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Mohamed Nazaruddin Mohamed Nazaruddin

MOHD NAZ

1. Which of the following statements is NOT true about a Project Management Office (PMO) ?

PMO is an organizational body responsible for centralized and coordinated management of projects
PMO conducts periodic project audits to monitor compliance with project management standards
PMO can also be responsible for the direct management of projects
In order to be managed together the projects supported by a PMO should be related

Explanations:

Answer (D) In order to be managed together, the projects supported by a PMO should be related. The projects
supported by a PMO may not be related other than being managed together. The specific, form and structure of a
PMO would purely depend upon the needs of the organization it supports. For more on a PMO please refer to
PMBOK 4th edition Introduction PN 11.

2. A project manager is in the process of documenting and defining stakeholder's needs to meet project objectives.
What is the output of this process?

Stakeholder Register
Stakeholder Management Strategy
Requirements Documentation
Issue Log

Explanations:

Answer (c) Requirements Documentation. The project manager is in the process of 'collect requirements' which has
the output - requirements documentation. This document describes how individual requirements meet the business
need for the project. It is important that the requirements documented are unambiguous (measurable and
testable), traceable, and acceptable to key stakeholders. Option (a) stakeholder register is only a list of
stakeholders in the project, whereas option (b) stakeholder management strategy describes the strategy to
manage stakeholder expectations. Option (d) issue log is a document to capture project issues.

3. A project manager knows that managing the expectations of stakeholders helps to increase the probability of
project success by ensuring that stakeholders understand the project benefits and risks. For this process, he could use
all of the following tools and techniques EXCEPT?

Issue Log
Communication methods
Active listening
Writing skills

Explanations:

Answer (a) Issue log. An issue log is an input to the process manage stakeholder expectations. All of the others are
tools and techniques for the process. For more information please refer to PMBOK 4th edition Project
Communication Management PN 264

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Mohamed Nazaruddin Mohamed Nazaruddin
MOHD NAZ

4. As a project manager, you have been asked by the customer to give an overview of the project
status using milestone charts. Which of the following statement is INCORRECT about milestone
charts?

Milestones have zero duration


Milestone charts are similar to bar charts but only show major events
Milestone charts can be used to capture the status of project schedule
Milestone is used to define phase of a project

Explanations:

Answer (d) Milestone is used to define phase of a project. Milestone charts capture the major milestone in the
project which represents the beginning or completion of a deliverable, work package, phase, or project. A
milestone is a zero duration activity and these charts are commonly used to present project status to senior
management or a customer.

5. Project management is the application of knowledge, skills, tools and techniques to manage activities to meet the
project requirements. Which of the following is NOT true about managing a project?

Managing a project involves identifying requirements


It involves addressing the various needs, concerns and expectations of the stakeholders as the project is planned
and carried out
It involves balancing the competing project constraints such as scope, quality, schedule, budget, resources and risk
The specific project will not influence the constraints on which the project manager needs to focus.

Explanations:

Correct Answer is (D). The question has a negative connotation. The specific project will influence the constraints
on which the project manager needs to focus. Refer Pgs. 6 and 7 of PMBOK 4 Ed.

6. Which of the following is a tool for the quality assurance process?

Quality Audits
Cost of Quality
Control Chart
Quality Metrics

Explanations:

Answer (a) Quality Audits. For more information refer to PMBOK 4TH Edition Project Quality Management PN202

7. Your firm awarded a cost reimbursable contract to a pharmaceutical company for some research related activity.
Over time, a large number of changes have taken place on the project and it is difficult to keep track of the status of
these change requests. What is the BEST alternative for a project manager in this case?

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Terminate the existing contract and negotiate a new one with the seller
Capture all the change requests, along with their current status and follow the contract change control system
Terminate the existing contract and sign a similar one based on the same terms and conditions as the earlier one
Seek advice from the senior management of your organization

Explanations:

Answer (a) Terminate the existing contract and negotiate a new one with the seller. There are strong reasons for
the project manager to terminate the existing contract and re-negotiate the terms and conditions. As the earlier
contract was cost reimbursable, the project manager had limited information on the contract scope of work. It
may not be true now since some work has been done and project manager would be in a better position to
negotiate. Also since there are too many change requests with no clarity on how many of them would be approved,
it is difficult for project manager to continue work. The best option for project manager in this case is option (a).

8. You have taken over as a project manager of a complex and technically challenging project. To add to the
problems your team is from diverse cultures and lack bonding. You want the team to participate and take ownership
of the project activities, as well as understand the 'big picture of the project'. Which of the following activities would
be most helpful?

Use co-location to help team bond better which in turn would maximize productivity
Create Work Breakdown Structure (WBS) and WBS dictionary with the team
Develop Responsibility Assignment Matrix to describe roles and responsibilities of every team member
Conduct knowledge sessions where each member appraise the team about his culture

Explanations:

Answer (b) Create Work Breakdown Structure (WBS) and WBS dictionary with the team. The project manager wants
the team to take ownership, as well as understand how their individual project activities affect the overall project
deliverable (the big picture). He also wants the team to develop bonding. All these objectives are met when the
team gets involved in creating the Work Breakdown Structure (WBS) and WBS dictionary. Option (a) may not be
always possible due to physical constraints in the project. Option (d) has limited utility but option (b) is the best
choice as it fulfills multiple project objectives.

9. Which one of the following is the last step of project closing?

Archive Project Documents


Measure customer satisfaction at the end of the project
Client appreciates your product
Lessons learnt are documented

Explanations:

The right answer is B. All of the stated options are activities conducted during project closing. Measure customer
satisfaction at the end of the project is the last step in the closing process group. This is as per the new changes
suggested by the PMI RDS Study.

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10. A project manager wants to capture the details of activities he would be doing to enhance the value of the
process, including their inputs, outputs, and interfaces with other processes. Which of the following documents
would be MOST helpful?

Project Management Plan


Quality Management Plan
Process Improvement Plan
Product Management Plan

Explanations:

Answer (c) Process Improvement Plan. While option (b) describes how the project management team will
implement the quality policy of their organization; the process improvement plan is more focused on enhancing
the value of the process in a project. It includes determining process boundaries, process metrics, targets for
improved performances, etc. Please refer PMBOK 4th edition Project Quality Management PN 201 for more details.

11. You are a project manager and in the early phase of estimating the cost of the project. You use
the analogous method of estimating and have come up with the rough order of magnitude. While
presenting it to your sponsor and stakeholders, one of the stakeholders asks if you have also done
life cycle costing for the project. What is your BEST response?

Project Cost estimating is primarily concerned with cost of the resources needed to complete the project and
needn't consider any other costs
Since it is the initial stage of the project cost details required for Life Cycle costing of the project are not
available and hence it is not relevant
Life cycle costing provides the lowest long- term cost of ownership and should be used as a management decision
tool, in case of alternatives
Life cycle costing should be done by the project sponsor as it impacts long term business decisions

Explanations:

Answer (c) Life cycle costing provides the lowest long term cost of ownership and should be used as a management
decision tool. Although project cost management is primarily concerned with the cost of the resources needed to
complete the project (option a partly true), it should also consider the effect of project decisions on the
subsequent recurring cost of using, maintaining, and supporting the project. Hence life cycle cost analysis can be
used to assist management in the decision-making process. Remember, life cycle costing looks at the entire cost of
the product (not just the cost of project).

12. You are managing a large project team that has some new members join. You would like to take the entire team
through the project schedule and update them on where the project stands with respect to the original plan. Which of
the following charts would be most helpful for this purpose?

Gantt Chart
Milestone Chart
Work Breakdown structure

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Schedule Baseline

Explanations:

Answer (a) Gantt Chart. A Gantt chart is a bar chart that shows the activities of a project, when each must take
place, and how long each will take. As the project progresses, bars are shaded to show which activities have been
completed. People assigned to each task also can be represented. This is the most effective tool to show the
people assigned to the project where they are with respect to the original plan. Option (b) milestone chart is a
high level summary of the project schedule and more suitable for senior management. Option (c) the work
breakdown structure (WBS) is used to show the work that is in the project. Option (d) schedule baseline denotes
the standard by which project performance is measured.

13. You are assigned as a project manager to a project in the execution stage. Current schedule and performance
indices for the project, SPI and CPI are 1.12 and 1.15 and project performance are well within the baseline. The
defects found during internal testing for the last deliverable were well below the organization limits. However, the
customer doesn't seem to be happy with the project progress. What should be the FIRST thing the project manager
should do?

Start managing project as you gain more insight into day to day responsibilities
Meet with the project team to understand open issues in the project
Conduct a meeting with the customer to understand his concern over project progress
Improve project schedule and cost control measure so that SPI and CPI reaches above 1.5

Explanations:

Answer (c) Conduct a meeting with the customer to understand his concern over project progress. The most
important thing for the project manager who is taking over the project midway is to understand why the customer
is unhappy in spite of the project performance being well within the baseline. Option (a) wouldn't address the
main problem and option (d) has no valid justification. Option (b) could be a good option after talking to the
customer to address his concerns and other issues on the project.

14. Which of the following is NOT an advantage of a fixed price contract?

Less work for buyer to manage


Seller has a strong incentive to control costs
Buyer knows the total price at project starts
Final cost may be more than a cost reimbursable contract because contractors have to inflate the price to cover
their risk

Explanations:

Answer (d) Final cost may be more than a cost reimbursable contract because contractors have to inflate the price
to cover their risk.

15. The estimating technique that uses a statistical relationship between the historical data and
other variables to calculate an estimate for an activity is called?

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Analogous Estimating
Parametric Estimating
Three Point Estimating
Monte Carlo technique

Explanations:

Answer (b) Parametric Estimating. Parametric estimating is an estimation technique which utilizes the statistical
relationship that exists between a series of historical data and a particular delineated list of other variables. Some
examples of these variables include square footage in a construction project, the number of lines or code that
exist in a software application, and other similar variables. This information is then implemented for the purpose
of calculating and demonstrating an estimate for the activity parameters

16. You are a project manager managing a project with limited resources. Which of the following schedule network
analysis techniques would be most useful to modify the project schedule for limited resources?

Critical Path Method


Fast Tracking
Critical Chain Method
Crashing

Explanations:

Answer (c) Critical Chain Method. The critical chain method is a schedule network analysis technique that modifies
the project schedule to account for limited resources. In the critical chain method, initially the project schedule
network diagram is built using duration estimates and dependencies. Since the resources are a constraint, the
resource availability is entered next and the resource's limited schedule result is determined. Hence the critical
chain method is a network analysis technique used when project resources are constrained. For more information
please refer to PMBOK 4th edition Project Time Management PN155

17. As a project manager, you are in the final stages of determining your cost baseline for the project and funding
requirements. Which process are you currently in?

Cost Planning
Cost Estimating
Cost Budgeting
Cost Control

Explanations:

Answer (c) Cost Budgeting. The cost performance baseline and project funding requirements are outputs of the
'determine budget' process and it is done as part of the cost budgeting for the project. Please refer to PMBOK 4th
edition Project Cost Management PN 177 for more details

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MOHD NAZ

18. Your development team is waiting for the design team to finish their work. As a project
manager, you have decided to use this approach to reduce uncertainty in the project. Which of the
following relationships does this describe?

Iterative relationship
Sequential relationship
Overlapping relationship
Common relationship

Explanations:

Answer (B) Sequential relationship. A sequential relationship is where a phase can only start once the previous
phase is complete. The step-by-step nature of the approach reduces uncertainty but may eliminate options for
reducing the schedule.

19. A firm providing outsourced product development facilities wants to implement a new business
process which aims to improve customer satisfaction and retention. For this purpose, it has
identified a task team with an objective to introduce and train the employees on the new process
and further improvise until the customer satisfaction index increases by 15%. This entire exercise
can be best classified as?

Project
Operation
Program
Portfolios

Explanations:

Answer (A) Project . This is a project as this initiative fulfils all the characteristics of a project. Remember a
project is a temporary endeavour undertaken to create a unique product, service, or result. The temporary nature
of a project indicates a definite beginning and end. The end is achieved when project objectives are achieved
(here an increase in the customer satisfaction index by 15%). Please refer to PMBOK 4th edition Introduction PN 7
to understand difference in approach of a project, program, and a portfolio.

20. A project manager is studying the project contract and going through the narrative description of products and
services to be supplied under contract. He is also meeting key stakeholders and subject matter experts to evaluate
whether or not the project is worth the required investment. Which of the following documents would be created as
an output in the process?

Project Statement of Work


Project Charter
Project Management plan
Organizational process assets

Explanations:

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Answer (B) Project Charter. The project manager is in the develop project charter process in project integration
management and using statement of work to understand the product requirements and descriptions. The output of
this process is a project charter which once approved formally initiates the project. A project charter documents
high level project descriptions and business needs of the project, along with a current understanding of the
customer\'s needs, risks, name of the sponsor, etc.

21. You are a project manager taking over a project midway. It is in the execution phase. You would like to know
more about project deliverables, work required to complete those deliverables, project constraints, assumptions, etc.
Which of the following documents would be MOST useful?

Work Breakdown Structure (WBS) and WBS dictionary


Requirements Documentation
Activity List
Project Scope Statement

Explanations:

Answer (d) Project Scope Statement. The project manager should refer to the project scope statement as it
captures all of the details related to the project scope including product acceptance criteria, scope description,
project deliverables, constraints, assumptions, etc. Option (a) and option (c) define project scope at the smaller
work package and activity level respectively. Option (b) Requirements Documentation captures requirements of
the project related to quality, functional and non-functional requirements, support requirements, etc and is an
incorrect.

22. A project manager has made the final delivery to the customer and the team is in the process
of completing administrative and contract closure. The team has also completed the final version
of the lessons learned in corporate database. Which of the following is a critical activity that the
project manager should complete before formally closing the project?

Confirm that all the requirements in the project are met


Ensure that all project management processes are complete
Obtain formal sign-off of the project from the customer
Index and archive the project records

Explanations:

Answer (c) Obtain formal sign-off of the project from the customer. The most important part of project closure is
to get formal sign-off from the customer. As it indicates, the customer considers the project completed and
accepts the completed project. Formal sign-off in a contracting situation constitutes legal acceptance.

23. Which of the following does not signify the obstacles to effective delegation of authority?

Unwillingness of the manager to delegate authority


Fear of competition
Lack of confidence in subordinates
Unwillingness of the subordinate to delegate authority

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Explanations:

Answer (D) Unwillingness of subordinate to delegate authority.

24. A project manager is going through the defect report reviewing the bugs reported during the testing cycle of a
software project. The report has information on the severity of the bug, origin of the bug, possible resolutions, along
with the owner and reporter of the bug. The project manager wants to prioritize the bug fixing activities by
evaluating the top three most frequent reasons for the defects. Which of the following tools should he use?

Control chart
Fishbone diagram
Scatter diagram
Pareto chart

Explanations:

Answer (d) Pareto chart . Pareto charts works on the Pareto principal which states 80% of the problems usually
stem from 20% of the causes. Pareto charts can be used for defect analysis by arranging defects data so that the
few vital factors that are causing most of the problems reveal themselves. Concentrating improvement efforts on
these few will have a greater impact and be more cost-effective than undirected efforts.

25. You are managing a multinational project with team members sitting across different countries
with varying time zones. In this scenario, you wish to choose a communication medium which is
most efficient for the project requirements. What is the most appropriate way to address this?

Explore communication tools available in the market and ask for quotation exclusively for your project instead of
using existing tool in the organization
Use the most cost effective technique and involve everyone to explain its usage
Use a combination of communication technology as being done in your peers project
Discuss these communication requirements and available options with stakeholders to seek their input

Explanations:

Answer (d) Discuss these communication requirements and available options with stakeholders to seek their input.
It is important to have an effective communication medium in this project, especially since the team is in different
geographical locations and communication requirements are complex. It is best to take input from the
stakeholders of the project and understand their communication requirements before finalizing a technique

26. You are a project manager in a financial firm with multinational dealings. You feel the financial
meltdown in one of the client's countries could affect your project adversely and you want to
hedge your risks. Although the probability of occurrence of the event is low, you are advised to
play it safe. In terms of risk attitude, your organization could BEST be described as?

Risk Seeker
Risk Averse
Risk Neutral

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Risk Mitigator

Explanations:

Answer (b) Risk Averse. Someone who doesn't want to take risks is called risk averse and the project manager
seems to be part of such an organization. Option (c) risk neutral describes a person/or an organization which is
indifferent to the risk and option (a) risk seeker suggests an aptitude to take risks with an opportunity for higher
returns. Option (d) risk mitigation is a risk response strategy and is an invalid choice.

27. Which of the following statements is NOT true about product life cycle ?

It lasts from conception of a new product to its withdrawal


A product can spawn a single project in its life
The five stages of each product lifecycle are product development, introduction, growth, maturity and decline
Focuses on managing properties of product from company's business point of view

Explanations:

Answer (B) A product can spawn a single project in its life. Product lifecycle management (PLM) is the process of
managing the entire lifecycle of a product from its conception, through design and manufacture, to service and
disposal. PLM integrates people, data, processes, and business systems to provide a product information backbone
for companies. The five stages of each product lifecycle are product development, introduction, growth, maturity,
and decline. A product can spawn or require many projects over its life.

28. What does the DMAIC process in Six Sigma stand for?

Define the Problem, Measure and Analysis, Improve and Control


Define the Problem, Measure and Analysis, Indicate and Control
Define the Problem, Monitor and Analysis, Improve and Control
Discuss the Problem, Measure and Analysis, Improve and Control

Explanations:

Answer (A) Define the Problem, Measure and Analysis, Improve and Control

9. Which of the following is NOT TRUE for stakeholders?

Stakeholders can be customers, sponsors and the performing organization


Stakeholders can not exert influence over the project, its deliverables, or project team members
Stakeholder identification is a continuous process
A project can be perceived as having both positive and negative results by the stakeholders

Explanations:

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Answer (B) Stakeholders can not exert influence over the project, its deliverables, or project team members. This
statement is wrong as stakeholders can exert influence over the project, its deliverables, and team members.

30. All of the following are true for decision trees except,

Clearly lay out the problem so that all options can be challenged
Provide a framework to quantify the values of outcomes and the probabilities of achieving them.
Allow us to analyze fully the possible consequences of a decision
Get a financial approval from the CFO

Explanations:

Answer (D) Get a financial approval from the CFO. The financial approval which is required by the finance
department may be dependent on multiple parameters, not only the result evaluated from the decision trees.

31. After awarding contract to one of the sellers, you realize you have missed a clause for delay in the contract and
want to modify it. How should you proceed further?

Contract is legally binding and cannot be changed once signed


Project manager should inform the seller about the change in next meeting
Project manager should inform the seller about the change through a formal written communication
Project manager should proceed with Contract Change control System at his end

Explanations:

Answer (d) Project manager should proceed with Contract Change control System at his end

32. Your software project is in the critical system testing stage when two of the senior members of
the team come to you with a conflict on usage of the simulation software during testing. One
senior member claims that the other person keeps the software engaged for almost all of the
working hours of the project. You decide to change their working schedules so that they no longer
overlap. You are using which of the following techniques for conflict resolution?

Compromising
Confronting
Forcing
Smoothing

Explanations:

Answer (b) Confronting. This is the confronting or problem solving approach for conflict resolution because it
solves the real problem in such a way that the problem itself goes away.

33. You are a project manager of a software development project. You have outsourced a component of your
product to third-party vendor which is due to be delivered next week. You find out that the delivery of the

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component may be delayed due to political unrest in the vendor's location. What is the BEST you can do in this
situation?

Report your senior manager about probable delay along with details on the current political situation at vendor's
place
Communicate to the vendor that any possible delay would attract a fine and affect future payments
Revisit your project schedule and look at alternatives to reduce the impact of the delay
Since there is no official communication from the vendor, you need to use wait and watch policy

Explanations:

Answer (c) Revisit your project schedule and look at alternatives to reduce the impact of the delay. This question
can be tricky as it doesn't clearly state whether or not the project manager received a formal communication of
the delay from the vendor. Since a project manager should proactively look for any event that may delay the
project schedule, option (c) is the best alternative. Option (b) is harsh, especially in a situation which is beyond
the vendor's control (e.g. political unrest in the country).

34. Harry has been assigned the flyover construction project and he is in the process of initiating the project. In order
to meet the customer's project expectations, based on the business and compliance requirements, which of the
following should Harry define FIRST?

High level scope of the project


Project schedule
Project Statement of Work
Product Statement of Work

Explanations:

Answer (A) High level scope of the project. According to PMI's classification, the project manager should define the
high-level scope of the project based on the business and compliance requirements in order to meet the
customer's project expectations.

35. Of the following, which is the MOST true?

Cost and staffing levels are high at the start


Ability to influence the final characteristics of the product without impacting the cost is highest at the start
Uncertainty is the least at the start of the project
Stakeholder influences increase over the life of the project

Explanations:

Answer (B) Ability to influence the final characteristics of the product without impacting the cost is highest at the
start. Cost and staffing levels are low at the start. Uncertainty is greatest at the start of the project. Stakeholder
influences are greatest at the start of the project and decrease over the life of the project

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36. A project manager wants to measure project performance against the project baseline. Which
of the following techniques would be MOST helpful?

Variance Analysis
Earned Value Technique.
Work Performance Measurements
Reserve Analysis

Explanations:

Answer (b) Earned Value Technique. The earned value technique helps to measure project performance against
project baseline. It is a better method than simply comparing the plan with respect to actual as it integrates cost,
time, and work completed. The earned value technique can also be used to forecast future project performance.
Option (c) Work Performance Measurements is an output to control costs and is not a technique. Option (a)
Variance Analysis can be used to asses the magnitude of variation to the original baseline for just a single
paramete unlike the Earned Value Technique.

37. You are working at a customer location in a foreign country where it is customary to exchange gifts during their
New Year celebrations . Your company forbids you to accept any form of gifts from your customer, but you have a
strong feeling that if you refuse to accept and reciprocate the gesture, it can severely affect your relationship with the
customer. In this case, it is BEST to?

Politely refuse to accept any gifts explaining your company policy


Discuss this situation with your project sponsor or legal department
Accept the gift and keep it confidential so that there is no loss of face for your organization
Take a break from project work to go on a small vacation during local New Year time

Explanations:

Answer (b) Discuss this situation with your project sponsor or legal department. No matter how much we wish to
take a vacation whenever we encounter a complex situation, this isn't the correct answer! Since the company
policy forbids the project manager from accepting any gifts, he should consult his project sponsor and legal
department.

38. A project manager is facing many serious issues in his project to create an application for a hospital management
system. The project's final deliverable is scheduled for two weeks from now. It needs to fulfill compliance to
mandatory government health standards. In addition to that there are some changes required to improve performance
which the project manager feels will make the customer happy. Amidst all of this, a senior test engineer asks the
project manager for a long leave. Which is the most critical issue the project manager needs to address FIRST?

Ensure product is compliant to government health standards


Find a replacement for the senior tester and ensure he completes knowledge transfer before leaving
Complete change control process to incorporate changes to enhance performance

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Notify the customer about probable delay in the final deliverable to avoid surprise later

Explanations:

Answer (a) Ensure product is compliant to government health standards. This question exemplifies a typical
scenario when a project manager needs to integrate information and prioritize the most critical issue. In this
scenario, option (c) is part of gold plating and is not actually required in the project. Option (b) can pose some
trouble to the project manager. The question doesn't clearly establish whether the resource is leaving before or
after the final delivery. There is no indication that his absence would adversely affect the project delivery. In this
situation, the most important thing to focus on should be the compliance testing because it is a mandatory
requirement on the project.

39. Pareto Analysis is a simple technique for prioritizing problem solving work, so that the first
piece of work you do resolves the greatest number of problems. It is based on which of the
following principles?

Tom Pareto Principle


80/20 Rule
Root Cause Analysis
Whys Principle

Explanations:

Answer (B) 80/20 Rule. Although option (A) appears correct, Tom Pareto is an ambiguous name. If it had only been
the Pareto Principle then that would've been a correct answer.

40. A company recently launched a digital instrument in the market which was completely unsuccessful. The
company has incurred huge costs in the development of the product including intellectual property, research and
development, patents, etc . All of these costs are referred to as ____________

Opportunity cost
Depreciation
Sunk Costs
Internal Rate of Return

Explanations:

Answer (c) Sunk Costs. Sunk costs are retrospective (past) costs that have already been incurred and cannot be
recovered. An example of a sunk cost is the cost of a seat on an airplane to the airline. The cost of an airline seat
is primarily fixed and sunk (as long as one assumes the flight was going to take place regardless of whether the
seat was sold) with a small portion attributed to variable costs if one considers the food and beverage service.
Thus it makes sense for the airline to develop a pricing structure designed to maximize the revenue of the aircraft
during a flight. They can do this by changing their pricing depending on the demand for a particular flight, and/or
by offering additional benefits to their frequent flyers. As long as the price of a seat covers the variable cost of the
seat, its revenue will contribute to the bottom line of the airline.

41. While monitoring the project you find that an accepted risk is going to occur. Which of the
following will you use to develop for the response:

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Risk Response Plan


Fallback Plan
Mitigation Plan
Risk Register

Explanations:

Answer (a) Risk Response Plan. The risk response plan communicates how specific risks will be dealt with and the
action steps that are required to carry them out.

42. Once the risks have been identified on the project, the next step is to manage the risks. Of the following, which
is NOT a suitable way of managing the risks?

By using existing assets


By contingency planning
By investing in new resources
By Brainstorming

Explanations:

Answer (D) Brainstorming. Brainstorming is a tool and technique for risk identification. All of the other options are
ways of managing the risks. Existing assets may involve improvements to existing methods and systems, changes in
responsibility, etc. Contingency planning may help you in minimizing the effect, if it happens. Investing in new
resources may help in reducing or insuring you against risk.

43. You are managing an infrastructure project which is nearing completion when a major stakeholder points out a
flaw in the design which could make the entire structure weak. He suggests you construct two support pillars which
would provide the necessary support. You are worried that this change could impact the schedule and cost of the
project significantly. What is your BEST response to the stakeholder?

Refuse him as the project is already nearing completion and it's not possible to make any changes at this stage
Do a Root cause analysis with the team to determine how this design flaw could have been missed and if there
could be more potential problems with the design
Proceed with the change and communicate the impact on project schedule and cost to the customer
Use a schedule compression technique as part of integrated change control to investigate and minimize the
adverse impact of the change

Explanations:

Answer (d) Use a schedule compression technique as part of integrated change control to investigate and minimize
adverse impact of the change. Schedule compression technique is useful not only during project planning to see if
the desired completion date can be met but also during integrated change control to look at the schedule impacts
of changes to time ,cost ,scope, or risk . Option (b) though seems to be in good faith, but doesn't address the
immediate problem. Option(c) should be done once all the alternatives are explored to minimize the adverse
effect of the change on the project schedule and other constraints.

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44. As a project manager you are estimating the duration of your project activities using PERT technique (Program
Evaluation and Review technique). For a particular project activity, your optimistic estimate is 41 days, pessimistic
estimate is 89 days and most Likely estimate is 60 days. What would be the expected duration and range of the
estimate for this activity?

61.67 +/- 8.00


31.27 +/-8.00
61.67 +/-3.00
31.27 +/-3.00

Explanations:

Answer (a) 61.67 +/- 8.00 PERT allows the estimator to include three estimates: optimistic, pessimistic, and most
likely, given by the equation:
Expected Duration = [P + 4(ML) + O]/6 and range is +/- standard deviation = (P-O)/6
where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this
method the correct answers comes out to be 61.67 days and Range (+/-Standard Deviation) as 8.00 .

45. All of the statements about the Arrow Diagramming Method (ADM) or Activity-on-Arrow (AOA)
are true EXCEPT

The nodes are used to represent activity and arrows show activity dependency
Uses only Finish to Start relationship between activities
May use dummy activities
It's a popular method of drawing network diagram

Explanations:

Answer (a) The nodes are used to represent activity and arrows show activity dependency. In the arrow
diagramming method (ADM), the arrows are used to represent activities. The nodes represent activity dependency

46. As a project manager, you need to estimate the regression testing for your product. You would
like to do 5 full testing cycles. Each cycle is estimated to take 4 days. What should be your
estimated duration for the testing activity?

25 days
18 to 22 days
18 days
22 to 24 days

Explanations:

Answer (b) 18 to 22 days . The estimated duration for 5 testing cycles of 4 days each is 20 days. The correct
estimation range is 18 to 22 days.

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47. You are managing a critical project with frequent changes in requirements. You are in the testing phase of the
project and the customer has requested an additional new feature. You have assessed the impact of the change on the
triple constraints with your team. What should be your NEXT step?

Raise a change request form and send it for approval to change control board
Look for alternative options including schedule compression techniques like crashing and fast tracking
Analyze the impact of the change on project quality objectives and quality planning
Update the project management plans and other project documents including project baselines

Explanations:

Answer (c) Analyze the impact of the change on project quality objectives and quality planning. It is important to
analyze the impact of change on not only the triple constraints, but also on quality. The project manager needs to
determine whether the quality objectives and quality planning needs to be modified to address the changes.
Option (b) is already addressed as part of assessing the impact on the triple constraints.

48. A project manager has derived quality metrics along with tolerance limits for his project. He is
in which part of the quality management knowledge area?

Plan Quality
Perform Quality Assurance
Perform Quality Control
Define Scope

Explanations:

Answer (a) Plan Quality. Quality metrics are determined as an output to the process plan quality, along with
tolerance limits for each of them. A metric would give the actual value or the measurement of a project or
product attribute, whereas a tolerance defines the allowable variations on the metrics. The selection of these
metrics in a project would heavily depend on the type of the project and the objective of collecting the metrics.

49. A project manager likes to involve his team in the decision making process . Whenever there
are issues which require urgent decisions, he calls the team to work out a solution together. This
approach is

Correct, because it helps to get team buy- in and as well as their commitment to the change
Correct, as brainstorming technique helps to bring out creative ideas to solve the problem
Incorrect, as lot of time and effort of the project team is spent on decisions which could be singularly made by the
project manager
Incorrect , as not all the solutions coming of brainstorming session cannot be implemented resulting in
disappointment in the team

Explanations:

Answer (c) Incorrect, as lot of time and effort of the project team is spent on decisions which could be singularly
made by the project manager. The key words here are 'involve his team in all the decision making process'. It is

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important for the project manager to involve his project team to work out solutions to critical project issues.
However, he should use this approach judiciously as the amount of time spent in the meetings could lead to an
inefficient use of the team's time. Furthermore, in many situations meetings actually delay the decision making
process due to internal conflicts.

50. Baselines are an important input to a number of project processes. Outputs of many processes raise change
requests to these baselines. Of the following, which is not a valid project baseline?

Scope baseline
Risk baseline
Cost baseline
Schedule baseline

Explanations:

Answer (B) Risk baseline

51. A project manager is proactively managing the change through the scope control process.
Which of the following should he be MOST worried about?

Value Added Changes


Errors and Omissions
Risk Response
Verbal communication from key stakeholders

Explanations:

Answer (d) Verbal communication from key stakeholders. Undocumented changes should never be allowed by the
project manager. He should ensure that whenever a change is requested, the impact on features and functions of
the product (including that on the triple constraints) is documented with a change request. Only then should the
change continue through integrated change control. Option (a) value-added changes describe changes in the scope
that would provide benefits in terms of cost reduction etc. Option (b) errors and omissions could be both in
project scope, which is the work to complete the project and the product scope which are the features and
functions of the deliverables. Option (c) risk response involves changes in the scope required to mitigate an
identified risk. Of all the above events which would result in possible change of scope, option (d) verbal
undocumented changes poses maximum potential threat to a project.

52. As a project manager for a pharmaceutical project, you are in the process of stakeholder analysis. You have
identified both internal and external stakeholders. Which of the following may be adopted to manage internal and
external stakeholders?

Use the Influence / Impact matrix


Correct identification of the internal and external stakeholders
Determine and agree on the responsibilities of the internal and external stakeholders
All of the above

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Explanations:

Answer (D) All of the above. All the stated options will assist in actions used to manage both internal and external
stakeholders.

53. You are managing one of the most technically challenging and complex projects for your
company. In the beginning of the project, there used to be heated arguments on the team
regarding the best approach to solving a problem. However, the project is well into the execution
stage and the team has finished designing the architecture of the product. They seem to have
developed a good understanding of the system. What is the most appropriate way to handle project
conflicts at this stage?

You should continue to determine the best solution and ask team to implement it
You should let the team explore the best alternatives amongst themselves while you facilitate and support them.
You should invite ideas from everyone in the team to arrive at the best solution
You should make the decision based on consensus from majority of the team

Explanations:

Answer (b) You should let the team explore the best alternatives amongst themselves while you facilitate and
support them. A project manager needs to provide more direction in the beginning of the project because he
knows the best way to plan the project. However, as the project team matures and develops an understanding
during project execution phase, the project manager needs to transition to a support role. Your leadership style
could be coaching, facilitating, or supporting.

54. Big bang testing is where software components of an application are combined all at once into an overall system.
Which of the following types of testing does this fall into?

Integration Testing
Unit Testing
Variable testing
System testing

Explanations:

Answer (A) Integration Testing

55. A key stakeholder of the project is contacted for a requirements document approval, but shows no interest. The
project manager decides to have a friendly, informal discussion with him to understand the reason for his lack of
interest. During the conversation, the stakeholder expresses his displeasure that two of his key suggestions were not
addressed on the project. He feels as though his approval or feedback doesn't really matter since his main
requirements are not being captured. What is the best option for the project manager in this case?

Agree with stakeholder and doesn't take his approval on requirements. Remove his name from the list of
stakeholders and avoid communicating with him further on project status
Incorporate the requirements of the stakeholder and then take his approval

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Talk to your project sponsor about the issue and take his approval before taking any further action
Explain to the stakeholder that although his suggestions were appreciated, it is not possible to address all of them
in this release due to project constraints. You will revisit them for the next phase.

Explanations:

Answer (d) Explain to the stakeholder that although his suggestions were appreciated, it is not possible to address
all of them in this release due to project constraints. You will revisit them for the next phase. This should be
addressed as part of 'manage stakeholder expectations'. A project manager should proactively work with
stakeholders to manage their expectations, address concerns and resolve issues. For more information please refer
to PMBOK 4th edition Project Communication Management PN 261

56. Your project just completed, and one of your subcontractors has sent you the tickets for the
next IPL cricket match to thank you for your business. What is the BEST way to respond?

Thank the subcontractor, but do not give him preference in the next RFP
Thank the subcontractor, but politely refuse the gift
Ask for tickets for the entire team, so that it is fair to everyone
Report the subcontractor to PMI

Explanations:

Answer (B) Thank the subcontractor, but politely refuse the gift. The PMP Code of Professional Conduct says that
youre not allowed to accept any kind of gift, not even if its after the project has finished. That would be the
same thing as taking a bribe.

57. Which of the following is the power that is based on the ability to reward?

Coercive Power
Reward Power
Legitimate Power
Prize Power

Explanations:

Answer (B) Reward Power. The power that a project manager may possess to reward is referred to as reward
power.

58. Which of the following is NOT an input to the process manage stakeholders expectations?

Stakeholder Register
Project Management Plan
Issue Log
Negotiation Skills

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Explanations:

Answer (d) Negotiation Skills. Negotiation skills are one of the tools and techniques of the process manage
stakeholders

59. What is the value of six sigma?

99.73
95.45
99.67
99.99

Explanations:

Answer (D) 99.99. Correct value of six sigma is 99.9999998, wherein the defect per million operations (DPMO) is
only 0.002

60. A project manager working in an iterative model of the product development life cycle expects
many changes during the course of the project. He wants to establish a robust configuration
management system and also make his team aware of the process. Which of the following
statements is NOT true about configuration management?

The purpose of configuration management is to maintain integrity of work product


Configuration management includes configuration audits, configuration control ,configuration status accounting
and configuration identification
Configuration management focuses on establishing and maintaining consistency of a product's requirements
Configuration management involves measuring project performance with baselines and taking corrective action
when necessary

Explanations:

Answer (d) Configuration management involves measuring project performance with baselines and taking
corrective action when necessary. This is done as a part of the process 'monitor and control project work'. All the
other statements describe the configuration management process .

61. You are working on a project to build a hybrid car which would run on both diesel fuel, as well
as electricity. This car would have a 1000 cc engine and work on a regenerative braking system. It
should be able to seat four passengers including a driver and comply with Euro 4 emission norms.
This information should be captured in which of the following documents?

Product Scope
Project Scope
Scope baseline
Requirements Management Plan

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Explanations:

Answer (a) Product Scope . If you got confused with project scope, remember that the above statements describe
the features, functions, and requirements which are part of defining product scope. To differentiate project scope
from product scope read through the definition of each. Product scope: the features and functions that
characterize a product, service, or result. Project scope: the work that needs to be accomplished to deliver a
product, service, or result with the specified features and functions. The product scope describes the thing or
service that will exist as a result of your project. The project scope, on the other hand, describes all of the work
to create the product scope. It includes all of the work, and only the required work, to complete the project
deliverable. Note: completion of project scope is measured against the project management plan , project scope
statement and its associated Work Breakdown Structure (WBS ) , WBS dictionary, and scope baseline. Completion
of product scope is measured against product features or requirements.

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62. A project team is in the process of risk tracking and control. The risk control action defined by the mitigation
and contingency plans is being implemented in accordance with the details of those plans. Who is responsible for
implementing these actions?

Project Manager
Project Team
Risk Owner
Risk Manager

Explanations:

Answer (c)Risk Owner. Risk owner for that particular risk is responsible for implementing the actions defined by
mitigation and contingency plan in risk management. A risk owner for a risk is identified during the planning stage
of risk management and he helps to assess the risk and produce probability and impact information. He also
develops risk mitigation and contingency plans, provides status data for respective risk issues and assists in
evaluating risk control action effectiveness. The risk owner also documents threshold criteria of high and medium
risks and supports the identification of new risks.

63. Your project is going through an audit cycle when one of the senior auditor points out that the target value for
Schedule Performance Index (SPI) is set to low value and it should be increased by at least 5 percent. You try to tell
him that this target value is as per the organization baseline and cannot be changed. Which of the following is
CORRECT statement in this case

The Auditor is right, as the project has critical deadline to meet and hence target SPI should be increased
The Auditor is right; as the target value for SPI is a benchmark for the project it should be kept high and thus
increased
The Project Manager is right, the schedule is not critical in the project and hence target SPI value needn't be kept
too high
The Project manager is right; target SPI is based on organization baseline derived from its process maturity level
and should be followed by the project

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Explanations:

Answer (d) The Project manager is right; target SPI is based on organization baseline derived from its process
maturity level and should be followed by the project. Most organizations set up an organization level baselines
called process capability baselines. PCB or Process Capability Baseline specifies what results to expect when a
process is followed. Using PCB a project can predict at the gross level, effort required at various stages, defect
densities, overall quality, and productivity. In this case, the project manager is right to set the target values of his
project metrics based on the organization baseline value.

64. Jenny is the project manager and is currently in the initiating process group. She understands that it is critical for
project success to identify stakeholders early in the project. Therefore, she is in the process 'identify stakeholders'.
Of the following, which INPUT may not be required,

Procurement documents
Project Charter
Expert Judgment
Enterprise environmental factors

Explanations:

Answer (C) Expert Judgment. Expert judgment is a tool and technique for the 'identify stakeholders' process and is
not an input.

65. A project manager is using an S-Curve to reflect the various expenditures of resources over the
projected time of the project. This S curve indicates that

Bulk of the project cost is spent during the execution phase


The project follows linear expenditure over all the phases
The project resource cost would be directly proportional to the size of the project
The project has high risk of attrition during execution phase

Explanations:

Answer (a) Bulk of the project cost is spent during the execution phase. The S- Curve is used in project
management as a means of representing the various expenditures of resources over the projected time of the
project or as a means of charting the real-time expenditure of resources. This is important to project management
in that it can be used to monitor the project as it progresses and compare it to the projected S-Curve to determine
whether the project is being completed within the time and budget limitations. The shape of the curve indicates
the maximum cost and staffing levels are during the execution phase of the project.

66. A project manager shares project performance through status reports via email to all the
stakeholders of the project. He is using which of the following techniques?

Kick off meeting


Pull Communication
Push Communication

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Communication model

Explanations:

Answer (c) Push Communication. Push communication is sending information to specific recipients who need to
know the information. This ensures that the information is distributed, but doesn't actually certify that it actually
reached or was understood by the intended audience. Examples of push communication include letters and press
releases. For more information please refer to PMBOK 4th edition Project Communication Management PN 256

67. You are a project manager managing a construction project which is midway through the execution phase. The
project is progressing well and is on schedule when one of the vendor calls you to inform you that there will be a
weeklong delay in his shipment delivery. This is due to a law and order problem in his city. Which of the documents
would best capture the impact of the delay on the project schedule?

Network Diagram
Procurement Management Plan
Work Breakdown Structure
Risk Register

Explanations:

Answer (a) Network Diagram. A project network diagram captures the project schedule and would be the best
document to reflect the impact of a delay on a vendor deliverable. The work breakdown structure shows what
work is in the project, but doesn't focus on how long it should take. The risk register would show an increase in
project risk, but wouldn't help to determine the impact of a delay on the project schedule.

68. As a project manager in a matrix project environment, you have limited control over team member selection.
Which of the following tools and techniques would NOT be helpful for this purpose?

Pre assignment
Acquisition
Virtual Teams
Interpersonal skills

Explanations:

Answer (d) Interpersonal skills. Interpersonal skill is a technique used in the process called develop project team.
The rest of the options are tools for the process 'acquire project team'. For more information please refer to
PMBOK 4th edition Project Human Resource Management PN 230.

69. As a project manager you decide to create an issue log which captures issue description,
owner, and the target date for issue closure . All of the following are common examples of issues
in the project EXCEPT?

Differences in Opinion
Probable delay in the next delivery

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Pending Root cause Analysis


Delay in receiving feedback from the customer

Explanations:

Answer (b) Probable delay in the next delivery. Probable delay in the next delivery represents a project risk and is
not an issue as the event is uncertain. This may or may not happen in future.

70. A project manager working on a construction project identifies a risk of a heavy storm in the coming months
which might affect the construction activity. However, he doesn't have any reliable information on the weather
forecast or the severity of the storm. In this case, what is the BEST project manager can do?

Capture the Risk in the Risk Register


Ignore the Risk as nothing can be done to avoid it
Actively accept the risk and allocate time and cost reserve in contingency fund
Proceed with Risk Response Strategy to counter the Risk

Explanations:

Answer (c) Actively accept the risk and allocate time and cost reserve in contingency fund. In this situation the
project manager has no information on the timing, anticipated frequency, or impact of the expected rough
weather. Option (d) will not give any valuable information. The best option is (c) to accept the risk, but plan a
contingency reserve in terms of cost and time in case the risk occurs. Option (a) and (b) are passive approach and
are not recommended for a good project manager who should be always proactive in his approach towards risk
management.

71. A project manager is discussing the observed variations between planned and actual values of the defects with
his quality engineer. He realizes that he has forgotten to identify one of the important metrics to analyze defects.
Which process group is the project manager in if he evaluates the current result for the metric to see if it requires
corrective actions?

Planning
Executing
Monitor and Control
Quality Audit

Explanations:

Answer (c) Monitor and Control . The activity of identifying applicable quality standards, processes, and metrics is
completed as part project planning. In this case, the project manager is evaluating the variation in the current
results for the new metric and whether it requires corrective action. He is in the 'monitor and control' process
group.

72. An organization aims to increase performance by aligning goals and subordinate objectives on all of the projects
running throughout the organization. For this purpose, the project managers get strong inputs to identify their project
objectives and time lines for completion, etc. The organization then periodically evaluates the projects with respect
to these objectives and take corrective actions when necessary. This management philosophy is called?

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Total Quality Management


Management by Objective
OPM3
Capability maturity Model

Explanations:

Answer (b) Management by Objective. The term was made popular by Peter Drucker in his 1954 book 'The Practice
of Management'. Management by objective is a systematic and organized approach that allows management to
focus on achievable goals and to attain the best possible results from available resources. The principle behind
Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding
of the aims, or objectives of that organization, as well as awareness of their own roles and responsibilities in
achieving those aims.

73. What is the top source of conflict on a project from the following?

Schedule
Project priorities
Administrative procedures
Personality

Explanations:

Answer (a) Schedule. The top-ranking source of conflict is schedule. Scheduling is probably one of the toughest
obligations of most project managers. Next in the list is project priorities. Because managers need to attend to the
projects of the organization, sometimes conflict arises when not all projects are given attention and importance.
Third on the list is manpower resource. Lack of individuals to work on a certain project may cause pressure. When
people start to feel the intensity of pressure, they also start cramming and become less motivated to work on it.
Technical conflict and administrative procedures come next on the list. Finally, cost objectives and personality
conflicts complete the list of seven sources of conflict.

74. Tom has been recently promoted to project manager for a short term IT project. Jim, an
experienced project manager, has suggested to him that the most important task for a project
manager to be successful is communication with the stakeholders. He explains to him that Tom
should communicate the project status to the stakeholders to get some feedback. How will this
help Tom on his project?

All the stakeholders will be happy with Tom


This will ensure that the project aligns with the business needs
The Project sponsor will be happy
Tom has to do this as this defined in the organizational policies

Explanations:

Answer (b) This will ensure that the project aligns with the business needs. A project manager may send detailed
project information and project status to concerned stakeholders but he needs to communicate the project status,

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in different formats, with the stakeholders to get their feedback which will ensure that his project aligns with the
business needs and there will be less unsatisfied stakeholders.

75. A project manager has defined the high level scope of the project based on the business and compliance
requirements. He is now identifying and documenting high level risks, assumptions and constraints based on current
environment, historical data and/ or expert judgment, in order to identify project limitations and propose an
implementation approach. Which process group is he in?

Initiating
Planning
Executing
Closing

Explanations:

Answer (A) Initiating. It is during the initiating process group that we identify and document high level risks,
assumptions and constraints in order to identify project limitations and thereafter propose an implementation
approach.

76. A senior stakeholder approaches the project manager to slightly modify the project scope to include an
additional feature required by him. The project is already in the execution stage. What should be the response of the
project manager?

It is difficult to incorporate this feature as the project is already moved out of planning stage
Analyze the impact of the request on the other factors of triple constraints namely cost and schedule
Bring the change request to Change Control Board to decide on its fate
Document the change request as per project scope management plan

Explanations:

Answer (d) Document the change request as per project scope management plan. The project manager should only
consider documented change requests. He should ensure that when the change is requested the impact on features
and functions of the product is documented by a change request before the change is allowed to move through
Integrated Change Control. Option (b) and (c) would come later as part of the integrated change control process

77. Which of the following are the MOST important to deriving the total funding requirements and
periodic funding requirements of the project?

Management Reserve and Contingency Reserve


Cost Baseline and Management Reserve
Funding Limit Reconciliation
Project Budget and Contingency Reserve

Explanations:

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Answer (b) Cost Baseline and Management Reserve. The total funds required in the project are those included in
cost baseline, plus management reserve if any. Remember, the cost baseline includes contingency reserves
because the cost baseline will include projected expenditures plus anticipated liabilities. Please refer to PMBOK
4th edition Project Cost Management PN 179 for more details

78. One phase is planned at any given time and the planning for the next is carried out as work progresses on the
current phase and deliverables. Which of the following correctly defines the above text?

Overlapping relationship
Sequential relationship
Multi-phase relationship
Iterative relationship

Explanations:

Answer (D) Iterative relationship. An iterative relationship is where one phase is planned at any given time and the
planning for the next is carried out as work progresses on the current phase or deliverable.

79. A key stakeholder from the quality department wants to know more on how the process tailoring was done by
the project team. Additionally, he would like to know the rational for selecting processes, their implementation level
details, and how they will be used to manage the interdependencies. Which document should the project manager
refer him to?

Project Statement of Work


Project Scope Statement
Project Management Plan
Work performance Information

Explanations:

Answer (c)Project Management Plan. The results of process tailoring by the project team are captured in the
project management plan, along with all the other information required by the stakeholder.

80. Your project has the following information based on earned value analysis, its Earned Value (EV) is $1000,
Actual Cost(AC) is $ 850 and Planned Value(PV) is $1050. Which of the following is TRUE about your project ?

Your project is over budget and behind schedule


Your project is under budget and behind schedule
Your project is over budget and ahead of schedule
Your project is under budget and ahead of schedule

Explanations:

Answer (b) Your project is under budget and behind schedule. Cost Variance = EV-AC = $1000-$850 =$150 is
positive and SV = EV - PV =1000-1050 = -50 is negative.

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81. You are being hired to manage a highway construction project for a contractor working for
XYZ. The sponsor is a project officer who works for the XYZ municipal government. You have three
separate teams working all three shifts, with a separate manager for each team. Each team has
members from two different unions, and each union has its own representative. Who is the BEST
person to approve the project charter?

Project manager
Union representatives
Project Officer who works for XYZ
Team managers

Explanations:

Answer (C) Project Officer who works for XYZ. Since this person is the sponsor, he is responsible for approving and
signing the charter.

82. Which of the following is not a tool and technique used during the quality control process?

Control charts
Statistical Sampling
Histogram
Quality Audits

Explanations:

Answer (d) Quality Audits. Quality audits is a structured independent review to determine whether project
activities comply with organizational and project policies and is done as part of the quality assurance process.
Please refer PMBOK 4th edition Project Quality Management PN 204 for more details.

83. A key stakeholder expresses his concern over lack of project visibility and progress. He says that he has been
sent project status reports, but most of the time it lacks information relevant to his department. How should the
project manager respond?

Review the Project Communication Management Plan to determine stakeholder's needs


Relook at Distribute Information to identify the gaps
Raise a change request to address the stakeholder's feedback
Relook at Report Performance process to understand the problem

Explanations:

Answer (a) Review the Project Communication Management Plan to determine stakeholder's needs. The
communication management plan determines the project stakeholder information needs and defines the
communication approach. It is the document that needs to be referred to resolve stakeholder's issues. Since the
stakeholder is receiving timely performance reports options (b) and (c) are not correct .

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84. A popular Japanese technique which advocates continuous small improvements involving
everyone from top management to the lowest level in the organization is called?

Ishikawa
Kaizen
Deming cycle
Total Quality Management

Explanations:

Answer (b) Kaizen. The term (In the Japanese language, kaizen stands for "improvement") refers to a philosophy or
practice focusing on continuous improvement in manufacturing activities and business activities in general. When
used in the business sense and applied to the workplace, kaizen typically refers to activities that continually
improve all functions of a business. This can include manufacturing to management and from the CEO to the
assembly line workers. By improving standardized activities and processes, kaizen aims to eliminate waste. For
more information on this technique check the following link http://en.wikipedia.org/wiki/Kaizen

85. Which of the following statements are TRUE?

Project closure documents and project files are outputs of the Close Project Process
The project files consists of documentation resulting from project activities, such as the project management
plan, scope, cost, risk registers, quality baselines
The formal acceptance documentation formally indicates that the customer or sponsor has officially accepted the
project deliverables
All of the above statements are TRUE

Explanations:

Answer (D) All of the above statements are TRUE

86. As a project manager, you are a firm believer in process and you want to follow the best practices on the project
right from the beginning. In this regard, you understand the importance of having a formal kick-off meeting to
launch the project with all your key stakeholders including the customer. However, you are worried about the
behavior of some of your team members. In the last internal meeting, there was utter chaos with the speaker
shouting to be heard while others kept talking amongst themselves and ignoring the speaker. What is the BEST
strategy to use to avoid such a situation in the kick-off meeting?

Set objectives of the kick off meeting clearly, so that all the attendees are aware of the meeting agenda
Ensure that all the key stakeholders are invited to avoid inviting disinterested people who wouldn't listen to
speaker
Communicate ground rules and ensure they are followed in all the meetings going forward
Meet the troublemakers in the team and communicate them the importance of meetings in a project success.
Warn them of disciplinary action if they don't oblige

Explanations:

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Answer (c) Communicate ground rules and ensure they are followed in all the meetings going forward. Ground
rules are a set of rules on how the team will interact, make decisions, and handle issues that must be addressed.
They are the best option for a project manager as it enables him to remove himself from the issue and address the
conflict or situation without unnecessary or harmful emotion. In essence, the project manager becomes the
facilitator of the ground rules document. This would also help resolve conflicts inevitable in any project,
sometimes on their own. Ground rules should be established at the very start of the project, preferably at the
kick-off meeting. Although option (a) and (b) are important for effective meetings, it is not solving the main
problem of unruly behavior by few team members. Option (d) may solve the problem partly with some
troublemakers from last meeting. Option (c) is best because it helps the project manager prevent future conflicts
without any harmful emotion to the team.

87. You are a project manager of a highly visible and critical project in your company . This
project was initiated with much fanfare and you have some of the best technical experts as a part
of the project team. You are in process planning and detailing the scope of the project when you
hear the project is being terminated. What could be the MOST likely cause?

Senior management didn't approve the project charter


The project team didn't have required technical expertise
The project sponsor failed to support the project
The project contract was not signed off by customer

Explanations:

Answer (c) The project sponsor failed to support the project. The answer to this question can be reached by
process of elimination. Since the project is already initiated and is in the planning stage option (a) and (d) can't be
true. There is no evidence to believe option (b) and the most probable explanation could be failure to support
project by sponsor. The term sponsor, by definition, suggests a financial responsibility. This sponsor is thought to
"own" the project and is considered responsible for ensuring its success. He/she is also typically the one who
proposes the project in the first place; whose business unit reaps its benefits.

88. According to F.C. Moore, "Delegation means assigning work to the others and giving them authority to do so".
Which of the following suggests the right order for Delegation?

Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of Assignment, Creation of Responsibility


Transfer of Authority, Assignment of Duties to Subordinates, Acceptance of Assignment, Creation of Responsibility
Assignment of Duties to Subordinates, Acceptance of Assignment, Creation of Responsibility, Transfer of Authority
Acceptance of Assignment, Creation of Responsibility, Assignment of Duties to Subordinates, Transfer of Authority

Explanations:

Answer (A) Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of Assignment, Creation of
Responsibility.

89. All of the following are functions of the 'project management office' except,

Monitoring compliance with project management standards policies, procedures and templates via project audits
Coaching, mentoring, training and oversight

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Managing shared resources across all projects administered by PMO


Identifying and developing the organization's methodology, administrative practices, and rules

Explanations:

Answer (D) Identifying and developing the organization's methodology, administrative practices, and rules. The
PMO's role is to identify and develop the project management methodology, best practices, and standards.

90. The method of examining work or a product to determine whether it conforms to documented standards is
called?

Inspection
Statistical Sampling
Audit
Verification

Explanations:

Answer (a) Inspection . Inspection is the examination of work or a product to determine whether it conforms to
documented standards. It is also called peer reviews, reviews audits, or walkthroughs. Inspection can be done at
any level in the project and can also be used to validate defect repairs.

91. You are managing a project with a total budget of $36,000 to be finished in one year. You are in the end of the
6th month and currently the project is on schedule; however, the actual cost of the project is $20,000. What is the
cost variance on the project?

+ $2000
- $2000
+$16,000
-$ 6,000

Explanations:

Answer (b)- $2000. Cost variance = Earned Value (EV) - Actual Cost (AC) . Here, Earned Value is uniformly spread
over entire project duration .So earned value at the 6th month = [(Total Cost)/ (Total Project months)] * Months
completed i.e.=( $36,000/12)*6 = $ 18,000. Cost Variance = $18,000-$20,000 = -$2,000

92. A project manager is working towards improving the competencies, team interaction, and
overall team environment to enhance project performance. Which of the following tools and
techniques would NOT be helpful here?

Training
Recognition and Rewards
Conflict Management
Co-location

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Explanations:
Answer (c) Conflict Management. The project manager is in the process of develop project teams and all the
others except conflict management are tools and techniques used in the process . Conflict management is part of
manage project team. For more information please refer to PMBOK 4th edition Project Human Resource
Management PN 23293. You are managing an e- banking solution project when the Vice-President of the company
calls you to discuss an opportunity to manage a critical company project which can boost your career and
professional experience. Your e-banking solution project is due to complete in 3 weeks. What is your best response
to the Vice-President?

You would surely like to manage both the projects together as latter is a critical project for the company
You would use a compression technique to finish your current project faster and then take up this new project
Since the new project is more critical to the organization, you could take this project immediately and your earlier
project can be managed by someone else. It is coming to a close anyway.
The project should first develop an approved project charter which would formally initiate the project

Explanations:

Answer (d) The project should develop an approved project charter which would formally initiate the project. An
approved project charter formally initiates a project and authorizes a project manager to apply resources to the
project. A project without a project charter is not a project. With this in mind, a project sponsor should first
develop a project charter. All the other options (a,(b) and (c) are not suitable until the new project is formally
initiated.

94. After a major milestone release, some of the key stakeholders are not happy and complain
their requirements are not met. The project manager should have involved them in which of the
following processes to ensure their approval for the release?

Project Management Plan Development


Identifying Constraints
Scope Verification
Schedule Management

Explanations:

Answer (c) Scope Verification. Scope verification is the process of formal acceptance of completed project scope
and deliverables by stakeholders through signature on paper or via an email that specifically states project
approval. Prior scope verification would have avoided the dissatisfaction of stakeholders after the milestone
release.

95. A project manager in an MNC corporation is in the process of collecting, organizing, and disseminating
information on how project resources are being used to complete project objectives. In addition, he is collating
information on cost, schedule, and level of quality. He is also going through the influence of risks on project
objectives. The project manager is in which process?

Direct and Manage Project Execution


Report Performance

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Earned Value Technique


Monitor and Control Project work

Explanations:

Answer (b) Report Performance. The project manager is in 'report performance' process as part of communication
management. It is the process of collecting and distributing performance information, including status reports,
progress measurements and forecasts. For more information on the process please refer to PMBOK 4th ed

96. Of the following which is NOT true about a bell curve?

Most common type of distribution of a variable


Also known as Normal distribution
Also known as Gaussian distribution
Also known as Curvy Bell distribution

Explanations:
Ans7. As a manager you would like to get the status on the remaining work with respect to the funds remaining.
Which of the following measures will give you the information?

To-Complete Performance Index


Earned Value Technique Performance
Variance Analysis
Trend Analysis

Explanations:

Answer (a) To-Complete Performance Index. To-Complete Performance Index (TCPI) is the calculated projection of
cost performance that must be achieved on the remaining work to meet a specified management goal. The
formula to calculate TCPI is = Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-AC) where AC is the
Actual Cost, EV is t

wer (D) Also known as Curvy Bell distribution. All other options are true about a bell curve

98. A project team with a CPI of 0.78 is looking for options to reduce cost. Which of the following should be the
BEST option to choose?

Reduce a test cycle, in the System Testing phase


Reduce scope by cutting down non- essential features
Add more resources to expedite the schedule
Revisit estimates and eliminate risks; re- estimate

Explanations:

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Answer (d) Revisit estimates and eliminate risks; re- estimate. Option (c) wouldn't reduce cost. Option (a) and (b)
would always have a negative effect as they compromise on quality or scope . Of all the available option's (d) is
the one with the minimum negative effect.

99. One way the close project or phase process differs from close procurement is:

Procurement closure involves verification that all work and deliverables are acceptable, where Close Project or
Phase does not
Close Project or Phase is only a subset of Close Procurement
Procurement closure means verifying that the project is complete or terminated; close project or phase is the
process of tying up all of the activities for every management process group
Procurement closure is performed by the seller; Close Project or Phase is performed by the buyer

Explanations:
Answer (C) Procurement closure means verifying that the project is complete or terminated; close project or
phase is the process of tying up all of the activities for every management process group. When youre performing
the close procurements process, youre closing out work done by a seller for a contract. In order to do that, you do
a few things: you verify that all of the work and deliverables are acceptable, you finalize any open claims, and in
case of early termination, you follow the termination clause in the contract. On the other hand, when youre
performing the close project or phase process, youre finalizing all of the various activities that you do across all
of t100. In one of the project status meetings, two of the senior team members get into an argument regarding the
introduction of a new tool to automate time sheet filling. Which of the following would provide you maximum
insight on the conversation?

The content and timing of conversation


The content and timing of the conversation and the communication technology used
Body Language and the words in the conversation
Body language and voice modulation including pitch and tone

Explanations:

Answer (d) Body language and voice modulation including pitch and tone. Option (d) includes non-verbal and
paralingual forms which are critical for effective communication and form more than 55% of all communication .

he process groups, and youre also verifying that the work and deliverables are complete.

101. A pharmaceutical company recently terminated a research project because it no longer seems
commercially viable for the company. What is the FIRST thing the project manager should do?

Release the team members


Document the lessons learned
Conduct scope verification
Discuss with senior manager the reason for abrupt project termination

Explanations:

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Answer (c) Conduct scope verification. If the project is terminated, the project manager should do scope
verification to determine the extent of completion of the project. In this case, scope verification is measured
against the deliverables to the point when the project is cancelled i.e. scope verification measures the accuracy of
the work up to the cancellation, not the work that was to be completed after project termination. Options (a) and
(b) can be done later.

102. A project manager is planning the project and he is creating a plan to describe how human resource
requirements in the project would be met. He is using a bar chart tool called a resource histogram for charting this
requirement. However, he notices that some of the individual bars in the resource histogram extend beyond the
maximum allowed hours. What should the project manager do to correct it?

Reduce Scope
Extend Working Hours
Resource Leveling
Schedule Compression

Explanations:

Answer (c) Resource Leveling. Resource leveling is required whenever individual bars in the resource histogram
extend beyond the maximum allowed hours. Resource leveling can be done by either adding more resources or
modifying the schedule. Option (a) Reducing scope or (b) extending working hours would be detrimental to the
project's success and is not recommended here. Option (d) schedule compression which can be done through either
crashing or fast tracking wouldn't necessarily be helpful. Since specific bars are showing an overflow, it can be
best tackled using resource leveling.

103. You are managing a complex project which requires some highly skilled resources on embedded design. You
obtain these resources from the organization pool specifying the duration for which they would be required. Once
your project activity is complete you need to free these resources for reassignment. You are working in which kind
of organization structure?

Functional
Projectized
Matrix
Tight Matrix

Explanations:

Answer (c) Matrix. This is a characteristic of a matrix organization. In the matrix structure, the personnel and
other resources that a project manager requires are not permanently assigned to the project, but are obtained
from a pool, controlled and monitored by a functional manager. Personnel required to perform specific functions
in a particular project are detailed for the period necessary, and are then returned to the control of the functional
manager for reassignment. Example: An engineer assigned for a specific period to design a subsystem of a project
is responsible to the functional manager for completing the task as scheduled and to the project manager for
providing an acceptable design. So this structure is characterized by 'two bosses'.

104. A project manager notices that a control chart has a group of seven non-random data points
in a series between his upper control limit and mean. What does it indicate about the process
stability of the project?

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This is a Random cause of variation and can be ignored


The process is stable and in control as none of the data points are outside control limits
The control limits for the process are well within specification limits
The process is out of statistical control and needs to be investigated

Explanations:

Answer (d) The process is out of statistical control and needs to be investigated. The rule of seven is a heuristic
rule which refers to a group of seven non-random data points in a series between his upper control limit and mean.
A rule of seven denotes the presence of an assignable or special cause in the process and also that the process is
out statistical control. Option (c) is true for stable process, here it doesn't relate to the question .

105. A project manager is identifying relevant enterprise and environmental factors in his project.
Which of the following is NOT a valid example?

Organizational Culture and processes


Stakeholder Risk Tolerances
Employee performance Review records
Historical lessons learned knowledge base

Explanations:

Answer (d) Historical lessons learned knowledge base. These are parts of the corporate knowledge base in
organizational process assets. All of the remaining are examples of enterprise and environmental factors. It refers
to both internal and external environmental factors that surround or influence project success either positively or
negatively. To go through a list of examples for enterprise and environmental factors refer to PMBOK 4th edition
Introduction PN 14

106. Which of the following is NOT true about the initiating process group?

Large projects may divide the projects into phases


Initial scope is committed
Initial scope and Financial resources are committed
Internal and External stakeholders are identified

Explanations:

Answer (B) Initial scope is committed. Although individually this option is correct, but relative to the other options
this is not a correct option. During initiation, both scope and finances are committed. The other options, A and D
are correct

107. After working as a project manager for more than 25 years, you want to share your learning and best practices
with your industry. You do this by writing articles in international journals and giving interviews to share your
experience. This act can be BEST described as?

Enhancement of professional skills by learning project management and technical skills

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Contribution to project management knowledge base by virtue of vast personal experience


Capturing professional stint in autobiography purely from retrospection exercise
Informing others about project management principles and helping profession grow

Explanations:

Answer (b) Contribution to project management knowledge base by virtue of vast personal experience. The project
manager is sharing his lessons learned and best practices to the project management knowledge base.

08. A project manager has invited key stakeholders and team members for the first meeting of the project. The
agenda of the meeting is to announce the start of the project, outline the project goals and objectives, as well as
communicate the project success criteria . The project manager also plans to discuss the individual roles and
responsibilities, along with the commitment of the stakeholders. What is this activity called?

Project Sign- off meeting


Charter closure meeting
Project launch meeting
Project kick off meeting

Explanations:

Answer (d) Project kick off meeting. The kick off meeting which is done in the beginning of the project and then
before starting each new project phase has four main objectives: a) Publicly state the beginning of the project;
b) Outline the project goals as well as the individual roles and responsibilities of team members;
c) Clarify the expectations of all parties;
d) Create a commitment by all those who influence the project's outcome.

109. A CEO from his Paris office wishes to communicate with the technical officer in China . The
correct procedure would be?

The CEO will encode the message from French to Chinese, the technical staff will decode it from Chinese to
French
The CEO will decode the message from French to Chinese, technical staff will encode it from Chinese to French
The CEO will encode the message from Chinese to French; technical staff will decode it from French to Chinese
The CEO will decode the message from French to Chinese , technical staff will encode it from Chinese to French

Explanations:
Answer (a) The CEO will encode the message from French to Chinese, the technical staff will decode it from
Chinese to French. Remember, each message is encoded by the sender and decoded by the receiver based on the
receiver's education, language, experience, and culture. For more information please refer to PMBOK 4th edition
Project Communication M110. A hospital is installing a new management system to computerize the hospital
functions. For this purpose, representatives from several departments are selected to create a task force assigned to
implement the project. This organization structure is called?

Functional Organization

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Projectized Organization
Composite Organization
Balanced Matrix Organization

Explanations:

Answer (c) Composite Organization. Many times even a fundamentally functional organization may create a special
project team to handle a critical project. This may have many characteristics of a project team in a projectized
organization. The team may include full-time staff from different functional departments, may develop its own set
of operating procedures, and may operate outside the standard, formalized reporting structure.

anagement PN 255

111. Which of the following factors is not part of Maslow's Hierarchy of Needs?

Physiological Needs
Social Needs
Security Needs
Material Needs

Explanations:

Answer (d) Material Needs. As per Maslow's Hierarchy of Needs, there are five different levels of human needs:
Physiological Needs, Security Needs, Social Needs, Esteem Needs, and Self-actualizing Needs.

112. You have recently joined a new construction company and you find that your employer is violating the
construction permit issued by the local city government. What should you do?

Inform the city authority of the violation


Talk to your employer to find out if they are aware they are breaking the law
Complain the legal department of the company
Do nothing as you are new in the organization

Explanations:
Answer (b) Talk to your employer to find out if they are aware they are breaking the law. The best option is to
first talk to your employer to discuss your findings and know their perspective. It would also help you verify your
observ113. You are managing a project which would provide e-learning solutions to your customer. The
requirements of this project are not clearly defined in the beginning and there would be modifications based on
customer feedback as the project evolves. You decide to plan as much as you can and begin to create work while
continuing the planning. Which of the following techniques would be the most helpful while defining activities for
the project?

Rolling Wave Planning


Templates
Extreme Programming

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Just in Time

Explanations:

Answer (a) Rolling Wave Planning. Rolling wave planning is a form of progressive elaboration where work to be
accomplished in the near term is planned in detail and future work is planned at a higher level of the Work
Breakdown Structure. Therefore, work can exist at various levels of detail depending on where it is in the project
life cycle. As more information is known about upcoming events, the higher level work packages can be
decomposed further. Option (b) templates which are usually standardized would not be a very helpful tool for
evolving requirements. Option (c) and (d) are not recognized tools and techniques of project time management.

at

114. You are a project manager who is in the process of performing the work defined in the
project management plan to achieve the project objectives. You are in which process ?

Develop Project Management Plan


Monitor and Control Project work
Direct and Manage project work
Execution process group

Explanations:

Answer (c) Direct and Manage project work. The project manager is currently in the process of direct and manage
project work which is a part of the execution process group.

115. As a project manager, you understand the importance of contract documents and correspondence for future
references. Which of the following can be used to manage and store contract documents and records?

Claims Administration
Audit Reports
Lessons Learned
Records Management System

Explanations:
Answer (d) Records Management System. A records management system consists of a specific set of processes,
related control functions, and automation tools that are consolidated and combined as part of the project
management information system. The system contains a retrievable archive of contract documents and correspond
116. You need to determine when to release resources from your project. Which part of the
staffing management plan will be most useful for this?

Resource Histogram
Safety procedures
Recognition and rewards
Training needs

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Explanations:

Answer (a) Resource Histogram. A resource histogram is a bar chart that shows the amount of time that a resource
is scheduled to work over a series of time periods.

117. A project manager working in a matrix project environment feels there is some discontent in the team members
related to their dual reporting and the role of project manager on the project. The project manager wants to
communicate with the team to clarify their doubts. What is the BEST form of communication for addressing this
problem ?

Formal Written mail


Informal chat with the team
Face-to-face-meeting
Informal written mail

Explanations:

Answer (c) Face-to-face meeting . A face-to-face meeting is ideal for project communication. It gives the project
manager an avenue to understand the reasons for discontent and clarify their doubts. Face-to- face meetings have
an added advantage of being accompanied with non-verbal (body movements, physical mannerisms) and
paralingual (pitch and tone of voice) communication methods.

118. You are a project manager in a manufacturing company and you want to assess the current quality of your
production process. You also want to check if the process is stable over time or if there are any special causes of
variation. Which of the following tools would be MOST suitable for this purpose?

Control chart
Pareto Chart
Test of Normality
Inspection

Explanations:

Answer (a) Control chart. A control chart is a statistical tool used to distinguish between variation in a process
resulting from common causes and variation resulting from special causes. Some variation may be the result of
causes which are not normally present in the process. This could be special cause of variation. Some variation is
simply the result of numerous, ever-present differences in the process. This is a common cause variation. Control
charts differentiate between these two types of variation. It presents a graphic display of process stability or
instability over time. Process stability is defined as a state in which a process has displayed a certain degree of
consistency in the past and is expected to continue to do so in the future.

119. A key responsibility of the project manager is to ensure the proper assimilation of the project management
processes and coordinate the process phases through the project management cycle. Also, she ensures that all areas
of the project come together to successfully deliver the project. This involves balancing the basic aspects of scope,
cost, and schedule in addition to managing quality, communication, customer satisfaction, etc. The role of the
project manager can be best described as?

Integrator

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Leader
Communicator
Differentiator

Explanations:

Answer (a) Integrator. The role of a project manager is the combination of all the above options, but the one that
is most critical to the project's success is that of an Integrator. As described in the question, a project manager is
expected to integrate the project management processes and coordinate the process phases through the project
management cycle to ensure that all areas of the project come together to successfully deliver the project.
Integration involves pulling together all aspects of project management including scope, cost, schedule, quality,
and communication in addition to working with other departments such as Legal , Human Resources, Training ,
Contract Administration, and Information Technology.

120. As a project manager you are worried about continuous bad performance of one of your team members. You
have spoken to him over coffee, but there seems to be no improvement. What is the MOST suitable way to
communicate your dissatisfaction?

Formal, Verbal
Formal Written
Informal, Written
Informal, Verbal

Explanations:

Answer (b) Formal Written. This is the second notice to the team member for poor performance and it should be
communicated in a formal written manner.

121. The process of predicting future performance based on the current performance is called ?

Variance Analysis
Trend Analysis
Design of Experiments
Benchmarking

Explanations:

Answer (b) Trend Analysis. In project management, as well as other areas, trend analysis refers to a mathematical
technique that uses historical results to predict future outcome.

122. A project manager wants to determine the variance for an activity estimate using a three point estimate with the
following data Pessimistic=14, Optimistic=2, Realistic=5. What is the variance?

5
2

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4
Not enough information

Explanations:

Answer (c) The formula for variance = [( Pessimistic-Optimistic)/6]squared. The answer is 4.

123. You are managing a project with project teams in different geographical locations. There are approximately 25
team members in 3 different locations each being lead by a team lead. Additionally, there are 3 members from a
supporting group that are working part- time on the project. How many communication channels are possible in
your project?

496
992
424
32

Explanations:

Answer (a) 496 This is directly based on the formula (n* n-1 )/2 . If n is the number of stakeholders in the project,
the total possible communication channels = (n* n-1 )/2 . The project has 25 team members, 3 team leads, 3
support team members, and the project manager. That makes it 32 people and 496 possible communication
channels. Please Refer PMBOK 4th edition Project Communications Management PN 253

124. A cost reimbursable contract has an estimated cost of $15,000. If the seller beats the cost they will share the
savings, 75% to the buyer and 25% to the seller. If the actual costs come in at $12,000, what is the final price?

12500
12750
12250
12000

Explanations:

Answer (b) 12,750. For this question: Target price = $ 15,000 ; Actual cost = $ 12,000; Sharing ratio = 75/25 Actual
cost to the buyer = $12000 + ($15,0000-$12,000)*25% = $12,750

125. You are a project manager for an IT company in the final phases of project execution. Your project status is
well within the budget and you are almost a week ahead of your schedule. During the final testing phase of the
project, you realize that the performance of the product can be increased by almost 20% of the expected value by
doing minor code changes in two modules. This change would require an additional 2 days of work. What should
you do NEXT?

Analyze the various alternatives and do a detailed impact analysis before proceeding with the change
Update the change management form and send it to change control board for consideration
Discuss the change and impact with customer and seek his approval

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Ignore the change as it is gold plating and should be avoided

Explanations:

Answer (d) Ignore the change as it is gold plating and should be avoided. This is an example of gold plating because
this requirement is not actually part of the contract. Such additions are usually based on a perceived notion of
what the customer would like rather than a specific requirement from the customer. Gold plating is defined in
simple words as adding more to the system than is specified in the requirements. Gold plating can increase
operation and maintenance costs, as well as reduce quality.

126. A project manager realizes that a lot of time and effort is spent by his team in capturing the data during product
testing. The best option to address the issue is?

To stop capturing the data as it doesn't add any value to the project activity
Allocate a time at the end of the day to update all the data together
Ask for an additional resource to capture project data
Automate the data capturing process

Explanations:

Answer (d) Automate the data capturing process. The best alternative is the one which eliminates the root cause
of the problem and prevents subsequent changes. Here the main problem is the inefficient use of time and effort
of team members in capturing the data. The best way to address this is to automate the process thus reducing
both time and effort. Option (b) could result in incorrect and incomplete data because it's not recorded at the
time of capturing. Whereas option (a) and (c) suggest the project manager evade the responsibility of producing
valid project data.

127. A project team is working on the network diagram of a project and wants to determine the float of a project
activity. Which of the following is the correct formula?

Late finish-early finish (LF-EF)


Late finish-early finish (LF-EF) or late start-early start (LS-ES)
Late start-early start (LS-ES)
Late finish-late start (LF-LS)

Explanations:

Answer (b) Float is calculated by subtracting either the early finish (EF) from the late finish (LF), or the early start
(ES) from the late start (LS). ie Float for an activity = LS-ES or LF-EF

128. Which of the following is NOT true about beta risk?

The probability that a false null hypothesis will be accepted by a statistical test
Also referred to as Type I error
Also referred to as Type II error
The larger the sample tested, the lower the beta risk becomes

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Explanations:

Answer (B) Also referred to as Type I error

129. As a project manager for the project in the planning stage, you have derived the cost
estimates by estimating the cost of individual work packages. It is summarized to higher levels for
reporting and tracking. What would be the range of estimates from the actual?

-50 percent to +100 percent


-50 percent to +50 percent
-10 percent to +25 percent
-10 percent to +15 percent

Explanations:

Answer (d) -10 percent to +15 percent. This is the definitive range derived during the later part of the project
when project information is available in sufficient detail. The estimates could become more refined to a range of -
10 percent to +15 percent from the actual. This estimate is usually derived using the bottoms up estimation
technique.

130. Which of the following is NOT an input of the close project or phase process?

Project Management Plan


Project Management Methodology
Accepted Deliverables
Organizational Process Assets

Explanations:

Answer (B) Project management menthodology. The project management methodology describes the process (or
lifecycle) that you use to manage your project.

131. Which of the following is the correct order of actions that you take during the closing processes?

Get formal acceptance, release the team, write lessons learned, close the contract
Write lessons learned, release the team, get formal acceptance, close the contract
Get formal acceptance, write lessons learned, hand over deliverable to stakeholder(s), close the contract
Get formal acceptance, close the contract, write lessons learned, release the team

Explanations:

Answer (c) Get formal acceptance, write lessons learned, hand over deliverable to stakeholder(s), close the
contract. One important fact is that you need your teams help when youre writing the lessons learned. Thats
why you cant release the team until the lessons learned are documented and added to the organizational process
assets. Also, the last thing you do on the project is close the contract. Remember, release the project team is no
longer part of closing as per the new RDS study conducted by PMI.

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132. Which of the following is NOT true about the project charter?

It provides the project manager the authority to assign organization resources


Formally authorizes the project
Details the business justification of the project
It states what the project is, what the project will deliver, and how all the processes will be managed

Explanations:

Answer (D) Project Charter provides the high level project description and product characteristics. It authorizes
the project and provides the project manager the authority to assign organization resources.

133. A major stakeholder in the project wants to know his role and responsibility in the scheduling process of the
project. He also wants to understand how the schedule baseline is established for the project and which scheduling
methodologies are used in the project. Which document should the project manager ask him to refer to?

Project Management Plan


Project Schedule Baseline
Stakeholder Register
Schedule Management Plan

Explanations:

Answer (d) Schedule Management Plan. The schedule management plan establishes how the schedule management
will be carried out in the project. It serves as guidance for the scheduling process and defines the roles and
responsibilities for stakeholders, along with scheduling methodologies, schedule change control procedures, etc.

134. You are managing a complex, critical project and have made a lot of efforts to make the team technically
competitive during the process . The project is in the final acceptance testing stage when a senior resource comes to
discuss his plans of continuing his education and leaving this current assignment. He would require a positive
recommendation for work from you to fulfill admission requirements. What should you do?

Tell him that you wouldn't recommend him as he has broken your trust by leaving project before closure
Immediately ask functional manager to remove him from the project and give him a bad recommendation
Discuss and plan his smooth exit which would least affect the project schedule
Compliment him on his decision and suggest him to leave project whenever he likes as you would handle his
additional responsibilities

Explanations:

Answer (c) Discuss and plan his smooth exit which would least affect the project schedule. The project manager
should take steps to minimize the impact of any change on the project which can affect the triple constraints" in
the project. Option (d) is wrong and it sets a wrong example.

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135. As a project manager, you are conducting a structured review of the seller's progress to deliver the project
within the contract specifications. Your objective is to determine progress with respect to the procurement statement
of work. You would be doing this review in which stage of the project?

Before contract closure


Before awarding the contract
As part of project status review
In case of non conformance by seller

Explanations:

Answer (c) As part of project status review. The project manager is doing procurement performance review as part
of the process 'administer procurements'. It is a structured review of the seller's progress to deliver project scope
and quality, within cost and on schedule, as compared to the contract. For more information refer PMBOK 4th
edition Project Procurement Management PN 338.

136. A project manager wants to present a project performance report to the management which captures project
results over the last 3 years to see if the performance is improving or deteriorating. Which of the following reports
should he use?

Earned Value
Status Report
Forecasting Report
Trend Report

Explanations:

Answer (d) Trend Report. A trend report would capture this information. Option (a) earned value integrates scope,
cost, and schedule measures to assess current project performance. Option (b) status reports describes where the
project is currently based on the performance measurement baseline. Option (c) forecasting report is used to
predict future project status and performance.

137. A method used for making decisions includes the following steps: a. List your options as rows on a table and
the factors you need to consider as columns b. You score each option/factor combination and weight this score by
the relative importance of the factor. Add these scores up to give an overall score for each option. Of the following,
which is NOT this tool?

Decision Matrix Analysis


Pugh Matrix Analysis
Multi-Attribute Utility Theory (MAUT)
Paired Comparison Analysis

Explanations:

Answer (D) Paired Comparison Analysis. This tool is referred to as Grid Analysis or Decision Matrix Analysis or Pugh
Matrix Analysis or Multi-Attribute Utility Theory. Paired Comparison Analysis is an estimation tool.

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138. You are managing a project to build a multi-story complex in your city. You are waiting for the clearance to
start construction of a building. This is an example of which kind of dependency?

External Dependency
Mandatory Dependency
Discretionary Dependency
Internal Dependency

Explanations:

Answer (a) External Dependency. This is an example of an external dependency that involves relationships
between the project and non-project activities which are outside the control of the project manager. For
example, government clearance is required before any construction activity can start at a site. Option (b)
mandatory dependency are also called hard logic. Mandatory dependencies are those which are contractually
required or inherent to the nature of the work. Option (c) discretionary dependency or soft logic are dependencies
which are at the discretion of the project manager. For more information please refer to PMBOK 4th edition
Project Time Management PN155.

139. An influence map is a visual model showing the people who influence and make decisions about your project.
The map helps you understand how stakeholders relate to one another, so that you can quickly see the way in which
influence flows. While constructing the influence map, which of the following should NOT be considered?

Importance or weight of a stakeholder's overall influence


Relationships between stakeholders
Amount of influence stakeholders have over others
Types of stakeholders

Explanations:

Answer (D) Types of stakeholders. For influence maps, you require the importance, relationships among
stakeholders, and the amount of influence stakeholders have over others.

140. Which of the following is NOT the personal style defined by Merrill and Reid in their employee
motivation theory?

Driver
Amiable
Expressive
Affiliation

Explanations:

Answer (D) Affiliation. Merill and Reid in their employee motivation theory define the following personal styles,
viz. Driver, Amiable, Expressive, and Analytical.

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141. The project manager is reviewing the issue register as part of his execution activity. Which of the following
should the project manager perform as part of his monitoring and controlling process group activity?

Assess the corrective actions on the issue register


Determine the next steps for unresolved issues
Use appropriate tools and techniques in order to minimize the impact on project schedule, cost and resources
All of the above

Explanations:

Answer (d) All of the above. As a project manager, it is required that during the monitoring and controlling process
group, the project manager should assess corrective actions on the issue register. Also, he should determine the
next steps for resolving issues by using the appropriate tools and techniques in order to minimize the impact on
project schedule, cost, and resources.

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

Reviewing the contract terms to ensure that they have all been met
Identifying successes and failures that should be recognized
Documenting lessons learned
Using the payment system to process consideration as per the terms of the contract

Explanations:

Answer (d) Using the payment system to process consideration as per the terms of the contract. Payment or
consideration is not part of an audit, rather it is a tool and technique of the 'administer contracts' process.

143. A manager, managing collection of projects grouped together to facilitate effective


management to meet strategic business objectives is called a?

Program Manager
Portfolio Manager
Project Manager
Stakeholder

Explanations:

Answer (B) Portfolio Manager. Portfolio refers to a collection of projects or programs grouped together to facilitate
effective management to meet strategic business objectives and the person managing it is called a portfolio
manager. Portfolio management describes methods for analyzing and collectively managing a group of current or
proposed projects based on numerous key characteristics like business objectives, technical strategy goal etc.

144. You are a project manager working on a critical project . You track the project schedule closely. While going
through the critical path, you realize that the project is showing negative float. What is your BEST response to the
situation?

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Use a schedule compression technique


Reduce the number of resources from the project
Reduce the number of non- critical activities in the project
Revisit the risks and do a risk analysis of the project

Explanations:

Answer (a) Use a schedule compression technique. The best option is to compress the project schedule because
the critical path activities can be delayed thus resulting in a negative float. In this case, the project manager
should use a schedule compression technique such as fast tracking or crashing.

145. As a project manager you have a large team reporting to you with two members working on this technology for
the first time. At the beginning of the project, you were concerned that the members wouldn't be able to contribute
as much due to technical complexity of the project. However, you spent time and gave them the required training in
order to perform. During your assessment, you find some areas which still require improvement. What should you
do next next?

Discuss this with the functional manager asking him to assign these resources in some other project as you have
already spent enough effort of them
Give them more challenging assignments so that they fail and you have reasons to expel them from the team
Assess their current weak areas and provide more focused training with regular feedback
Call them in your chamber and give them a warning that this is their last chance to perform in the project

Explanations:

Answer (c) Assess their current weak areas and provide more focused training with regular feedback. Don't forget
that the role of a project manager is also that of a leader. The question seems to suggest that improvement in the
team's performance would give much better results. Option (a) would have been good if the project manager
would have suggested the members move to a project which matches their skill set. Since this is not the case, the
best option is choice (c)

146. A buyer has floated a procurement document to buy cement for his construction company and in response
received several price quotations. The buyer has used which of the procurement documents?

Request for Proposal


Request for Quotation
Invitation for Bid
Proposal

Explanations:

Answer (b) Request for Quotation. A price quote is usually in response to a request for quote. A bid is usually in
response to an invitation to bid. A request for proposal is for responding to a proposal document

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147. As a project manager and member of the PMO (Project Management Office), you want to present a snapshot of
the status of various projects undergoing in the organization to senior management. Which of the following charts
would be most suitable for the purpose?

Milestone chart
Gantt Chart
Precedence diagram
Control chart

Explanations:

Answer (a) Milestone chart. A milestone chart depicts key events along a timescale. It is used for top level
reporting, so management does not become bogged down in the minutia of the project or projects. Milestones on a
milestone chart can be shown in various colors or with markings that indicate status. It can also contain other
information related to the project(s) like customer , responsibility , duration, or phase of the milestone etc.

148. You are a project manager in a manufacturing company. You want to analyze the output of a
production line which manufactures piston rings. You want to determine whether the variations in
the jobs are inherent to the process or if the process is in need of adjustment. Which of the
following tools would be MOST useful?

Statistical sampling
Control charts
Pareto charts
Trend Analysis

Explanations:

Answer (b) Control charts. Control charts are a graphical display of the results over time of a process. They are
used to determine if the process is "in control" or in need of adjustment. There are various types of control charts
with different objectives to serve. Some popular ones include: X-bar chart: sample means are plotted in order to
control the mean value of a variable (e.g., size of piston rings, strength of materials, etc.). R chart: sample ranges
are plotted in order to control the variability of a variable. S chart: sample standard deviations are plotted in
order to control the variability of a variable. S**2 chart: the sample variances are plotted in order to control the
variability of a variable. Option (a) Statistical sampling is the process of selecting elements of a population for
either descriptive or inferential purposes and is not a tool.

149. A pharmaceutical company wants to launch a new over-the-counter medication for flu in the U.S. The project
manager is identifying project communication constraints. Which of the following is NOT a valid constraint?

Get an FDA approval before producing or selling the medicine


The key person responsible for communicating the information on the project may not be available through the
entire project
The milestone meeting should be attended by all the major key stakeholders
The project has teams working in different geographical locations and time shifts

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Explanations:

Answer (b) The key person responsible for communicating information on the project may not be available through
the entire project. A communication constraint is usually derived from specific legislation or regulation (option a),
organizational policies (option c), or a project constraint (option d) which limits the project's options during
communication management. However, option (b) is an uncertain event or risk in the project which needs to be
addressed through risk management

150. As a project manager you realize that the initial budget cost, Budget at Completion (BAC) for your project is
no longer viable. You need to develop a new Estimate At Completion (EAC) forecast assuming current variances
would continue in the future. Which of the following formula should you use for calculating EAC? Here AC is the
Actual Cost , EV is the Earned Value, PV is the Planned Value .

EAC = AC + ETC
EAC= AC+ (BAC - EV)
EAC = EV/PV
EAC = BAC/ cumulative CPI

Explanations:

Answer (d) EAC = BAC/ cumulative CPI . This method assumes current variances to be typical of the future. The
remaining work is assumed to be performed at the same cumulative cost performance index (CPI) as what has been
incurred by the project to date.

151. Which of the following statements are TRUE regarding the initiating process group?

Risk is lowest during the Initiating process group


The project has the highest probability of project success during the Initiating process group
Project Manager and team is always identified as part of the Initiating process group
Initiating process group includes the develop project charter and identify stakeholders process

Explanations:

Answer (D) Initiating process group includes the develop project charter and identify stakeholders proces

152. A project manager is in the process of analyzing activity sequences, durations, resources
requirements, and schedule constraints to create an approved project schedule. What should he
do NEXT?

Determine Resource Requirement for each activity in the project


Use techniques like Critical Path method, What-if Analysis to calculate optimum duration of the project
Use this approved schedule duration as a baseline and start tracking the project
Create a Network diagram of the project using one of the diagramming methods

Explanations:

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Answer (c) Use this approved schedule as a baseline and start tracking the project. The project manager is in the
process 'develop schedule'. Since he has already derived an approved project schedule, it implies option (a) ,(b)
and (d) are already completed as part of the processes estimate activity resources, develop schedule, and
sequence activities. The next step would be to treat this estimate as a schedule baseline and start tracking the
project as part of the process 'control schedule'.

153. Your project has faced some unforeseen issues that have delayed it. The project is very critical for the company
and it has to meet the scheduled deadline. In order to meet the deadline your team would have to work over the
weekends for the next two weeks. However, you know that many of the team members will have some personal
commitments and it will be very difficult for them to work for seven consecutive days. What is the BEST option for
you?

Hire additional resources and brief them about the project


Inform the customer that this deadline can't be met
Discuss the situation with the team and give them the choice to willingly work overtime
Send an official mail making it compulsory for the team to come and work over the weekends

Explanations:

Answer (c) Discuss the situation with the team and give them the choice to willingly work overtime. The project
manager should explore all the options to avoid delay in the project. In this case, there might be some team
members willing to work over the weekends and the manager can re-plan the schedule once their availability is
confirmed.

154. A project manager is mainly responsible for the coordination of activities, resources,
equipment, and information on the project. His authority is limited and he has to negotiate with
the functional manager to get suitable resources for his project. Which of the following kinds of
organizations is the project manager working in?

Weak Matrix
Balanced Matrix
Strong Matrix
Composite Matrix

Explanations:

Answer (a)Weak Matrix. This role is a description of a project expeditor or project coordinator where the project
manager's role is more of a communication disseminator and staff assistant with limited authority and no control
over the project's budget. He negotiates with the functional manager to get resources for the project.

155. A project manager is reporting the final status of the closed contract to the stakeholders.
Which form of communication is appropriate?

Informal Written
Informal Verbal
Formal Written
Formal Verbal

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Explanations:

Answer (C) Formal Written. All project reports must be communicated as formal written documents.

156. Your work as a project manager at the mobile phone chipset manufacturer. As predicted by Moores law, each
year your company introduces new models of mobile phone chipsets which are faster and more powerful than their
predecessors. Mobile phone chipsets that are obsolete or do not sell are quickly retired from production. The
lifecycle for them begins in R&D, extends to manufacturing, and finally ends with phase out. This cycle is often
referred to as:

Product lifecycle
Project lifecycle
Feedback loop
Product development

Explanations:

Answer (A) Product lifecycle. Product lifecycle consists of generally sequential, non-overlapping product phases
determined by the manufacturing and control need of the organization. For more details on product lifecycle,
refer to PMBOK 4th edition PN 18.

157. You are in the final stages of negotiation with one of your sellers to provide a medical device
for one of your research labs. When the pricing is almost finalized, you mention that these devices
have to get a mandatory approval from the FDA USA (Food and Drug Administration). You are using
which of the following techniques in negotiation?

Fair and Reasonable


Fait Accompli
Lying
Extreme Demand

Explanations:

Answer (b) Fait Accompli. The project manager is using the technique called Fait Accompli. The phrase is French
for "accomplished fact" and refers to a deed that is already done and is therefore irreversible. You employ this
tactic when you do something without first negotiating it and when asked respond in apology for any ensuing
problem.

158. Which of the following would not be part of 'cost of conformance'?

Prevention cost
Appraisal cost
Internal failure cost
Cost of training

Explanations:

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Answer (c) Internal failure cost. Internal failure cost (including failure found by the project internally like rework
and scrap) are not part of the cost of conformance. All the failure costs (including external failure costs) are
referred to as the cost of poor quality. Remember, the cost of conformance denotes the money spent during the
project to avoid failures. Please refer PMBOK 4th edition Project Quality Management PN 195 for more details.

159. Out of the following, who is not a QUALITY guru, i.e. one who has stated a theory on quality?

Joseph M. Juran
Merby U. Crosmy
Edwards Deming
Kaoru Ishikawa

Explanations:

Answer (B) The correct name is Philip B. Crosby

160. Marginal cost is also known as?

Variable cost
Fixed cost
Margin cost
Timely cost

Explanations:

Answer (a) Marginal cost. Marginal cost is another term for variable cost. The marginal cost is applied to the
variable cost of a unit of product or service.

161. As a project manager of a construction project, you are inviting requests for proposal from
eligible vendors. In going through the list, you find the name of your good friend and ex-colleague
from university. He was a methodical, sharp student and excelled in his subjects. What should you
do next?

Give him the contract as you are quite sure he would do a good job
Give him some inputs on how your organization awards the contract to improve his chances
Steer yourself away from the bidding process and inform your sponsor
Keep silent and continue with the procurement process

Explanations:

Answer (c) Steer yourself away from the bidding process and inform your sponsor. This situation presents a
potential conflict of interest. The best option for the project manager is to discuss it with his project sponsor and
then disassociate himself from the process.

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162. As part of a joint venture, a project manager working with another company needs to share some confidential
information related to intellectual property rights. He wants to know the person responsible for authorizing the
release of this confidential information. Which project document should he refer?

Organizational Breakdown Structure


Project Charter
Project Communication Management Plan
Stakeholder Management Plan

Explanations:

Answer (c) Project Communication Management Plan. A project communication management plan would capture
the details of the person responsible for authorizing release of this confidential information on the project. Option
(a) organizational breakdown structure (OBS) is a hierarchical structure which provides an organizational
perspective of the project. The OBS typically reflects the management structure of an organization, from top-level
personnel down through the various levels constituting the business. Option (b) project charter is prepared in the
initial stages of the project and wouldn't contain detailed information. Option (a) project communication
management plan would specifically capture the required information.

163. A project manager is in the final closure phase of the project . Which of the following should he do FIRST as
part of the project closure activity?

Get formal sign off from the customer to confirm customer acceptance of final deliverable
Measure customer satisfaction as a key performance indicator of project's success
Hand off completed project deliverables to operations and management
Measure project scope against project management plan

Explanations:

Answer (d) Measure project scope against project management plan. As a part of the project closure activity the
first thing a project manager should do is to review all prior information from the previous phase closure to ensure
all work is completed and the project has met its objectives. Since project scope is measured against the project
management plan, the project manager will review that document to ensure completion before considering the
project closed. Option (a) would come next and option (b) would follow.

164. Which of the following is NOT a tool used in the perform qualitative risk analysis process?

Probability and Impact Matrix


SWOT (Strength, Weakness, Opportunities and Threat)
Monte Carlo Simulation
Root cause identification

Explanations:

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Answer (c) Monte Carlo Simulation. Monte Carlo Simulations are typically associated with the quantitative risk
analysis process. It generates the output as a range instead of a fixed value and shows how likely the output value
is to occur in the range.

165. Your are managing a software project which is due for design document release next week. You are currently
reviewing the document, when an influential stakeholder asks you to add a feature to the existing design. This
stakeholder has earlier also tried to bother you with unreasonable demands at the last days of release. What is the
best you can do in this situation?

Report his behavior to the senior manager suggesting them why he should no longer be associated to your project
as a stakeholder
As this person is influential, you have no option but to listen to him and add the functionality
Determine the impact of this change on your schedule and their constraints before taking a decision
Ask him to raise a written change request form and then follow integrated change control

Explanations:

Answer (d) Ask him to raise a written change request form and then follow integrated change control. It is
important that a project manager should consider written and well documented change requests for the project.

166. Project performance reviews using earned value management would typically incorporate information from all
the following EXCEPT?

Variance Analysis
Cost Benefit Analysis
Trend Analysis
Earned Value Technique

Explanations:

Answer (b) Cost Benefit Analysis. Cost benefit analysis is a technique that compares positive factors or benefits
with negative ones to determine the net result of doing the action. It is a popular technique for the project
selection method, but will not be useful during the project performance review. Please refer to PMBOK 4th edition
Project Cost Management PN 186 for more details.

167. A project manager in an e-learning project is using free downloadable tutorials via the Internet to reach out to
large audiences . This communication method is called?

Interactive Communication
Pull Communication
Push Communication
Personal communication

Explanations:

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Answer (b) Pull Communication. This is an example of a pull communication method which is used for large
volumes of information or for large audiences that require the recipients to access the communication content at
their own discretion. PN : to make it easier to remember think pull communication as "pulling of information" as
desired by the receiver at his discretion. For more information please refer to PMBOK 4th edition Project
Communication Management PN 256

168. You are a project manager planning to launch a new product in the market. For this purpose, you are analyzing
the existing products in the market to understand their best practices. You also compare industry standards for
performance metrics including cost, cycle time, productivity, and quality to come up with your own product metrics.
You are doing which of the following activities?

Cost Benefit Analysis


Value Engineering
Benchmarking
Process Analysis

Explanations:

Answer (c) Benchmarking. Benchmarking is a management tool through which a plan for evaluation, measurement,
and improvement is implemented. It is the process of comparing the business processes and performance metrics
including cost, cycle time, productivity, and/or quality to another that is widely considered to be an industry
standard benchmark or best practice. The objective of Benchmarking is: (1) to determine what and where
improvements are called for; (2) how other firms achieve their high performance levels; (3) use this information to
improve the firm's performance. Option (d) process analysis is a tool and technique of the quality assurance
process which involves following steps in the quality improvement plan to identify needed improvements. Please
refer PMBOK 4th edition Project Quality Management PN 204 for more details.

169. You are a project manager and your team is preparing for the internal quality audit cycle.
However, you feel that the team is a little apprehensive about the audit process. You decide to
give them an overview of the process. Which of the following would be INCORRECT about quality
audits?

Quality Audits are used to identify all the best practices implemented in the project
Quality audits help to share best practices in one project with other projects in the organization
Quality Audits aims to asses project team effectiveness and suggest improvements
Quality Audits helps to improve process implementation and team productivity

Explanations:

Answer (c) Quality Audits aims to asses project team effectiveness and suggest improvements. While all the other
statements are true about a quality audit, option (c) is not true. Quality audits are structured, independent
reviews purely aimed at determining whether project activities comply with organizational and project policies.
For more information on Quality Audit process please refer to PMBOK 4th edition Project Quality Management PN
204.

170. A project manager working in a weak matrix organization has a role of communication
coordinator with little power to make decisions and he reports to a higher level manager. He is
probably in the role of?

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Project Coordinator
Project Expeditor
Project lead
Lead Coordinator

Explanations:

Answer (A) Project Coordinator. Project coordinator role is similar to a project expeditor role and they act
primarily as a staff assistant and communication coordinator. However, unlike a project expeditor, a project
coordinator has some power to make decisions and reports to a high level manager.

71. As a project manager, if you had to chose amongst projects A, B, C, and D which one would be
the BEST option? Here NPV is Net Present Value

Project A :NPV $ 50,000 to be completed in 3 years


Project B :NPV $ 40,000 to be completed in 2 years
Project C :NPV $ 70,000 to be completed in 9 years
Project A :NPV $ 60,000 to be completed in 1 years

Explanations:

Answer (c) Project C:NPV $ 70,000 to be completed in 9 years. The project with highest value of NPV should be
selected. The information on number of years to complete the project is irrelevant as it is already considered
while calculating the value of NPV. NPV is defined as: The difference between the present value of cash inflows
and the present value of cash outflows. Remember, NPV is used in capital budgeting to analyze the profitability of
an investment or project.

172. What are the two closing procedures in project lifecycle known as?

Contract close out and Verify Scope


Contract close out and administrative closure
Project closure and product verification
Project closure and lessons learned

Explanations:

Answer (B) contract close out and administrative closure

73. A project manager is conducting a bidder conference to select the most suitable sellers. Which
of the following tools will NOT be helpful?

Independent Estimates
Internet Search
Procurement Negotiations
Teaming Agreements

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Explanations:

Answer (d) Teaming Agreements . The project manager is in the process of conduct procurements and all of the
above are tools and techniques that can be used in the process except teaming agreements which is part of the
plan procurement process. For more information refer PMBOK 4th edition Project Procurement Management PN
319

174. You are a project manager working on a compliance project in a banking firm. The project is scheduled to
complete six weeks from now. Your sponsor tells you that if the project is finished sooner, the company can get
some monetary incentives offered by the government. You decide to fast track the project. This decision would?

Increase risk in the project


Not affect the project risk
Decrease risk in the project
Cannot be determined

Explanations:

Answer (a) Increase risk in the project. Fast-tracking is the process of rescheduling tasks to be performed in
parallel that were originally planned in series. Remember, fast-tracking always involves risk that could lead to
increased cost and rework later

175. You are a project manager working in a weak matrix organizational structure. The project is
in the execution stage when the functional manager informs you that he will be pulling out a few
critical resources from your project. How should you respond to the situation?

Inform the senior management, bringing out the detrimental effects on project in a matrix environment
Refer to the resource histogram of the project to evaluate the impact on the project
Renegotiate the terms and conditions with functional manager to allocate the new resources
Create options and work around by reassigning the work packages to the remaining team

Explanations:

Answer (b) Refer to the resource histogram of the project to evaluate the impact on the project. The first step for
any project manager in the event of change is to assess the impact of the change. A resource histogram is used to
show usage of resources individually or by groups over time and can be used to analyze the impact of the change
on the project, especially triple constraints. Option (a) is a reactive approach and would do nothing to solve the
problem. Whereas option(c) should come much later after exploring all the alternatives . Option(d) is not
recommended because a good project manager is expected to use resource leveling during project planning for
optimal use of resources. Any arbitrary reassignment would overload the existing team members thus resulting in
poor quality and further delay in the schedule.

176. As part of project stage review, you are presenting project performance reports to the
stakeholders. The reports show both cost and schedule variances are positive for the project. What
does it indicate about the current project status?

Project is under budget and behind schedule

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Project is over budget and behind schedule


Project is under budget and ahead of schedule
Project is over budget and ahead of schedule

Explanations:

Answer (c) Project is under budget and ahead of schedule. Remember, Cost Variance = Earned Value (EV) - Actual
Cost (AC). Positive cost variance indicates that the project is under budget. Similarly, Schedule Variance = Earned
Value (EV) - Planned Value (PV). Positive schedule variance indicates that the project is ahead of schedule.

177. Which of the following are NOT part of McKinsey's 7S's approach?

Shared Values
Strategy
Share
Styles

Explanations:

Answer (C) Share. McKinsey's 7S's are Strategy, Structure, Systems, Shared Values, Skills, Styles, and Staff.

178. The popular iterative four step approach of Plan-Do-Check-Act was advocated by which of the following
quality theorists ?

Joseph Juran
W. Edwards Deming
Philips Crosby
Genichi Taguchi

Explanations:

Answer (b) W. Edwards Deming. PDCA (plan-do-check-act) is an iterative four-step problem solving process
typically used in business process improvement. It is also known as the Deming cycle, Shewhart cycle, Deming
wheel, or plan-do-study-act. It was proposed by W. Edwards Deming in the 1950's and suggests that business
processes should be analyzed and measured to identify sources of variations that cause products to deviate from
customer requirements. He recommended that business processes be placed in a continuous feedback loop so that
managers can identify and change the parts of the process that need improvements. Plan: Design or revise business
process components to improve results. Do: Implement the plan and measure its performance. Check: Assess the
measurements and report the results to decision makers. Act: Decide on changes needed to improve the process

179. Which of the following statements is true about control charts ?

Special causes are easier to predict and handle than common causes
Common causes are easier to predict and handle than Special causes
A process is stable if it has only special causes

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None of the above

Explanations:

Answer (a) Special causes are easier to predict and handle than common causes. There are two types of variation
that can be distinguished using control charts. First is a common cause of variation, i.e., variations inherent in a
process, for example, product design or choice of materials. The second is special causes of variation i.e.,
variations from unexpected sources, for example, human error or a power failure. When the process is in control it
is solely governed by common causes and is indicated as data points lying within control limits. In this case the
only way to improve a process is to make a fundamental change, for example, upgrade equipment, change
procedures, or provide more training. Whereas, the presence of a special cause would result in data points falling
outside the control limit or show trend. This source is usually easy to determine and eliminate. Special causes of
variation must be removed before the control chart can be used to monitor the performance of a process. By
removing the special causes of variation stabilizes the process. Once the process is stable, it is predictable.

180. As a project manager, you are in the process of establishing the total scope of the effort in
the project to define project objectives. For this purpose, you include relevant stakeholders and
explore all the aspects of scope, cost, time, risk quality, etc. Which process group of the project
are you currently in?

Initiation
Planning
Execution
Monitor and Control

Explanations:

Answer (b) Planning. The planning process group consists of processes performed to establish the total scope of the
effort, define the objectives, and develop the course of action required to attain those objectives. For this
purpose, a project manager should include relevant stakeholders and explore all the aspects of scope, cost, time,
risk, quality, etc. The result of this planning process group is the project management plan.

181. You are developing the project charter for the new project assigned to you. Which of the
following is NOT part of the enterprise environmental factors?

Lessons learned from previous projects


Work authorization system
Government and industry standards that affect your project
Knowledge of which departments in your company typically work on projects

Explanations:

Answer (A) Lessons learned from previous projects. Lessons learned are part of the organizational process assets.

182. You have recently made the final delivery of your software project to the customer. Before
making the release, you ensured that thorough testing was done and project scope was verified.
After a week of taking delivery, the customer shows his dissatisfaction with the release and says

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the product doesn't support a critical functionality. He asks you to add this feature immediately.
What should you do?

Understand the customer requirement and estimate the additional time and resource required to complete it,
Communicate the same to the customer
Discuss the customer feedback with the senior management and seek their advice on the matter
Analyze the in-house process of testing and scope verification to determine the root cause of the problem
Ignore the customer and proceed with project closure activity

Explanations:

Answer (d) Ignore the customer and proceed with project closure activity. Once the project manager has made a
release and the project scope has been completed, the project is completed. The project manager should resist
requests to do additional work once the project scope is fulfilled. This is true even if the customer is unhappy
because the project is completed.

183. You are a project manager evaluating a decision to buy a licensed software tool. This tool has a 50% chance of
being successfully implemented in your company and would cost $50,000. However there is e 40% chance that your
company would be able to save $150,000 due to improved productivity. What is the expected monetary value for
this decision?

+$35,000
- $ 35, 000
+$ 21,000
-$ 21,000

Explanations:

Answer (a) +$35,000. Expected monetary value for a project is calculated by subtracting expenses from savings. In
this case Savings = 0.4 * $150,000 = $60,000 and Expenses = 0.5* $50,000 = $25,000.So EMV = $60,000- $25,000 = +
$35,000.

184. A project manager has made a major release in the project. The customer comes back a week after the release
saying that he is not entirely satisfied with the deliverable. What should the project manager do NEXT?

Continue with the next deliverable as needs to finish the project on time
Talk to the senior manager to discuss the customer concern and resolution
Ensure that next deliverables has enough features which customer would like to have to exceed his expectations
Do a scope verification of this deliverable to check if it satisfies project objectives

Explanations:

Answer (d) Do a scope verification of this deliverable to check if it satisfies project objectives. Verifying the
project scope includes reviewing deliverables to ensure that each is completed satisfactorily. If this is successful,
it should provide customer satisfaction. Option (c) is gold plating i.e. providing the customers something they

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didn't ask for and wouldn't solve the problem. Option (a) and (b) avoid addressing the main problem directly and
are not recommended.

185. All of the following are inputs to the 'develop project charter' process except,

Contract
Business case
Project statement of work
Stakeholder analysis

Explanations:

Answer (D) Stakeholder analysis. Of the following options, stakeholder analysis is not an input to the 'develop
project charter' process. It is a tool and technique for the 'identify stakeholders' process.

186. A project manager and his team have finished creating the Work Breakdown Structure (WBS) and Work
Breakdown Structure dictionary. Afterwards, he prepares a detailed and itemized documentation of all of the
schedule activities that are part of the project. What should he do NEXT ?

Create Network Diagram for the project


Determine quality standards, processes and metrics
Determine high level project assumptions and constraints
Conduct project progress meeting

Explanations:

Answer (a) Create Network Diagram for the project. The project manager has created a WBS, a WBS dictionary,
and an activity list in the planning stage. The next step would be to create a network diagram for the project.
Quality standards and metrics can be identified once project schedule and budget are determined. Option (c) is
done as part of project initiation and is completed much earlier. Option (d) is done in the executing stage of the
project.

187. A project manager wants to determine the number and type of tests for the project. For this purpose he is using
a statistical method to identify the factors that may influence specific variables of the project. The project manager is
using which of the following techniques?

Brainstorming
Benchmarking
Statistical sampling
Design of Experiments

Explanations:

Answer (d) Design of Experiments. Design of Experiments or DOE is a systematic approach to the investigation of a
system or process. A series of structured tests are designed in which planned changes are made to the input
variables of a process or system. The effects of these changes on a pre-defined output are then assessed. Design of

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experiments is a discipline that has very broad application across all the natural and social sciences and various
other sectors like automotive, software , defense and healthcare

188. What does PRINCE stand for?

Projects in Controlled Environment


Projects in Collateral Environment
Partnership in Controlled Environment
Processes in Controlled Environment

Explanations:

Answer (A) Projects in Controlled Environment. Its another popular Project management methodology.

189. Your project is in the final stages of testing and the team is interacting with the customer on daily basis to
update him with the project status and incorporate his feedback. Which of the following would be the most critical
process to be followed in this scenario?

Quality Control
Scope Control
Report Performance
Monitor and Control Risk

Explanations:

Answer (b) Scope Control. In this case, based on customer feedback, frequent changes are expected to be done by
the team. Remember, when a change is presented, a part of considering the change involves additional planning.
The project manager and the team must examine how the change affects the project work and knowledge areas.
Thus scope control ensures the project scope is protected from unnecessary changes and all eligible changes are
done using the scope change control system. Option (a) quality control is more focused on ensuring conformance
to documented standards and is not the correct choice.

190. As a project manager you are working with your team to explore alternatives to decrease project cost without
compromising on performance or scope of the project. You are most probably using which of the following
techniques?

Benchmarking
Reverse Engineering
Process Analysis
Value Analysis

Explanations:

Answer (d) Value Analysis. Value analysis is also referred to as "value management" or "value methodology" (VM),
and "value analysis" (VA). It requires the systematic approach to identify project functions and assign values to
those functions to get the functions at lowest overall cost without loss of performance.

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191. According to Maslow's Hierarchy of needs, what comes HIGHEST on the pyramid?

Social
Safety
Physiological
Hygiene Factors

Explanations:

Answer (a) Social. Maslow and other theorists might be referenced in the PMP exam and it is important to get
familiar with them. According to Maslow, there are five levels of human needs from bottom to top. They are:
physiological, safety, social, esteem, self-actualization. Option (d) Hygiene factors are part of Herzberg's theory.

192. You are a project manager managing a large software project. It has a month long design phase in which the
team would be preparing the design documents for independent project modules. Review activity for these modules
can begin 15 days after starting the design phase. The 15 days difference between the start of the design phase and
the start of the review shows _ _ _ _ _between the two activities.

Lead
Lag
External Dependency
Mandatory Dependency

Explanations:

Answer (b) Lag. There is a lag or delay of 15 days between both activities

193. During project execution, the customer interprets a clause in the contract differently and
demands an elaborate design document as part of the next deliverable. According to you this not
included in the deliverable list. What is the best you can do to resolve the situation?

Change the contract and continue with your project work


Accept customer's demand as he is the one responsible for project's success
Raise a complain to project sponsor along with the implications of accepting such request on schedule and cost of
the project
Document the dispute and refer to the claims administration

Explanations:

Answer (d) Document the dispute and refer to the claims administration. In case of conflicting claims, it is best to
refer them to claims administration. Claims administration resolves claims according to the contract's dispute
resolution procedures when the buyer and seller cannot resolve a claim on their own. Claims administration
documents, processes, monitors, and manages claims during the life of the contract, usually according to the
contract terms.

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194. A project activity has the following values for the earliest and latest it can start and earliest
and latest it can be completed. An activity's Late Start (LS) is 5/day and Late Finish is (LF) 10/day.
Similarly Early Start (ES) is 3/day and Early finish (EF) is 8/day. What is the float of this activity?

0 days
4 days
2 days
-3 days

Explanations:

Answer (c) 2 days. Float for an activity can be calculated using any of the two formula (ie Float = LS-ES or LF-EF).
In this case, float = 5-3 or 10- 8 or 2 days. Remember, float or slack is the amount of time a task in a project
network can be delayed without causing a delay to subsequent tasks (free float) or the project completion date
(total float).

195. Of the following, which conflict resolution technique is believed to generate the LEAST
enduring positive results?

Problem Solving
Avoidance
Compromising
Forcing

Explanations:

Answer (d) Forcing. Forcing is the only technique that can generate the LEAST positive enduring results.

196. A project activity has values for the earliest and latest it can start and earliest and latest it
can be completed. An activity has Late Start (LS) is 5/day and Late Finish is (LF) 10/day. Similarly
Early Start (ES) is 3/day and Early finish (EF) is 8/day. What is the float of this activity A?

0 days
4 days
2 days
-3 days

Explanations:

Answer (c) 2 days. Float for an activity can be calculated using any of the two formula (i.e. Float = LS-ES or LF-EF).
In this case, float = 5-3 or 10- 8 or 2 days. Remember, float or slack is the amount of time a task in a project
network can be delayed without causing a delay to subsequent tasks (free float) or project completion date (total
float).

197. You are in the process of implementing approved changes, corrective actions, preventive
action, and defect repairs in the project. You are in which of the following process groups?

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Initiation
Planning
Execution
Monitor and Control

Explanations:

Answer (c) Execution. The executing process group involves coordinating people and resources, as well as
integrating and performing the activities of the project in accordance with the project management plan

198. As a project manager, you understand the importance of effective communication with
stakeholders. You want to present a project progress report to the stakeholders in the next project
meeting. What should be your approach?

Make the report concise, restricted to specific technical details of the project
Prepare a verbose report but filter the information to remove details
Focus on specific stakeholders with whom there is good personal relation
Research and understand the experience level and expectations of stakeholders

Explanations:

Answer (d) Research and understand the experience level and expectations of stakeholders. Since a project's
success is heavily dependent on stakeholders favorable acceptance of the project, it is important to have effective
communication with stakeholders, especially during project meetings. For this purpose, the project manager
should research and understand his stakeholders expectations before presenting project progress reports.

199. A project manager in an information technology project is discussing a complex algorithm with a new team
member. After a long and thorough verbal discussion, the project manager asks the person if he understood the
algorithm and can put it in the document. The team member implies that he has understood. However, when the
project manager goes through the document, he realizes that the member didn't understand what was actually said
thus resulting in an inefficient use of time and effort. . Who is responsible for this loss of time and how could it have
been avoided?

Project manager, he shouldn't have given the complex assignment to a new team member
Team Member, since he implied he understood the discussion and didn't ask his doubts immediately
Project Manager, as he should have also helped the team member in preparing and reviewing the document
Project manager, since it is his responsibility to ensure his message is clear and concise and confirm that team
member truly understands the message

Explanations:

Answer (d) Project manager, since it is his responsibility to ensure his message is clear and concise and confirm
that team member truly understands the message. In the communication model, it is the sender's responsibility to
make the message clear, complete, and concise so that the recipient can receive it. The sender must also confirm
that the recipient truly understands the message. In this scenario, the project manager is at fault. For more
information refer to PMBOK 4th edition Project Communications Management PN 255.

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200. Your project team has completed the project work. All of the following must be done before
the project can be closed EXCEPT:

Ensure that the schedule baseline has been updated


Get formal acceptance of the deliverables from the customer
Make sure the scope of the project was completed
Verify that the product acceptance criteria have been met

Explanations:

Answer (A) Ensure that the schedule baseline has been updated. Before you can close your project, there are a
few things you need to do. Remember, the acceptance criteria in the scope statement? Well, those criteria need
to be met. You need to get formal written acceptance from the customer and every work item in the WBS needs to
be completed.

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