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					1. Which of the following is not the feature of a project? 1 2 3 4 Constrained by limited resources Planned, executed and controlled Creates unique product or service May be ongoing and repetitive Correct Choice: 4 Justification: Operations and projects differ primarily in that operations are ongoing and repetitive while projects are temporary and unique. A project can thus be defined in terms of its distinctive characteristics - a project is a temporary endeavor undertaken to create a unique product or service PMBOK 2000 Page 4 2. In an automobile company for which you are the project manager, the allowable standard deviation for a product required from the contractor is within 0.002 inches. However, while examining the product, you find out that the standard deviation is slightly more than 0.002 inches. You believe that the deviation is very small and hence, acceptable. In this case you must: 1 Allow the product because it is a very small deviation from the company standard which you think is acceptable. Document the lower quality level, ask the contractor for explanation and try to find a solution Reject the product outright Allow the lower standard this time but inform the contractor to be more quality conscious going forward Correct Choice: 2 Justification: Any decrease in quality level should be documented and discussed with the contractor. If there is a small decrease from the

2 3 4

required quality, rejecting the product outright(Choice 3) is extremely harsh. Similarly, allowing for lower quality (Choice 1 and Choice 4) is not advisable. 3. All these statements about project charter are correct except: 1 2 3 4 Project charter includes or references the business need and product description Project Charter provides authority to the project manager Project charter formally authorizes a project Project charter is issued by the project sponsor Correct Choice: 4 Justification: The project charter should be issued by a manager external to the project, and at a level appropriate to the needs of the project. PMBOK Page 54 4. All the following are tools for cost estimating except: 1 2 3 4 Analogous Estimating Parametric Modeling Computerized tools Alternatives Identification Correct Choice: 4 Justification: Please refer to Fig 7-1 Alternatives Identification is a tool for Resource Planning, not Cost Estimating PMBOK 2000 Page 84

5. All the following are tools and techniques for organization planning except: 1 2 3 4 Templates Human Resource Practices Organizational Theory Reward and Recognition Systems Correct Choice: 4 Justification: Please refer to figure 9-1 (Reward and Recognition Systems are tools for Team Development, not Organizational Planning) PMBOK 2000 Page 108

6. In your project, you are creating a diagram that describes the decision under consideration and implications of choosing one or another of the available alternatives. This will help in: 1 2 3 4 Getting a Qualitative Analysis of the risk Determining which risks can impact the project the most Translating the uncertainties at a detailed level into potential impact on objectives expressed at the level of the total project Determining which decision yields the greatest expected value Correct Choice: 4 Justification: Decision Tree Analysis: A Decision Tree is a diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives. It incorporates probabilities of risks and the costs or rewards of each logical path of

events and future decisions. Solving the decision tree indicates which decision yields the greatest expected value to the decision-maker when all the uncertain implications, costs, rewards and subsequent decisions are quantified. PMBOK 2000 Page 139 7. You are considering whether to buy or make a software product.
 

If you buy, the cost is $ 80,000 and the cost of procurement and integrating in your company is $ 1000 If you want to build yourself, the product will require 7 software engineers working 3 months. Salary of each software engineer is $ 4,000 per month. The overhead costs apportioned to the project will be $ 2,000.

Which option will you choose? 1 2 3 4 Buy Build Neither build nor buy Need more information about the suppliers before making a decision Correct Choice: 1 Justification: If you buy, the cost is : $ 80,000 + $ 1,000 i.e. $ 81,000 If you build, cost is : $ 4,000 x 7 x 3 + $ 2,000 = $ 86,000 So, it is better to buy 8. In your project, you have designated a group of people to monitor changes to the project baselines, manage the approvals and do the necessary paperwork. These are examples of 1 2 Configuration Management Change Control System

3 4

Risk management Project plan execution Correct Choice: 2

Justification: A change control system is a collection of formal, documented procedures that defines how project performance will be monitored and evaluated, and includes the steps by which official project documents may be changed. It includes paperwork, tracking systems, processes, and approval levels necessary for authorizing changes. PMBOK 2000 Page 48 9. When referring to inputs for schedule development, responsibility (i.e. who will perform the work), activity type (i.e. summary or detailed) and WBS classification are part of: 1 2 3 4 Constraints Activity Attributes Resource Pool Description Activity duration Estimates Correct Choice: 2 Justification: Activity Attributes: Attributes of the activities including responsibility (i.e. who will perform the work), geographic area or building (where the work has to be performed) and activity type (i.e summary or detailed) - are very important for further selection and sorting of the planned activities in a convenient way for the users. WBS classification is also an important attribute that allows useful activity ordering and sorting. PMBOK 2000 Page 74 10. For doing Quality Planning, you are going to use Design of Experiments to determine which factors might influence specific variables. What variable(s) can be used in your analysis? 1 Dollars

2 3 4

Kilograms Weight Pounds Correct Choice: 3

Justification: (pmstudy: All the remaining are measures, not variables) 11. In your last project status meeting, you had 15 team members. The meeting was very disorderly - there were too many sidebar conversations and arguments. As a result, you acheived nothing substantial from the meeting. In order to better regulate the meeting next time, you should: 1 2 3 4 Decrease the number of people in one meeting Publish a meeting agenda Ensure that you control the channels of communication Give incentives to team members for conforming to desired norms of the meeting Correct Choice: 2 Justification: Meeting Management Techniques - preparing an agenda, dealing with conflict etc. PMBOK 2000 Page 119 (pmstudy.com - Publishing a meeting agenda is the best way to ensure that meetings are conducted in an orderly fashion) Please note that even though controlling the different channels of communication is something a project manager may want to do, it is not be a feasible alternative. This is because for N people, there are Nx(N-1) channels of communication, so the project manager cannot control the communication happening between all members in the team.

12. In a Weak Matrix organization, the role of a project manager is that of a: 1 coordinator and expeditor 2 3 4 project manager with considerable authority support person functional manager Correct Choice: 1 Justification: Weak matrix organizations maintain many of the characteristics of a functional organization, and the project manager role is more that of a coordinator or expediter than that of a manager. 13. In your new company, you realize that some of the financial statements of the company do not follow US GAAP Accounting Standards and are hence inaccurate. In this case, what should you do first? 1 Inform the US government agencies of the inaccurate accounting practices in the company Talk to your finance managers about why you think that they may be violating the standard accounting standards Since you are new to the company, you assume that finance standards are different in the company - hence do not do anything about the issue Talk with finance manager in your previous company to get expert opinion about accounting standards in the new company Correct Choice: 2 Justification:
 

2

3

4

Option 2 is the best answer, because it aims at trying to understand and resolve the problem Option 1 is the last option - to be preferred after all other alternatives are exhausted, and you are convinced that your new company is involved in malpractice

 

Option 3 just avoids the issue Talking with the finance manager in your previous company is not recommended because you may be compromising proprietary information

14. In your project, a team member suggested the addition of a functionality to improve customer satisfaction. Your approach would be to: 1 Allow for the functionality because satisfying the customer is your objective. Do not allow for the new requirement, because it will be a change in scope, and the customer did not explicitly mention the requirement. Make changes to the project plan to accommodate the new requirement Ask the customer for additional funding for implementing the requirement Correct Choice: 2 Justification: Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. It is primarily concerned with defining and controlling what is or is not included in the project. Please note that the best alternative if a customer requests additional information is to discuss within your group and with the customer before making a final decision. Since these options are not available, the next best option is to ensure that you are preventing gold plating i.e. not building a requirement which was not explicitly stated in the project scope. PMBOK 2000 Page 51 (pmstudy.com notes: A project must be very careful to prevent any "gold plating" i.e addition of any new requirements which have not been asked for by the customers.

2

3

4

15. In your construction project, the CPI is 1.30 and SPI is 0.85. What could be the potential reason ? 1 2 3 4 A critical resource went on sick leave for a long period of time, and this had not been anticipated earlier. The cost of raw materials required for construction increased 10% You had not taken into account inflation rate. There were 4 days of waiting time in the curing of cement, and no work could be done during that time.

Correct Choice: 1 Justification: Option 2 and Option 3 increase the costs - but since the project cost is not a problem (i.e CPI is > 1), we can ignore these answers. Choice 4 was a known factor, and provision should have been made in the project schedule for it. Choice 1 is the only alternative that could have increased the schedule time and made SPI < 1.

16. Team Development is a very critical component of Human Resource Management. All the following are inputs to Team

Development except: 1 2 3 4 Project Plan Project Staff Staffing pool description Performance Report Correct Choice: 3 Justification: Please refer to Fig 9-1 (Staffing Pool Description is an input to Staff Acquisition, not team development) PMBOK 2000 Page 108 17. You have just completed Qualitative Risk Analysis of the project. What should you be doing next? 1 2 3 4 Sensitivity Analysis Risk Probability and Impact Data Precision Ranking Brainstorming Correct Choice: 1 Justification: Please refer Figure 11-1 PMBOK 2000 Page 128 Please note that Risk Probability and Impact, and Data Precision Ranking have already been done as part of Qualitative Analysis and Brainstorming has been done as part of Risk Identification. Sensitivity Analysis is the only task in Quantitative Risk Management, that needs to be done after Qualitative Risk Analysis. 18. If a project needs to be terminated early, then you will have to

do : 1 2 3 4 Procurement Planning Contract Administration Contract Closeout Source Selection Correct Choice: 3 Justification: Early termination of a contract is a special case of Contract Closeout PMBOK 2000 Page 158 19. You are the Project Manager for a company doing research on alternative fuels for automobiles. In your project, which of the following is a valid assumption: 1 2 Cost of the project is $ 5 Million The project scope is to develop alternative fuels only for automobile vehicles weighing less than 10 tons. Gasoline fuels will become very expensive and less readily available after 10 years The project has to be completed within 2 years Correct Choice: 3 Justification: Constraint is an applicable restriction that will affect the performance of the project.... Assumptions are factors that, for planning purposes are considered to be true, real or certain. PMBOK 2000 Page 43 Please note that Option 3 is the only assumption, all the other answers

3 4

are constraints for the project. 20. Your project will most likely be completed in 10 weeks. Worst case scenario, the project will require 19 weeks, and if everything goes well the project will be completed in 7 weeks. What is the PERT estimate for the task? 1 2 3 4 10 weeks 11 weeks 9 weeks Cannot be determined with the information provided Correct Choice: 2 Justification: PERT estimate = (Optimistic + 4*Most Likely + Pessimistic)/6 So, PERT for this task is : (7 + 4*10 +19)/6 = 11 weeks

21. Quality control involves monitoring specific project results to determine if they comply with relevant quality standards. To evaluate Quality Control outputs, the project team should have a working knowledge of: 1 2 3 4 Prevention and Inspection Sampling and Probability Special Causes and Random Causes Tolerances and Control Limits Correct Choice: 2 Justification: The project management team must have a working knowledge of statistical quality control, especially sampling and probability, to help it evaluate quality control outputs.

PMBOK 2000 Page 102 22. In a sender-receiver model, all the following are true except: 1 2 3 4 Sender is responsible for making information clear, unambiguous and complete Sender confirms that information is understood Receiver is responsible for making sure that the information is completely received and understood All the statement above are true Correct Choice: 4 Justification: The sender is responsible for making the information clear, unambiguous, and complete, so that the receiver can receive it correctly, and for confirming that it is properly understood. The receiver is responsible for making sure that the information is received in its entirety and understood correctly. PMBOK 2000 Page 121 23. Preparing the Financial plan for your project will require: 1 2 3 4 Project Management skills Industry specific skills Financial Subject Matter Expertise Both Project Management and Industry specific skills Correct Choice: 4 Justification: Preparing a financial plan requires both Project Management and Industry specific skills 24. All the following are responsibilities of a certified PMP EXCEPT:

1

Ensure that there is no conflict of interest that can compromise the legitimate interests of a client or customer Ensure that the technical specifications are appropriately defined Disseminate PMP Code of Professional Conduct to other PMI certificants. Cooperate with PMI concerning ethics violation and the collection of related information Correct Choice: 2

2

3

4

Justification: The project manager may not be a technical expert to determine accuracy of technical specifications. All the others are mentioned in the PMP Code of Professional Conduct as responsibilities of Project Manager 25. Work Breakdown Structure is: 1 2 3 4 Developed in the Scope Planning Phase A deliverable oriented grouping of project components. Similar to the chart of accounts Depicts work elements assigned to different organizational units Correct Choice: 2 Justification: WBS is deliverable-oriented grouping of project components that organizes and defines the total scope of the project; work not in the WBS is out of scope of the project. PMBOK Page 59 26. In a project you are presented with following four options. Which project should you select?

1 2 3 4

Project A with Opportunity Cost of $ 100,000 Project B with Benefit-Cost Ratio of 0.75 Project C with IRR of -2% Project D with NPV of $ 100,000

Correct Choice: 4 Justification: Project B and Project C are not preferable because company suffers losses. Project A does not look good because Opportunity cost is not a project selection criteria. Project D is the only suitable option - because this project has a positive NPV, it will be selected.

27. What is the factor which will help a project manager gain the maximum support of the assigned project personnel? 1 2 3 4 Expertise of the project manager Work Challenge Ability of the project manager to penalize team members Ability of project manager to provide promotions to team members depending on their abilities Correct Choice: 1 Justification: (pmstudy notes: Expertise of the project manager is the most important factor in getting support from the project personnel;

least important factor is ability to penalize) Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 247 - Page 248 28. Risk Management Plan may include: 1 2 3 4 Budgeting, Timing, Thresholds, Methodology Risks, Triggers, Inputs to other processes Avoided, Transferred, Mitigated and Accepted Risks Risk Response Audits, Earned Value Analysis, Technical Performance Measurement Correct Choice: 1 Justification: PMBOK 2000 Page 130 29. Contract Negotiation is carried out as part of : 1 2 3 4 Solicitation Planning Solicitation Source Selection Contract Administration Correct Choice: 3 Justification: Please refer to Fig 12-1 PMBOK 2000 Page 148 30. You are the Project Manager for a construction project. Your job requires that you sanction work to others and ensure that the work is done at the right time. The tool you use is:

1 2 3 4

Work Authorization System Project Scheduling Techniques Project Plan Network Diagram Correct Choice: 1

Justification: A work authorization system is a formal procedure for sanctioning project work to ensure that work is done at the right time and in the proper sequence. PMBOK Page 47 31. Please refer to the diagram given below: (all units are in days)

What is the project float if management wants to do this project within 10 days? 1 2 3 4 0 days - 4 days 2 days Cannot be determined because information in the question is inconsistent

Correct Choice: 2 Justification: The different paths possible are as follows:
    

Start -> Task1 -> Task2 -> Task3 -> End : 10 Start -> Task1 -> Task2 -> Task3 -> Task6 -> End : 14 Start -> Task4 -> Task5 -> Task6 -> End: 13 Start -> Task4 -> Task5 -> Task3 -> Task6 -> End: 14 Start -> Task4 -> Task5 -> Task3 -> End: 10

So, the critical path is 14. If the project has to be completed within 10 days, the project float is - 4 days (i.e 10 - 14) Please note: A project may have negative project float. To deal with such conditions, if the project has to be completed on time, the project manager will have to either fast-track or Crash the project schedule. 32. Determining and delivering the required levels of quality is the responsibility of: 1 2 3 4 Project Sponsor Project Manager / Project Management Team Project Team All Stakeholders in the project Correct Choice: 2 Justification: Determining and delivering the required levels of both quality and grade are the responsibilities of the project manager and the project management team. PMBOK 2000 Page 81 33. After project is completed, a complete set of indexed project records should be put in: 1 Project Archives

2 3 4

Project Records Project Database Project Reports Correct Choice: 1

Justification: Project Archives: A complete set of indexed project records should be prepared for archiving by the appropriate parties. Any project-specific or programwide historical databases pertinent to the project should be updated. PMBOK 2000 Page 125 34. Which of the following statement(s) about project customer and project sponsor is(are) correct? Along with the customer, the sponsor threshold for risks should 1 be taken into account 2 Along with the customer, this sponsor may provide key events, milestones, and deliverable due dates Along with the customer, the sponsor formally accepts the product of the project. All of the above. Correct Choice: 4 Justification: All the statements are correct 35. You are the project manager for a sewage treatment plant. The government has mandated that you have to ensure that the sewage plant will not adversely impact the neighborhood. From a project perspective, this is a(an): 1 2 3 Assumption Constraint Best Practice

3 4

4

Deliverable Correct Choice: 2

Justification: Constraints are factors that will limit the project management team`s options. An example is a requirement that the project be socially, economically and environmentally sustainable. This will also have an effect on the project scope, staffing and schedule. 36. There has been a change to the scope of your project, which may adversely impact the project schedules and cost. You have updated the technical and planning documents, and now you are required to: 1 2 3 4 Create an Impact Request Statement Notify stakeholders Request for additional funds from the project sponsor. Make changes to the Risk Management Plan Correct Choice: 2 Justification: A scope change control is any modification to the agreed upon project scope as defined by the approved WBS. Scope changes often require changes to the cost, time, quality or other project objectives. Project scope changes are fed back through the planning process, technical and planning documents are updated as needed, and stakeholders are notified as appropriate. PMBOK Page 63 37. Project cost management must consider the effect of project decisions on the cost of the product created by the project. Your objective to reduce cost and time, improve quality and performance, and optimize decision making can be facilitated using tools like: (select best answer) 1 Value Engineering

2 3 4

Life Cycle Costing Payback Period Value Engineering and Life Cycle Costing Correct Choice: 4

Justification: Life cycle costing together with Value Engineering helps to reduce cost and time, improve quality and performance and optimize decision making. PMBOK 2000 Page 83 38. As a project manager, you advocate active participation of your team members - this is because you believe in: 1 2 3 4 Theory Y (McGregor Model) Theory X (McGregor Model) Maslow hierarchy of needs Referent power Correct Choice: 1 Justification: Douglas McGregor advocated that most workers can be categorized according to two theories:


Theory X: This assumes that the workers are inherently lazy and require supervision Theory Y: The average worker finds that physical and mental effort on the job satisfying, and likes his work.



Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 234 - Page 235 39. You have a geographically dispersed team, from whom you would like to get expert opinion about your project. Which information gathering technique should you use:

1 2 3 4

Brainstorming Delphi Technique SWOT Analysis Checklists Correct Choice: 2

Justification: Delphi Technique: It is a way to reach a consensus of experts on a subject such as a project risk. Project risk experts are identified but participate anonymously PMBOK 2000 Page 132 Delphi technique will be the best option to get expert inputs from a geographically dispersed team. 40. Receipt of bids or proposals and application of the evaluation criteria to select a provider should be done as part of : 1 2 3 4 Procurement Planning Solicitation Solicitation Planning Source Selection Correct Choice: 4 Justification: Source Selection involves the receipt of bids or proposals and the application of evaluation criteria to select a provider. PMBOK 2000 Page 155 41. A project Manager has to manage conflict in an organization. All the following could be sources of conflict in an organization except: 1 Weak Matrix Structure with multiple managers to report to.

2 3 4

Low position in the organization hierarchy Roles that are not well defined. Work pressure and high stress. Correct Choice: 2

Justification: A lower position in a project organization can often be helpful in avoiding and resolving conflict. Principles of Project Management 42. Please refer to the figure below:

If these three tasks (i.e. TaskA, TaskB, TaskC) are part of critical path of one project, what is the PERT Estimate for the duration of the project? 1 2 3 4 22.5 10.33 32 5.17 Correct Choice: 1 Justification: Please refer to the calculations given below:

The duration for the project = sum of PERT Estimates for the three tasks = 7+10.33+5.17 = 22.5 43. To identify which quality standards are relevant to a project, and determine how to satisfy them, you will do: 1 2 3 4 Quality Assurance Quality Planning Quality Control Quality Management Correct Choice: 2 Justification: Quality Planning involves identifying which quality standards are relevant to the project and determining how to satisfy them. PMBOK 2000 Page 97 44. All the following statements relating to communication management are correct EXCEPT: 1 2 Communication Planning involves determining the information and communication needs of the stakeholders Communicating is the most critical skill that a project manager

should possess 3 Project Managers spend as more than 85% of their time communicating To be effective, a Project Manager should control all communications Correct Choice: 4 Justification: Project Manager cannot control all communications

4

45. As a Project Manager for a construction company, you are responsible for Scope Definition, Activity Definition, Schedule Development and Cost Budgeting. These responsibilities are performed as part of : 1 2 3 4 Closing Concept Planning Execution

Correct Choice: 3 Justification: PMBOK Page 33 46. You have been informed by the project sponsor that there has been a revaluation of projects within your company and your project will not be getting any additional funding. In this case, you should: 1 2 3 4 Stop Work Immediately and release all resources Perform Administrative Closure Decrease team size Remove non-critical tasks to decrease cost Correct Choice: 2 Justification: Administrative Closure: The project or phase, after either achieving its objectives or being terminated for other reasons, requires closure. Administrative Closure consists of documenting project results to formalize acceptance of the product of the project by the sponsor, or customer. PMBOK 2000 Page 125  Option 1: Without performing Administrative Closure, if resources are released, all the benefits of the project are lost  Option 3, Option 4: They just postpone the problem and do not solve the issue 47. A Work Breakdown Structure numbering system 1 2 3 4 Determines the complexity of the project Determines the level at which individual WBS elements are found Helps in automating the WBS using appropriate software Presents justification for the project

Correct Choice: 2 Justification: Each item in the WBS is assigned a unique identifier; these identifiers can provide a structure for the hierarchical summation of costs and resources. The items at the lowest level of the WBS may be referred to as work packages, especially in organizations that follow earned value management practices. These work packages may in turn be further decomposed in a subproject work breakdown structure. PMBOK Page 60 48. All the following statements relating to Cost Management Plan are accurate except: 1 2 3 4 It describes how cost variances will be managed May be formal or informal, highly detailed or broadly framed It is a subsidiary element of the project plan It specifies preferred tool to be used for cost estimating Correct Choice: 4 Justification: PMBOK 2000 Page 89 49. An organization chart which shows the organizational units responsible for specific work packages is also called : 1 2 3 4 Organizational breakdown structure Staffing plan Responsibilities Assignment Matrix Organization Plan Correct Choice: 1

Justification: Am Organizational breakdown structure(OBS) is a specific type of organization chart that shows which organizational units are responsible for which work packages. PMBOK 2000 Page 111 50. You are in the build phase of the project. But it has run into several unanticipated problems. Several risks have surfaced which you had not anticipated earlier. The project is over-budget and behind schedule. What should you do? 1 2 3 4 Create updates to risk response plan Create a revised project plan Perform risk response audits Perform updated risk identification and analysis Correct Choice: 4 Justification: Results from an earned value analysis may indicate potential deviation of the project at completion from cost and schedule targets. When a project deviates significantly from the baseline, updated risk identification and analysis should be performed. PMBOK 2000 Page 145 51. A contract where the buyer reimburses the seller for the cost incurred by the seller, and also provides for a fixed amount of profit is also called: 1 2 3 4 Cost Plus Incentive Fee Cost Plus Fixed Fee Time and Material Contract Cost Plus Percentage of cost Correct Choice: 2

Justification: Cost-Plus-Fixed-Fee Contract: A type of contract where the buyer reimburses the seller for the seller`s allowable costs plus a fixed amount of profit(fee) PMBOK 2000 Page 200 52. All the following are true about Project Plan Execution except: 1 Vast majority of the project budget will be expended in Project Plan Execution Project Manager and her team coordinate the various technical and organizational interfaces Product of the project is created Care is taken to ensure that changes to the product scope are reflected in the project scope Correct Choice: 4 Justification: <# 4 is part of integrated change control> Integrated change control requires:...Ensuring that changes to the product scope are reflected in the definition of the project scope. PMBOK 2000 Page 47 53. Please refer to the chart given below, which shows the time estimates for different tasks:

2 3 4

What is the impact on the project if task 1->2 takes 2 months more than what was earlier planned? (choose best answer) 1 2 3 4 The duration of the project will increase by 1 month The risk in the project will increase The duration of the project will increase by 2 months The project float will increase by 2 months Correct Choice: 2 Justification: pmstudy.com notes: Please refer the diagram:

The length of the different paths are:

  

Start -> 1 -> 2 -> End : 10 Start -> 3 -> 5 -> End : 11 Start -> 4 -> 5 -> End : 12

Since the longest path is Start -> 4 -> 5 -> End, this is the critical path. Length of the critical path is 12. If task 1->2 takes 2 more months, length of Start -> 1 -> 2 -> End : 12 So, now we have 2 critical paths i.e.
 

Start -> 1 -> 2 -> End Start -> 4 -> 5 -> End : 12

Hence, the risk in the project increases because delay in either of the critical paths will cause a delay in the project 54. Quality function Deployment is a tool used to: 1 2 3 Identify all the alternatives for the project. Develop a better understanding of the product of the project. Determine total cost of all efforts to achieve product/project quality Provide confidence that the project will satisfy relevant standards. Correct Choice: 2 Justification: Product Analysis involves developing a better understanding of the product of the project. It includes techniques like product breakdown analysis systems engineering, value engineering, value analysis, function analysis and quality function deployment. PMBOK 2000 Page 55 55. You have completed the Information Distribution Process and are now in a position to make needed information available to project stakeholders in a timely manner. All the following could be

4

outputs from Information Distribution EXCEPT: 1 2 3 4 Project Records Project Reports Project Presentations Performance Reports Correct Choice: 4 Justification: Please refer to Figure 10-1 (Performance Reports are an output of the Performance Reporting Process, not the Information Distribution process). PMBOK 2000 Page 118 56. Which statement describing attributes of the Project Manager is incorrect? General Management Skills (e.g. Leading, Communicating, Negotiating, Problem Solving and Influencing the Organization) provide much of the foundation for building project management skills In projects, the Project Manager is expected to be a leader and be involved with Establishing Direction, Aligning people, Motivating and Inspiring If required, the Project Manager may try to use politics through power struggles or organizational games Project Manager must be aware of and plan for SocialEconomic Environmental influences including Standards and Regulations, Internationalization, Cultural Influences and Social-Economic Environmental Sustainability Correct Choice: 3 Justification: Politics is about getting collective action from a group of people who may have quite different interests. It is about being willing

1

2

3

4

to use conflict and disorder creatively. The negative sense, of course, derives from the fact that attempts to reconcile these interests result in power struggles and organizational games that can sometimes take on a thoroughly unproductive life of their own. PMBOK Page 26 57. The CPI of a project is 0.8, and you have limited budget - you are trying to procure a product from the supplier, in this situation you should: 1 2 3 4 Ask the supplier to provide a product of slightly lower quality since it will cost less Try to find out innovative means to lower costs Remove non-critical tasks from the project schedule Try to crash the project - decreasing project schedule will decrease the costs Correct Choice: 2 Justification: Since CPI is 0.8, the project is over-budget.
 





Option 2 is the only option that tries to solve the problem. You should look at different options to decrease the cost Option 1 is unacceptable - lower quality may mean that the product does not provide customer satisfaction, and hence will not meet the requirements of the project. Option 3 again does not solve the problem - removing non-critical tasks from the project schedule will mean that the all the tasks in the project will not be completed Option 4 is going to increase the costs further - crashing usually results in higher cost for the project

(pmstudy.com notes: For Professional Responsibility questions, please note that the Project Manager should always try to solve the problem 58. Which statement relating to Scope Verification and Quality control is correct? 1 Scope Verification is concerned with correctness of the work results while quality control is primarily concerned with

acceptance of the work results. Scope Verification is concerned with acceptance of the work results while quality control is primarily concerned with correctness of the work results. Both are similar Scope Verification and Quality Control are performed sequentially and supplement each other Correct Choice: 2 Justification: Scope Verification is concerned with acceptance of the work results while quality control is primarily concerned with correctness of the work results. PMBOK Page 61 59. All the following statements about Cost Baseline are correct EXCEPT: 1 2 3 4 It is a time phased budget To measure disbursements, a spending plan can be used as a cost-baseline It is used to measure and monitor project performance All projects have one cost baseline Correct Choice: 4 Justification: Many projects, especially larger ones may have multiple cost baselines to measure different aspects of the cost performance. PMBOK 2000 Page 90 60. Two project members have been having some disagreement about the best way to handle a problem. You ask both the team members to look at the positives and negatives of both their

2

3 4

approaches, and give you their recommendation. Which of the following conflict resolution techniques did you use? 1 2 3 4 Smoothing Compromising Confrontation Withdrawal Correct Choice: 2 Justification:

<> 61. While doing risk response planning, you realize that there is a very critical risk which may have a high impact on the project completion. So, you create a fallback plan which could include any of the following conditions EXCEPT: 1 2 3 4 Subcontracting the project to an outside Vendor Developing Alternative Options Allocation of Contingency Reserves Changing project scope Correct Choice: 1

Justification: A fallback plan is developed if the risk has a high impact, or if the selected strategy may not be fully effective. PMBOK 2000 Page 143 Please note: Subcontracting the project to an outside vendor is a Risk Transference technique. It simply gives the other party responsibility for managing the risk but does not eliminate the risk. 62. In a Lump-sum contract, the profit is: 1 2 3 4 Determined by the buyer during contract sign-off Determined by the seller during contract sign-off Provided by the buyer to the seller at end of project if defined performance criteria are met Not known at time of the contract sign-off Correct Choice: 4 Justification: Fixed Price or Lump-sum Contract: Involves a fixed total price for a well-defined product. PMBOK 2000 Page 151 (pmstudy note: The profit is not known at time of contract sign-off, only the Fixed price of the contract is determined at that time) 63. The total project scope is: 1 2 3 4 Defined in the project baseline Sum of all the integrated management control plans Sum of the total product scope Constant throughout lifecycle of the project Correct Choice: 2 Justification: All the defined work must be planned, estimated and

scheduled, and authorized with the use of detailed integrated management control plans sometimes called Control Account Plans, or CAPs in the EVM process. The sum of all the integrated management control plans will constitute the total project scope. PMBOK 2000 Page 42 64. All the following are advantages of GERT (Graphical Evaluation and Review Techniques) as compared with PERT (Project Evaluation and Review Technique) except: 1 2 3 4 Allows looping Allows for dummy tasks Allows branching Allows multiple project end results Correct Choice: 2 Justification: Graphical Evaluation and Review techniques are similar to PERT but have the distinct advantages of allowing for looping, branching, and multiple project end results. . Project Management - A systems Approach to Planning, Scheduling and Controlling, Page # 679 65. Which of the following is not an input to the Quality Control Process? 1 Work Results 2 3 4 Operational Definitions Checklists Standard and Regulations Correct Choice: 4 Justification: Please refer to Fig 8-1 Standards and Regulations are input to Quality Planning, not Quality Control.

PMBOK 2000 Page 96 66. All the following are tools and techniques for performance reporting EXCEPT 1 2 3 4 Performance Reviews Trend Analysis Earned Value Analysis Project Reports Correct Choice: 4 Justification: Please refer to Figure 10-1. Project Reports are tools for Administrative Closure, not Performance Reporting. PMBOK 2000 Page 118 67. As a project manager, you realize that handling Project Stakeholder expectations is an important priority. Which statement regarding project stakeholders is not correct? 1 Some key stakeholders include Project Manager, Performing organization, Project team members, Customer and Sponsor. Project stakeholders can be categorized as internal and external, sellers and contractors, individual citizens, government agencies and media outlets etc. Stakeholder expectations may be difficult to manage because stakeholders often have conflicting objectives. Stakeholders are individuals and organizations whose interests are only positively affected by the project. Correct Choice: 4 Justification: Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests

2

3

4

may be positively or negatively affected as a result of the project execution or project completion. PMBOK Page 16 68. A project manager disclosed some crucial information to a prospective seller. Which code of professional conduct did he violate? 1 2 3 4 Maintain and satisfy the scope and objectives Prevent conflict of interest Provide accurate and truthful representations Refrain from offering or accepting inappropriate payments, gifts etc. Correct Choice: 2 Justification: Refer: PMP Code of Professional Conduct 69. When a project is initiated, one of the first deliverables from the project initiation phase is: 1 2 3 4 Project Charter Scope Statement Project Plan Scope Management Plan Correct Choice: 1 Justification: A project charter is a document that formally authorizes a project PMBOK 2000 Page 54 70. All the following statements related to Benefit Cost Ratio (BCR) are correct

Except: 1 2 3 4 Projects with BCR > 1 should be considered for selection BCR is the ratio of payback to costs If two projects have positive BCR, select project with higher BCR For any project, Benefits = Profits

Correct Choice: 4 Justification: Benefits are not profits, Benefits = Revenues/Payback

71. Maximum intensity of conflicts occur over: 1 2 3 4 Priorities Schedules Personality Conflict Cost

Correct Choice: 2 Justification:

<> 72. Risks because of implementing a risk response are called: 1 2 3 4 Unidentifiable Risks Residual Risks Secondary Risks Accepted Risks Correct Choice: 3 Justification: Risks that arise as a direct result of implementing a risk response are termed secondary risks. PMBOK 2000 Page 143 73. Contract Administration is the process of ensuring that the seller`s performance meets contractual agreements. All the following will facilitate Contract Administration EXCEPT 1 2 3 Contract Work Results Change Requests

4

Evaluation Criteria Correct Choice: 4

Justification: Evaluation Criteria are an input to Source Selection, not contract administration. Please refer to Fig 12-1 PMBOK 2000 Page 148 74. You are the Project Manager for an aircraft manufacturing company developing a new range of supersonic fighter planes. Since government funding is essential for your project, you hire a lobbying firm to get Government support for funding your project. This is an example of: 1 2 3 4 Integrated Change Control Risk Management Cost Management Project Planning Methodology Correct Choice: 1 Justification: Integrated Change Control is concerned with influencing the factors that create changes to ensure that the changes are agreed upon. PMBOK 2000 Page 47 75. The activity list should include descriptions of activities. This is required to: 1 2 3 Provide documented evidence of the scope of work Ensure that the team members understand how the work is to be done. Provide as a reminder to the project manager

4

Help in creation of technical documentation during the project life cycle Correct Choice: 2

Justification: As with the WBS, the activity list must include descriptions of each activity to ensure that the project team members will understand how the work is to be done. PMBOK 2000 Page 67 76. All the following statements related to Just In Time Manufacturing are correct except: 1 2 It stresses Waste Reduction Eliminates costs related to material handling, storage, paperwork and inspection. Stresses short term relationships with suppliers that last until the delivery is received. Reduces inventory to zero Correct Choice: 3 Justification: Just in time Manufacturing is a process that continuously stresses waste reduction by optimizing the processes and procedures necessary to maintain a manufacturing operation. Part of this process is JIT purchasing or inventory where the materials needed appear just in time for use, thus eliminating costs associated with material handling, storage, paperwork, and even inspection. Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 246 - Page 1131 - 1133 Please note that JIT stresses on having long term relationships with suppliers, so that the company can depend on the suppliers to provide materials Just In Time. 77. Some common formats of performance reports are: 1 S Curves, Histograms, Pareto Diagrams

3 4

2 3 4

S Curves, Responsibility Assignment Matrices ,Histograms Bar charts, S Curves, Histograms Bar charts, Control Charts, Histograms Correct Choice: 3

Justification: Common formats for Performance Reports include bar charts(also called Gantt Charts), S-curves, histograms and tables PMBOK 2000 Page 124 78. As a project Manager, Problem solving is high in your list of priorities. Which statement about Problem Solving is not accurate? 1 2 3 4 Problem solving involves a combination of problem definition and decision-making Problems may be technical, managerial or interpersonal. Decision Making includes analyzing the problem to identify viable solutions, and then making a choice from among them You should try to solve a problem as soon as it is identified Correct Choice: 4 Justification: Decision making includes analyzing the problem to identify viable solutions, and then making a choice from among them. Decisions can be made or obtained (from the customer, team or functional manager). Once made, decisions must be implemented. Decisions have a time element to them - the "right" decision may not be the "best" decision if it is made too early or too late.

PMBOK Page 25 79. You are aware that an employee in your project may potentially get a promotion - however, there is a possibility that he may get transferred after his promotion, thus impacting your project. In this

situation, you should: 1 Give a bad recommendation about the person so as to delay the promotion of the person until project is over Inform the employee about the potential promotion, and ask him to transition his responsibilities to another person After the employee gets the promotion and is told of the transfer, you ask him to prepare a transition plan Hire another resource who can replace the person after he gets the promotion Correct Choice: 3 Justification:


2

3

4





Option 3 is the best answer - you are not sure whether the resource will get a promotion or get transferred. So, after the promotion/transfer are confirmed, you should ask him to do a proper transition Option 2 and Option 4 assume the person will be getting a promotion and transfer - since this is not certain as of now, if you go ahead with this assumption and the promotion does not happen, it will cause problems from a human resource management perspective. Option 1 is unethical

80. One of your tasks as a project manager is to prepare a Scope Statement for your project. The scope statement provides: 1 Authorization to the project manager to use organizational resources for project activities. Documentation of how the project scope will be managed and how scope changes will be integrated into the project. Definition for Work Breakdown structure A documented basis for making future project decisions and for confirming or developing common understanding of the project

2 3 4

scope among stakeholders. Correct Choice: 4 Justification: A scope statement provides a documented basis for making future project decisions and for confirming or developing common understanding of the project scope among stakeholders. PMBOK Page 56 81. In your project, there have been several changes in the cost and schedule estimates and the original estimating assumptions are no longer valid. What is the Estimate at Complete for your project?
    

BAC = $ 300,000 AC = $ 100,000 EV = $ 150,000 CPI = $ 1.2 ETC = $ 120,000

1 2 3 4

$ 250,000 $ 220,000 $ 280,000 $ 300,000

Correct Choice: 2 Justification: Since Original Estimating Assumptions are no longer valid, EAC = AC + ETC = $ 100,000 + $ 120,000 = $ 220,000

82. All direct or indirect training costs should generally be the responsibility of the: 1 2 3 4 Program Office of the Project Project budget (hence paid from the project sizing) Performing organization Project Sponsor and Business partner Correct Choice: 3 Justification: Direct and indirect costs for training are generally paid by the performing organization. PMBOK 2000 Page 116 83. Technique used to evaluate the degree to which the data about risks is useful for risk management is also called: 1 Risk Probability and Impact

2 3 4

Project Assumptions Testing Data Precision Ranking Sensitivity Analysis Correct Choice: 3

Justification: Qualitative Risk Analysis requires accurate and unbiased data if it is to be helpful to project management. Data Precision Ranking is a technique to evaluate the degree to which the data about risks is useful for risk management. PMBOK 2000 Page 135 84. The main objective of providing incentives in contracts is to: 1 2 3 4 Align the goals of the buyer and seller Ensure that there is no gold plating Reduce cost for the buyer Improve profits for the seller Correct Choice: 1 Justification: Incentives are provided in contracts to ensure that the goals of both the buyer and seller are the same. 85. The organization of the project is very important for successful implementation. Which factor does not have an impact of design of the project organization? 1 2 3 4 Environmental Forces Schedule Limitations Strategic Choices Technological Factors

Correct Choice: 2 Justification: Schedule limitations can shape the size of the project team but will not influence its organizational design. Organizing Projects for success 86. Which of the following is an output from Cost Control? 1 2 3 4 Revised Cost Estimates Cost Baseline Cost Estimates Resource Requirements Correct Choice: 1 Justification: Please refer to Fig 7-1 PMBOK 2000 Page 84 87. According to Herzbergs theory, all the following are motivating agents except: 1 2 3 4 Recognition Responsibility Advancement in career Salary Correct Choice: 4 Justification:

88. Unplanned responses to emerging risks that were earlier accepted is also called a(an) 1 2 3 4 Corrective Action Workaround Update to risk response plan Update to risk identification checklist Correct Choice: 2 Justification: Workarounds are unplanned responses to emerging risks that were previously unidentified or accepted. Workarounds must be properly documented and incorporated into the project plan and risk response plan. PMBOK 2000 Page 146 89. Which is the best thing to do during the Source Selection process? 1 Determine whether a product should be outsourced or

manufactured in-house 2 3 4 Ensure that prospective sellers clearly understand the technical and contract requirements Place advertisements in publications Prepare an independent estimate to check the proposed price of the different sellers Correct Choice: 4 Justification: Independent Estimates(which is a Tool/Technique for Source Selection): For many procurement items, the procuring organization may prepare its own independent estimates as a check on proposed pricing. PMBOK 2000 Page 156 Please note:
  

Option 1 is Make or Buy Analysis - done during Procurement Planning Option 2 is Bidder Conference - done during Solicitation Option 3 is Advertising - done during Solicitation

90. As the Project Manager of an IT project, you are in the process of creating the project plan. You have been looking at information related to similar projects and have identified assumptions and constraints. What Tools will you use to define the project plan? 1 2 3 4 General Management Skills, Product skills and knowledge, Work Authorization System Status review meetings and Organization Procedures Project Planning methodology, Earned Value Management and Stakeholder Skills and knowledge All the above

Correct Choice: 3 Justification: PMBOK 2000 Page 42 91. The objective of duration compression includes all the following except: 1 2 3 Shorten the project schedule without impacting scope Do compression of tasks for the least incremental cost Do simulation to calculate distribution of probable reasons for the whole project Do activities in parallel which would normally be done sequentially Correct Choice: 3 Justification: (pmstudy.com notes): Simulation is a completely different tool and technique for as compared with Duration Compression. Please refer to PMBOK 2000 Page No 75 Simulation is used for calculating multiple project durations with different sets of activity assumptions using techniques like Monte Carlo Analysis 92. Benchmarking is a common tool used for: 1 2 3 4 Design of Experiments Quality Planning Quality Control Quality Assurance Correct Choice: 2 Justification: Please refer to Fig 8-1

4

PMBOK 2000 Page 96 93. You joined the company recently as a Project Manager. To familiarize you with the company policies and best practices, you are teamed up with another project manager in the company through the "Buddy System." The communication between both of you will be: 1 2 3 4 Written Oral Formal Horizontal Correct Choice: 4 Justification: Communication Dimensions: Vertical (up and down the organization) and horizontal (with peers) PMBOK 2000 Page 121 (pmstudy Notes: Since the new project manager is a peer, you will have horizontal communication with him - this is the best answer. The communication can be either written or oral, formal or informal depending on situations. 94. Which of the following is not a characteristic of the Project Life Cycle? 1 2 Risk and uncertainty is highest at start of the project. Ability of the stakeholders to influence final characteristics of the projects product increases as the project continues. The project life cycle definition determines which transitional actions at the beginning and end of the project are included so, the project life cycle definition can be a link to the ongoing operations of the performing organization. Cost and staffing levels are low at the start, higher towards the

3

4

end and drop rapidly as the project draws to a conclusion. Correct Choice: 2 Justification: The ability of the stakeholders to influence the final characteristics of the projects product is highest at the start and gets progressively lower as the project continues. A major contributor to this phenomenon is that the cost of changes and error correction generally increases as the project continues. PMBOK Page 12 95. There have been too many disagreements within two teammembers in your project regarding the design of a particular product. You would like to incorporate the best features of the two designs - and want to create an environment that avoids conflicts and emphasis similarities. The conflict-handling mode you would like to emphasize is: 1 2 3 4 Smoothing Compromising Confrontation Withdrawal Correct Choice: 1 Justification: <

96. Product Reviews, Audits and walk-throughs are performed as part of which process? 1 2 3 4 Scope Planning Scope Verification Scope Change Control Scope Initiation Correct Choice: 2 Justification: Inspection(which is a Tool for Scope Verification) includes activities such as measuring, examining and testing undertaken to determine whether results confirm to requirements. Inspections are variously called reviews, product reviews, audits and walk-throughs. PMBOK Page 62 97. If cost variance is negative, but schedule variance is positive, then this indicates: 1 Cost and schedule are not dependent on each other

2 3 4

The project is under budget and behind schedule The project is over budget and ahead of schedule Crashing may be recommended to make the cost variance positive

Correct Choice: 3 Justification: Positive Schedule Variance means project is ahead of schedule; Negative Cost Variance means the project is over-budget. Please note: Crashing will increase costs, and hence make the cost variance worse.

98. All the following tools and techniques can be used for staff acquisition except: 1 2 3 Negotiations Contractual agreements with unions or other employee groups Preassignment of staff through a competitive proposal

4

Staff assignment as defined in the project charter Correct Choice: 2

Justification: Contractual agreements with unions and other employee groups is a constraint (not a tool) for Resource Allocation PMBOK 2000 Page 112 - 114 99. All the following statements relating to transferring of risk to a contractor are true EXCEPT: 1 2 Transferring risk requires payment of a risk premium Fixed price contracts transfer risk to the seller if the design is unstable Cost reimbursable contract leaves more of the risk with the customer or sponsor Cost reimbursable contract helps reduce cost if there are midproject changes Correct Choice: 2 Justification: Please refer to Transference PMBOK 2000 Page 142 pmstudy note: If the design is unstable, there is a potential that the seller also will not be deliver to specifications. Hence there is a risk that the project will not succeed, and both the seller and buyer will be impacted. Fixed Price contract for transference of risk is only effective if the project design is stable 100. In a fixed price contract, the buyer decides to increase the scope of the work to make the product better. In this case the buyer can do all the following except: 1 2 Issue a Contract Change Request Start another Fixed Price contract to do the additional work

3

4

3 4

Start another Cost Reimbursable contract to do the additional work Cancel the existing contract, and start a new contract Correct Choice: 4

Justification: Cancellation of the contract has to be done by both the seller and buyer (i.e. it cannot be done unilaterally by the buyer) 101. Which of the following statements relating to Assumptions is inaccurate? 1 2 3 4 They are factors which are considered to be true, real or certain. They affect all aspects of project planning, They are progressively elaborated They limit the project team`s options Correct Choice: 4 Justification: A constraint limits the options of the project team PMBOK 2000 Page 43 102. Since you are in the preliminary stages of your project, you estimate that your project will most probably last 1 year - however, optimistic scenario is that it will get over within 6 months and pessimistic scenario is 18 months. This kind of estimate is also called: 1 2 3 4 Definitive Capital Cost Order of Magnitude Feasibility

Correct Choice: 3 Justification: The classes of estimates and their accuracy % is as follows:
    

Definitive (+- 5%) Capital Cost (+- 10% - 15%) Appropriation ( +- 15% - 25%) Feasibility (+_ 25% - 35 %) Order of Magnitude ( > +- 35%)

Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 745 103. The main objective of a Control Chart is to : 1 2 3 4 Determine if a process is "in control" Determine whether results conform to requirements Solve the most critical problems first Help analyze how problems occur Correct Choice: 1 Justification: Control charts are a graphical display of the results, over time of a process. There are used to determine if the process is "in control" (e.g. are the differences in variances created by random variations or are unusual events occurring whose causes must be identified and corrected)? PMBOK 2000 Page 103 104. Confirmation that the project has met all customer requirements for the product of the project is provided as part of: 1 2 Quality Assurance Administrative Closure

3 4

Project Closure Performance Reporting Correct Choice: 3

Justification: Project closure - Confirmation that the project has met all customer requirements for the product of the project (the customer has formally accepted the project results and deliverables and the requirements of the delivering organization) PMBOK 2000 Page 126 (pmstudy Notes: Please note that although Administrative Closure is the process in which you formalize acceptance of the product of the project, the specific output from the process is "Project Closure" 105. Which statement relating to Core Processes and Facilitating Processes is true? 1 Core processes are mandatory but Facilitating processes may be optional. Unlike Facilitating processes, core processes have clear dependencies and are performed in same order in most projects. Unlike Facilitating processes, interactions between Core processes vary depending on the type of project. Core planning processes go through only one iteration, but facilitating processes may undergo multiple iterations. Correct Choice: 2 Justification: Core processes: Some planning processes have clear dependencies that require them to be performed in essentially the same order on most projects. For example, activities must be defined before they can be scheduled or costed. PMBOK Page 33

2

3

4

106. During an informal discussion you had with another PMP, he mentioned about how he was able to sit for the PMP Certification Exam 3 years ago through using false contact hour certificates. You should: 1 2 3 4 Report this to PMI Report this to the your manager Do nothing since he is a colleague Do nothing since he had taken the PMP Exam three years ago, and contact hour certificates get audited only for one year Correct Choice: 1 Justification: A project Managers responsibility is that upon a reasonable and clear factual basis to report possible violations of the PMP Code of Professional Conduct by individuals in the field of project management. PMP Code of Professional Conduct 107. Your company is constructing a dam and your project (which is being performed under a contract) mandates that you should be paying compensation to any person displaced because of the project. What kind of constraint is this? 1 2 3 4 Social Legal Environmental Humanity Correct Choice: 2 Justification: When a project is performed under a contract, contractual obligations will generally be constraints. PMBOK 2000 Page 55

(pmstudy notes: Anything done under a contract becomes a legal constraint) 108. A chart of accounts is use to: 1 2 3 4 Report financial information in the ledger Identify potential risks Facilitate Activity duration estimating Update Project Files Correct Choice: 1 Justification: A chart of accounts describes the coding structure used by the performing organization to report financial information in its general ledger. PMBOK 2000 Page 87 109. What is the foundation for team development? 1 2 3 4 Team Building exercises Individual development Appropriate Conflict Management and Resolution Performance Reporting and Evaluation Correct Choice: 2 Justification: Team development includes enhancing the ability of the stakeholders to contribute as individuals as well as enhancing the ability of the team to function as a team. Individual development(managerial and technical) is the foundation of a team. PMBOK 2000 Page 114

110. Which of the following are Information Gathering Techniques required for Risk Identification? 1 2 3 4 Brainstorming, Delphi Technique, SWOT Analysis Brainstorming, Cause and Effect Diagrams, Influence Diagrams Delphi Technique, SWOT Analysis, Influence Diagrams SWOT Analysis, Cause and Effect Diagrams, Influence Diagrams Correct Choice: 1 Justification: Brainstorming, Delphi Technique, Interviewing and SWOT Analysis are done as part of Information Gathering PMBOK 2000 Page 132 111. All the following are outputs from Solicitation Planning except: 1 2 3 4 Proposals Procurement Documents Evaluation Criteria Statement of Work Updates Correct Choice: 1 Justification: Proposals are an output from Solicitation. Please refer to Fig 12-1 PMBOK 2000 Page 148 112. In the contract for your project, the time schedules and deliverables in each phase are clearly specified. From a project perspective, this is a(an) : 1 Risk

2 3 4

Assumption Constraint Issue Correct Choice: 3

Justification: A constraint is an applicable restriction that will affect the performance of the project. For example, a predefined budget is a constraint that is highly likely to limit the team`s options regarding scope, staffing, and schedule. When a project is performed under contract, contractual provisions will generally be constraints. PMBOK 2000 Page 43 113. In schedule development, mathematical analysis often produces a preliminary early-start schedule that shows peaks and valleys in the resource requirements. Resource Leveling done to take care of this issue may result in all the following except: 1 2 3 4 Increase in project duration Utilization of weekends, extended hours or multiple shifts Productivity increases by using different technologies and/or methodologies Reduction in project cost Correct Choice: 4 Justification: pmstudy.com notes: (As different techniques like crashing, fast tracking, resource reallocation etc. are being considered for Resource Leveling, there is a real potential for the costs to increase) Please refer to PMBOK 2000 Page 76 114. In your project, you are trying to identify lessons learned that can improve performance of the project or other projects within the

performing organization. You are in the process of doing a (an): 1 2 3 4 Inspection Quality Improvement Quality Audit Trend Analysis Correct Choice: 3 Justification: A quality audit is a structured review of other quality management activities. The objective of a quality audit is to identify lessons learned that can improve performance of this project or of other projects within the performing organization. PMBOK 2000 Page 101 115. All the following are conflict resolution modes except: 1 2 3 4 Collaborating Smoothing Avoiding Directing Correct Choice: 4 Justification:

116. You are one of ten full-time project managers in your organization. You all share two administrative persons. There are generally 30 - 40 projects per year that involve about 30% of the organization employees - however, these employees do not report to you. Your organization can best be classified as: 1 2 3 4 Projectized Balanced Strong Matrix Weak Matrix Correct Choice: 2 Justification: PMBOK Page 22 117. You are managing a project in a foreign country, where you realize that you will have to pay a fee to some government agencies to get your work done. You should: 1 2 Pay the fee to the government agencies Refuse to pay the fee because they are bribes and hence

unethical 3 Make a case for why fees should be paid to government agencies, and present it to your management Instead of paying the fee, you provide small gifts to government officials to get their support Correct Choice: 1 Justification: Fees are ethical donations that may be required during a project 118. For a project to be successful, what is the primary requirement? 1 2 3 4 Customer Satisfaction Exceeding Customer Requirements Meeting the cost and schedule estimates Satisfying the requirements of the project sponsor Correct Choice: 1 Justification: (pmstudy.com notes: Customer Satisfaction is the primary criterion for measuring the project success. Gold plating i.e. exceeding customer expectations, cost or schedule estimates are not the most important parameters for successful completion of the project) 119. If there is a change to the approved cost baseline, the project manager must: 1 2 3 4 Issue a Budget Update Perform Rebaselining Issue a Revised Cost Estimate Take Corrective Action

4

Correct Choice: 1 Justification: Budget updates are a special category of revised cost estimates - they are changes to an approved cost baseline. These numbers are generally revised only in response to scope changes. PMBOK 2000 Page 92 120. The main reason to plan team building activities (e.g. regular status review meeting, off-site team meets etc.) is to : 1 2 3 4 Resolve outstanding technical issues Improve Team performance Improve individual morale Relax and get away from the stress of work Correct Choice: 2 Justification: Team-building activities include management and individual actions taken specifically and primarily to improve team performance. PMBOK 2000 Page 115 121. Please refer to this Decision Tree which shows the analysis of profit/loss for the two alternatives (i.e. to build or buy).

What should the project Manager recommend? 1 2 3 4 Build Buy Either Build or Buy Project Manager should recommend a Sensitivity Analysis before making a build/buy decision Correct Choice: 1 Justification: The project manager should recommend to build because profit is more for this alternative.

122. While obtaining responses from prospective sellers, you mention that you will "Require certified PMPs as project managers for the project." This is an example of: 1 2 3 4 Objective Evaluation Criteria Subjective Evaluation Criteria Procurement Documents Statement of Work

Correct Choice: 1 Justification: Evaluation Criteria are used to rate or score proposals. They may be objective (e.g., "The proposed project manager must be a certified PMP") or subjective (e.g. "The proposed project manager must have documented previous experience with similar projects) PMBOK 2000 Page 153 123. Which of the following statement about Project Planning Methodology is not accurate? 1 Project planning methodology may require soft tools like facilitated startup meetings Project planning methodology may require hard tools like Project Management software The project planning methodology may include standard forms and templates, or simulations. Project Planning methodology includes tools and techniques to gather, integrate and disseminate the outputs of project management process Correct Choice: 4 Justification: Project Management Information system(PMIS): A PMIS consists of tools and techniques used to gather, integrate and disseminate the outputs of project management processes PMBOK 2000 Page 44 124. Please refer to the chart given below:

2

3

4

What is the length of the critical path? 1 2 3 4 12 10 11 14 Correct Choice: 1 Justification: pmstudy.com notes: Please refer the diagram:

The length of the different paths are:


Start -> 1 -> 2 -> End : 10

 

Start -> 3 -> 5 -> End : 11 Start -> 4 -> 5 -> End : 12

Since the longest path is Start -> 4 -> 5 -> End, this is the critical path. Length of the critical path is 12 125. Modern Quality Management means: 1 2 3 4 Meeting or exceeding customer expectations Conformance to requirements and fitness for use Decreasing total cost of ownership of the project None of the above Correct Choice: 2 Justification: Modern Quality Management complements Project Management.... This requires a combination of conformance to requirements(the project must produce what it said it would produce) and fitness for use (the product or service produced must satisfy real needs) PMBOK 2000 Page 97 126. Providing information to stakeholders to inform them how resources are being used to achieve project objectives is done as part of : 1 2 3 4 Communication Planning Information Distribution Performance Reporting Administrative Closure Correct Choice: 3 Justification: Performance reporting involves collecting and disseminating performance information to provide stakeholders with

information about how resources are being used to achieve project objectives. PMBOK 2000 Page 122 127. You are responsible for launch operations of different NASA satellites. Your role is that of a: 1 2 3 4 Project Manager Project Office Program Manager Functional Manager Correct Choice: 3 Justification: A program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually. Many programs also include elements of ongoing operations. PMBOK Page 10 128. While implementing your project, a team member brings to your notice, a risk that was not mentioned in the Risk Response Plan. In this case, you should: 1 Accept the risk 2 3 4 Perform Additional Risk Response Planning to control the risk Inform the project sponsor Use project contingency Correct Choice: 2 Justification: If a risk emerges that was not anticipated in the risk response plan, or its impact on objectives is greater than expected, the planned response may not be adequate. It may be necessary to perform additional risk response planning to control the risk. PMBOK 2000 Page 145

129. Projects can be authorized for all the following reasons except: 1 2 3 4 Market Demand Business Need Legal Requirement Keeping the Project Manager busy Correct Choice: 4 Justification: PMBOK Page 53 130. Physical Work Actually accomplished is also called 1 2 3 4 Planned Value Earned Value Actual Cost Budgeted Cost for Work Scheduled (BCWS)

Correct Choice: 2 Justification:

131. All the following refer to power derived by the position of the Project Manager in the organization except: 1 2 3 4 Penalty Expert Legitimate Reward Correct Choice: 2 Justification: The five interpersonal influences are:


Legitimate Power: The ability to gain support because project personnel perceive the project manager as being officially empowered to issue orders. Reward Power: The ability to gain support because project personnel perceive the project manager as capable of directly or



indirectly dispensing valued organizational rewards (i.e. salary, promotion, bonus, future work assignments


Penalty Power: The ability to gain support because the project personnel perceive the project manager as capable of directly or indirectly dispensing penalties that they wish to avoid. Penalty power usually derives from the same source as reward power, with one being a necessary condition for the other Expert Power:The ability to gain support because personnel perceive the project manager as possessing special knowledge or expertise. (that functional personnel perceive as consider as important) Referent power:The ability to gain support because project personnel feel personally attracted to the project manager or project





Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 246 - Page 247 (pmstudy notes: Expert power is based on knowledge and expertise of the project manager, not on his position in the organization) 132. Reducing scope, adding resources and using familiar approaches are all examples of: 1 2 3 4 Risk Avoidance Risk Transfer Risk Mitigation Risk Acceptance Correct Choice: 1 Justification: PMBOK 2000 Page 142 133. A Work Breakdown Structure can be used for all the following

except: 1 2 3 4 Tracking project performance against cost and schedule Creating a network diagram, with task dependencies Creating a project schedule Assigning resources to work on different work elements Correct Choice: 2 Justification: Task Dependencies are not evident in a WBS. WBS does not specify the time frame in which different tasks should be accomplished. 134. If you are calculating one early start and early finish for each task, you are using: (choose best answer) 1 2 3 4 PERT CPM GERT PDM Correct Choice: 2 Justification: Critical Path Method(CPM) calculates a single, deterministic early and late start and finish date for each activity based on specified, sequential network logic and a single duration estimate. PMBOK 2000 Page 75 135. In a matrix organization, the team members are responsible to both the functional manager and project manager. Effective management of this dual relationship is a challenge and should be the responsibility of the: 1 Project Manager

2 3 4

Program Manager Functional Manager Sponsor Correct Choice: 1

Justification: Team development of a project is often complicated when individual team members are accountable to both the functional manager and the project manager. Effective management of this dual reporting relationship is often a critical success factor for the project and is generally the responsibility of the project manager. PMBOK 2000 Page 114 136. As a Project Manager, you have to manage the project and lead the team in delivering a successful project. Managing is primarily concerned with: 1 2 3 4 Consistently producing key results expected by stakeholders Establishing direction Motivating and inspiring Aligning people Correct Choice: 1 Justification: Kotter(4) distinguishes between leading and managing while emphasizing the need for both: one without the other is likely to produce poor results. He says that managing is primarily concerned with "consistently producing key results expected by stakeholders" PMBOK Page 24 137. All the following are examples of product documentation except:

1 2 3 4

Plans Scope Statement Drawings Specifications Correct Choice: 2

Justification: Product documentation refers to the documents produced to describe the projects products - it includes plans, drawings and specifications. PMBOK Page 62 138. Which of the following is an input to Cost Estimating? 1 2 3 4 Work Breakdown Structure Cost Baseline Resource Pool Descriptions Performance Reports Correct Choice: 1 Justification: Please refer to Fig 7-1 PMBOK 2000 Page 84 139. Risks and Triggers are outputs of: 1 2 3 Risk Response Planning Risk Monitoring and Control Qualitative Risk Analysis

4

Risk Identification Correct Choice: 4 Justification: Please refer to Fig 11-1

PMBOK 2000 Page 128 140. You are in the process of creating a project plan for the launch of a new drug. While creating the plan, your Finance Manager provided some insights about marketing the new drug that was very beneficial to you. This shows that: 1 Every stakeholder has skills and knowledge that can be used in developing the project plan. Functional groups like finance should always in involved in creation of project plans Finance professionals usually have good knowledge of marketing concepts None of the above Correct Choice: 1 Justification: Every stakeholder has skills and knowledge that may be useful in developing the project plan. The project management team must create and environment in which the stakeholders can contribute appropriately. Who contributes, what they contribute, and when they contribute will vary. PMBOK 2000 Page 44 141. An Activity has an Optimistic estimate of 10 days, pessimistic estimate of 16 days, most likely estimate of 13 days. What is the PERT Estimate for the task? 1 2 13 days 10 days

2

3 4

3 4

16 days Cannot be determined with available information Correct Choice: 1 Justification: (pmstudy.com notes:

In a Normal Distribution, the PERT duration (also called mean) = (Pessimistic + 4* (Most Likely) + Optimistic)/6 = (10 + 4 * 13 + 16)/6 = 13 To know more about 6 sigma calculations, please refer to

Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 693 - Page 695 142. In your previous project, the project manager gave a lot of autonomy to the team members to do as they deemed fit. At times, this lead to anarchy because the team members were not very sure of what needed to be done. The manager however followed a management style, which was: 1 2 3 Directing Laissez Faire Delegating

4

Democratic

Correct Choice: 2 Justification:

143. As a Project Manager, you realize that it is very important to be a good leader. Leading involves all the following except: 1 2 3 4 Consistently producing key results expected by stakeholders. Establishing direction Aligning people Motivating and Inspiring

Correct Choice: 1 Justification: Managing is primarily concerned with "consistently producing key results expected by stakeholders," while leading involves:
  

Establishing Direction... Aligning People... Motivating and Inspiring...

PMBOK Page 24 144. Which of the following is not an Output of the Scope Initiation Process? 1 2 3 4 Project Manager Identified Project Charter Scope Management Plan Assumptions and Constraints Correct Choice: 3 Justification: PMBOK Page 52 145. In your construction project, the CPI is 0.85 and SPI is 1.25. What could be the potential reason ? 1 A critical resource went on sick leave for a long period of time, which had not been anticipated earlier. The cost of raw materials required for construction increased 10% - you had anticipated a cost increase of 12% in your project plans Anticipating delays, the project had to be crashed to decrease duration There was 4 days waiting time in the curing of cement, and work

2

3 4

could not be done during that time. Correct Choice: 3 Justification: Option 1 and Option 4 increase the schedule - but since the project duration is not a problem (i.e SPI is > 1), we can ignore these choices. Choice 2 should have decreased cost and increased the CPI - so this is not a reason why cost of the project became more than what was anticipated. Choice 3 is the only alternative which could have increased the cost because crashing of project usually results in increased cost - so, this would have made CPI less than 1.

146. Which of the following statement about project phases and project life cycles is true? 1 2 3 4 Similar Application Areas and Organizations have identical project life cycles. Subprojects may have distinct project life cycles Project life cycle does not define the beginning and end of a project Project phases within a project life cycle are always sequential

Correct Choice: 2 Justification: Subprojects within projects may have distinct project life cycles. For example, an architectural firm hired to design a new office building is first involved in the owners definition phase when supporting the construction effort. The Architects design project, however, will have its own series of phases from conceptual development through definition and implementation and closure PMBOK Page 13 147. Creating Work Breakdown Structures (WBS) is very helpful in managing the project. The first step in creating a WBS is: 1 2 3 4 Identifying the major deliverables for the project. Determining the constituent components of the WBS. Assigning responsibility for each task in the WBS. Creating the cost and time estimates for each activity in the project. Correct Choice: 1 Justification: Decomposition involves the following major steps: a) Identify the major deliverables for the project, including project management. PMBOK 2000 Page 58 148. In your company, for making investment decisions, the senior management prefers to use a rate that equates present value of cash inflows with present value of cash outflows. This can also be called: 1 2 3 4 Discount Rate Benefit Cost Ratio Internal Rate of Return Net Present Value

Correct Choice: 3 Justification:

149. Project Managers have least power in which organization structure 1 2 3 4 Matrix Functional Projectized Balanced Correct Choice: 2 Justification: The classic functional organization, is a hierarchy where each employee has one clear superior. Staff members are grouped by specialty, such as production, marketing, engineering and accounting at the top level... Functional organizations still have projects but the perceived scope of the project is limited to the boundaries of the function. PMBOK Page 19 150. As a project manager of a construction company, you always prefer to do concrete curing during the weekend holiday, because no work can be done on the building for 2 days while the concrete

curing is being done. This helps you decrease the: 1 2 3 4 Waiting Time Elapsed Time Project Schedule Critical Path Correct Choice: 2 Justification: Estimating the number of work periods required to complete an activity will require consideration of elapsed time as well. For example, if "Concrete curing" will require four days of elapsed time, it may require from two to four work periods, based on a)which day of the week it begins and b) whether or not weekend days are treated as work periods. PMBOK 2000 Page 71 151. In your software project, you have a programmer who constantly professes to know all about project management, and keeps challenging his superiors. The programmer is playing the role of a (an): 1 2 3 4 Aggressor Conflict Maxi miser Devils advocate Dominator Correct Choice: 4 Justification:

152. Float is the amount of time an activity can be delayed without delaying the project finish date. It can also be called all the following except: 1 2 3 4 Slack Total Float Path Float Free Float Correct Choice: 4 Justification: Float is also called slack, total float or path float. Free Float is the amount of time an activity can be delayed without delaying the early start of an immediately following activity. PMBOK 2000 Page 202 153. All the following are examples of Constrained Optimization except: 1 Economic Models

2 3 4

Multi Objective Programming Decision Trees Logical Framework Analysis Correct Choice: 1

Justification: Economic Models are part of Benefit Measurement methods. PMBOK 2000 Page 54 154. All the following statements are true about Analogous Estimating except: 1 2 3 4 Also called top-down estimating Used to estimate total project costs without detailed information about project. Use Mathematical Models to predict project costs Actual cost of a previous small project is used for creating estimates Correct Choice: 3 Justification: Mathematical Models are used as part of Parametric Modeling PMBOK 2000 Page 88 155. Which of the following parameter will help in determining probability of getting a result? 1 2 PERT Value CPM

3 4

Standard Deviation Variance Correct Choice: 3

Justification: The second advantage of PERT is that one can determine the probability of meeting specific deadlines by development of alternative plans. If the decision maker is statistically sophisticated, he can examine the standard deviation and the probability of accomplished data. So, standard deviation gives an idea of the probability of whether a task will happen. . Project Management - A systems Approach to Planning, Scheduling and Controlling, Page # 673 (pmstudy notes: Standard Deviation is a measure for the probability of getting a result - hence it is a good indication for the risk of completing the task in time.) 156. Which of the following statement related to Standards and Regulations is not correct? 1 2 3 Standard is a document approved by a recognized body - there can be multiple standards for one product. Regulations are mandatory but Standards are not mandatory. Standards after widespread adoption may become de facto regulations. The influence of standards and regulations for a project is always known Correct Choice: 4 Justification: For many projects, standards and regulations (by whatever definition) are well known and project plans can reflect their effects. In other cases, the influence is unknown or uncertain and must be considered under Project Risk Management PMBOK Page # 26

4

157. You are in the vendor management department of your company which sources computer hardware from companies. You recently went on an official trip to an Asian country to understand the business proposition of a potential vendor. The vendor took you out to lunch and gave you some gifts, as is customary in that country. You must: 1 Tell the vendor that you cannot accept the gifts because of company policy Accept the gift because it is a custom in that country, and also inform your manager Return the gift because it could be construed as personal gain Accept the gift because it is not very expensive Correct Choice: 2 Justification: A project manager has the Responsibility to refrain from offering or accepting inappropriate payments, gifts, or other forms of compensation for personal gain, unlesss in conformity with applicable laws or customs of the country where the project management services are being provided. Project Management - Code of Professional Conduct (pmstudy note: In some cultures where providing gifts is a custom, rejecting or returning the gifts may be considered as inappropriate behavior - appreciation of cultural differences should always be paramount when dealing with people from different cultures) 158. Management by Objectives helps in all the following except: 1 2 Aligning project goals with organization goals Aligning project goals with the goals of other subunits of the organization Aligning project goals with the goals of better professional responsibility of team members Aligning project goals with individual goals

2 3 4

3 4

Correct Choice: 3 Justification: Management by Objectives is a systems approach for aligning project goals with organizational goals, project goals with the goals of other subunits of the organization, and project goals with individual goals. Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page # 381 159. If a property depreciates by the same amount every year, it is called: 1 2 3 4 Sum of the Year Digits Accelerated Depreciation Straight Line Depreciation Double Declining Balance Correct Choice: 3 Justification:

160. In a project lifecycle, least number of conflicts occur over: 1 2 3 4 Priorities Schedules Personality Conflict Cost Correct Choice: 4 Justification:

<> 161. Risks that remain after avoidance, transfer and mitigation are also called: 1 2 3 4 Unidentifiable Risks Residual Risks Secondary Risks Accepted Risks Correct Choice: 2 Justification: Residual Risks are those that remain after avoidance, transfer, or mitigation responses have been taken. They also include minor risks that have been accepted and addressed, e.g. by adding contingency amount to the cost or time allowable.

PMBOK 2000 Page 143 162. An Activity has an Optimistic estimate of 10 days, pessimistic estimate of 16 days, most likely estimate of 13 days. Assuming a Normal Distribution, what is the probability that the task will be completed within 10 - 16 days: 1 2 3 4 99.99 % 99.73 % 95.46 % 68.26% Correct Choice: 2 Justification: (pmstudy.com notes:

In a Normal Distribution, the PERT duration (also called mean) = (Pessimistic + 4* (Most Likely) + Optimistic)/6 = (10 + 4 * 13 + 16)/6 = 13 1 Standard Deviation (sigma) = (Pessimistic - Optimistic) / 6 = (16 - 10) / 6 =1 So, if the task has to be completed within 10 days and 16 days, then the probability of completion within the timeframe is 99.73%(3 sigma) as

shown in the exhibit. To know more about 6 sigma calculations, please refer to

Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 693 - Page 695 163. A WBS can be used for : 1 2 3 4 Determining the project schedule Developing common understanding of project scope Getting approval of the scope of the project Managing changes to the project scope Correct Choice: 2 Justification: A WBS is a deliverable-oriented grouping of project components that organizes and defines the total scope of the project; work not in the WBS is outside the scope of the project. As with the scope statement, the WBS is often used to confirm a common understanding of the project scope PMBOK Page 59-60 164. There are three projects:
  

Project A has an investment of $ 3,000,000 and NPV of $ 300,000 Project B has an investment of $ 2,000,000 payback period of 2 years and NPV of $ 200,000 Project B has an investment of $ 1,000,000 payback period of 2 years and NPV of $ 100,000 o Which project should be selected if Net Present Value criteria is used for selection? 1 2 3 Project A Project B Project C

4

Project A, B or C can be selected because all of them have equal value

Correct Choice: 1 Justification: Project A has highest NPV of $ 300,000 - hence it is selected. Please note that the investment amount is already taken into acoount in the NPV calculation, so amount invested will not impact selection criteria of the project.

165. Please refer to the diagram below:

Task1 -> Task3 -> Task4 -> Task5 is the critical path. What is the late Finish Date for Task2? 1 2 3 4 15 17 13 3

Correct Choice: 2 Justification: The length of the critical path is : (3 + 6 + 8 + 4) = 21. So, the late finish for task 2 = Critical Path - Time for task5

= 21 - 4 = 17

166. All the following statements about float are correct except: 1 Float refers to amount of time an activity can be delayed from its early start without delaying the project finish date. Float changes as the project progresses and as changes are made to the project plan Float is the amount of time an activity can be delayed without delaying early start of any immediately following activity. Float can also be referred to as Slack, Total Float or Path Float. Correct Choice: 3 Justification: Free Float is the amount of time an activity can be delayed without delaying the early start of an immediately following activity. (This is different from the float) PMBOK 2000 Page 202 167. Your project management software always allocates scarce resources to critical path activities. This rule can also be referred to as: 1 2 3 4 A Heuristic Fast Tracking Crashing Reverse Resource Allocation

2

3 4

Correct Choice: 1 Justification: Heuristics such as "Allocate scarce resources to critical path activities first" can be applied to develop a schedule. PMBOK 2000 Page 76 168. Your project schedule has slipped by 2 weeks, and you have to take corrective action to bring the expected future schedule performance in line with the project plan. To identify the cause of the variation, corrective action will require: 1 2 3 4 Root cause Analysis Fast Tracking or Crashing the project Documenting and analyzing the Lessons learned Schedule updates to the existing schedule Correct Choice: 1 Justification: Corrective action is anything done to bring expected future performance in line with the project plan. Corrective action in the area of time management often involves expediting: special actions taken to ensure completion of an activity on time or with the least possible delay. Corrective action frequently requires root cause analysis to identify the cause of the variation. PMBOK 2000 Page 81 169. The project Network Diagram is an input to what process? 1 2 3 4 Activity Duration Estimating Activity Sequencing Schedule Development Schedule Control

Correct Choice: 3 Justification: Please refer to Figure 6-1 PMBOK 2000 Page 66 170. If the number of critical paths in the project increases, but the duration of the project remains same, what is the impact on the project? 1 2 3 4 Crashing will be required to complete project on time. Fast tracking will be required to complete project on time. Risk of the project decreases Risk of the project increases Correct Choice: 4 Justification: (pmstudy.com notes: If the number of critical paths increases for the project, delay in any one of the critical paths has the potential for delaying the project. So, the risk of the project (in meeting the project schedule) increases. 171. All the following are inputs to Activity Duration Estimating except: 1 2 3 4 Constraints and Assumptions Resource Requirements Resource Capabilities Mandatory and Discretionary Dependencies Correct Choice: 4 Justification: Please refer to Figure 6-1 PMBOK 2000 Page 81

172. Which of the following techniques uses a weighted average duration estimate to calculate activity durations? 1 2 3 4 PERT CPM GERT Simulations Correct Choice: 1 Justification: Program Evaluation and Review Technique (PERT) uses a weighted average duration estimate to calculate activity durations.... It uses the distributions Mean (expected value) instead of the most likely estimate used in CPM PMBOK 2000 Page 75 173. The process of identifying which products or services can be procured outside the project organization is done as part of: 1 2 3 4 Solicitation Planning Solicitation Procurement Planning Contract Change Control Correct Choice: 3 Justification: Procurement planning is the process of identifying which project needs can be best met by procuring products or services outside the project organization. PMBOK 2000 Page 149 174. In your construction project, you decide to make a small change to the height of a flyover. Small changes to the height of a flyover is mentioned in your change control system is a change that

will allow for "automatic approval." In this case, you should: 1 Submit your change request to the group responsible for approving or rejecting changes. Since this is a small change, you go ahead and make the change without any documentation Must mandatorily make changes to the cost and budget estimates Document the change and go ahead with implementing the change because no approvals are required. Correct Choice: 4 Justification: Typically a change control system will allow for "automatic" approval for defined categories of changes. These changes must still be documented and captured so that the evolution of the baseline can be documented. PMBOK 2000 Page 49 175. An Activity has an Optimistic estimate of 10 days, pessimistic estimate of 16 days, most likely estimate of 13 days. If your company has a quality requirement of 6 sigma, what is the duration within which this task must be completed? 1 2 3 4 10 days to 16 days 7 days to 19 days 12 days to 14 days 11 days to 15 days Correct Choice: 2 Justification: (pmstudy.com notes:

2

3

4

In a Normal Distribution, the PERT duration (also called mean) = (Pessimistic + 4* (Most Likely) + Optimistic)/6 = (10 + 4 * 13 + 16)/6 = 13 1 Standard Deviation (sigma) = (Pessimistic - Optimistic) / 6 = (16 - 10) / 6 =1 Mean - 6 sigma = 13 - 6* 1 = 7 Mean + 6 sigma = 13 + 6* 1 = 19 So, if the the company has a quality requirement of 6 sigma, then the task can be completed within 7 days to 19 days. To know more about 6 sigma calculations, please refer to

Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 693 - Page 695 176. The project team has added some additional functionality which was not required as part of the project. However the customer is satisfied with the project. From a quality perspective, 1 2 3 This is high quality because it exceeded customer expectations This is not acceptable quality because gold plating was done which is not advisable This will mean repeat business from the same customer.

4

None of the above Correct Choice: 2

Justification: Customer Satisfaction requires a combination of conformance to requirements (i.e. the project would produce what it said it would produce) PMBOK 2000 Page 97 (pmstudy.com: PMI believes that providing more functionality (gold plating) is not a good practice - even if it satisfies the customer.) 177. To compare actual project results to planned or expected values, one must use: 1 2 3 4 Trend Analysis Performance Reviews Information Distribution Tools and Techniques Variance Analysis Correct Choice: 4 Justification: Variance Analysis involves comparing actual project results to planned or expected results. Cost and schedule variances are the most frequently analyzed, but variations from the plan in areas of scope, resource, quality, and risk are often of equal or greater importance. PMBOK 2000 Page 123 178. Which of the following Scope Management process involves breaking down a project into smaller manageable units? 1 2 3 Initiation Scope Planning Scope Definition

4

Scope Verification Correct Choice: 3 Justification: Please refer to Diagram 5-1

PMBOK 2000 Page 52 179. A Project Manager must have good understanding of the mechanics of power and politics to be effective. As defined by Pfeffer, power includes all the following except: 1 2 The potential to influence behavior Potential to change the course of events and overcome resistance Ability to get people to do things that they would not otherwise do Ability to handle power struggles and organizational games Correct Choice: 4 Justification: Pfeffer defines power as "the potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do."…The negative sense, of course derives from the fact that attempts to reconcile these interests result in power struggles and organizational games that can sometimes take on a thoroughly unproductive life of their own. PMBOK Page 26 180. Your project is close to completion, when you are informed by the customer that they would like to see an additional feature in the project. You realize that the feature was discussed with the project sponsor in an earlier meeting, and he categorically mentioned that he did not want this feature. What is the BEST course of action: 1 2 Add the feature because it will improve customer satisfaction Add the feature because otherwise, the project will not be

3 4

accepted by the customer 3 4 Talk with the sponsor about the benefits of having this feature Deny the customer request, and ask him to open a change request. Correct Choice: 4 Justification: Choice 4 is the Best available option. Choice 1 and Choice 2 are not the best answer, because adding this requirement will impact your project deliverables and this requirement was not in the initial scope of work. Choice 3 assumes that you have some information about the benefits of the feature which the sponsor is not aware of which may not be true 181. As a project manager, you must formalize acceptance of the project scope and keep the project focused on the business need that it was undertaken to address. This should be done: 1 2 3 4 At the beginning of the project At the end of the project When required by the Business Sponsor After each phase of the project Correct Choice: 4 Justification: Documentation that the client or sponsor has accepted the product of the project phase or major deliverable(s) must be prepared and distributed. Such acceptance may be conditional, especially at the end of a phase. PMBOK Page 61 (pmstudy notes: Scope Verification deals with formalizing acceptance of the project scope. This should be done at the end of each phase) 182. Quantitative assessment(s) of the likely costs of the resources

required to complete project activities is(are) also referred to as: 1 2 3 4 Activity Duration Estimates Cost Estimates Cost Management Plan Bottom up Estimating Correct Choice: 2 Justification: Cost Estimates are the quantitative assessments of the likely costs of the resources required to complete project activities. 183. As a project nears completion, you notice that the functional managers are more interested in trying to find a new position, rather than concentrating on their project work. Their motivation is: 1 2 3 4 Safety Social Physiological Self-esteem

Correct Choice: 1 Justification: Please refer to the diagram:

Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 235 - Page 236 184. Please refer to this Decision Tree which shows the analysis of profit/loss for the two alternatives (i.e. to build or buy).

What is the opportunity cost if the project manager decides to build instead of buy 1 2 - $ 1,500 $ 3,500

3 4

$ 1,500 $ 5,000 Correct Choice: 2 Justification: Please refer to diagram:

Profit of Build : $ 5,000 Profit of Buy : $ 3,500 Opportunity cost of Build = Profit you give up if you do not buy = $ 3,500 185. Which of the following is an output from the Contract Closeout process? 1 2 3 4 Contract Contract File Proposal Statement of Work update Correct Choice: 2 Justification: Please refer to Fig 12-1 PMBOK 2000 Page 148

186. You are the Project Manager responsible for developing a software application based on customer requirements. As the customer requirements keep changing frequently, you use all the following tools for Integrated Change Control except: 1 2 3 4 Configuration Management Project Management Information system Corrective Action Additional Planning Correct Choice: 3 Justification: Corrective Action is an output of Integrated Change Control and not a "Tool". PMBOK 2000 Page 42 (Please refer to the diagram 187. Please refer to this diagram:

Considering that the project has a negative float of 3 months, which of the following task(s) should be crashed to bring the project on schedule? 1 2 3 Task Q Task N and Task O Either 1) Task Q, OR 2)Task N and Task O

4

Task N and Task P

Correct Choice: 3 Justification: pmstudy.com notes: Please refer to the savings when each task is crashed:

The maximum savings is available in:
 

Crashing Task N, Task O : $ 150 Crashing Task Q: $ 150

So, you have two options to choose from. 188. According to the 80/20 rule, 80 percent of the problems are because of 20 percent of the causes. To facilitate finding out which are the most probable defects, you do a rank ordering of the defects using: 1 2 3 4 Statistical Sampling Control Chart Pareto Diagrams Inspection Correct Choice: 3 Justification: A Pareto Diagram is a histogram, ordered by frequency of occurance, that shows how many results were generated by type or category of identified cause. PMBOK 2000 Page 103 189. Communication Planning involves determining the information and communications needs of the stakeholders; who needs what

information, when they will need it, how it will be given to them and by whom. If you are going to start Communication Planning for your project, which of the following will facilitate this process? 1 2 3 4 Knowledge of Constraints and Assumptions Availability of a Communications Management Plan Availability of Project Records and Project Reports Compilation of all Change Requests for the project Correct Choice: 1 Justification: Please refer to Figure 10-1 PMBOK 2000 Page 118 190. You are working in the Project Office of your organization. What is your job responsibility? 1 2 3 Managing the different activities of a project Always being responsible for the results of the project Providing support functions to Project Managers in the form of training, software, templates etc. Providing Subject Matter Expertise in the Functional areas of the project Correct Choice: 3 Justification: Project Office: There is a range of uses for what constitutes a project office. A project office may operate on a continuum from providing support functions to project managers in the form of training, templates, etc. to actually being responsible for the results of the project 191. Your goal as a project manager is to manage stakeholders to the best of your ability. However, if there are conflicts among

4

stakeholders, they should usually be resolved in favor of : 1 2 3 4 Business Partner/Project Sponsor Team Members Customer All Stakeholders Correct Choice: 3 Justification: In general, differences between and among stakeholders should be resolved in favor of the customer PMBOK 2000 Page 18 192. To determine the tangible and intangible costs and benefits of the project, you will conduct a: 1 2 3 4 Product Analysis Benefit/Cost Analysis Expert Judgment WBS review Correct Choice: 2 Justification: Benefit/cost analysis involves estimating tangible and intangible costs (outlays) and benefits (returns) of various project and product alternatives. PMBOK Page 56 193. A parametric modeling technique will be accurate in predicting project costs in all the following conditions EXCEPT: 1 Historical information available is accurate

2 3 4

Parameters are quantifiable The project is a small project Model is Scalable Correct Choice: 3

Justification: Parametric modeling is reliable when a) the historical information used to develop the model was accurate b) the parameters used in the model are readily quantifiable c) the model is scalable (i.e. it works well for a large project as for a very small one) PMBOK 2000 Page 88 194. Your company has an agreement with the labor union that states that workers will not be asked to work more than 45 hours every week. For your project, this becomes a: 1 2 3 4 Pre-defined criteria Restriction Assumption Constraint Correct Choice: 4 Justification: Contractual agreements with unions or other employee groups is a constraint for the project. PMBOK 2000 Page 110 195. To manage risks in your project, and communicate with stakeholders, you use several reports. Examples of some reports that could be used include all the following EXCEPT: 1 2 Issues Log Risk Register

3 4

Action-item logs Escalation Notices Correct Choice: 2

Justification: Reports commonly used to monitor and control risks include Issues Logs, Action-item Lists, Jeopardy Warnings and Escalation Notices. PMBOK 2000 Page 145 Please note: Risk Response Plan (or risk register) is an output of the Risk Response Planning Process (PMBOK Page 143) - it is not a Project Communication Tool 196. All the following are true about contract negotiation except: 1 2 3 4 Primary objective should be to build a lasting relationship It includes responsibilities, contract financing, technical and business management approaches Price is an important consideration during Negotiation Main consideration of both buyer and seller should be to maximize monetary return Correct Choice: 4 Justification: The objective of contract negotiation is to build a lasting relationship. Maximizing monetary return in itself should not be a main consideration because quality, responsibilities and authority, applicable terms and law, technical and business management approaches should also be considered. PMBOK 2000 Page 155 197. Project Plan includes: 1 Subsidiary management plans e.g. Scope Management Plan, Schedule Management Plan and Cost Management Plan

2 3 4

Project Charter, Scope statement and WBS Performance Measurement baselines, major milestones and target dates All the above Correct Choice: 4 Justification:

PMBOK 2000 Page 45 198. In schedule development, you create a distribution of probable results for each activity and use it to calculate distribution of probable results for the total project. The technique that you are using is: 1 2 3 4 What-if Analysis Mathematical Analysis Monte Carlo Analysis Resource Leveling heuristic Correct Choice: 3 Justification: Simulation involves calculating multiple project durations with different sets of activity assumptions. The most common technique is called Monte Carlo Analysis, in which a distribution of probable results is defined for each activity and is used to calculate a distribution of probable results for the whole project. PMBOK 2000 Page 75 199. When all customer requirements for the product of the project are satisfied, 1 Customer expectations are exceeded

2 3 4

Costs may be very high Quality criteria are met The product will be successful in the market. Correct Choice: 3

Justification: Project Closure: Confirmation that the project has met all customer requirements for the product of the project (the customer has formally accepted the project results and deliverables and the requirements of the delivering organization) PMBOK 2000 Page 81 pmstudy notes: If customer requirements are satisfied,
   

It is not necessary that customer expectations are exceeded It does not necessarily mean high costs Product may still fail in the market (because other than quality, there are factors like market expectations, marketing, competitor products etc. which may determine whether the product succeeds or fails

200. When your objective is to get a lasting win-win solution to a problem, which conflict resolution technique should you use? 1 2 3 4 Collaborating Smoothing Avoiding Withdrawing Correct Choice: 1 Justification:


				
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