

128. DHuman resource department

129. DProject management office

130. AProblem solving

131. BWeak matrix

132. CStaffing plan

133. DThe project lifecycle

134. DSense of personal achievement, work satisfaction

135. CRepeats some of the things said


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d. The project manager should suggest a compromise between the two disagreeing team members

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

155. A project manager has one member of the project team working on a critical problem. Theperson working on the problem verbally communicates to the manager that this correction tothe problem will probably cost $1,000. Which form of communication should the projectmanager use to respond to the team member?a. Writtenb. Oralc. Form letterd. Formal

156. Who is responsible for communications for the project team?a. The human resources representativeb. The representative from the management information systems departmentc. The project managerd. The communications department

157. Statements such as Its never been done before: or It will cost a fortune are examplesof:a. Feedbackb. Communication blockersc. Conflict generatorsd. Forcing

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

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

160. A project manager is responsible for performance reporting. Which of the following is notone of the tools and techniques that the project manager can use for performance reporting?a. Variance analysisb. Earned value reportsc. Performance reviewsd. Past project review


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157. BCommunication blockers

158. DOral, written, and nonverbal

158. DProject expediter

160. DPast project review

161. A project manager discovers that there is a part of the project that contains some risk. Hisstrategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following must the project manger do?a. The project manager should make certain that the project team does not reveal the risk to thesupplier until the contract is signedb. The project manager should make every effort to make sure that the supplier is made aware of therisk after the contract is signedc. The project manager should make sure that the supplier understands the risk before the contract issignedd. The project manager should assign a member of the project team to monitor the activity of thesupplier to make sure that the supplier deals with the risk properly if it occurs

162. A project manager is faced with making a decision about a risk that the team hasidentified. The risk involves the design of a bicycle. It has been found that the neck of thebicycle, where the steering bearing is located and the two supporting bars of the frame cometogether, will corrode in a high salt environment. If this takes place the neck may fail and injurethe rider. The project team decides that the design of the bicycle should be modified by usingcorrosion resistant materials in the design of the neck. This will eliminate the risk fromconsideration. This technique is called:a. Risk avoidanceb. Risk acceptancec. Risk rejection

d. Risk deflection

163. A problem occurs in the design of a grocery cart. In this case it is determined that thewheels will wear out much quicker in areas of heavy snow and ice because the salt willcorrode the wheel bearings. Using sealed bearing wheels will significantly increase cost, and itis determined that the carts themselves will be rusty and damaged at about the same time thewheel bearings begin to fail. By injecting the wheel bearings with a high temperature greasethe life of the wheel bearings is increased considerably. The project recommends using thehigh temperature grease. This is called:a. Risk acceptanceb. Risk avoidancec. Risk mitigationd. Risk deflection

164. The contingency budget will:

a. Reduce the probability of scope changesb. Reduce the probability of cost overrunsc. Increase the probability of a cost overrunsd. Increase the probability of scope changes

165. A risk has four possible outcomes. Given the following information, what is the expectedvalue of this risk?Probability Result of Risk0.4 -10,0000.3 -7,500


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b. Critical chain schedulingc. Bufferingd. Contingency scheduling

172. A project manager wants to give some guidelines to the project team as to how riskevents should be described. Which of the following items would not be appropriate indescribing a risk event?a. Probability that the risk will occurb. The cost of the risk should it occurc. Expected timing of the risk when it is expected to occurd. The clients outsourcing method

173. A project manager and her project team are analyzing risk in their project. One of thethings that they might do to help identify potential risks or opportunities would be to review:a. The project budgetb. The goals and objectives of the projectc. Lessons learned from other similar projectsd. The monetary value of changes for similar projects

174. A project manager holds the first risk meeting of the project team. The client is present atthe meeting. At the meeting several risks are identified and assigned to members of theproject team for evaluation and quantification. The result of the meeting is:a. Expected value of the risk eventsb. Strategies for the risk eventsc. A list of potential risk eventsd. General statements about risk for the project

175. In the Monte Carlo technique, what is the critically index?a. The number of days the project will be late divided by the project durationb. The percent of time a given activity will be on the critical pathc. The percent of time an activity will be lated. The sum of the duration of the critical path activities divided by the project expected value forduration

176. The management reserve for the project contains:a. Money to offset missing cost objectivesb. Money to offset missing schedule objectivesc. Money to offset missing cost or schedule objectivesd. Money to handle the effects of known risks in the project

177. A project manager uses the breakeven point to justify his project. He presents this as ajustification for buying a new machine. What risk does the project manager run by using thistechnique to justify buying a new machine for his company?a. Breakeven point will favor buying a cheap, low-quality machineb. Breakeven point will favor buying a machine that is too expensive for the work requiredc. The company may not have the funds to buy the machine in spite of the justificationd. The machine may not be available because the justification method takes a long time to calculate

178. Goldratts critical chain theory says that in order to reduce risk in schedules we should:a. Start activities in the feeder chains as early as possibleb. Start activities in the feeder chains as late as possiblec. Start activities in the critical chains as early as possibled. Add buffer to the critical chains

179. In managing the risk of the project schedule we are managing the risk that the project will


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not be delivered or completed on time. If we assume that the projects possible completiondates are normally distributed and we promise the client the most likely of the projectspossible completion dates, what is the probability that the project will bedelivered late?

a. 5%b. 10%c. 50%d. 77%

180. A risk event in a project is something that can have an effect on the project:a. For the better only, a positive effectb. For the worse, a negative effectc. Both better or worse, a positive or negative effectd. Neither better nor worse, neither a positive nor a negative effect

Answers:

161.CThe project manager should make sure that the supplier understands the risk before the contract issigned

162. ARisk avoidance

163. CRisk mitigation

164. BReduce the probability of cost overruns

165. D

-$7,000

166. CManagement reserve

167. ARisk triggers

168. AThe most likely date will be earlier than the expected value date

169. D$2,500

170. B

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171. CBuffering

172. DThe clients outsourcing method


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b. Planningc. Executiond. Closeout

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

186. A project manager must make a narrative description of the project. This narrativedescription covers the items that will be supplied under the contract with the client. It is called:a. The project planb. The statement of workc. The exception reportd. The progress report

187. A project manager discovers that there is a part of the project that contains some risk. Hisor her strategy with this risk is to subcontract the work to an outside supplier by using a firm

fixed-price contract. Which of the following is true?a. The supplier will include an allowance for the risk in the contracted priceb. The supplier will lose money on the contractc. The project manager will have to compensate the supplier if the risk occursd. The project manager will assist the supplier with the project team if the risk occurs

188. A project manager discovers that there is a part of the project that contains some risk. Hisor her strategy with this risk is to subcontract the work to an outside supplier by using a firmfixed-price contract. The project manager should:a. Make certain that the project team does not reveal the risk to the supplier until the contract issignedb. Make every effort to make sure that the supplier is made aware of the risk after the contract issignedc. Make sure that the supplier understands the risk before the contract is signedd. Assign a member of the project team to monitor the activity of the supplier to make sure that the

supplier deals with the risk properly is it occurs

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

190. A project manager is employed by a construction company and is responsible for thefurnishing of the completed building. One of the first things that the project manager for thisproject should do is to write a:a. Work breakdown structureb. Budget baselinec. Project charterd. Project plan

191. A contractor is working on a fixed price contract that calls for a single, lump sum paymentupon satisfactory completion of the contract. About halfway through the contract, thecontractors project manager informs the contract administrator that financial problems aremaking it difficult for the contractor to pay employees and subcontractors. The contractorasks for partial payment for work accomplished. Which ofthe following actions by the buyer is most likely to cause problems for the projects?


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a. Starting to make partial payments to the contractorb. Making no payments to the contractorc. Paying for work accomplished to dated. Negotiating a change to the contract

192. Under a blanket order arrangement, which of the following is correct?a. The cost of carrying the inventory is borne by the buyerb. The seller delivers all of the material ordered at one timec. Payments for all of the material are made at one timed. At the end of the blanket order, prices are adjusted for the actual amount of material delivered

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

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

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

196. The project team has delivered a deliverable to the customer. The deliverable containsdefects that are easily correctable. There is a good relationship with the customer and thecustomer agrees to make the repairs and correct the defects on the item and invoice supplierfor the work that was done. This is considered to be a:a. Bid cost reductionb. Payment authorizationc. Back charged. Release payment

197. A project manager decides to go out for bids on some of the project work that must bedone as part of the contract to do a project for another customer. The bids are received andevaluated, and the seller with the lowest bid is selected. The cost of the contract to the projectcan further be reduced by what action?a. Illegal methodsb. Procurement leveragec. Selecting another sellerd. Contract negotiation

198. A buyer extends a formal invitation that contains a scope of work that seeks a responsethat will describe the methodology and results that will be provided to the buyer. This iscalled:a. Invitation to bidb. Request for informationc. Request for proposald. Request for bid


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

b. Request for quotationc. Request for proposald. Request for information

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

Answers:

181. AIncrease risk

182. BOnly the negative risks

183. BDeflection

184. DCloseout

185. CDetermine the critically index for an activity in the schedule

186. B

The statement of work

187. AThe supplier will include an allowance for the risk in the contracted price

188. CMake sure that the supplier understands the risk before the contract is signed

189. BMake or buy

190. CProject charter

191. D

Negotiating a change to the contract

192. DAt the end of the blanket order, prices are adjusted for the actual amount of material delivered

193. CDecrease transportation costs


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194.DMarketing

195. DCost-plus contracts

196. CBack charge

197. DContract negotiation

198.C

Request for proposal

199.CRequest for proposal

200.DA competitors method of outsourcing

201. During testing, multiple defects were identified in a product. The project manageroverseeing this product's development can best use which tool to help prioritize theproblems?

A. Pareto Diagram

B. Control Chart

C. Variance Analysis

D. Order of Magnitude estimate

202. You are the manager of an aircraft design project. A significant portion of this aircraft willbe designed by a subcontracting firm. How will this affect your communications managementplan?

A. More formal verbal communication will be required.

B. Performance reports will be more detailed.

C. More format written communication will be required.

D. Official communication channels will significantly increase.

203. What officially creates the project?

A. The project initiating document.

B. The kickoff meeting.


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C. The project charter.

D. The statement of work.

204. Refer to the table. What is the critical path?

A . Start A B C I Finish

B. Start A B H I Finish

C. Start D E H I Finish

D. Start F G I Finish

205. The Delphi technique is a way to:

A. Analyze performance.

B. Gather expert opinion.

C. Resolve conflict.

D. Estimate durations.

206. The work authorization system makes sure that

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

B. Work gets performed in the right order and at the right time.

C. Work is done completely and correctly

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

207. Your team is hard at work on their assigned project tasks when one team member

discovers a risk that was not identified during risk planning. What is the FIRST thing to do?

A. Halt work on the project.

B. Update the risk management plan.

C. Look for ways to mitigate the risk.
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D. Assess the risk.

208. The activity duration estimates should be developed by:

A. The person or team doing the work.

B. The project manager

C. Senior management.

D. The customer.

209. The project plan should be all of the following EXCEPT:

A. A formal document

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

C. Approved by all project stakeholders.

D. Used to manage project execution.

210. You have been asked to take charge of project planning for a new project, but yo havevery little experience in managing projects. What will be the best source of help for you?

A. Your education.

B. You on-the-job training.

C. Historical information.

D. Your functional manager.

211. The majority of the project budget is expended on"

A. Project plan development

B. Project plan execution

C. Integrated change control

D. Project communication.


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212. Corrective action is:

A. Fixing past anomalies

B. Anything done to bring the project's future performance in like with the project management plan.

C. The responsibility of the change control board

D. An output of project plan execution.

213. Outputs of Direct and Manage Project Execution include:

A. Deliverables and performance reports.

B. Deliverables and corrective action.

C. Deliverables and work performance information

D. Performance reports and requested changes.

214. Your original plan was to construct a building with six stories with each story costing$150,000. This was to be completed in 4 months. However, the project has not gone asplanned. 2 months into the project, earned value is $400,000. What is the budget atcompletion?

A. 450,000

B. 600,000

C. 800,000

D. 900,000

215. Project Integration is primarily the responsibility of"

A. The project team.

B. The project manager.

C. Senior management.

D. The project sponsor.

216. One of your team member has discovered a way to add an extra deliverable to the projectthat will have minimal impact on the project schedule and cost. The project cost performance


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1. Planning2. Closing3. Monitoring and Control4. Executing

222. Sam Consultancy has a large internal project to be initiated. To staff this project, SamConsultancy is working with People Consultancy to provide three resources for six months.The resources will be part of the team managed by Sam Consultancy for six months. Whichcontract type should be used by Sam Consultancy?

1. Purchase Order2. Cost plus Fee3. Fixed cost4. Time and Material

223. Sam Consultancy is planning to buy ten desktops for $1500 each from a leadingcomputer store. Which type of contract will get signed in this case?

1. Purchase Order2. Cost plus Fee3. Fixed cost4. Time and Material

224. Tree Consultancy is getting 200 computers installed from a vendor. The vendor will bepaid the cost involved and a 10% incentive. Which contract will be used in this case?

1. CPPC2. CPIF3. CPFF4. Fixed Cost

225. Alice is a Project Manager. She is coordinating a bidder conference to allow vendors toget clarification on the work that needs to be performed. Which phase of Project Managementis in progress.

1. Request Seller Process2. Plan Contracting3. Select Sellers4. Contract Administration

226. Process Analysis is a function of:

1. Performance Analysis2. Quality Metrics3. Process Improvement Plan4. Quality Improvement Plan

227. Root Cause Analysis relates to:

1. Process Analysis


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4. Calculating Cost Varianc6e

Answers:

221. C.

222. D.

223. A.

224. A.

225. A.

226. C.

227. A.

228. D.

229. D.

230. B.

231. C

232. C

233. A

234. C

235. B

236. B

237. A

238. D

239. B

240. B

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

A. Kurt Lewins Force Field theory.

B. McGregors Theory X.

C. Elizabeth Duffys Arousal Theory.


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D. McGregors Theory Y.

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

A. The product requirements.

B. The project management plan.

C. The project scope statement.

D. The WBS and WBS dictionary.

243. Hard logic is also known as

A. Mandatory dependencies

B. Preferred dependencies

C. External dependencies

D. Discretionary dependencies

244. Contract negotiation is the process

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

B. of clarifying and developing a mutual agreement on the responsibilities and authorities that willgovern contract administration.

C. in which parties with different interests reach an acceptable agreement through communicationand compromise.

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

245. A checklist is

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

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

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

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


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

A. Communications planning

B. Information distribution

C. Project plan execution

D. Scope planning

247. Questions such as What products are available in the marketplace and What is thecurrent balance between supply and demand are related to what input to procurementplanning?

A. Availability assessment.

B. Cost/benefit analysis.

C. Market conditions.

D. Competitive fit analysis.

248. Inspections are

A. a statistical sampling and examination.

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

C. recorded data concerning the results of inspection actions.

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

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

A. Develop Project Management Plan.

B. Direct and Manage Project Execution.

C. Monitor and Control Project Work.

D. Integrated Change Control.


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A. senior management of the performing organization.

B. the customer.

C. the project manager.

D. the project management team.

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

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

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

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

D. It is a reflection of inadequate project planning.

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

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

B. Change requests.

C. Reports on cost, schedule and technical performance.

D. Inspection reports.

257. Doing activities in parallel that would normally be done sequentially in order to achieveproject objectives or to deal with resource allocation problems is called

A. Crashing

B. Accelerating

C. Fast Tracking

D. Objectives management

258. Which of the following is usually not considered a goal of portfolio management?

A. To maximize the value of the portfolio by careful examination of candidate projects and exclusionof those no meeting strategic objectives.

B. To balance the portfolio among incremental and radical investments.


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C. To manage the effective and efficient use of resources.

D. To ensure that the relationship between projects in the portfolio clearly reflects strategic objectives.

259. Which of the following is not true about the relationship between the activity definitionprocesses and the WBS?

A. These processes may identify deliverables missing from the WBS

B. These processes may identify inaccurate descriptions in the WBS

C. These processes may result in WBS changes that require additional scope definition work.

D. The WBS provides the key input to these processes but is not part of any of its outputs.

260. All of the following are true concerning the product description except

A. it is another term for the Statement of Work (SOW).

B. it describes the ultimate end product of the project.

C. it provides important information about any technical issues that are relevant to procurementplanning.

D. it is usually included in the Request for Proposal (RFP).

ANSWERS:

241. B, McGregors Theory X asserts that the average person dislikes work inherently and thateffective management lies in threats, intimidation and minimal involvement of the individual in workdecisions. Ward, McGregors Theory X and Y

242. A, The product requirements are the basis for assessing the completion of the PRODUCT scope.[5.0]

243. A, Mandatory dependencies are those that are inherent in the nature of the work being done. [They] are also sometimes referred to as hard logic. [6.2.2.4]

244. A, Contract negotiation clarifies the structure and requirements of the contract so that mutualagreement can be reached prior to signing the contract. [12.4.2.1]

245. D, A checklist is a structured tool, usually component-specific, used to verify that a set ofrequired steps has been performed. [8.1.3.3]

246. A, Communications planning involves determining the information and communication needs ofthe stakeholders: who needs what information, when they will need it, how it will be given to them,and by whom. [10.1]

247. C, The procurement planning process must consider what products and services are available inthe marketplace, from whom, and under what terms and conditions. [12.1.1.1]


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248. B, An inspection is the examination of a work product to determine whether it conforms tostandards. The standards are derived from the requirements as defined in the scope definitionprocess. [8.3.2.9]

249. A, Develop Project Management Plan provides the integration function for all other processesin the planning group. Every planning process therefore potentially provides input to this process. [4.0]

250. C, Budget updates are changes to an approved cost baseline. These values are generallyrevised only in response to approved changes in project scope. [7.3.3.2]

251. B Qualitative numbers may also be measured numerically, so the primary distinction betweenqualitative and quantitative numbers is that qualitative numbers cannot be meaningfully addedtogether. For example, if two one gallon pails of water are poured into a two gallon container, thedensity of water in the two gallon container remains at 1.0

252. B Parametric modeling and Supporting detail are not inputs to the cost estimating process.Resource requirements focuses on the quantities for each element rather than the specific questionon waste percentage. [7.1.1.2]

253. B Care should be taken to avoid wasting resources on unnecessary information orinappropriate technology. The tipping word in this question that makes it false is ...include ALLinformation [19.1.2.1]

254. D Senior management and the customer may be involved in some aspects of project planning(notably approval) but would not develop the project plan alone. It is an invitation for disaster for theproject manager to develop the project plan without input from the team, and normally he or shewould delegate significant parts of the technical planning to the team specialists. [4.3]

255. A According to the PMBOK, The cost of preventing mistakes is always much less than the costof correcting them [8.0]

256. B Change requests are an output of Contract Administration. The input is Approved ChangeRequests. Change requests will most often originate from the seller and only very rarely because the

buyer, based on the work deliverables, wishes to make some change. [12.5.1]

257. C Fast tracking is defined as A specific project schedule compression technique that changesnetwork logic to overlap phases [or activities] that would normally be done in sequence. [Glossary]

258. D There is not necessarily a relationship between projects in a portfolio. Answer D is actuallyone of the goals of PROGRAM management. [1.6.2]

259. D WBS updates are one of the critical outputs of the Activity Definition process. [6.1.2.1, 6.1.3.3]

260. A The product description is generally broader that a statement of work. [12.1.1.2]

hat does RDU stand for?

A. Really Dumb User

B. Ready for Download Use

C. Remaining Duration unassisted

D. Remaining Duration


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282. Who is responsible for risk identification, risk quantification, risk response

development, risk Monitor and Control?

A. Project Communications Management

B. Project human resource Management

C. Project Procurement Management

D. Project Risk Management

283. Three Point Statistical Estimating Formula Group. Expected Value =

A. (Optimistic + (4 X Most Likely) + Pessimistic ) x 6

B. (Optimistic + (4 X Most Likely) + Pessimistic ) divided by 6

C. (Optimistic + (4 X Most Likely) x Pessimistic ) divided by 6

D. (Optimistic + (4 + Most Likely) + Pessimistic ) divided by 6

284. Two Point Delphi Estimate, The Best and Worst Case effort calculation:

A. Calculate (Best + Worst) / 2

B. Calculate (Best +2 ) / Worst

C. Calculate (2 + Worst) / Best

D. none of the above

285. What does TQM stand for?

A. Time Quality Managed

B. Target Quality Management

C. Total Quality Management

D. Time Quote Management

286. Examples of Projects include:

A. Implementing a new business procedure or process

B. Constructing a building or facility

C. Designing a new transportation vehicle

D. All of the Above

287. Projects are undertaken at all levels of the organization?


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A. True

B. False

C.

Both True and False

D. Neither true nor false

288. 7. ________ means that every project has a definite beginning and a definite end.

A. Overall

B. Project Chart

C.

Temporary

D. Duration

289. The smallest unit of time used in scheduling the project is known as:

A. Calendar Unit

B. Scope unit

C. Time Measurement

D. All of the Above

290. Who should be involved in the project planning phase?

A.

The Project Manager.

B. The customer.

C. The Sub-contractors/vendors.

D. The project team members.

E. All of the above.

291. The successful project managers spend most of their time:

A. Planning with their personnel.

B.

Planning with top management.

C. Talking with personnel.

D. Studying project results.

292. Cost Plus Percentage of Cost (CPPC) contracts provide:


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A. A reimbursement of allowable cost of services performed plus an agreed upon percentage of

the estimated cost as profit.

B. A reimbursement of allowable costs plus a fixed fee which is paid proportionately as the

contract progresses.

C. The supplier with a fixed price for a delivered performance plus a predetermined fee forsuperior performance.

D.

None of the above.

293. Project success depends on a no. of interrelated factors, including time, cost and scope

control. The success of any project depends primarily on:

A. Customer acceptance.

B. Customer satisfaction.

C.

Customer compromise in defining its needs.

D. Exceeding customer requirements through gold plating.

294. Which of the following is the most efficient means of product quality inspection:

A. Acceptance sampling.

B. 100% inspection.

C. Variable lot inspection.

D. A and C.

295. Constructive Team Role includes :

A. Investigates, clarifier and closer.

B. Compromise, blocker and closer.

C. Initiate, encourage and gate keeper.

D. Investigates, recognize and summary.

296. Pareto Analysis, cause and effect diagrams and flow charts are used in quality.

A.

Control.

B. Assurances.

C. Planning.

D. Verification.


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Answers

281. D

282. D

283. B

284. A

285. C

286. D

287. A

288. C

289. A

290. E

291. C

292. A

293. B

294. A

295. C

296. A

297. B

298. D

299, D

300. D

pmp questions 300

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