2 Test 2 Answer

Question 1 : A contract obligates the seller to provide the specified product and obligates the buyer to pay for it. In this context, which of the following is a mandatory feature of a contract ? 1 Legally binding 2 Complicated 3 Very detailed statement of work 4 Sign-off by the seller Correct Choice: 1 Justification: A contract is a legal relationship subject to remedy in the courts. Reference: PMBOK Third Edition (2004), Page Number: 270 Question 2: In which document will you find a code of account identifier, statement of work, responsible organization, and a list of schedule milestones? 1 WBS 2 WBS Dictionary 3 PERT/CPM Charts 4 Roles and Responsibilities Matrix Correct Choice: 2 Justification: WBS Dictionary : For each WBS component, the WBS dictionary includes a code of account identifier, a statement of work, responsible organization and a list of schedule milestones. Reference: PMBOK Third Edition (2004), Page Number: 117 Question : In your semiconductor company, there have been several instances in the past one week where few circuits have not been accurate. You have been assigned the task of trying to determine the potential cause for the variations. You can do this using a (an): 1 Control Chart 2 Ishikawa Diagram 3 Pareto Diagram 4 Inspection Correct Choice: 1 Justification: A control chart’s purpose is to determine whether or not a process is stable or has predictable performance. Control charts may serve as a data gathering tool to show when a process is subject to special cause variation, which creates an out-of-control condition. Reference: PMBOK Third Edition (2004), Page Number: 192 Question : 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 Getting a Qualitative Analysis of the risk 2 Determining which risks can impact the project the most 3 Translating the uncertainties at a detailed level into potential impact on objectives expressed at the level of the total project 4 Determining which decision yields the greatest expected value Correct Choice: 4 Justification: Decision tree analysis is usually structured using a decision tree diagram that describes a situation under consideration, and the implications of each of the available choices and possible scenarios. It incorporates the cost of each available choice, the probabilities of each possible scenario, and the rewards of each alternative logical path. Solving the decision tree provides the EMV (or other

measure of interest to the organization) for each alternative, when all the rewards and subsequent decisions are quantified. Reference: PMBOK Third Edition (2004), Page Number: 257 pmstudy.com comments: 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. Question : To balance needs of several stakeholders and achieve lasting resolution of conflicts, the most desirable conflict resolution technique is: 1 Confrontation 2 Smoothing 3 Withdrawal 4 Forcing Correct Choice: 1 Justification:

Question : 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 Constraints 2 Activity Attributes 3 Resource Pool Description 4 Activity duration Estimates Correct Choice: 2 Justification: Activity attributes can also include the person responsible for executing the work, geographic area or place where the work has to be performed, and the schedule type activity such as level of effort, discrete effort and apportioned effort. These attributes are used for project schedule development and for selecting, ordering, and sorting the planned schedule activities in various ways within reports. Reference: PMBOK Third Edition (2004), Page Number: 130

Question : To get the work done, the supervisor threatens punishment and carefully supervises the work. The supervisor believes in : 1 Theory Y (McGregor Model) 2 Theory X (McGregor Model) 3 Maslow hierarchy of needs 4 Referent power Correct Choice: 2 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. Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 234-235 Question : You have recently joined a company where they follow a Projectized organization structure. The following are advantages of a Projectized organization except: 1 Loyalty of the project team towards to the project 2 Home for the team-members after the project is completed 3 More effective communication between the team members 4 Efficient Project organization Correct Choice: 2 Justification: In a Projectized organization, most of the organization resources are involved in the project work. One big problem is that the project team members do not belong to a specific functional group and hence do not have any "home" once the project is over. Reference: pmstudy.com notes Question : You were the project manager of a pharmaceutical company responsible for releasing of a new drug in the market. While managing the project, you have created a lot of documentation e.g. project management plan, risk registers, cost schedule and quality baselines etc. All these documents should be stored in: 1 Formal Acceptance Documents 2 Project Files 3 Project Closure Documents, or Historical Information 4 None of the above Correct Choice: 2 Justification: Project files: Documentation resulting from the project’s activities; for example, project management plan, scope, cost and quality baselines, project calendars, risk registers, planned risk response actions and risk impact. Reference: PMBOK Third Edition (2004), Page Number: 102 Question : In your project, you are trying to estimate schedule activity costs by determining the unit cost rates e.g. as staff cost per hour. All the following could be used to determine resource cost rates except: 1 Statistical relationship between historical data and other variables 2 Gathering quotes 3 Standard rates with escalation factors (for contracts) 4 Commercial databases or seller published price lists Correct Choice: 1

Justification: Parametric estimating is a technique that uses statistical relationship between historical data and other variables - all the other options are valid ways to Determine Unit cost rates Reference: PMBOK Third Edition (2004), Page Number: 165 Question : You are managing a critical project with a virtual team that works in 8 countries. Most of the communication is through tele-conferencing and since members are not collocated, at times team members find it difficult to understand and interpret each other. From a communication management perspective, this difficulty in transmitting and understanding messages can also be referred to as: 1 Disturbance 2 Noise 3 Interference 4 Breakdown in Encode-decode model Correct Choice: 2 Justification: Noise: Anything that interferes with the transmission and understanding of the message (e.g. distance) Reference: PMBOK Third Edition (2004), Page Number: 224 Question : Since the buyer could not meet the requirements of the contract, you(the seller) want to terminate the contract early. This should be done as part of: 1 Procurement Planning 2 Contract Administration 3 Contract closure 4 Administrative closure Correct Choice: 3 Justification: Early termination of a contract is a special case of contract closure Reference: PMBOK Third Edition (2004), Page Number: 295 Question : 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 - all the requested changes and recommended corrective action will now be processed through: 1 Impact Request Statements 2 Stakeholders who have been notified 3 Integrated Change Control process 4 Changes to the Risk Management Plan Correct Choice: 3 Justification: Scope control assures that all required changes and recommended corrective actions are processed through the project integrated Change Control Process. Reference: PMBOK Third Edition (2004), Page Number: 119 Question : You are the project manager responsible for understanding the customer habits for a soap being produced by your company. It is always advisable to do Statistical Sampling for this project, because testing the entire population, would have all the following problems except: 1 Provide Inaccurate Data 2 Be very Expensive 3 Take longer time 4 May require more resources to do the survey Correct Choice: 1 Justification: Testing the full population will not provide inaccurate data - the data would be very accurate if the whole population is tested

Reference: pmstudy.com notes as mentioned above Question : You are in the process of creating a risk management plan for your project - this plan will describe how risk management will be structured and performed on the project. Your risk management plan may include: 1 Avoided, Transferred, Mitigated and Accepted Risks 2 Risk Response Audits, Earned Value Analysis, Technical Performance Measurement 3 Risks, Triggers, Inputs to other processes 4 Budgeting, Timing, Risk Categories Correct Choice: 4 Justification: The risk management plan includes the following: - Methodology - Roles and Responsibilities - Budgeting - Timing - Risk categories Reference: PMBOK Third Edition (2004), Page Number: 243 Question : 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 2 Ensure that the technical specifications are appropriately defined 3 Disseminate PMP Code of Professional Conduct to other PMI certificants. 4 Cooperate with PMI concerning ethics violation and the collection of related information Correct Choice: 2 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 Reference: pmstudy.com notes as mentioned above Question : You are the project manager of a construction company. You know that after pouring the cement, you will have to wait for 3 days before you can start painting. This waiting time can also be referred to as: 1 Lead time 2 Project Float 3 Constraint 4 Lag Correct Choice: 4 Justification: A lag directs a delay in the successor activity. For example, to account for a ten-day curing period for concrete, a ten-day lag on a finish-to-start relationship could be used, which means that the successor activity cannot start until 10 days after the predecessor is completed. Reference: PMBOK Third Edition (2004), Page Number: 134 Question : In the last project status meeting, there was a team member who was criticized some of his other team members and decreased the status of work done by them. The role that was played by the person was that of: 1 Aggressor 2 Conflict Maximiser 3 Devils advocate 4 Recognition Seeker Correct Choice: 1 Justification:

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 214 Question : A project Life Cycle 1 Defines the Product Life Cycle 2 Defines the project phases 3 Consists of several Product Life Cycles 4 Have deliverables that must mandatorily be completed before work starts on the next phase Correct Choice: 2 Justification: The project life cycle defines the phases that connect the beginning of a project to its end Reference: PMBOK Third Edition (2004), Page Number: 19 Question : Being a deligent project manager, you always measure the performance of your project (from initiation through closure). This helps you determine any schedule, cost or budget overruns and take appropriate and timely corrective action. At times, this may also result in your project being cancelled. The tool you frequently use is: 1 Earned Value 2 PMIS 3 PERT/CPM 4 Performance Measurement Hypothesis Correct Choice: 1 Justification: The earned value measures the performance of the project as it moves from project initiation through project closure. Reference: PMBOK Third Edition (2004), Page Number: 95 Question : In a project you are presented with following four options. Which project should you select? 1 Project A with Opportunity Cost of $ 100,000 2 Project B with Benefit-Cost Ratio of 0.75 3 Project C with IRR of -2%

4 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

Reference: pmstudy.com notes as mentioned above Question : All the following statements about comminication are accurate EXCEPT: 1 Informal communication includes briefings 2 Formal communication includes reports 3 External communication could include talking with the customer, media, public etc. 4 Communication with peers is called horizontal communication Correct Choice: 1 Justification: Communicating has many dimensions: Formal(reports, briefings) and informal(memos, ad hoc conversations) Reference: PMBOK Third Edition (2004), Page Number: 229 Question : If you would like to compare different suppliers and rate their proposals, you should use: 1 Bidder Conferences 2 Qualified Seller Lists 3 Procurement Documents 4 Evaluation Criteria Correct Choice: 4 Justification: Evaluation criteria are developed and used to rate or score proposals Reference: PMBOK Third Edition (2004), Page Number: 283 Question : You are the Project Manager of a road construction project. Because of lack of funds, you are advised to terminate the project and document the extent and level of completion. This will be done as part of: 1 Scope Verification 2 Project Close-out 3 Project Termination process 4 Change Control process Correct Choice: 1 Justification: If the project is terminated early, the scope verification process should establish and document the level and extent of completion. Reference: PMBOK Third Edition (2004), Page Number: 118 Question : You are the project manager for an automobile company. Because of change in Government regulations, the emission norms for automobile vehicles have been made stricter. As a project manager,

you are concerned that your project will not satisfy the required quality standards. This could be remedied through better: 1 Quality Assurance 2 Quality Planning 3 Quality Control 4 Modifications to Quality Management Plan Correct Choice: 1 Justification: Quality Assurance (QA) is the application of planned, systematic quality activities to ensure that the project will employ all processes needed to meet requirements. Reference: PMBOK Third Edition (2004), Page Number: 187 Question : Graphical representations of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes is also referred to as : 1 Cause-and-effect diagrams 2 System flow charts 3 Influence diagrams 4 None of the above Correct Choice: 3 Justification: Influence diagrams: These are graphical representations of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes. Reference: PMBOK Third Edition (2004), Page Number: 248 Question : When you join a new company, you realize that all the project managers in the new company have the responsibility of managing individual product releases of a software product and the coordination of these releases over time. Since you are a Certified PMP, you realize that the situation is: 1 A project, because it is a temporary endeavor requiring customer acceptance 2 A program because it involves several projects being done simultaneously, and elements of ongoing operations 3 Portfolio Management because it refers to support and selection of project or program investments 4 Operations, because it is ongoing activity, not creating any unique product Correct Choice: 2 Justification: This is a program because it involves both projects(individual product releases) and operations(managing multiple releases over time) Reference: pmstudy.com notes as mentioned above Question : 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 22.5 2 10.33 3 32

4

5.17

Correct Choice: Justification:

1 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 Reference: pmstudy.com notes as mentioned above

Question : You are the project manager in a software company. In your project, you want to ensure that all the operational departments in your organization (e.g. Information Integrity, Data Architecture group, Servers group etc.) can clearly visualize their project responsibilities. You should use a/an: 1 Organizational Breakdown Structure 2 Staffing plan 3 Responsibilities Assignment Matrix 4 Resource Breakdown Structure Correct Choice: 1 Justification: The organizational breakdown structure looks similar to the work breakdown structure but instead of being arranged according to the breakdown of project deliverables, it is arranged according to an organization`s existing departments, units or teams. The project activities or work packages are listed under each existing department. This way, an operational department such as information technology or purchasing can see all of its project responsibilities by looking at its portion of the OBS. Reference: PMBOK Third Edition (2004), Page Number: 205 Question : In the staff meeting the other day, your colleague was mentioning about core processes like Scope Planning, Schedule Development and Cost Budgeting. These processes have clear dependencies that require them to be performed in essentially the same order on most projects. So, they are more important than other facilitating processes like Organizational Planning, Resource Planning and Staff Acquisition. In the discussion, you suggested to your colleague that: 1 She was right because core processes should be planned for before thinking about facilitating processes. 2 She was right because project sponsors always pay more importance and review the core processes.

3 She was wrong because all project management processes and project management process groups have the same level of importance. 4 She was wrong because processes like Organizational Planning, Resource Planning and Staff Acquisition are actually core processes. Correct Choice: 3 Justification: The terms "Facilitating Processes" and "Core Processes" are no longer used. These terms have been elimated to ensure that all project management processes and project management process groups have the same level of importance. Reference: PMBOK Third Edition (2004), Page Number: 302 Question : 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 Low position in the organization hierarchy 3 Roles that are not well defined. 4 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. Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling Question : The interest rate used in your company to calculate Present Value of expected yearly benefits and costs is also referred to as: 1 Interest Rate 2 Discount Rate 3 Internal Rate of Return 4 Benefit Cost Ratio Correct Choice:

2

Justification:

Reference: pmstudy.com notes as mentioned above Question : 2 project team members resigned from your company - however, you were able to negotiate with functional managers in your organization to get 2 appropriate resources in a short period of time. From a stakeholder management point of view, this can also be referred to as a/an: 1 Pre-assignment 2 Corrective action 3 Approved change request 4 Resolved Issue Correct Choice: 4 Justification: Resolved issues: Examples include Negotiations with functional managers in the organization competing for scarce human resources end in a mutually satisfactory solution before causing project delays. Reference: PMBOK Third Edition (2004), Page Number: 236

Question : You wanted to sub-contract building of 1,00,000 ball-bearings for your automobile company to a third party vendor. Accordingly, you had conducted an independent estimate of how much it would cost and the estimate was $ 500 per bearing. However, when you asked for bids and proposals from prospective sellers, the minimum price quoted was $ 750 per bearing. Your project sponsor wants to know why there was such a big anamoly in the "should-cost price" and estimates that you were getting from sellers. You state that the reason(s) is(are): 1 Contract statement of work was not adequate 2 Prospective sellers misunderstood the contract statement of work 3 Marketplace changed and input costs for manufacture of bearings had increased 4 Any one of the above Correct Choice: 4 indication that the contract statement of work was not adequate, that the prospective seller either misunderstood or failed to respond fully to the contract statement of work, or that the marketplace changed Reference: PMBOK Third Edition (2004), Page Number: 288 Question : A scope change control system defines the procedures by which project scope may be changed. It includes all the following except: 1 Paperwork 2 Tracking Systems 3 Approval Levels 4 Rejection criteria Correct Choice: 4 Justification: A scope change control system defines the procedures by which project scope and product scope can be changed. It includes the paperwork, tracking systems and approval levels necessary for authorizing the change. Reference: PMBOK Third Edition (2004), Page Number: 121 Question : In your project, you want to identify which quality standards are relevant to your project, and determine how to satisfy them. For this, you will do: 1 Quality Assurance 2 Quality Planning 3 Quality Control 4 Quality Management Correct Choice: 2 Justification: Quality Planning involves identifying which quality standards are relevant to the project and determining how to satisfy them. Reference: PMBOK Third Edition (2004), Page Number: 183 Question : 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 can be developed for implementation if the selected strategy turns out not to be fully effective, or if an accepted risk occurs. Reference: PMBOK Third Edition (2004), Page Number: 261 pmstudy.com comments: 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. Question : 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 Ask the supplier to provide a product of slightly lower quality since it will cost less 2 Try to find out innovative means to lower costs 3 Remove non-critical tasks from the project schedule 4 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 Reference: pmstudy.com notes as mentioned above pmstudy.com comments: For Professional Responsibility Questions, please note that the Project Manager should always try to solve the problem Question : Please refer to the chart given below, which shows the time estimates for different tasks:

What is the impact on the project if task 1->2 takes 2 months more than what was earlier planned? (choose best answer) 1 The duration of the project will increase by 1 month 2 The risk in the project will increase 3 The duration of the project will increase by 2 months

4 The project float will increase by 2 months Correct Choice: 2 Justification: Please refer to the diagram below:

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 Reference: pmstudy.com notes as mentioned above Question : Maximum intensity of conflicts occur over: 1 Priorities 2 Schedules 3 Personality Conflict 4 Cost Correct Choice: 2 Justification:

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 390 Question : What are the Process Groups in Project Management? 1 Concept, Initiating, Executing, Monitoring and Controlling, Closing 2 Initiating, Planning, Executing, Monitoring and Controlling, Closing 3 Initiating, Verifying, Executing, Monitoring and Controlling, Closing 4 Initiating, Planning, Executing, Controlling, Administrative Closure Correct Choice: 2 Justification: The five process groups are: Initiating Process Group Planning Process Group Executing Process Group Monitoring and Controlling Process Group Closing Process Group Reference: PMBOK Third Edition (2004), Page Number: 41 Question : The definition of the project and what needs to be accomplished is documented in the: 1 Project Scope Statement 2 Project Plan 3 Work Breakdown Structure 4 None of the above Correct Choice: 1 Justification: The project scope statement is the definition of the project - what needs to be accomplished. Reference: PMBOK Third Edition (2004), Page Number: 86 Question : All the following tools can be used for cost estimating EXCEPT: 1 Analogous Estimating 2 Vendor Bid Analysis 3 Organizational Process Assets 4 Cost of quality Correct Choice: 3

Justification: Organizational process assets is an input to the Cost Estimating process (not a tool) Refer figure 7-3 Reference: PMBOK Third Edition (2004), Page Number: 162 Question : Information distribution involves making information available to stakeholders in a timely manner. Which of the following is an input to the Information distribution process? 1 Organizational process assets 2 Communications management plan 3 Requested changes 4 Enterprise environmental factors Correct Choice: 2 Justification: Figure 10-5 Reference: PMBOK Third Edition (2004), Page Number: 228 Question : Contract Administration is the process of ensuring that the seller`s performance meets contractual agreements. All the following will facilitate Contract Administration EXCEPT 1 Contract 2 Work performance information 3 Approved change requests 4 Contract documentation Correct Choice: 4 Justification: Contract documentation is an output from the Contract Administration process; all the other options are inputs and facilitate Contract Administration (Refer Figure 12-7) Reference: PMBOK Third Edition (2004), Page Number: 291 Question : An environmental remediation project is able to reduce the costs by taking advantage of technology that was not available when the scope was originally defined. This is a change request as a result of: 1 A Value Adding Change 2 An error or omission in defining the scope of the project 3 An External Event 4 Implementing a contingency plan or workaround because of new technology Correct Choice: 1 Justification: Many change requests are the result of a value adding change (e.g. an environmental remediation project is able to reduce the costs by taking advantage of technology that was not available when the scope was originally defined). Reference: pmstudy.com notes as mentioned above Question : In your project, you have collected information from the project management plan about the planned or expected results along with the information about the actual results and implemented change requests. This will be a valuable input for Quality control process and should be included as part of: 1 Work Performance information 2 Organizational Process Assets 3 Quality Management Plan 4 Quality Metrics Correct Choice: 1 Justification: Work performance information including technical performance measures, project deliverables completion status, and the implementation of required corrective actions are important

inputs to QC. Information from the project management plan about the planned or expected results should be available along with information about the actual results and implemented change requests. Reference: PMBOK Third Edition (2004), Page Number: 191 Question : Based on past estimates, there is 25% probability for a particular event to happen every year. If a project lasts for 3 years, what is the probability that the activity will happen in the 3rd year? 1 15.625 % 2 6.25 % 3 25% 4 75% Correct Choice: 3 Justification: The probability of the activity happening every year is 25%. So, the probability that the task will happen in the 3rd year is also 25% Reference: pmstudy.com notes as mentioned above Question : 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. What is the BEST course of action: 1 Add the feature because it will improve customer satisfaction 2 Add the feature because otherwise, the project will not be accepted by the customer 3 Talk with the customer about why adding this new feature does not make business sense 4 Take the requirement through the change control process 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 know more about the business need for the requirement than the customer, which may not be true Reference: pmstudy.com notes as mentioned above Question : Which of the following are inputs to schedule development (choose best answer) 1

Organizational Process Assets, Project Scope Statement and Activity List 2 Schedule network analysis, Resource Calendars, Activity attributes 3 Project Calendar, Requested Changes, Schedule model data 4 Schedule management plan, Scedule baseline, Performance reports Correct Choice: 1 Justification: Figure 6-9 Reference: PMBOK Third Edition (2004), Page Number: 143 Question : According to Herzberg`s theory, all the following are motivating agents except: 1 Recognition 2 Responsibility 3 Advancement in career 4 Salary Correct Choice: 4 Justification:

Reference: pmstudy.com notes as mentioned above Question : You have been managing a project to complete a flyover over Interstate 10. You have divided the project into phases to provide better management control. Which of the following is a characteristic of a project phase? 1 A project phase may be completed without any deliverables. 2 A project phase can be closed without the decision to initiate any other phases 3 Even in complex projects, it is advisable not to divide project phases into sub-phases because it makes project management more difficult. 4 All deliverables in the project phase should correspond to project management process. Correct Choice: 2 Justification: A phase can be closed without the decision to initiate any other phases. For example, the project is completed or risk is deemed too great for the project to be allowed to continue. Reference: PMBOK Third Edition (2004), Page Number: 22 Question : Performance reporting involves collecting and disseminating performance information to provide stakeholders with information about how resources are being used to achieve project objectives. So, the Performance reports provide information about all the following except: 1 Past project performance 2 Current project progress 3 Forecasting potential issues that may cause problems in the future 4 Risks related to not meeting Project Quality Correct Choice: 4 Justification: Performance reporting: This is the process necessary for collecting and distributing performance information. This includes status reporting, progress measurement, and forecasting. Reference: PMBOK Third Edition (2004), Page Number: 64 Question : Your business partner is ready to invest $ 112,000 in your company one year from now. The interest rate used in your company to calculate Present Value of expected yearly benefits and costs is 12%. What is the Present Value of this investment? 1 $ 112,000 2 $ 100,000

3 $ 80,000 4 $ 80,000 Correct Choice: 2 Justification: The interest rate (r) used calculate Present Value of expected yearly benefits and costs is the discount rate i.e. 12% in this example PV = 120,000 / (1 + 12/100) = 100,000

Reference: pmstudy.com notes as mentioned above Question : You are not happy with the performance of a team member. a) What type of communication will you use to relay your concerns to the specific team member? b)In case the performance of the team member still does not improve, what form of communication will you use to convey to senior management? 1 a) Informal Verbal, b) Informal Written 2 a) Informal Verbal, b) Formal Written 3 a) Formal Written, b) Formal Written 4 a) Informal Written, b) Formal Written Correct Choice: 2 Justification:

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 273 Question : You are considering whether to buy or lease a machine for your heavy engineering plant. Here is some information your finance department provided you. * If you buy, the cost is $ 29,000 and the one-time cost of procurement and integrating in your company is $ 1000 * If you lease, you have to pay $ 10,000 as down-payment and $ 5,000 per month license fee What is the breakeven duration after which you should buy (instead of leasing) the product? 1 3 months 2 4 months 3 5 months 4 Cannot be determined with available information Correct Choice: 2 Justification: If you buy, cost is : $ 29,000 + $ 1,000 = $ 30,000 Assuming the lease is for M months, the cost is: $ 10,000 + $ 5,000 x M So, breakeven point i.e. when The cost of buy = cost of lease i.e. $ 30,000 = $ 10,000 + $ 5,000 x M M = 20,000/5,000 = 4 months Reference: pmstudy.com notes as mentioned above Question : Projects are usually chartered and authorized external to the project organization by an enterprise, a government agency, a company, a program organization, or a portfolio organization as a result of any of the following EXCEPT: 1 Keeping the project team busy 2 Market Demand 3 Technological Advance 4 Legal requirement Correct Choice: 1 Justification: Reference: PMBOK Third Edition (2004), Page Number: 81 Question : As a project manager, you are aware that quality has costs associated with it. Cost of quality is (select best answer) 1 Cost in appraising product or service 2 Cost of rework 3 Costs incurred by investment in preventing noncorformance to requirements 4 All of the above Correct Choice: 4

Justification: Quality costs are the total costs incurred by investment in preventing nonconformance to requirements, appraising the product or service for conformance to requirements, and failing to meet requirements (rework) Reference: PMBOK Third Edition (2004), Page Number: 186 Question : Your project is now in the execution phase and you are continuously monitoring and controlling risks to minimize surprises of negative risks, so that you can take timely action. Risk audits are helpful in this context because they: 1 Examine and document the effectiveness of risk responses 2 Help in reassessment of risks 3 Provide trends in project`s execution which can be reviewed using performance data 4 None of the above Correct Choice: 1 Justification: Risk audits examine and document the effectiveness of risk responses in dealing with identified risks and their root causes, as well as effectiveness of the risk management process. Reference: PMBOK Third Edition (2004), Page Number: 266 Question : While reviewing the performance reports of your company, you notice that the CPI is 1.2 and SPI is 0.8 - what should you do? 1 Make changes to the performance baseline to improve the SPI 2 Evaluate options to crash or fast-track the project 3 Inform management why the project will be delayed 4 Tell the team-members that they have to meet the target dates as mentioned in the project schedule. Correct Choice: 2 Justification: Since SPI is 0.8, the project is behind schedule. * Option 2 is the only option that tries to solve the problem. * Option 1 is unethical and does not solve the issue. * Option 3 again does not solve the problem - accepting the change in schedule timelines and informing management that the project is delayed should be the last option if there is no way to bring the project on track * Option 4 is going to put the team-members under lot of stress, but we are not going to the root cause of the problem and try to figure out how to get the project on schedule Reference: pmstudy.com notes as mentioned above pmstudy.com comments: For Professional Responsibility Questions, please note that the Project Manager should always try to solve the problem Question : You are in the test phase of your software project, and the project sponsor has requested a Definitive measure of when your project will be completed. The estimated duration (Most Likely is 30 days). What will be an appropriate estimate to give your sponsor 1 29 - 31 days 2 24 - 36 day 3 20 - 40 days 4 15 - 45 days Correct Choice: 1 Justification: The different classes of estimates are: * Definitive: + 5% * Capital Cost: + 10-15%

* Appropriation: + 15 - 25% * Feasibility: + 25 - 35% * Order of Magnitude > + 35% So, if + 5% variation is allowable, only 29 - 31 days fits that criteria Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 745 Question : In your project, you would like to document team member roles and responsibilities. You have documented your project roles as Responsible, Accountable, Control and Inform. A good way to depict the information is through: 1 RBS 2 RAM 3 Text oriented charts 4 None of the above Correct Choice: 2 Justification: A Responsibility Assignment Matrix is used to illustrate the connections between work that needs to be done and project team members. The matrix shown in Figure 9-5 is a type of RAM called a RACI chart because the names of the roles being documented are Responsible, Accountable, Consult and Inform. Reference: PMBOK Third Edition (2004), Page Number: 206 Question : You are in the planning phase of your project and are considering processes which need to be implemented within the planning phase. Which of the following processes should you consider when you are in the planning phase? 1 Scope Planning, Schedule Development, Risk Management Planning, Project Plan Development 2 Initiation, Quality Planning, Procurement Planning, Risk Response Planning 3 Quality Assurance, Team Development, Information Distribution, Risk Management Planning 4 Scope Verification, Scope Change Control, Schedule Control, Cost Control Correct Choice: 2 Justification: Figure 3-7 Reference: PMBOK Third Edition (2004), Page Number: 47 Question : In the process of Directing and Managing Project execution, your project team may be requesting changes to expand or modify project scope, to modify policies or procedures or to modify project cost or budget. Requests for a change can be all the following EXCEPT: 1 Direct or indirect 2 Externally or internally initiated 3 Validated or not validated 4 Optional or legally mandated Correct Choice: 3 Justification: Requested Changes: Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated. Reference: PMBOK Third Edition (2004), Page Number: 93 Question : Project A had initial budget of $ 1,000 out of which $ 800 has already been spent. To complete project A, we will an need additional $ 500. Another Project B will require $ 1200 for completion. For the selected project, what is the ETC?

1 $ 800 2 $ 1,000 3 $ 500 4 $ 1200 Correct Choice: 3 Justification: Since $ 1,000 is the sunk cost, we ignore it in our calculations. So, it is beneficial to select Project A and ETC(Estimate to Complete) for Project A will be $ 500 Reference: pmstudy.com notes as mentioned above Question : You are in the closure phase of your project - you are interacting with your team to create a "Lessons learned" documentation which will include recommendations to improve future performance in projects. You will include all the following in the Lessons Learned documentation EXCEPT: 1 Cause of Variances 2 Reasoning behind corrective action 3 Only positive aspects (wins) of the project which can be used by others in the company 4 Reasons for Cost variances if the project became over-budget Correct Choice: 3 Justification: A lessons learned session focuses on identifying project successes and project failures. Reference: PMBOK Third Edition (2004), Page Number: 230 pmstudy.com comments: Lessons Learned include both positive and negative aspects of the project - it important to document negative aspects so that those could be avoided by other projects in the future.

Question : In your project, you would like to create a document that describes the procurement item in enough detail so that sellers can determine if they can provide the item. This document can also be referred to as: 1 Procurement Audit 2 Contract File 3 Contract Documentation 4 Contract Statement of Work Correct Choice: 4 Justification: The contract SOW describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item. Reference: PMBOK Third Edition (2004), Page Number: 280 Question : In a discounted cash flow approach, a project is approved for proceeding if: 1 Payback Period is 3 years or less 2 An internal rate of return of greater than 10% is available for the project 3 Gross Present Value of all inflows is greater than the Total Amount spent 4 Net Present Value of the project is positive Correct Choice: 4 Justification: In a discounted cash flow approach, Net Present Value = Net present value of all Outflows - New Present Value of all Inflows (discounted by a percentage called the required rate of return).

Net Present Value of the project should be positive for the project to be approved. Reference: pmstudy.com notes as mentioned above

Question : All the following statements related to Just In Time Manufacturing are correct except: 1 It stresses Waste Reduction 2 Eliminates costs related to material handling, storage, paperwork and inspection. 3 Stresses short term relationships with suppliers that last until the delivery is received. 4 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. Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 246, 1131 - 1133

Question : You are in the risk identification phase in your project where you are determining which risks might affect the project and documenting their characteristics. Whom would you want to be part of the risk identification process? 1 Project Manager, project team members, subject matter experts, customers 2 Risk management team, end users, risk management experts 3 Stakeholders 4 All of the above Correct Choice: 4 Justification: Participants in the risk identification activities can include the following, where appropriate: project manager, project team members, risk management team (if identified), subject matter experts from outside the project team, customers, end users, other project managers, stakeholders, and risk management experts. While these personnel are often key participants for risk identification, all project personnel should be encouraged to identify risks Reference: PMBOK Third Edition (2004), Page Number: 246 Question : In an informal discussion you are having 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 Report this to PMI 2 Report this to the your manager 3 Do nothing since he is a colleague 4 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 Manager`s 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. Reference: Project Management - Code of Professional Conduct (PMI)

Question : There has been a short delay in your project schedule because of change in scope. You have got an approved change request to make changes to the start and finish dates. Now, you can do the project schedule updates using : 1 A Revision 2 Project rebaselining 3 Variance Analysis 4 Corrective Action Correct Choice: 1 Justification: Revisions are changes to the schedule`s start and finish dates in the approved schedule baseline. These changes are generally incorporated in response to approved change requests related to project scope changes or changes to estimates. Reference: PMBOK Third Edition (2004), Page Number: 155

Question : You are the project manager in a civil construction consultancy firm which has successfully completed several projects over the past 20 years. Lessons learned from past human resource planning exercises is available to you as organizational process assets - and you would like to use these to help plan your current project. Most of the information is available to you as checklists that can reduce the likelihood of missing important responsibilities. Some checklists that you can use include all the following EXCEPT: 1 Common project roles and responsibilities 2 Standard conflict management approach 3 Typical competencies 4 Team ground rules Correct Choice: 2 Justification: Organizational Process Assets: Templates that can be helpful in Human Resource Planning include... a standard conflict management approach. Checklists that can be helpful in human resource planning include common project roles and responsibilities, typical competencies, training programs to consider, team ground rules, safety considerations, compliance issues, and reward ideas. Reference: PMBOK Third Edition (2004), Page Number: 204

Question : Which of the following processes are part of Executing 1 2

Activity Definition, Activity Sequencing, Cost Estimating, Schedule Development Request Seller responses, Quality Assurance, Team Development, Information Distribution

3 Scope Verification, Scope Change Control, Schedule Control, Quality Control 4 Initiation, Activity Definition, Team Development Contract Administration Correct Choice: 2 Justification: Figure 3-8 Reference: PMBOK Third Edition (2004), Page Number: 55

Question : 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 Assumption 3 Constraint 4 Issue Correct Choice: 3 Justification: When a project is performed under contract, contractual provisions will generally be constraints. Reference: PMBOK Third Edition (2004), Page Number: 111

Question : In your project, you will use a chart of accounts to: 1 Identify potential risks 2 Monitor project costs by category 3 Facilitate Activity duration estimating 4 Update Project Files Correct Choice: 2 Justification: Chart of accounts: A numbering system used to monitor project costs by category (e.g. labor, supplies, materials and equipment) Reference: PMBOK Third Edition (2004), Page Number: 353 Question : To resolve conflicts in your project, you can use all the following Conflict Resolution modes EXCEPT: 1 Collaborating 2 Smoothing 3 Avoiding 4 Directing Correct Choice: 4 Justification: Conflict resolution modes:

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 406-408 Question : You (the buyer) are considering a T&M contract, which are a hybrid type of contractual agreement that contains aspects of both cost-reimbursable and fixed-price type arrangements. Which of the following statement about T&M contracts is accurate? 1 These types of contracts resemble cost-reimbursable type arrangements because they are close ended. 2 T&M contracts cannot grow in value like a cost-reimbursable contract 3 Full value of agreement is defined at the time of contract being awarded. 4 Unit rates can be fixed by the buyer and seller when both parties agree on rates for a specific resource category Correct Choice: 4 Justification: Time and Material (T&M) contracts: These type of contracts resemble costreimbursable type arrangements in that they are open ended. The full value of the agreement and the exact quantity of items to be delivered are not defined by the buyer at the time of contract award. Thus, T&M contracts can grow in value as if they were cost-reimbursable type arrangements. Converseley, T&M arrangements can also resemble fixed-price arrangements. For example, unit rates can be preset by the buyer and seller when both parties agree on the rates for a specific resource category. Reference: PMBOK Third Edition (2004), Page Number: 278 Question : Defining and managing the project scope influences the project`s overall success. Organization`s culture, Infrastructure, Personnel Policies and Marketplace policies can affect how the project scope is managed. All these factors can be referred to as : 1 Organizational Process Assets 2 Templates, forms and standards 3 Internal and External Environment 4 None of the above Correct Choice: 4

Justification: Enterprise Environmental factors include items such as organization`s culture, infrastructure, tools, human resources, personnel policies, and marketplace conditions that could affect how project scope is managed. Reference: PMBOK Third Edition (2004), Page Number: 107 Question : In quality planning process, you are identifying which quality standards are relevant to the project and determining how to satisfy them. You are using benchmarking as a tool to facilitate quality planning. In this context, all the following statements about benchmarking are accurate except: 1 Compares actual or planned project practices to those of other projects. 2 Done only within the performing organization 3 Generates ideas for improvement and provides basis for performance measurement 4 Can be within the same or another application area Correct Choice: 2 Justification: Benchmarking involves comparing actual or planned project practices to those of other projects to generate ideas for improvement and to provide a basis by which to measure performance. These other project projects can be within the performing organization or outside it, and can be within the same or in another application area. Reference: PMBOK Third Edition (2004), Page Number: 185

Question : You are the project manager of a software company developing a new banking software product. You would like information from various experts about the risks associated with your project. You decided on using the Delphi technique to get opinion from experts because this keeps any one person from having undue influence on the outcome of risk identification process, and is a good tool to reach a consensus of experts. Delphi technique also has the added advantage that it: 1 Provides a root cause identification for the risk 2 Helps reduce bias in the data 3 Ensures examination of the project from each of the SWOT perspectives, to increase the breadth of considered risks 4 Provides qualitative assessment of risk Correct Choice: 2 Justification: The Delphi technique helps reduce bias in data and keeps any one person from having undue influence on the outcome. Reference: PMBOK Third Edition (2004), Page Number: 248 pmstudy.com comments: Option 1 is an advantage of "Root cause identification" technique Option 2 is an advantage of "SWOT analysis" Option 4 is not valid - in the risk identification phase (where Delphi technique is used), we donot get qualitative assessment of risk; that will happen in the subsequent process

Question : All the following are approved by PMI as requirements for PMP Code of Professional Conduct EXCEPT: 1

Satisfying scope and objectives of professional Services

2 Refusing to accept gifts under all circumstances 3 Maintaining confidentiality of sensitive information 4 Reporting Violations to PMP code of professional conduct Correct Choice: 2 Justification: PMI suggests that one should refrain from offering or accepting inappropriate gifts or other forms of personal compensation Unless in conformity with the laws or customs of the country where project management services are offered. Reference: pmstudy.com notes as mentioned above Question : Please refer to the chart given below:

What is the length of the critical path? 1 12 2 10 3 11 4 14 Correct Choice:

1

Justification:

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 Reference: pmstudy.com notes as mentioned above

Question : As a project manager, you always want to have an appropriate recognition and rewards system to encourage better performance and reinforce desired behaviors. All the following statements about a recognition and rewards system are correct except: 1 Recognition and reward systems promote or reinforce desired behavior 2 Recognition and reward systems must consider cultural differences 3 People who worked extra hours should always be recognized for their dedication 4 Electing team-member of the month should be discouraged because it can hurt team cohesiveness Correct Choice: 3 Justification: Only desirable behavior should be rewarded. For example, willingness to work overtime to meet an agressive schedule objective should be rewarded or recognized; needing to work overtime as the result of poor planning should not be rewarded. Win-lose (zero sum) rewards that only a limited number of project team members can achieve, such as team member of the month, can hurt team cohesiveness. Reference: PMBOK Third Edition (2004), Page Number: 214

Question : You are responsible for launch operations of different NASA satellites. Your role is that of a: 1

Project Manager

2 Project Office 3 Program Manager 4 Functional Manager Correct Choice: 16 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. Reference: PMBOK Third Edition (2004), Page Number: 16

Question : A change in schedule for your project has resulted in increase in cost and risk. It has also impacted your Resource plan. To co-ordinate changes across knowledge areas, you will need: 1 Change Control System 2 Integrated Change Control 3 Change Requests 4 Changes to Project Plan Baselines Correct Choice: 2 Justification: Integrated Change Control requires co-ordination of changes across knowledge areas. Reference: PMBOK Third Edition (2004), Page Number: 96

Question : If there is a change to the approved cost baseline, the project manager must: 1 Issue a Revised Cost Estimate 2 Perform Rebaselining 3 Issue a Budget Update 4 Take Corrective Action Correct Choice: 3 Justification: Budget updates are changes to an approved cost baseline. These values are generally revised only in response to approved changes in project scope. Reference: PMBOK Third Edition (2004), Page Number: 177

Question : If there is a potential scope creep issue in a contract, what type of communication should you use to inform the appropriate stakeholders? 1 Informal Verbal 2 Formal Verbal 3 Informal Written 4 Formal Written Correct Choice: 4 Justification: For contracts(which are legal documents), the preferred mode of communication is always "Formal Written"

Question : The process of ensuring that the seller`s performance meets contractual requirements is done as part of : 1 Solicitation 2 Select Sellers 3 Contract administration 4 None of the above Correct Choice: 3 Justification: Contract administration: managing the contract and relationship between buyer and seller, reviewing and documenting how a seller is performing or has performed to establish required corrective actions... Reference: PMBOK Third Edition (2004), Page Number: 269

Question : Scope Verification is essential for : 1 Project Selection 2 Creating Work Breakdown Structures 3 Providing acceptance of project scope 4 Mitigating project risks Correct Choice: 3 Justification: Scope Verification is the process of obtaining the stakeholders` formal acceptance of the completed project scope and associated deliverables. Reference: PMBOK Third Edition (2004), Page Number: 118

Question : While in the Quality Control process, your team member asks you to create a "Control Chart." The main objective of the control chart is to 1 Determine if a process is "in control" 2 Determine whether results conform to requirements 3 Solve the most critical problems first 4 Help analyze how problems occur Correct Choice: 1 Justification: A control chart`s purpose is to determine whether or not a process is stable or has predictable performance. Reference: PMBOK Third Edition (2004), Page Number: 192 pmstudy.com comments: 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) Question : 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 Build 2 Buy 3 Either Build or Buy 4 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.

Reference: pmstudy.com notes as mentioned above

Question : One of your team-member was late to a critical bidder conference, which caused a lot of confusion. In this context, 1 You should talk with the team member to understand why he was late and how to prevent similar situations in the future 2 You should raise this issue to your manager, and ask for ways to mitigate similar problems in the future 3 You should raise this issue to the team-member`s manager and ensure that the teammember makes himself available for future meetings

4 You should raise a risk-memo highlighting the problems caused because of non-availability of the team member Correct Choice: 1 Justification: This is the only option which can solve the problem (the team-member may have been absent because of some pressing reasons, so you should definitely talk with him to understand his situation. Moreover, you should have a contingency plan so that if some team-member is not available, it does not put your critical meetings at risk) Reference: pmstudy.com notes as mentioned above

Question : Dummy activities have zero duration and are used to show a logical relationship between tasks. They can be used in all these diagrams except: 1 CPM 2 PERT 3 ADM (Arrow Diagramming Method) 4 PDM (Precedence Diagrammatic Method) Correct Choice: 4 Justification: ADM uses only finish-to-start dependencies and can require the use of "dummy" relationships called dummy activities. Reference: PMBOK Third Edition (2004), Page Number: 133 pmstudy.com comments: PDM does not have dummy activities Question : According to Herzberg`s theory, the absence of hygiene factors can create job dissatisfaction, but their presence does not motivate or create satisfaction. Which of the following can be categorized as a hygiene factor? 1 Recognition 2 Responsibility 3 Advancement in career 4 Interpersonal relations Correct Choice:

4

Reference: pmstudy.com notes as mentioned above

Question : Which of the following statement about project phases and project life cycles is true? 1 Similar Application Areas and Organizations have identical project life cycles. 2 Subprojects may have distinct project life cycles 3 Project life cycle does not define the beginning and end of a project 4 Project phases within a project life cycle are always sequential Correct Choice: 2 Justification: Subprojects can also have distinct project life cycles. For example, an architectural firm hired to design a new office building is first involved in the owner`s definition phase while doing the design, and in the owner`s implementation phase while supporting the construction effort. The architect`s design project, however, will have its own series of phases from conceptual development, through definition and implementation, to closure. Reference: PMBOK Third Edition (2004), Page Number: 22

Question : 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. 2 Finance managers usually have good knowledge about marketing activities 3 Finance Managers should always be involved when creating a project plan 4 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. Reference: pmstudy.com notes as mentioned above

Question : In your project, you have included contingency allowances in many schedule activity cost estimates. In this context, you are aware that contingency reserves which are used at the descretion of the project manager deal with: 1 Anticipated and certain events 2 Unanticipated and not certain events 3 Anticipated but not certain events 4 Unanticipated but certain events Correct Choice: 3 Justification: Contingency costs are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain, events. These events are known as "known unknowns" and are part of the project scope and cost baselines. Reference: PMBOK Third Edition (2004), Page Number: 166

Question : In your project, you would like to conduct a lessons learned session to identify project successes and project failures and provide recommendations to improve future project performance. This is done during: 1 Project closure 2 Project initiation 3 Project life cycle 4 Project execution and project closure Correct Choice: 3 Justification: During the project life cycle, the project team and key stakeholders identify lessons learned concerning the technical, managerial, and process aspects of the project. The lessons learned are compiled, formalized and stored through the project`s duration. Reference: PMBOK Third Edition (2004), Page Number: 230 Question : All the following statements related to Fixed Price, Cost Reimbursable and Time and Material contract are correct EXCEPT: 1 In a Fixed Price contract, the product is well defined 2 In a Cost reimbursable contract, the risk of seller is low 3 In a time and material contract, the risk of buyer is low

4 In a time and material contract, the type of payment is unit rates for work done. The unit rate for work done is fixed but the total cost increases with time Correct Choice:

3

Justification:

Reference: pmstudy.com notes as mentioned above

Question : Your company is giving a sub-project to another company. The project manager of the company which gets the subproject should: 1 Use the WBS for the parent project 2 Create a more detailed WBS for the contracted work from the work package that was contracted out 3 Breakdown the WBS for the parent project to WBS packages 4 Use the WBS Dictionaries of the parent project to assign work Correct Choice: 2 Justification: 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 decomposed in a subproject work break-down structure. Generally this type of approach is used when the project manager is assigning a scope of work to another organization, and this other organization must plan and manage the scope of work at a more detailed level than the project manager in the main project. Reference: pmstudy.com notes as mentioned above Question : In your organization, 3 sigma quality has been implemented. That means all measurements should be within ____ % from the mean: 1 99.99% 2

99.7% 3 95.4% 4 68.2% Correct Choice:

2

Justification: A sample Normal Distribution which shows standard deviation(sigma) as distance of the measurement from the mean value:

Reference: pmstudy.com notes as mentioned above Question : In managing risks for your project, you examine the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at baseline values. This helps in: 1 Getting a Qualitative Analysis of the risk 2 Determining which risks can impact the project the most 3 Translating the uncertainties at a detailed level into potential impact on objectives expressed at the level of the total project 4 Determining the implication of choosing one alternative over the other Correct Choice: 2 Justification: Sensitivity Analysis helps to determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. Reference: PMBOK Third Edition (2004), Page Number: 257

Question : One of the techniques used to both integrate the various process groups and measure the performance of the project as it moves from initiation through to completion is Earned Value Management (EVM). It is used in all the following processes EXCEPT:

1 Coordinating changes across the entire project 2 Formalizing acceptance to project scope 3 Controlling changes to project schedule 4 Controlling changes to project budget Correct Choice: 2 Justification: * Option 1 refers to Integrated Change Control * Option 3 refers to Schedule Control * Option 4 refers to Cost Control All the options 1, 3 and 4 use Performance Measurement techniques like Earned Value Management Option 2 (Formalizing acceptance to project scope) is part of Scope Verification, and this does not require Performance Measurement or use of EVM Reference: pmstudy.com notes as mentioned above Question : 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 13 days 2 10 days 3 16 days 4 Cannot be determined with available information Correct Choice: 1 Justification: Pleaser refer to diagram:

In a Normal Distribution, the PERT duration (also called mean) = (Pessimistic + 4* (Most Likely) + Optimistic)/6 = (10 + 4 * 13 + 16)/6 = 13

Question : All the following refer to power derived by the position of the Project Manager in the organization except:

1 Penalty 2 Expert 3 Legitimate 4 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 Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 246, 247 Question : You are a project manager in an Information Technology(software) company, but you recently got an offer as a project manager in a construction company with 25% salary hike. You have excellent technical knowledge in software field, but do not have much exposure to the Construction Industry. In this context, 1 You should attend training classes related to construction industry to get more technical expertise in the field 2 You should not take up the assignment because you will lose out on the experience and skills gained in Information Technology field 3 You should take up the assignment because similar project management skills will be required in the Construction company, as was required in the software company 4 You should try to get more information about project management in the Construction Industry and then make an informed decision about whether to take up the new opportunity Correct Choice: 3 Justification: Project Management skills span across industries and the knowledge gained in one industry can be used in other industries. A project manager need not be technically qualified in the industry to succeed. Reference: pmstudy.com notes as mentioned above

Question : To develop a preliminary Project Scope Statement, you will need: 1 2

Organizational Process Assets Approved Change Requests

3 Preliminary Project Plan 4 None of the above Correct Choice: 1 Justification: Organizational Process Assets are inputs required when developing a preliminary project scope statement. Reference: PMBOK Third Edition (2004), Page Number: 84 Also, please refer to PMBOK Page 87, Figure 4-4 Question : 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 Discount Rate 2 Benefit Cost Ratio 3 Internal Rate of Return 4 Net Present Value Correct Choice:

3

Justification:

Reference: pmstudy.com notes as mentioned above Question : You are the project manager for a project where there are 7 team-members. One more team member will be joining after 1 week. What is the number of communication channels once the new person joins your team? 1 2 3

28 21 18

4 36 Correct Choice: 4 Justification: After one week, there will be 9 people in your team (this includes 8 team members and you, the project manager). So, the number of communication channels = 9 * (9 - 1) / 2 = 9*8/2 = 36

Reference: pmstudy.com notes as mentioned above

Question : You just signed the contract with a seller, and are ready to start Contract Administration. But because of funding issues, your management decides to terminate the contract. What should you do? 1 Go back to procurement planning to determine what to procure and when 2 Choose from other potential sellers 3 Follow procedures as listed in contract closure 4 Initiate procedures listed in contract change control system to define the process by which the contract may be identified. Correct Choice: 3 Justification: Early termination of a contract is a special case of contract closure. Reference: PMBOK Third Edition (2004), Page Number: 295

Question : Which of the following Scope Management process involves breaking down a project into smaller manageable units? 1 Initiation 2 Scope Planning 3 Scope Definition 4 Scope Verification Correct Choice: 3 Justification: Breaking down a project into smaller manageable units is also called Decomposition. This happens in Scope Definition Phase. Reference: PMBOK Third Edition (2004), Page Number: 114

Question : A quality assurance department often oversees quality assurance activities. QA support, regardless of the unit`s title may be provided to the project team, the management of the performing organization, the customer or the sponsor, as well as other stakeholders not involved actively in the project. All the following tools can be used for QA EXCEPT: 1 Quality audit to determine whether project activities comply with organizational and project policies 2 Process analysis to identify needed improvements 3 Quality control measurements to to re-evaluate and analyze quality standards 4 All quality planning tools and techniques Correct Choice: 3 Justification: Quality control measurements are an input (not tool and technique) for quality assurance. All the remaining are valid tools for QA. Reference: PMBOK Third Edition (2004), Page Number: 189

Question : In your new project, you objective is to develop a new pharmaceutical drug. After doing a financial analysis, your finance manager provided you with these statistics: * 30% probability of success with benefits of $ 700,000 * 70% probability of failure with loss of $ 300,000 Based on this information, you : 1 Suggest that the project should proceed ahead 2 Suggest that the project be stopped 3 Communicate to your senior management that you cannot make a decision about whether to proceed with the project 4 Start working on the project and ask your finance manager for additional information. Correct Choice: 3 Justification: Expected Value of the project = Expected Value of success (0.30 * $ 700,000) + Expected value of Failure(0.70 * - $ 300,000) = 210,000 - 210,000 =0 Since the Expected Value is "0", you cannot make a decision about whether to continue with the project. Reference: pmstudy.com notes as mentioned above Question : A conflict resolution technique that emphasizes areas of agreement is also called: 1 Confrontation 2 Problem Solving 3 Compromising 4 Smoothing Correct Choice: 4 Justification:

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 389

Question : 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 Waiting Time 2 Elapsed Time 3 Project Schedule 4 Critical Path Correct Choice: 2 Justification: Estimating the number of work periods required to complete a schedule activity can require consideration of elapsed time as a requirement related to a specific type of work. Reference: PMBOK Third Edition (2004), Page Number: 139 pmstudy.com commments: 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. Question : You have a portfolio architect in your project who has been with the company for 30 years. He commands a lot of respect and recognition from others, and is very self confident. From a Maslow`s hierarchy of needs perspective, he has reached the phase of: 1 2 3 4

Self actualization Social Physiological Esteem

Correct Choice: Justification:

4

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 235, 236

Question : In a Balanced Matrix Organization, 1 Project Manager reports to Functional Manager 2 Project Manager position does not exist 3 Project Manager reports to Manager of Project Managers 4 Project Manager reports to Program Manager Correct Choice: 1 Justification: Figure 2-10 Reference: PMBOK Third Edition (2004), Page Number: 30

Question : All the following are outputs from Direct and Manage Project Execution Except: 1 Deliverables 2 Implemented Defect Repair 3 Project Management Information System 4 Requested Changes Correct Choice: 3 Justification: Figure 4-6 Reference: PMBOK Third Edition (2004), Page Number: 92

Question : In your project, you are estimating schedule activity costs to develop an approximation of the costs of the resources needed to complete each schedule activity. You decide to use bottom-up estimating process in your estimates. All the following statements about bottom-up estimating are accurate EXCEPT: 1 Involved with estimating the cost of individual work packages or individual schedule activities at lowest level of detail. 2 Detailed costs at lowest levels are rolled up to higher levels for reporting and tracking purposes 3 Activities with smaller associated effort decrease the accuracy of schedule activity cost estimates 4 Cost and accuracy is typically motivated by the size and complexity of the individual schedule activity or work package. Correct Choice: 3 Justification: Bottom up estimating: Generally, activities with smaller associated effort increase the accuracy of schedule activity cost estimates. Reference: PMBOK Third Edition (2004), Page Number: 165

Question : In your project, you actively manage stakeholders. This helps in all the following EXCEPT: 1 Increases the likelyhood that the project will not veer off track 2 Enhances the ability of persons to operate synergestically 3 Ensures that all stakeholders are aware of everything that is happening in the project 4 Limits disruptions during the project Correct Choice: 3 Justification: Actively managing stakeholders increases the likelihood that the project will not veer off track due to unresolved stakeholder issues, enhances the ability of persons to operate synergestically, and limits disruptions during the project. Reference: PMBOK Third Edition (2004), Page Number: 235 Option 3 (i.e. ensures that all stakeholders are aware of everything that is happening in the project) is not recommended. The project manager should try to manage information so that appropriate and limited information reaches the stakeholders

Question : In your project, you plan to sub-contract the machining of high-value equipment and are preparing documents needed to support the Request Seller Responses process and Select Sellers Process. Since your sub-contracting requirements are very demanding, you want to ensure that the sub-contracted project has a project team which comprises technical people with proven expertise in the field. This is an example of : 1 Objective Evaluation Criteria 2 Subjective Evaluation Criteria 3 Statement of Work 4 None of the above Correct Choice: 2

Justification: Evaluation criteria are used to rate or score project proposals. They can be objective ... or subjective (e.g. the proposed project manager requires needs to have documented previous experience with similar projects). Reference: PMBOK Third Edition (2004), Page Number: 283

Question : Management by Objectives helps in all the following except: 1 Aligning project goals with organization goals 2 Aligning project goals with the goals of other subunits of the organization 3 Aligning project goals with the goals of better professional responsibility of team members 4 Aligning project goals with individual goals Correct Choice: 3 Justification: Management by Objectives is a systems approach for aligning project goals with organizational goals, project goals with the goals of other subunits of the organization, and project goals with individual goals. Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 381

Question : Your company has developed a software product - while doing beta testing for your product with a small sample of users, it was noted that the product showed defects because of following reasons: - Non-compatibility with operating system (20%) - Bugs in the software (22%) - Difficulty in understanding instruction manuals (20%) - Non-availability of desired features (15%) - Others (23%) To highlight the cause of problems, you could use a: 1 Flowchart 2 Quality Checklist 3 Pareto Chart 4 Histogram Correct Choice: 4 Justification: A histogram is a bar chart showing a distribution of variables. Each column represents an attribute or characteristic of a problem/situation. The height of each column represents a relative frequency of the characteristic. This tool helps identify the cause of problems in a process by the shape and width of the distribution. Reference: PMBOK Third Edition (2004), Page Number: 194

Question : Workarounds differ from contingency plans in that: 1 advance.

Contingency plans are planned in advance and workarounds are not planned for in

2 Workarounds are planned in advance and contingency plans are not planned for in advance. 3 Contingency plans also include force-majeur events e.g. natural calamities 4 Both contingency plan and workaround are the same Correct Choice: 1 Justification: Workaround: A response to a negative risk that has occured. Distinguished from contingency plan in that a workaround is not planned in advance of the occurrence of the risk event. Reference: PMBOK Third Edition (2004), Page Number: 380 Question : Managing conflicts is essential for successful implementation of the project. The conflict resolution techniques most used in projects are: 1 Withdrawal, Forcing, Compromising 2 Withdrawal, Authoritative, Forcing 3 Withdrawal, Authoritative, Forcing 4 Withdrawal, Confronting, Legitimate Correct Choice: 1 Justification:

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 389 Question : Please refer to the diagram below:

What is the slack for task 2? 1 3 2 2 3 -4 4 4 Correct Choice:

4

Justification: The length of the two paths for this project are: * Task1 -> Task2 -> Task5 : 17 days * Task1 -> Task3 -> Task4 -> Task5 : 21 days So, the critical path is 21 days duration. Slack in Task2 = Late Start - Early Start =(21 - 4 - 10) - (3) =4 Reference: pmstudy.com notes as mentioned above Question : 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 Aggressor 2 Conflict Maximiser 3 Devil`s advocate 4 Dominator Correct Choice: 4 Justification:

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 214 Question : You are working as a Project Manager in an organization where your responsibility is to coordinate activities, but decisions are primarily made by Management. The organization structure you are working in is: 1 Weak Matrix 2 Balanced Matrix 3 Functional 4 Functional Correct Choice: 1 Justification: Weak matrices 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. Reference: PMBOK Third Edition (2004), Page Number: 30 pmstudy.com comments: In a Weak Matrix organization, where manager plays role of a coordinator or expediter, decisions are primarily made by Management

Question : Defining and managing the project scope influences the project`s overall success. Each project requires a careful balance of tools, data sources, methodologies, processes and procedure, and other factors to ensure that the effort expended on scoping activities is commensurate with the project`s size, complexity and importance. For example, a critical project could merit formal, thorough, and timeintensive scoping activities, while a routine project could require substantially less documentation and scrutiny. The project management team documents these scope management decisions in the project scope management plan. The project scope management plan is a planning tool describing how the team will define the project scope, develop the detailed project scope statement, and control the project. The development of the project scope management plan and the detailing of the project scope begin with all the following EXCEPT: 1

Analysis of information contained in the project charter

2 List of approved Change Requests 3 Historical information contained in Organizational Process Assets. 4 Any relevant enterprise environmental factors Correct Choice: 2 Justification: The development of project scope management plan and the detailing of the project scope begin with the analysis of information contained in the project charter, the preliminary project scope statement, the latest approved version of the project management plan, historical information contained in the organizational process assets, and any relevant enterprise environmental factors Reference: PMBOK Third Edition (2004), Page Number: 107 pmstudy.com comments: List of approved change requests is not an input to Scope Planning process (which has been described in the Question)

Question : You are working as a research assistant and studying the growth of bacteria under different environmental conditions. Based on your experiments, you think that the longetivity of bacteria is increased as the temperature increases. To better illustrate this to your professor, you can use : 1 Statistical Sampling 2 Run Chart / Trend Analysis 3 Scatter Diagram 4 Histogram Correct Choice: 3 Justification: A scatter diagram shows the pattern or relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables. Dependent variables versus independent variables are plotted. The closer the points are to a diagonal line, the more closely they are related. Reference: PMBOK Third Edition (2004), Page Number: 196 pmstudy.com comments: We are talking about 2 variables in the Question (i.e. a) temperature - the independent variable and b) Longetivity of bacteria - the dependent variable). The relationship between these two variables can be illustrated using scatter diagram

Question : In your project, you made estimates of the potential project schedule and cost outcomes, listing the possible completion dates and costs with their associated confidence levels (using probabilistic analysis of the project). The risk calculations show that there is a risk of overrunning the project scope and schedule targets - which is beyond the threshold limits of your organization. To bring the level of risk to a level which is acceptable by your organization, you should : 1 consider using contingency reserves 2 decrease the project scope and increase the project schedule 3 talk with your sponsor about cancelling the project 4 do additional risk response planning Correct Choice: 1 Justification: Probabilistic analysis of the project : ... Contingency reserves are needed to bring the level of risk or overrunning stated project objectives to a level acceptable to the organization. Reference: PMBOK Third Edition (2004), Page Number: 259

Question : You are the project manager for a project which is being done under contract. You are informed by the buyer that government regulations will necessitate some changes in the project. What should you do first? 1 Talk with team members to understand implication of the change 2 Communicate the change to Management to get their inputs 3 Open up a Change Control 4 Do sizing for the change and communicate to customer Correct Choice: 3 Justification: Usually, anytime there is a potential request for a change from a customer, 1. Understand what functionality was requested - Talk with team-members to access the implication of the change 2. Open up a Change Control if there is a formal Change Control Mechanism 3. Communicate the change to Management, and inform Customer about the impact of the change (e.g. increase in sizing, schedule etc.) 4. If change is accepted, go ahead and implement the changes Please note: If there is a confirmed change request (e.g. contractual or government requirements as mentioned above), the first thing to do is to open up a change control. Reference: pmstudy.com notes as mentioned above Question : 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 Which project should be selected if Net Present Value criteria is used for selection? 1 Project A 2 Project B 3 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.

Reference: pmstudy.com notes as mentioned above Question : All the following statements related to communications skills and general management skills are accurate EXCEPT: 1 General management skills are a subset of communication skills 2 General management skills related to communications ensure that right persons get the right information at the right time 3 General management skills include managing stakeholder requirements 4 Communication skills are used to exchange information Correct Choice: 1 Justification: Communication skills are a subset of general management skills Reference: PMBOK Third Edition (2004), Page Number: 229

Question : When developing the project charter and subsequent project documentation, any and all of the assets that are used to influence the project`s success are drawn from 1 Project Plan 2 Enterprise Environmental factors 3 Organizational process assets 4 Lessons Learned documentation Correct Choice: 3 Justification: When developing the project charter and subsequent project documentation, any and all of the assets that are used to influence the project`s success can be drawn from organizational process assets. Reference: PMBOK Third Edition (2004), Page Number: 84

Question : Which of the following statements best depicts Arrow Diagramming Method (ADM): 1 Allow for non-sequential activities like looks or conditional branches. 2 Nodes represent activities and are connected by arrows to show the dependencies. 3 Portions of the network (also called subnets or fragnets) are used to define the project. 4 Arrows represent activities and are connected at nodes to show their dependencies Correct Choice: 4 Justification: ADM is a method of constructing a project schedule network diagram that uses arrow to represent activities and connects them at nodes to show their dependencies.

Reference: PMBOK Third Edition (2004), Page Number: 133

Question : Amongst the conflict resolution modes (Confrontation, Compromise, Withdrawal, Forcing and Smoothing), which conflict resolution mode is Most Preferred and Least Preferred by Project Managers? (answer format: Most Preferred, Least Preferred) 1 Compromise, Withdrawal 2 Confrontation, Withdrawal 3 Confrontation, Forcing 4 Smoothing, Withdrawal Correct Choice: 2 Justification: The most preferred Conflict Resolution Techniques by project managers(in descending order of importance) are as follows: 1. Confrontation 2. Compromise 3. Smoothing 4. Forcing 5. Withdrawal

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 389 Question : Outcome of projects are measurable, verifiable work products, also referred to as : 1 Work Breakdown Structures 2 Work Breakdown Structure Dictionary 3 Deliverables 4 Phase End reviews Correct Choice: 3

Justification: The completion and approval of one of more deliverables characterizes a project phase. A deliverable is a measurable, verifiable work product such as a specification, feasibility study report, detailed design document .... Reference: PMBOK Third Edition (2004), Page Number: 22 Question : All the following statements about project assumptions in the project scope statement are correct EXCEPT: 1 It lists potential impact of assumptions if the assumptions are false 2 Assumptions are frequently identified, documented and validated as part of the planning process 3 Assumptions in the detailed project scope statement are typically less numerous than the assumptions listed in the project charter 4 Assumptions in the detailed project scope statement are typically more detailed than the assumptions listed in the project charter Correct Choice: 3 Justification: The assumptions listed in the detailed project scope statement are typically more numerous and more detailed than the assumptions listed in the project charter. Reference: PMBOK Third Edition (2004), Page Number: 111 pmstudy.com comments: Assumptions are progressively elaborated (and hence become more detailed and numerous) as the project progresses. Question : Your project has been selected for a Quality Audit. Several of your team members are nervous because they do not have exposure to audits and do not understand what is expected from them. You explain to your team members that the primary objective of a quality audit is to: 1 Identify how well the project compares with other projects in the organization 2 Determine if the project is following all the requirements of the quality management plan 3 Record quality control testing and measurements in a format for comparison and analysis 4 Identify ineffective policies, processes and procedures in use on the project Correct Choice: 4 Justification: The objective of quality audit is to identify inefficient and ineffective policies, processes, and procedures in use on the project. The subsequent effort to correct these deficiencies should result in a reduced cost of quality and an increase in the percentage of acceptance of the product or service by the customer or sponsor within the performing organization. Reference: PMBOK Third Edition (2004), Page Number: 189 Question : In risk management, you deal with processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control. In this context, all the following statements related to processes used for risk management are correct EXCEPT: 1 Processes interact with each other 2 Processes always have discrete elements with well-defined interfaces 3 Risk management processes interact with processes in other knowledge areas 4 Each process generally occurs at least once in every project, and occurs in one or more project phases, if the project is divided into phases Correct Choice: 2 Justification: The processes interact with each other and with the processes in the other knowledge areas. Each process generally occurs at least once in every project, and occurs in one or more project phases, if the project is divided into phases. Although processes are presented here as discrete elements with well-defined interfaces, in practice they may overlap and interact in ways not detailed here. Reference: PMBOK Third Edition (2004), Page Number: 237

Question : The causes of variances and the reasoning behind the corrective action chosen should be documented so that they become part of the historical database of the performing organization. This is documented as part of: 1 Project Management Plan 2 Project Files 3 Organizational Process Assets 4 Recommended corrective action Correct Choice: 3 Justification: Organizational Process Assets(Updates): The causes of variances, the reasoning behind the corrective action chosen and other types of lessons learned from the project scope change control are documented and updated in the historical database of the organizational process assets. Reference: PMBOK Third Edition (2004), Page Number: 122 Question : You are the project manager for a software company, and are in the process of developing an approximation of the costs of the resources needed to complete project activities. In approximating the cost, you are considering the causes of variation of the final estimate for purpose of better managing the project. This is done as part of: 1 Administrative Closeout 2 Cost Estimating 3 Cost Budgeting 4 Cost Control Correct Choice: 2 Justification: Cost Estimating: Estimating schedule activity costs involves developing an approximation of the costs of the resources needed to complete each schedule activity. In approximating costs, the estimator considers the possible causes of variation of the cost estimates, including risks. Reference: PMBOK Third Edition (2004), Page Number: 161 Question : The communications planning process determines the information and communication needs of the stakeholders; for example who needs what information, when they will need it, how it will be given to them and by whom. While all projects share the need to communicate project information, the informational needs and methods of distribution vary widely. Assumptions are an important inputs for the communication planning process. Assumptions that affect communications planning will : 1 Be similar across projects 2 Be similar for the same project life cycle 3 Depend upon the particular project phase 4 Depend upon the particular project Correct Choice: 4 Justification: Specific assumptions that affect communications planning will depend upon the particular project. Reference: PMBOK Third Edition (2004), Page Number: 226 Question : Your previous project manager usually did not interfere or supervise his subordinates. Since subordinates were largely unsupervised, this at times lead to anarchy. The leadership style used by the project manager was: 1 Laissez Faire 2 Assertive 3 Autocratic

4 Coaching Correct Choice: 1 Justification:

Reference: pmstudy.com notes as mentioned above Question : 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 Root cause Analysis 2 Fast Tracking or Crashing the project 3 Documenting and analyzing the Lessons learned 4 Schedule updates to the existing schedule Correct Choice: 1 Justification: Corrective action is anything done to bring expected future project schedule performance in line with the approved project schedule baseline. Corrective action in the area of time management often involves expediting, which includes special actions taken to ensure completion of a schedule activity on time or with the least possible delay. Corrective action often requires root cause analysis to identify the cause of the variation. Reference: PMBOK Third Edition (2004), Page Number: 155 Question : As part of your project, you were involved with improving the competencies and interaction of team members to enhance project performance. What should you be doing next? 1 Managing conflicts if they arise 2 Creating organization chart with appropriate position descriptions 3 Interacting with others in the organization in a constructive way to understand political and interpersonal factors 4 Creating a staffing management plan Correct Choice: 1 Justification: "Improving the competencies and interaction of team members to enhance project performance" is done as part of "Develop Project Team" process.

Option 1 - "Managing conflicts" happens in "Manage Project Team" process which is after the "Develop project team". Option 2(Organization charts and Position Descriptions) and Option 3(Networking) are tools of Human resource planning; similarly Option 4(Staffing management plan) is an output of Human resource planning. Since "Human resource planning" occurs before "Develop Project Team" process, hence Options 2, 3 and 4 are not valid Reference: pmstudy.com notes as mentioned above Question : Factors like Probability of successfully completing the project, Cost of changes, Cost of error correction etc. are highest: 1 At beginning of the project 2 At end of the project 3 During project implementation 4 Cannot be determined as they are specific to the project Correct Choice: 2 Justification: The probability of successfully completing the project is lowest, and hence risk and uncertainty are highest, at the start of the project. The probability of successful completion generally gets progressively higher as the project continues.... Reference: PMBOK Third Edition (2004), Page Number: 20,21 pmstudy.com comments:

Question : All the following statements about IRR (Internal Rate of Return) and NPV (Net Present Value) are correct EXCEPT: 1 Net Present Value is difference between all present value of all inflows and present value of all outflows 2 The prevailing market rate is used for Net Present Value Calculations 3 Internal Rate of Return is the discount rate when Net Present Value = 0 4 While selecting projects, it is preferable to select projects with a higher IRR Correct Choice: 2 Justification: Present Value is the future value of a payment discounted at a discount rate for the delay in payment. This rate is also called the "Cost of Capital" Reference: pmstudy.com notes as mentioned above

Question : All the following statements about "Quality" and "Grade" are true EXCEPT: 1 Grade is a rank given to entities having the same functional use but different technical characteristics 2 Low quality project may be having a high grade 3 Low Grade product may be having high quality 4 It is a problem if either the product is low grade or low quality Correct Choice: 4 Justification: Grade is a category or rank given to entities having the same functional use but different technical characteristics. Low quality is always a problem, low grade may not be. For example, a software product may be of high quality(no obvious bugs, readable manual) and low grade(a limited number of features) or of low quality (many bugs, poorly organized user documentation) and high grade (numerous features). Reference: PMBOK Third Edition (2004), Page Number: 180 Question : Risk response planning helps the project manager develop options and determine actions to enhance opportunities and reduce threats to the project`s objectives. The output from risk response planning is updates to the risk register, which should be: 1 At the level of detail of work packages in WBS 2 At the level of detail where actions will be taken 3 Able to identify and document residual risks and secondary risks 4 Used for periodic risk reviews to identify risk ratings and prioritization Correct Choice: 2 Justification: The risk register should be written to a level of detail that corresponds with the priority ranking and the planned response. Often the high and moderate risks are addressed in detail. Reference: PMBOK Third Edition (2004), Page Number: 263 Question : Integrated change control requires coordinating changes across knowledge areas. So, a proposed schedule change control must often be integrated with all the following control processes EXCEPT: 1 Cost 2 Quality 3 Staffing 4 Procurement Correct Choice: 4 Justification: A proposed schedule change will often affect cost, risk, quality and staffing. Reference: PMBOK Third Edition (2004), Page Number: 97

Please note that amongst the available alternatives, Procurement will not be impacted unless you have outsourced some work and that work will be impacted by your schedule change. All the remaining control processes (i.e. Cost, Quality and Staffing) are directly impacted by a proposed schedule change Question : In your project, you have historical information about costs, and parameters for cost estimating are quantifiable and scalable. Your manager wants to use project characteristics in a mathematical model to predict project costs. But you believe that parametric estimating is the best solution. What is the best course of action for this situation: 1 Agree with your manager`s opinion 2 Make an analysis for your manager`s proposal and create a case for why your solution is better 3 Ask for Expert Judgment from a Subject Matter Expert in cost estimation 4 None of the above Correct Choice: 1 Justification: The parametric estimating technique involves using project characteristics in a mathematical model to predict total project cost. (so, your manager and you are recommending the same solution) Reference: PMBOK Third Edition (2004), Page Number: 169 Question : You have created a communications management plan to identify, analyze and document the needs and expectations of stakeholders. This communication management plan is: 1 An output from Information Distribution phase 2 A subsidiary of the organizational process assets 3 A subsidiary of the project management plan 4 None of the above Correct Choice: 3 Justification: The needs and expectations (of stakeholders) are identified, analyzed and documented in the communications management plan, which is a subsidiary of the project management plan. Reference: PMBOK Third Edition (2004), Page Number: 235 Question : All these statements about project charter are correct except: 1 Project charter includes or references the business need and product description 2 Project Charter provides authority to the project manager 3 Project charter formally authorizes a project 4 Project charter is issued by the project sponsor of the project organization Correct Choice: 4 Justification: A project initiator or sponsor external to the project organization at a level that is appropriate to funding the project, issues the project charter. Reference: PMBOK Third Edition (2004), Page Number: 81 Question : Your project is in Execution phase. NPV of your project is -200,000 and IRR is 5%. CPI is 1.2 and SPI is 0.8 - what is the recommended action? 1 Cancel the project since NPV is negative 2 Cancel the project since IRR is very low 3 Crash your project 4 Try to improve the NPV by highlighting benefits which were not included in the CBA Correct Choice: 3 Justification: CPI is greater than 1 and SPI is less than 1. Since SPI is less than 1, this means that project is behind schedule; hence it is recommended to crash the project to bring the project on schedule.

Please note that crashing may increase costs; but since your project has CPI greater than 1; hence cost is not a concern for you now. NPV and IRR are not relevant since they are used to determine whether the project should be selected from amongst other available alternatives (this selection of projects is done very early e.g. in the initiation phases). This project is already in Execution phase and so NPV and IRR should not be considered now. Reference: pmstudy.com notes as mentioned above Question : Your company is a pioneer in the construction industry. The government recently floated a tender for setting up a new airport. Since you do not have all the requisite skills, you enter into a joint venture with a leading airport to jointly bid for the government contract. This is an example of : 1 Risk exploitation 2 Risk sharing 3 Risk enhancing 4 Risk mitigating Correct Choice: 2 Justification: Strategies for positive risks or opportunities (share): Sharing a positive risk involves allocating ownership to a third party who is best able to capture the opportunity for the benefit of the project. Examples of sharing actions include risk sharing partnerships, teams, special-purpose companies, or joint ventures which can be established with the express purpose of managing opportunities. Reference: PMBOK Third Edition (2004), Page Number: 262 Question : You recently took over the responsibilities of Project Manager from another person. While reviewing the costs for the project, you realize there is a $ 100,000 payment, which should not have taken place. Your project CPI is 1.2. In this case: 1 Since this is a small amount compared to the total project value, it can be ignored. 2 Since the project CPI is greater than one, you do not have any problems with the cost of the project - hence, you can bury the costs in contingency and move on with the project 3 Inform your Manager 4 Deny the payment Correct Choice: 3 Justification: Choice 3 is the best answer because as a Project Manager, you are supposed to deal with any issue or unethical practice, and should not ignore it. Reference: pmstudy.com notes as mentioned above Question : 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 10 days to 16 days 2 7 days to 19 days 3 12 days to 14 days 4 11 days to 15 days Correct Choice: 2 Justification: In a Normal Distribution, the PERT duration (also called mean) = (Pessimistic + 4* (Most Likely) + Optimistic)/6 = (10 + 4 * 13 + 16)/6 = 13 1 Standard Deviation (sigma)

= (Pessimistic - Optimistic) / 6 = (16 - 10) / 6 =1 So, if the the comany has a quality requirement of 6 sigma, Mean - 6 Sigma = 13 - 6 * 1 = 7 Mean + 6 Sigma = 13 + 6 * 1 = 19 So, the task can be completed within 7 days to 19 days. Reference: pmstudy.com notes as mentioned above To know more about 6 sigma calculations, please refer to Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page 693 - Page 695 Question : Human resource planning determines project roles, responsibilities and reporting relationships. Project roles can be designated for persons or groups.All the following will be outputs from the human resource planning process EXCEPT: 1 Resource Availability 2 Roles and Responsibilities 3 Project Organization Charts 4 Staffing Management plan Correct Choice: 1 Justification: Resource availability is an output from the "Acquire Project Team" process and not the Human Resource Planning process. Refer Figure 9-1 Reference: PMBOK Third Edition (2004), Page Number: 201 Question : As a project manager, you are aware that Project Management Process groups are linked by the objectives they produce. The output of one process generally becomes the input to another process or is a deliverable (tangible, verifiable work product) of the project. Planning process group provides Executing process group with a documented project management plan as the project progresses. In this context, all the following statements are accurate EXCEPT: 1 Process Groups are non-overlapping activities that occur at varying intensity throughout the project. 2 If the project is divided into phases, the Process Groups interact within a project phase and may also cross the project phases. 3 Not all processes will be needed on all project and not all of the interactions will apply to all the projects or process groups. 4 Among the process groups and their processes, the process outputs are related and have an impact on the other process groups. Correct Choice: 1 Justification: Process Groups are seldom either discrete or one-time events; they are overlapping activities that occur at varying levels of intensity throughout the project. Reference: PMBOK Third Edition (2004), Page Number: 67 Question : In your project, identifying and documenting the logical relationships among schedule activities is done as part of: 1 Activity Definition 2 Activity Planning 3 Activity Sequencing 4 Schedule Development Correct Choice: 3

Justification: Activity sequencing involves identifying and documenting the logical relationships among schedule activities. Reference: PMBOK Third Edition (2004), Page Number: 130 Question : You have recently taken over as project manager of a project. One of the first things that you notice in your initial meeting is that there is too much conflict amongst the project team members that is decreasing productivity and harming working relationships among team members. To better manage conflicts in your team, you should do all the following EXCEPT: 1 Establish team ground rules 2 Establish group norms 3 Decrease differences of opinion among team members 4 All the statements above are correct Correct Choice: 3 Justification: Team ground rules, group norms and solid project management practices, like communication planning and role definition, reduce the amount of conflict. When managed properly, differences in opinion are healthy and can lead to increased creativity and better decision-making. Reference: PMBOK Third Edition (2004), Page Number: 217 Question : The project charter is a document that formally authorizes a project. It provides the project manager with the authority to apply organizational resources to project activities. A project manager should also be assigned as early in the project as is feasible - always prior to the start of planning, and preferably while the project charter is being developed. To develop the project charter, you would need to use appropriate project selection methods to determine which project the organization will select. All the following are examples of "Benefit Measurements" used for selecting projects EXCEPT: 1 Linear Programming algorithms 2 Scoring Models 3 Comparative Approaches 4 Benefit Contribution Correct Choice: 1 Justification: Benefit measurement methods are comparative approaches, scoring models, benefit contribution, or economic models. Linear programming algorithms are used as part of Mathematical models. Reference: PMBOK Third Edition (2004), Page Number: 85 Question :

What is the Earned Value(EV)? 1 $ 5,000 2 $ 10,000 3 $ 11,000 4 $ 12,500 Correct Choice:

4

Justification: Earned Value (EV) = The sum of the approved cost estimates for activities completed during a given period = Estimated cost of work that is completed after day 11 = $ 5,000 + $ 5,000 + $5,000*.50 = $ 12,500 (because Task A, Task B are complete, Task C is 50% complete) Reference: pmstudy.com notes as mentioned above

Question : In your project, you are subdividing major project deliverables into smaller, more manageable components. This will be done as part of : 1 Create WBS 2 Scope Verification 3 Work Authorization System 4 Product Analysis Correct Choice: 1 Justification: Decomposition is the subdivision of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. (Decomposition is done as part of Create WBS process) Reference: PMBOK Third Edition (2004), Page Number: 114 Question : All the following statements about the Monitoring and Controlling Process Group are correct EXCEPT: 1 This consists of processes performed to observe project execution 2 Key benefit of monitoring and controlling process is that project performance is observed and measured regularly to identify variances from the project management plan.

3 In a contract, Monitoring and Controlling process is involved with obtaining information, quotations, bids, offers or proposals. 4 Scope Verification is carried out for formalizing acceptance of the completed project deliverables. Correct Choice: 3 Justification: "Obtaining information, quotations, bids, offers or proposals" is also referred to as "Request Seller Responses" - this is done as part of Executing Process Group. All the remaining choices refer to the Monitoring and Controlling Process group. Reference: PMBOK Third Edition (2004), Page Number: 58 Question : If a milestone is based on historical information, it can be called a/an: 1 Optional milestone 2 Mandatory milestone 3 Discretionary milestone 4 Authorized milestone Correct Choice: 1 Justification: The list of schedule milestones identifies all milestones and indicates whether the milestone is mandatory (required by the contract) or optional (based upon project requirements or historical information). Reference: PMBOK Third Edition (2004), Page Number: 130 Question : When a project is initiated, one of the first deliverables from the project initiation phase is: 1 Project Charter 2 Scope Statement 3 Project Plan 4 Scope Management Plan Correct Choice: 1 Justification: A project charter is a document that formally authorizes a project Reference: PMBOK Third Edition (2004), Page Number: 81 Question : Please refer to the following diagram:

You know that Current Variances are atypical i.e. similar variances will not occur in the future. What is Cost Performance Index (CPI) for the project? 1 0.96

2 3 4

1.04 1.00 1.20

Correct Choice:

1

Justification: Earned Value (EV) = The sum of the approved cost estimates for activities completed during a given period = Estimated cost of work that is completed after day 11 = $ 5,000 + $ 5,000 + $5,000*.50 = $ 12,500 (because Task A, Task B are complete, Task C is 50% complete) Actual Cost (AC) = Actual Cost of work completed = $ 13,000 Cost Performance Index (CPI) = EV / AC = $ 12,5000 / $ 13,000 = 0.96 Reference: pmstudy.com notes as mentioned above

Question : Estimating the cost of individual activities or work packages, then rolling up the individual estimates to get a project total is done as part of : 1 Bottom up Estimating 2 Analogous Estimating 3 Parametric Modeling 4 Top-down Estimating Correct Choice: 1 Justification: Bottom-up estimating: This technique involves estimating the cost of individual work packages or individual schedule activities with the lowest level of detail. This detailed cost is then summarized or rolled-up to higher levels for reporting and tracking purposes. Reference: PMBOK Third Edition (2004), Page Number: 165 Question : Activity Cost Estimate Supporting Detail includes: (please select the best answer) 1 Complete picture of how cost estimate was derived 2 Documentation of constraints 3 Indication of range of possible estimates 4 All of the above Correct Choice: 4 Justification: Reference: PMBOK Third Edition (2004), Page Number: 167 Question : In your project, a hierarchical structure of the identified resources by resource category and resource type is also referred to as: 1 Project Hierarchy 2 Organization Hierarchy 3 Resource Breakdown Structure 4 Project Breakdown Structure Correct Choice: 3 Justification: Resource Breakdown Structure(RBS) is a hierarchical structure of the identified resources by resource category and resource type. Reference: PMBOK Third Edition (2004), Page Number: 138

Question : The Activity Duration Estimating process requires that the amount of work effor required to complete the schedule activity is estimated, the assumed amount of resources to be applied to complete the schedule activity is estimated, and the number of work periods needed to complete the schedule activity is determined. All data and assumptions that support duration estimating are documented for each activity duration estimate. Estimating the number of work periods required to complete a schedule activity can require consideration of elapsed time as a requirement related to a specific type of work. Most project management software for scheduling will handle this situation by using a project calendar and alternative work-period resource calendars. Overall project duration is calculated as an output of the : 1 Activity Duration Process 2 Schedule Development process 3 Schedule Estimation Process 4 Schedule control process Correct Choice: 2 Justification: Overall project duration is calculated as an output of the Schedule Development process. Reference: PMBOK Third Edition (2004), Page Number: 139 Question : The ability to influence cost of a project is: 1 Greatest at early stages of the project 2 Greatest at the middle of the project 3 Greatest at the project closure stage 4 Dependent on the type of the project selected Correct Choice: 1 Justification: The ability to influence cost is greatest at the early stages of the project, and this is why early scope definition is critical. Reference: PMBOK Third Edition (2004), Page Number: 158 Question : 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 Add the feature because it will improve customer satisfaction 2 Add the feature because otherwise, the project will not be accepted by the customer 3 Talk with the sponsor about the benefits of having this feature 4 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 Reference: pmstudy.com notes as mentioned above Question : You have prepared the preliminary project schedule - but when you did resource leveling, the duration required for your project increased substantially. To bring the schedule back to the originally intended overall duration, you should use: 1 Reverse Resource Allocation 2 Schedule Updates 3 Resource reallocation

4 Critical Chain technique Correct Choice: 3 Justification: Resource leveling often results in a project duration longer than the preliminary schedule.... Resource reallocation from non critical to critical activities is a common way to bring the schedule back, or as close as possible to the to its originally intended duration. Reference: PMBOK Third Edition (2004), Page Number: 147 Question : 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 Safety 2 Social 3 Psychological 4 Self-esteem Correct Choice: 1 Justification: Please refer to the diagram below:

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

Question : In your project, you use configuration management to record and report the change and its implementation status. In this context, you are using change control as a technique for: 1 Performance Measurement 2 Integrated Change Control 3 Change Control System 4 Scope Definition Correct Choice: 2 Justification: Configuration Management is a subsystem of the overall project management information system (which is a tool used for Integrated Change Control). The system includes the process for submitting proposed changes, tracking systems for reviewing and approving proposed changes ... Reference: PMBOK Third Edition (2004), Page Number: 90, 99

Question : Your project was terminated early because of funding problems. You will use Scope Verification to: 1 Verify correctness of the work results produced 2 Determine project performance till date 3 Document extent of completion 4 Create lessons learned documentation Correct Choice: 3 Justification: If the project is terminated early, the project scope verification process should establish and document the level and extent of completion. Reference: PMBOK Third Edition (2004), Page Number: 118 Question : A baseline is the approved time-phased plan (for a project, a WBS, a work package, or a schedule activity), plus or minus approved project scope, cost, schedule and technical changes. In this context, any modification to the agreed project scope baseline is also referred to as: 1 Approved change request 2 Performance report 3 Rebaselining 4 None of the above Correct Choice: 1 Justification: An approved change request impacting project scope is any modification to the agreed upon project scope baseline, as defined by the approved project scope statement, WBS and WBS Dictionary Reference: PMBOK Third Edition (2004), Page Number: 120 Question : For your project, you have defined the project scope statement, WBS and WBS Dictionary. This can help you in defining: 1 Scope Baseline 2 Product Scope 3 Both Scope Baseline and Product Scope 4 None of the above Correct Choice: 3 Justification: The project scope statement, along with its associated WBS and WBS Dictionary defines the project`s scope baseline and product scope. Reference: PMBOK Third Edition (2004), Page Number: 120 Question : The procedures by which project and product scope can be changed are defined in: 1 Change Control System 2 Variance Analysis 3 Project baseline 4 Project files Correct Choice: 1 Justification: A project scope change control system, documented in the project scope management plan, defines the procedures by which the project scope and product scope can be changed. Reference: PMBOK Third Edition (2004), Page Number: 121 Question : You are in the early phases of your project where have taken information on project scope and resources and then developed durations for input to schedules. Since there was very limited information about the project, you used actual duration of a previous, similar activity as the basis for estimating future activity. This type of estimating can also be referred to as:

1 Conditional Diagramming Method 2 Expert Judgment 3 Quantitative Estimating 4 Analogous estimating Correct Choice: 4 Justification: Analogous estimating means using the actual duration of a previous, similar activity as a basis for estimating the duration of a future schedule activity. It is frequently used to estimate project duration when there is a limited amount of detailed information about the project... Analogous estimating uses historical information and expert judgment. Reference: PMBOK Third Edition (2004), Page Number: 141 Question : You would like to use decomposition for subdivision of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. All the following statements about Decomposition are correct EXCEPT: 1 All deliverables have similar levels of decomposition 2 Project team needs to seek a balance between too little and too much in the level of WBS planning detail. 3 Decomposition of the upper level WBS components requires subdividing the work for each of the deliverable or subprojects into its fundamental components 4 Decomposition is done as part of "Create WBS" process Correct Choice: 1 Justification: Decomposition: ... Different deliverables can have different levels of decomposition. To arrive at a manageable work effort (i.e. a work package), the work for some deliverables needs to be decomposed only to the next level, while others need more levels of decomposition. Reference: PMBOK Third Edition (2004), Page Number: 114 Question : While doing Schedule control, you often compare target dates with the actual/forecast start and finish dates. This provides you useful information for the detection of deviations and for the implementation of corrective solutions in case of delays. This is done as part of: 1 Performance Measurement 2 Additional Planning 3 Additional Planning 4 Variance Analysis Correct Choice: 4 Justification: Variance Analysis: Performing schedule variance analysis a key function of schedule control. Comparing target dates with the actual/forecase start and finish dates provides useful information for the detection of deviations, and for the implementation of corrective actions in case of delays. Reference: PMBOK Third Edition (2004), Page Number: 154 Question : You are in the process of creating WBS (Work Breakdown Structure) for your project, when a team member informs you of some discrepancies with the Scope Statement i.e. the scope is not properly defined. You agree with the assessment of the team member. What should you do? 1 Go ahead in creating the WBS because the scope statement has been approved 2 Recommend a new project to cover the Gaps in the scope 3 Talk with the Project Sponsor and Customer about the gaps in the scope statement 4 Include the tasks recommended by the team member in the WBS - your proactiveness will be appreciated by the customer Correct Choice: 3

Justification: WBS is created after the Scope Statement is created and Approved * Option 3 is the best option - since Project Sponsor and Customer are involved in creating the scope statement, they should be informed of the gaps in the scope statement so that they can address the issues. * Option 1 does not solve the identified problem but just avoids it - so, this is not the preferred option. * Option 2 is a drastic measure and should be taken only if they changes can be accommodated within the same project. * Option 4 (i.e. adding more tasks without approval from project sponsor) is gold-plating, it may increase the cost and schedule and is not recommended by PMI (pmstudy.com notes: For Professional Responsibility Questions, please note that the Project Manager should always try to solve the problem Reference: pmstudy.com notes as mentioned above Question : 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 Task Q 2 Task N and Task O 3 Either 1) Task Q, OR 2)Task N and Task O 4 Task N and Task P Correct Choice:

3

Justification: 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 from where you can choose from. Reference: pmstudy.com notes as mentioned above Question : In your project, you have determined a specific conference room for your project where the team can meet as often as required to discuss issues and post schedules and updates. This is an example of a: 1 War Room 2 Team Building Activity 3 Reward and recognition system 4 Training System Correct Choice: 1 Justification: Co-location strategy can include a meeting room, sometimes called a war room with electronic communication devices, places to post schedules, and other conveniences that enhance communication and a sense of community. Reference: PMBOK Third Edition (2004), Page Number: 214 Question : You have received some approved change requests related to your project scope changes. Accordingly, you would have to make changes to your project schedule`s start and finish dates. You should use : 1 Baselining 2 Corrective Actions 3 Re-baselining 4 Revisions

Correct Choice: 4 Justification: Schedule revisions are a special category of project schedule updates. Revisions are changes to the schedule`s start and finish dates in the approved schedule baseline. These changes are generally incorporated in response to approved change requests related to project scope changes or changes to estimates ..... Reference: PMBOK Third Edition (2004), Page Number: 155 Question : Project time management includes the processes required to ensure timely completion of the project. As a project manager, you should plan to ensure that the project is completed on schedule Assuming that critical path has duration of 10 days, all the following could change the project timelines EXCEPT: 1 Project has one Critical Path - By using a new tool, you are able to decrease the duration of the critical path by one day. 2 Project has one Critical Path - Because of delays, you need to increase the duration of the critical path by one day. 3 Project has two Critical Paths - By using a new tool, you are able to decrease the duration of one critical path by one day. 4 Project has two Critical Paths - Because of delays, you need to increase the duration of one critical path by one day. Correct Choice: 3 Justification: # Option 1: This will decrease the duration of the project by 1 day because critical path decreases by 1 days # Option 2: This will increase the duration of the project by 1 day because critical path increases by 1 day # Option 3: This will not decrease the duration of the project. This is because even if one critical path is decreased by one day, the other critical path remain the same duration of 5 days. So, the overall duration of the project remains at 5 days # Option 4: This will incrase the duration of the project by one day, because the critical path incrases by 1 day Reference: pmstudy.com notes as mentioned above Question : Schedule control is concerned with influencing the factors that create schedule changes to ensure that changes are agreed upon, determining that the schedule has changed, and managing the actual changes when and as they occur. Which of the following tool is helpful for schedule control? 1 Duration Compression 2 Pareto Diagram 3 Performance measurement 4 Network Diagram Correct Choice: 3 Justification: Performance Measurement is a tool and technique for Schedule Control. It helps access the magnitude of any variations that do occur. Refer Fig 6-11 Reference: PMBOK Third Edition (2004), Page Number: 152 Question : Your goal as a project manager is to manage stakeholders to the best of your ability. However, if there are conflicts among stakeholders, they should usually be resolved in favor of : 1 Business Partner/Project Sponsor 2 Team Members 3 Customer 4 All Stakeholders

Correct Choice: 3 Justification: In general, differences between and among stakeholders should be resolved in favor of the customer Reference: pmstudy.com notes as mentioned above Question : In your project, you have to complete the build of a prototype before testing can begin - this is an example of: 1 Mandatory Dependency 2 Discretionary Dependency 3 External Dependency 4 Preferred Logic Correct Choice: 1 Justification: Mandatory dependencies are those that are inherent in the nature of the work being done. Mandatory dependencies often involve physical limitations, such as on a construction project, where it is impossible to erect the superstructure until after the foundation has been built, or on an electronics project, where a prototype must be built before it can be tested. Reference: PMBOK Third Edition (2004), Page Number: 133 = Question : 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/an : 1 Pre-defined criteria 2 Restriction 3 Assumption 4 Constraint Correct Choice: 4 Justification: Examples of constraints that can limit flexibility in the human resource planning process are: ...contractual agreements with unions or other employee groups Reference: PMBOK Third Edition (2004), Page Number: 204 Question : Which of the following are the most resistant to change? 1 Business Requirements 2 Technology 3 People 4 Environment Correct Choice: 3 Justification: People exhibit a greater resistance to change than other factors Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: Question : In your project, you are performing several actions to execute the project management plan to accomplish the work defined in the project scope statement. You will be involved with (choose the best answer) 1 managing the various technical and organizational interfaces that exist within the project. 2 collecting work performance information about the completion status of the deliverables and what has been accomplished 3 producing deliverables as outputs from your activities 4 All of the above Correct Choice: 4 Justification: All these activities are done as part of Direct and Manage Project Execution

Reference: PMBOK Third Edition (2004), Page Number: 91 Question : A parametric modeling technique will be accurate in predicting project costs in all the following conditions EXCEPT: 1 Historical information available is accurate 2 Parameters are quantifiable 3 The project is a small project 4 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) Reference: PMBOK Third Edition (2004), Page Number: 169 Question : When your objective is to get a lasting win-win solution to a problem, which conflict resolution technique should you use? 1 Collaborating 2 Smoothing 3 Avoiding 4 Withdrawing Correct Choice: 1

Justification: Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, Page Number: 406-408