Total Questions: 370 MODULE QUIZ ANSWER KEY · PDF fileTotal Questions: 370 MODULE QUIZ ANSWER...

Total Questions: 370

MODULE QUIZ ANSWER KEY

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Fundamentals 1 & 2

1. Answer: B – Process Group. Each project management knowledge area is subdivided into specific

process group, each of which is characterized by their inputs, tools and techniques, and outputs.

2. Answer: D – Project management. The question refers to the specific definition of project

management as provided in the PMBOK ® Guide, 5th edition, Page 5.

3. Answer: C – Performance measurement criteria. This is an example of an organizational process

asset. Enterprise environmental factors are those internal and external factors that surround and

influence project success. Organizational process assets include policies, procedures, templates and

other items that will assist in guiding the completion of project work. Refer to pages 27 and 29 in the

PMBOK ® Guide, 5th edition.

4. Answer: B – Sponsor. The sponsor provides the financial resources and is considered to be a key

stakeholder. The customer or user is considered to be the recipient or end user of the product of the

project. Refer to page 31 of the PMBOK ® Guide, 5th edition.

5. Answer: A – Stakeholder identification will continue throughout the project life cycle. As the project

proceeds through each phase, additional stakeholders may become involved while others will be

released. Stakeholder identification is conducted primarily by the project management team but some

stakeholders may be identified in the project charter. Stakeholders may include people and

organizations that may be affected either negatively or positively by the project outcome.

6. Answer: B – At the conclusion of a project phase the project manager and team should assess the

performance of the project and determine if acceptable conditions exist to support a decision to move

forward or discontinue the project. Risk levels will vary as the project progresses and the end of a phase

is generally considered to be a good point to reassess risk. Project control procedures should be

enforced throughout the project life cycle. Refer to page 39 of the PMBOK ® Guide, 5th edition.

7. Answer: A – Cost and staffing is generally at the lowest levels during the startup and first phase of a

project. Refer to page 40 of the PMBOK ® Guide, 5th edition.

8. Answer: A – Progressive elaboration is defined as “moving forward in increments and adding more

detail as the project progresses. Project selection precedes the detail or progressive planning of a

project. Monitoring and controlling is ongoing throughout the project lifecycle and is utilized during and

after detailed planning and elaboration of the project. Decomposition is generally associated with the

development of the work breakdown structure and refers to the breakdown of large items into smaller,

more manageable components.

9. Answer: C – Projects have some characteristics that are similar to operations. Projects and operations

require resources, they are planned and scheduling is involved. Projects, however, are generally

considered temporary, regardless of total scheduled time. Operations are ongoing and support the day

to day functions of an organization. Refer to page 3 in the PMBOK ® Guide, 5th edition.

10. Answer: B – This is a project to develop something new and unique and will have a defined end date.

It is not part of operations, nor is it a program. The new product is separate from the existing product.

Refer to pages 3 & 4 of the PMBOK ® Guide, 5th edition.



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11. Answer: B – The project manager’s level of authority usually depends on the type of organizational

structure. These structures include Functional, Matrix (Weak, Balanced and Strong), and Projectized.

Communications skills and technical ability may affect level of authority in some organizations but

managerial structure is generally the major factor. Refer to page 21 – 26 of the PMBOK ® Guide, 5th

edition.

12. Answer: A – In a functional structure, people are grouped by technical expertise and are a assigned

to one clearly defined manager. This establishes efficient internal operations and communications. The

functional structure can create difficulties with communication between groups. Technical skills are not

generally shared with other functional groups or operations. Functional work generally receives the

highest priority.

13. Answer: D – The project scope statement is an output of the Define Scope process and is part of the

Planning process group.

14. Answer: C – Project integration management combines all of the processes within the entire project

life cycle through the five major process groups – Initiating, Planning, Executing, Monitoring &

Controlling, and Closing.

15. Answer: C – Constraints are restrictions or limitations and must be managed throughout the project

life cycle. Examples include resource availability, predetermined schedules and predetermined budgets.

Framework

1. Answer: C – 5 Process Groups, 47 Processes and 10 Knowledge Areas

2. Answer: A – Initiating

3. Answer: B – Planning

4. Answer: C – Executing

5. Answer: D – Monitoring & Controlling

6. Answer D – Closing

Integration Management

1. Answer: C – Notice that this question uses the product life cycle, not the project life cycle. You will

need to look out for this style of question and make sure you read it properly. The product lifecycle

covers all aspects of the product from inception, design and manufacture to end of life, recycling and

obsolescence. Monitoring and controlling are one of the five process groups.

2. Answer: B – Program is correct because a program is a group of projects that are interrelated in some

way. A project may be part of a program, but a program will always have projects.



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3. Answer: C – OPM3 stands for Organizational Project Management Maturity Model and part of the

model is used to assess where on a scale an organization sits in relation to its adoption and application

of project management practices.

4. Answer: B – A project is differentiated from operational activity by the fact that it is designed to

deliver a unique product within a specified time period where as operational work is ongoing and

repetitive.

5. Answer: A – A project Management Office is responsible for providing organization-wide project

management support functions, including common standards, templates and processes. It is also

responsible for project delivery.

6. Answer: B – The questions provides a lot of information about net present value and the cost of each

project but the only relevant information is the net present value because it is the recalculated cost. As a

project manager you will always select the project with the highest Net Present Value.

7. Answer: A – Change control procedure varies from project to project. However, every change request

must be processes through a formal change control process.

8. Answer: A – The Monitor and Control Project Work process is responsible for keeping track of the

project’s measures, including cost.

9. Answer: C – Changes can occur in the project at any given time. The Perform Integrated Change

Control process is valuable for managing and tracking those changes.

10. Answer: D – To facilitate earned value management techniques, the project manager must establish

project baselines from which overall progress and variances can be calculated and compared.

11. Answer: A – Documented change requests must either be accepted or rejected by the change

control board. If change requests are documented, it is implied that they must be reviewed. Deferring a

change request is essentially a rejection.

12. Answer: C – Important processes of configuration management are configuration identification,

configuration status accounting, and configuration verification and auditing. Architecture configuration

and control is vague relative to other options.

13. Answer: B – Preventive actions are documented actions that aim to reduce the probability of

negative consequences associated with project risks. Increasing the project budget to allow for some

overrun on costs or increasing the reporting frequency on activities that are critical could be considered

preventive actions.

14. Answer: C – A CCB is necessary for all projects, large and small. The project manager does not

typically head a CCB as it is at a higher level than the configuration management board. It is responsible

for approving or rejecting changes to the project baselines.

15. Answer: D – Transfer of finished and unfinished deliverables does not take place at the end of the

key deliverable, at the end of contract, or as a result of a legal dispute. If the project was terminated

prior to completion, the formal documentation indicates why the project was terminated and formalizes



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procedures for the transfer of the finished and unfinished deliverables of the cancelled project to

others.

16. Answer: C – Project integration management combines all of the processes within the entire project

life cycle through the five major process groups – Initiating, Planning, Executing, Monitoring &

Controlling, and Closing.

17. Answer: A – The Project Charter is part of the initiating processes and provides the authorization to

move forward. The project scope statement, the project plan, and work authorization process are

developed after the charter has been approved.

18. Answer: B – Generally project status meetings provide the project team and those stakeholders

directly involved in project activities with up to date information about the project. Other stakeholders

and higher level managers may receive information through formal reports or specifically scheduled

meetings. Workarounds are temporary responses to an unplanned situation and generally require

immediate action.

19. Answer: D – Configuration management is considered a component of change control and is

specifically associated with changes to features, functions and physical characteristics of a product or

deliverable.

20. Answer: D – The Project management information system is used to track project information and

performance. These systems may be either manual or electronic. Such information kept by these

systems can include the tracking of time worked, project costs, and other factors that would be

communicated to project stakeholders.

21. Answer: B – Assumptions documented during the project planning process are generally considered

to be non-factual and require validation.

22. Answer: B – The project plan is based on estimates, past experience of the project team, and other

available information. Generally, the project plan is considered to be a guide that is expected to change

23. Answer: C – The project management plan is a combination of several plans that provide overall

guidance to the project team. These plans include Schedule Management, Scope Management, Cost

management, Resources management and other depending on size and complexity of the project.

24. Answer: A – Assumptions are not based on factual information and failure to validate may result is

significant risk events.

25. Answer: C – Constraints are restrictions or limitations and must be managed throughout the project

life cycle. Examples include resource availability, predetermined schedules and predetermined budgets.

26. Answer: A – The project management plan is a document that combines the results of all planning

processes. Subsidiary plans, such as Time Management and Cost management are the outputs or results

the planning processes.

27. Answer: D – Subsidiary plans are the outputs of some of the other planning processes associated

with Scope, Time, Cost, Quality, Human Resources, Communications, Risk, and Procurement

management. Additional plans that can be added to the project management plan include Change



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Management, Process Improvement, Requirements Management and Configuration Management

plans.

28. Answer: B – As described in the PMBOK ® Guide, Direct and Manage Project Work is the major

process for carrying out the plan. Refer to page 61 of the PMBOK ® Guide, 5th edition, to review the five

major process groups and the 47 project management processes.

29. Answer: C – Perform Integrated Change Control includes all of the lower level processes and

subsidiary plans that will be used to manage project change throughout the project life cycle.

30. Answer: D – The most appropriate action to take in this case is to ensure that the research

department fully understands the project scope of work, the change control process, and to determine

why change requests continue to be submitted.

31. Answer: C – The change control process should be followed by everyone on the project team. Failure

to manage change effectively can result in significant scope creep and could result in serious

implications and additional risk and liability.

32. Answer: A – The change control process was not followed. Failure to follow the agreed upon change

control processes may create serious risk situations and jeopardize the entire project.

Stakeholder Management

1. Answer: D – The stakeholder register is an output from the Identify Stakeholders process.

2. Answer: B – It is doubtful that you would be able to document the personal conflict resolution style of

stakeholders. Having a thorough stakeholder analysis completed early in the project is an effective aid

into several processes.

3. Answer: C – The stakeholder register contains all the information you know about all stakeholders on

the project.

4. Answer: A – a stakeholder analysis matrix lists the stakeholders, their potential impact and

assessment and also potential strategies for dealing with any impact on the project.

5. Answer: D – Managing stakeholder engagement is one of the most important processes a project

manager can focus upon to contribute to project success.

6. Answer: B – Communication with stakeholders represents a positive risk if done effectively and a

negative risk if done poorly and as such, the communications management plan is an important input in

to the Manage Stakeholder Engagement process.

7. Answer: B – this question is asking about the types of organizational process assets updates that may

be done as a result of Control Stakeholder Engagement process are being carried out. The specific

organizational process assets that may be updated as a result of carrying this process out our

stakeholder notifications, project reports, project presentations, project records, feedback from

stakeholders, and lessons learned documentation.

8. Answer: A – Status meetings provide a forum to discuss information about stakeholder engagement.



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9. Answer: C – The lessons learned and the project templates are not enterprise environmental factors,

but organizational process assets. The commercial databases can provide only very limited information

to develop the stakeholder management plan. During the Plan Stakeholder Management process, the

organization‟s culture and structure are of particular importance.

10. Answer: B – For any project it would be ideal if all of the key stakeholders were supportive. This

would help ensure smooth project progress and timely resolution of issues. In practice, this is often

unachievable; nevertheless, it is the most desirable state for all major stakeholders. On the other hand,

if all key stakeholders assume a leading role, this could lead to serious and substantial conflicts.

11. Answer: B – The core objective for stakeholder engagement management is to ensure that the

project stakeholders are kept satisfied and that their expectations are being met throughout the course

of the project. Keeping the project team members motivated and using a consistent project

management methodology are generic objectives of project management.

12. Answer: C – In this scenario, the CFO is a resistant key stakeholder. The CFO must be turned into a

project supporter in order to ensure success. Any of the given choices could be the solution to this

problem. However, Sarah should first identify all of the available options and analyse them before

selecting the best option.

13. Answer: B – The stakeholder management plan should be reviewed regularly. Since some of the

resistant project stakeholders have now become project supporters, this implies that the current

stakeholder classification in the stakeholder management plan is no longer accurate. These stakeholders

should now be transferred to the project supporters group, and going forward stakeholder management

strategy defined for project supporters should be adopted for these stakeholders. Although, the

stakeholder management strategy for the resisting stakeholders has delivered impressive results, it

should only be applied to the current resistant stakeholders.

14. Answer: D – A power/interest grid plots the relative power and interest each identified stakeholder

has in your project.

15. Answer D: Is the best response. Manage stakeholder engagement includes activities related to

communicating and working with stakeholders in an effort to meet their requirements and expectations,

as well as address any issues arise throughout the project.

16. Answer: C – In this case the communications plan and the communications requirements analysis

may not have included all Key stakeholders. Informing the stakeholder of the date of the change does

not resolve the situation and it may occur again. The existing communications plan may not be

complete and explaining stakeholder responsibility without ensuring the process has been agreed upon

could result in conflict. Addressing a communications issue during steering committee meeting may

assist will not resolve a problem until the communications plan is reviewed and updated as needed.

17. Answer: C – The salience model addresses stakeholder power, urgency and legitimate involvement

in a project. The Power and interest grid assists in determining the level of influence and interest a

stakeholder may have on the planning and outcome of the project. The RAM, Responsibility Assignment

Matrix, connects project stakeholders with work breakdown structure components. The stakeholder

register is an output of stakeholder analysis. Refer to page 262, PMBOK ® Guide, 5th edition.



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18. Answer : C - Each and every person in the customer organization may not necessarily be a

stakeholder. There may be members of the organization who are not connected with the project at all.

19. Answer: B - Stakeholder management involves processes required to identify stakeholders, analyze

their expectations and to develop appropriate strategies to engage them. It does not necessarily mean

keeping everybody happy (which may not even be possible).

20. Answer: C - The stakeholder can be interested in a project or be in a position to influence the

project. As such, both are important for the project to understand.

21. Answer: A - The strategy for stakeholders who are low on the power-interest grid is “Monitor”.

22. Answer: C - Stakeholder engagement assessment matrix, which is a tool and technique of the Plan

stakeholder management process, is a tool to assess the engagement levels of the stakeholders on a

project.

23. Answer: A - Stakeholder register is an input to the plan stakeholder management process.

24. Answer: C - Confrontation is most likely to result in a permanent resolution. All the others involve

both parties giving something up.

25. Answer: C - Critical path is the longest path from start to finish.

26. Answer: B - Involving the stakeholders in the project work is a good way to get them to support the

project. Simply sending them reports seems a passive way of engaging.

27. Answer: D - Inter-personal skills is an important technique used in the manage stakeholder

engagements process.

28. Answer: B - These are all activities typical of managing stakeholder engagements.

29. Answer: B - Issue log is an input to the control stakeholder engagements process.

30. Answer: C - A project manager needs to take cognizance of the significance of the findings and must

consult the experts before proceeding further. Activities other than excavation may continue.

Scope Management

1. Answer: B – Project charter, project stakeholders, and work breakdown structure are not included in

the detailed project scope statement. They are produced either before or after completing the scope

definition. The product scope description is included in the detailed project scope statement, together

with product acceptance criteria, deliverables, exclusions, and constraints.

2. Answer: C – Scope control activities do not produce as an output accepted deliverables, project scope

management plan, or approved changes The Control Scope process can generate change requests,

which are processed for review and disposition according to the Perform Integrated Change Control

process.

3. Answer: A – The test element that checks for activities is inaccurate because the focus of the question

is on the correctness of the deliverable decomposition, not the details of the work required to deliver

them.



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4. Answer: D – It is not possible to make detailed estimates of costs this early in a project. Detailed cost

estimates should be expected in the Planning Process Group.

5. Answer: B – The project charter is the founding document for the project and the best pace to look

for original descriptions. At the time it is developed, agreed and approved, generally only high level

information about the project requirements and product description is known.

6. Answer: B – As a project manager when you undertake the process of decomposition to complete

your work breakdown structure, you breakdown the deliverables into smaller, more manageable

components. The smallest level in the WBS is the work package. A work, package can be further divided

into activities but this is beyond the work breakdown structure.

7. Answer: C – You are completing the Validate Scope process, which is part of the monitoring and

controlling process group.

8. Answer: C – You use your project performance measurements to assess the difference between what

the scope originally said and what it is now doing. This must always be reflected in the scope baseline.

9. Answer: A – The Pareto chart is not a Group Creativity Technique. The others are valid techniques;

additional techniques are brainstorming and the Delphi Technique.

10. Answer: B – Singularity is not a valid method to reach a group decision. The other choices are valid

methods to reach a group decision.

11. Answer: A – The work breakdown structure is finalized by establishing control accounts for the work

packages and a unique identifier from a code of accounts. This provides a structure for hierarchical

summation of costs, schedule and resource information.

12. Answer: C – Carl should initiate the third phase of the project. He does not need to revisit Develop

Project Charter process. However, he should revisit Identify Stakeholders process to determine any

change in the stakeholders for the third phase of the project. Stakeholder Identification is a continuous

process.

13. Answer: A – Inspection entails measuring, examining, and verifying that the project deliverables

adhere to the requirements.

14. Answer: C – The project management team is responsible to taking the project charter and creating

a project scope statement. They are considered key stakeholders; all stakeholders should provide input

to the project scope statement.

15. Answer: B – Stakeholder analysis is correct because it is likely that some of the stakeholders‟

requirements were not incorporated into the scope definition of the project, resulting in deliverables

missing from the work breakdown structure and the project schedule.

16. Answer: B – The project charter authorizes the project but is not a detailed plan. The statement of

work generally precedes a contract and provides a narrative description of work to be completed. The

project plan is derived from the project scope statement. The scope statement answers the questions of

what, why, who, where, how and in combination with the work breakdown structure provides a detailed

description of what must be accomplished.



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17. Answer: A – Generally, if a project manager is assigned, the project has been approved and

authorized. Project selection processes will determine if a project should be approved. The selection of a

project manager indicates that planning will begin soon. The scope of the project will be determined

during the planning process and verified as the project progresses.

18. Answer: A – The project manager should understand the purpose and functions of the product and

the needs of the organization that will receive the product.

19. Answer: C – This is the essence of progressive elaboration. Scope definition and decomposition are

included in the broad definition of progressive elaboration. Rolling Wave planning is a form of

progressive elaboration.

20. Answer: C – The work breakdown structure is developed after the project scope statement has been

defined and accepted.

21. Answer: B – Decomposition is the specific process used to develop a detailed work breakdown

structure.

22. Answer: A – The Define Scope process produces a detailed description of the project and product.

The result is the project scope statement, which provides a basis for more detailed planning. Product

analysis is included in the define scope process. Cost/Benefit analysis is generally associated with project

selection. Initiation precedes the detailed planning process.

23. Answer: A – The project charter does not provide project details. The work breakdown structure is

developed from the information in the Scope Statement. The work breakdown structure dictionary

provides detailed information about elements of the work breakdown structure.

24. Answer: A – Product scope refers to the complexity of the product in terms of features, functions,

and physical characteristics. Project requirements, project objectives, and the scope statement are

associated with project scope.

25. Answer: D – Answers A and B are associated with components of a work breakdown structure. The

work breakdown structure is a deliverable-oriented grouping of components but the work package is

the lowest level deliverable in a branch of the work breakdown structure and contains several activities

or an activity list.

26. Answer: C – The appropriate action when change requests are submitted is to follow the established

and agreed up change control process.

27. Answer: C – Verifying the correctness of work is associated with quality management and scope

verification.

28. Answer: C – Scope creep is the general term used to describe work that has been added to the

project scope without proper authorization.

29. Answer: B – Inspection of products may be accomplished through reviews, audits and walk-through

visits. Walk-throughs are commonly associated with projects that produce physical deliverables that can

be observed and tested. Formal acceptance usually follows a successful inspection. Internal failure

results from non-conformance to processes.



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30. Answer: B – The scope baseline is an output of Create WBS. The project charter initiates the project

and provides high level information. Alternatives identification does not provide detailed descriptions of

project work.

31. Answer: A – The scope baseline is an output of the Create work breakdown structure process. Page

131 PMBOK ® Guide, 5th edition.

32. Answer: A – The work breakdown structure dictionary provides the project team with more detailed

information about components of the work breakdown structure. Page 132 PMBOK ® Guide, 5th edition.

33. Answer: D – The scope statement is not an executive summary. The project charter authorizes the

project. It does not include all of the information needed to develop a complete cost estimate. The

scope statement does define the project in detail and includes descriptive acceptance criteria.

34. Answer: D – The correct action is to analyze the change and determine the potential impact on other

area of the project. Impact analysis is a key factor in project change control.

Time Management

1. Answer: B – As a project manager when you developed the WBS your process of decomposition went

down to a level where the element of the scope could be accurately estimated for duration and cost.

The next step in the decomposition process is to break it down into activities.

2. Answer: C – Finish-to-start means that the successor activity can‟t start until its predecessor activity is

finished. Most activities have this sort of relationship. Very few have start-to-finish relationships which

mean that the successor activity can‟t finish until its predecessor activity starts.

3. Answer: C – Analogous estimating involves using information from similar projects to estimate

elements of your project and is generally less costly and time consuming than other techniques.

4. Answer: D – The first iteration of the project network schedule diagram is an output of the Sequence

activities process.

5. Answer: A – The comprehensive summary activity that is displayed in bar chart reports for control and

management communication is called the hammock activity.

6. Answer: A – The difference between the early and late finish of a task is called the total float for that

task. Total float is the amount of time that scheduled activity can be delayed from its early start date

without delaying the project finish date.

7. Answer: D – A calendar is a calendar of working days or shifts that establishes those dates on which

schedule activities are worked. It also establishes non-working days that determine dates on which

schedule activities are idle, such as holidays, weekends and non-shift hours.

8. Answer: C – Resource levelling can often cause the original critical path to change.



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9. Answer: A – Schedule performance index (SPI) = earned value (EV)/planned value (PV) = 0.80. The

project is 80 percent on schedule, meaning the project is 20 percent behind. Therefore, corrective

actions most likely will be required to bring the project back on track. The other options are incorrect.

10. Answer: C – The schedule baseline is the approved and signed-off version of the schedule.

11. Answer: B – Estimating, budgeting, and cost control processes make up the Project Cost

Management knowledge area. Project Risk Management is focused on risks, not solely on costs.

Schedule Management concerns the duration and dependencies of tasks. Project Human Resource

Management involves identifying necessary resources and checking that they are available.

12. Answer: A

EV = Earned Value, SV = Schedule Variance, PV = Planned Value

In the question: PV = 5 weeks, EV = 3 weeks

SV = EV – PV = 3 – 5 = -2 weeks

Percentage of Variance = Scheduled Variance / Planned Value = 2/5 = 40%

13. Answer: C – A good example to remember for the inability to divide the work between additional

resources is that nine pregnant women cannot bear a child in one month. Screen development and data

modelling are clearly distinct. One painter can paint two walls and another painter the other two walls.

Different researchers can each be responsible for one of the experiments. However, it is not practical to

have more than one person working in a 25 x 20 inch area. Therefore, it will be difficult to shorten the

duration of this task even if additional resources are available.

14. Answer: B – A what-if scenario analysis runs through all the different outcomes if a particular

scenario occurs. This level of information can assist with many types of estimating to get the full range

of possibilities.

15. Answer: A – The landscaping work needs to start on completion of the office building, so it is a finish-

to-start relationship. Since it needs to start 15 days before completion of the building, it requires a lead

of 15 days. Hence, the answer is finish-to-start with a 15 day lead.

16. Answer: C – Sequence activities, activity duration estimates, and estimating resources provide the

inputs to the develop schedule process. Page 141 PMBOK ® Guide, 5th edition. Time management

overview.

17. Answer: D – Decomposition is included in the tools and techniques of the define activities process.

18. Answer: D – Mandatory dependencies are also known as hard logic and are generally inherent in the

nature of the work. Discretionary, soft logic, and preferential are generally associated with best

practices.



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19. Answer: B – Fast tracking involves performing activities in parallel (overlapping) rather than in series

(one after the other). Crashing involves the use of overtime or additional resources. Leveling

redistributes work and may result in an increase in project schedule. Monte Carlo technique is generally

associated with risk management and is used to determine probable project outcomes or results.

20. Answer: A – Use the formula (optimistic + 4 times the most likely + pessimistic) divided by 6 {8 +

4(12) + 24} / 6 = 13.33

21. Answer: C – Crashing, which is adding resources or using overtime, may reduce the duration of an

activity. Resource leveling is used when a resource has been over allocated. Heuristics is a term

associated with generally accepted information or “common knowledge.” CPM refers to Critical Path

Method.

22. Answer: B – Lag introduces delay between predecessor and successor relationships and is usually

associated with a physical requirement. Allowing concrete to cure is a common example of lag. Lead is

used to accelerate a network path. Float and slack or measures of flexibility in a project schedule.

23. Answer: C – Refer to page 156 PMBOK ® Guide, 5th edition.

24. Answer: D – Change requests are an output of the control schedule process.

25. Answer: C – Critical chain method identifies the “weak links” in the project schedule and utilizes

buffers to manage the schedule. Refer to page 178 of the PMBOK ® Guide, 5th edition.

26. Answer: A – ADM can only show Finish to start dependencies.

27. Answer: A – CPM – Critical Path Method and utilizes the forward and backward pass to determine

early start, early finish, late start and late finish of each activity. Monte Carlo simulation is a quantitative

risk analysis technique. Activity duration estimating precedes the development of the project schedule.

28. Answer: C – A constraint is a limitation. Predetermined dates limit options and eliminate

alternatives.

29. Answer: D – An analogous estimate, a top down estimating technique, can generally be developed

quickly. It is not intended to become the final estimate. It range of reliability can be extreme. A bottom

up estimate requires significant time to prepare. A PERT estimate, also known as a weighted average

estimate is usually associated with specific project activities.

30. Answer: D – Free float is the amount of flexibility between the early finish of an activity and the early

start of its immediate successor activities. Free float allows an activity to slip for a period of time before

affecting its immediate successor.

31. Answer: B – An external dependency is related to a non-project activity and is considered outside

the control of the project team.

32. Answer: C – The scope baseline is an input to the define activities process. Page 149 PMBOK ® Guide,

5th edition.



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33. Answer: A – A project network diagram is produced when the logical relationships of all project

activities have been defined. The work breakdown structure and resource breakdown structure do not

display logical relationships.

34. Answer: D

35. Answer: C

36. Answer: B

37. Answer: B – Generally, after a work breakdown structure has been developed and the work

packages fully defined, the project team will develop a network diagram as predecessor and successor

relationships are established.

38. Answer: C – Overlapping is referred to as fast tracking and can introduce risk into the project.

Generally, activities are not removed and the scope is not changed. Crashing involves the addition of

resources or the use of overtime and will usually increase project cost.

39. Answer: B – Start to Start

40. Answer: A – 23

41. Answer: B – 6

42. Answer: D – 11

Cost Management

1. Answer: C – During the initial stages of the project, the amount of information available will be

limited. Therefore, a Rough Order of Magnitude (ROM) estimate is usually prepared, and it should have

an accuracy range of -25% to +75%.

2. Answer: B – The CPI is given by the formula CPI = EV/AC where EV is Earned Value and AC is the Actual

Cost. Since 50% of the project is complete, EV = 50% of $50,000 = $25,000. Hence CPI = $25,000/$50,000

= 0.5

3. Answer: A – Interpersonal skills is not a valid choice. The other three choices are analytical

techniques.

4. Answer: A – The correct response is an S-curve. The cost performance baseline is a time-phased

budget and is used as a basis to measure, monitor, and control overall cost performance of the project.

It is usually displayed in the form of an S curve and is developed by summing estimated costs by period.

5. Answer: D – Although the Earned Value technique of determining the balance work in the project is

quick and straightforward, it is not as valuable or accurate as the manual forecasting of the remaining

work by the project team. However, manual forecasting is more time-consuming.



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6. Answer: C – The three point estimating technique, or PERT analysis, uses a weighted average method

to arrive at what should be a more accurate estimate. In this case the correct answer is (15+ (4x25)

+70)/6 = 30.83

7. Answer: B – The process of controlling costs is one of the more technical processes to understand for

the PMI exam as it includes the earned value tools and techniques.

8. Answer: C – Schedule Variance (SV) = Earned Value – Planned Value

SV = 15,000 – 20,000 = -5,000

9. Answer: A – The percent complete is the work completed, or the earned value divided by the total

work to be done. EV/BAC = 24/97 = 25%

10. Answer: A – A CPI below 1 tells you that you are experiencing a cost overrun on the project. This is

true for the SPI measurement as well.

11. Answer: D – QC is part of prevention and appraisal costs (cost of non-conformance). In contrast,

costs of non-conformance include costs associated with expenses after the fact such as rework,

warranty, or reputational loss due to defects.

12. Answer: B – Cost budgeting involved allocating the overall cost estimates to individual activities or

work packages to establish a cost baseline for measuring project performance. Cost budgeting is tied to

the Determine Budget process but it is not used as a basis for project contingency reserve.

13. Answer: B – For month 1, the CPI = EV/AC = 1,000,000/1,250,000 = 0.88. The statement that CPI at

the end of the month 1 is 1.25 is not correct. A CPI value less than 1 indicated a cost overrun of the

estimates, and a CPI value of more than 1 indicates a cost under run; hence, at the end of Month 1, the

project is behind schedule and over budget. At the end of Month 1, Schedule Variance (SV) = EV – PV =

$1,000,000 - $1,100,000 = -$100,000, which is true. It is false to state the CPI at the end of Month 1 is

1.25.

14. Answer: B – Direct labour costs, overhead costs, and material costs are inputs to cost budgeting.

Sunk costs are costs that have been incurred and that cannot be recovered; therefore, they are not part

of the cost budgeting process.

15. Answer: D – Human Resource plan is an input to Estimate Costs.

16. Answer: D – Cost variance = EV – AC = 350 – 400 = -50

17. Answer: B – Parametric estimating uses statistical relationships such as cost, duration, and labor

rates. Refer to page 205, PMBOK ® Guide, 5th edition.

18. Answer: B – The cost baseline is an output of the Determine Budget process. Refer to page 208


19. Answer: C – Estimate Costs. Pricing/Costing is associated with business decisions related to profit

margins. Alternatives analysis refers to considering other options about how to develop and or produce

the project’s deliverables. Risk assessment is included in the process of estimating costs.



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20. Answer: C – Employee benefits, taxes, rent, maintenance are generally considered indirect project

costs.

21. Answer: C – In this example the EAC = AC + BAC – EV = 200,000 + 400,000 – 200,000 or 400,000

22. Answer: A – A bottom up estimate will produce a definitive estimate. Order of magnitude,

parametric and analogous estimates are considered to be top down and have a wide range of probable

outcomes.

23. Answer: D – The law of diminishing returns states that the incremental return from adding resources

will reduce as we go on adding resources

24. Answer: A – Generally, opportunity cost is experienced when funding has been assigned to a specific

project and a more desirable project opportunity develops. The greater opportunity is missed due to the

commitment of capital resources to a previously selected project. The best alternative is not chosen.

25. Answer: C – The allocation of the aggregated project cost across the project life cycle is referred to

as the time phased budget. Refer to page 209 PMBOK ® Guide, 5th edition. Estimate at Completion is a

forecast of the final project budget based on current performance. The cost control plan provides a

method to manage cost changes and identify cost variances. The project schedule displays project

activity duration over time and provides an estimate of the total duration of the project life cycle.

26. Answer: B – Earned value analysis provides a means to determine cost and schedule variances. Refer

to page 215 PMBOK ® Guide, 5th edition.

27. Answer: C – A CPI greater than 1 indicates that the project is performing under budget. An SPI that

equals 1 indicates that the project is performing at planned levels (on schedule).

28. Answer: B – Earned value greater than planned value indicates the project is ahead of schedule.

Actual cost greater than earned value indicates the project is over budget. Refer to page 218 PMBOK ®

Guide, 5th edition.

29. Answer: D – The typical project lifecycle begins with low cost and staffing. As the project progresses,

costs increase. The project will reach a point when maximum resources are applied and then resources

will be systematically released as the project reaches closure. Refer to page 40 PMBOK ® Guide, 5th

edition.

30. Answer: A – The TCPI is the level of performance that must be achieved if the CPI falls below 1 and

the project BAC must be met. Refer to page 221 PMBOK ® Guide, 5th edition.

31. Answer: A – ROI = Average profit/ average cost x 100 The average profit is 12 million / 6 or 2 million

per year. 2million / 6 million = 33%

32. Answer: B – Earned value management is generally associated with large, long term projects. Earned

value management provides a means to determine project performance at any point in the project life

cycle and also provides an opportunity to forecast the possible outcome of the project in terms of cost

and schedule.



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Quality Management

1. Answer: B – Failure mode and effect analysis (FMEA) is one of several non-proprietary approaches to

quality management.

2. Answer: C – Kaizen mean improvement in Japanese. It means continuing improvement involving

everyone, including managers and workers, alike, from the top to the bottom of the organization.

3. Answer: C – Plan Quality Management is the process of identifying quality requirements and

standards for both the project and product.

4. Answer: A – Control limits are generally set at 3 standard deviations above and below the acceptable

mean of data.

5. Answer: C – Quality checklists are an output, not a tool, from the Plan Quality Management Process.

6. Answer: D – The upper control limit is part of the control chart tool and it is not a quality metric.

7. Answer: B – Inspection is not one of Ishikawa‟s seven tools of quality. The 7 tools of quality according

to Ishikawa are: cause and effect diagrams, control charts, flowcharting, histograms, pareto charts, run

charts, and scatter diagrams.

8. Answer: C – A pareto chart is a type of histogram that shows the rank ordering of defects by type of

category so that corrective action can be focused in the correct place.

9. Answer: C – A control chart shows the stability of a process over time.

10. Answer: D – The process analysis includes root cause analysis.

11. Answer: A – Benchmarking is the technique of comparing actual or planned project practices to

those of other projects to generate ideas for improvement and to provide a basis by which to measure

performance.

12. Answer: D – The Design of Experiments is a method that plays a key role in optimization of products

or processes.

13. Answer: B – The correct response is cost of non-conformance. This includes all costs incurred due to

internal and external failures.

14. Answer: D – The WBS must contain all of the project and product work including the project

management work. This is also called the 100% rule.

15. Answer: B – Statistical sampling is the process of random selection and inspection of a work product.

16. Answer: C – Products that are produced at an acceptable level of quality and meet the desired

requirements of the customer but have limited functionality and features are referred to as low grade.

Refer to page 228 of the PMBOK ® Guide, 5th edition.

17. Answer: A – Quality management is integrated with many other project planning processes

especially cost and time management. Initiation and work breakdown structure development are

included in other planning processes. Refer to page 231 PMBOK ® Guide, 5th edition.



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18. Answer: A – A quality control plan should be utilized during development of the product. A cause

and effect diagram is used to determine the root cause of a problem. The work breakdown structure is a

key element of the planning process and assist in defining the work of the project. Checklists minimize

the omission of important steps and operating errors.

19. Answer: C – The scatter diagram is used to determine correlation between two sets of data. Refer to

page 238 PMBOK ® Guide, 5th edition.

20. Answer: A – Grade is a classification according to technical characteristics.

21. Answer: B – Metrics are an output of Plan Quality and an input to Perform Quality Assurance and

Perform Quality Control. Refer to pages 236 and 249, PMBOK ® Guide, 5th edition.

22. Answer: A – Internal failure results in defects, repairs, scrap and rework. External failure is

associated with quality issues experience by the customer. Cost of conformance refers to the cost

incurred to ensure compliance. Appraisal costs are included in the cost of conformance.

23. Answer: B – The fishbone diagram is also referred to as a root cause analysis tool. Pareto diagrams

display the frequency of occurrence of identified problems. Scatter diagrams indicate a relationship

between sets of data. Attribute sampling identifies deliverables that have failed to meet requirements.

24. Answer: B – The quality plan defines the approach to managing quality and may include costs that

will include in the project budget. The cost baseline is the final approved project budget. Total quality

management is an approach to manage quality within an organization. Cost of quality includes all costs

associated with preventing and correcting quality problems. Refer to page 235 PMBOK ® Guide, 5th

edition.

25. Answer: C – Inspection is part of quality control, which falls under monitoring and controlling

process group.

26. Answer: D – Design of experiments (Taguchi method) utilizes a process to determine the best mix of

variables or ingredients to produce the desired result. Statistical sampling is performed after products

have been produced. Brainstorming and Nominal Group technique are tools and techniques associated

with defining requirements or identifying problems. Refer to Page 239 PMBOK ® Guide, 5th edition.

27. Answer: B – A run is a set of data points displayed above or below the process average on a control

chart. Generally, seven or more consecutive points above or below the process average but with the

upper or lower control limits indicate process is out of control. A trend is a set of data points moving in a

specific positive or negative direction. A random cause is considered normal and expected when

analyzing processes and will result in some variation from the process average. An alpha risk is the

associated with product sampling.

28. Answer: D – Appraisal costs are associated with the cost of conformance and include inspections and

reviews.

29. Answer: A – Quality control is utilized to monitor and record results during execution of quality

activities. Refer to page 248 PMBOK ® Guide, 5th edition.



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30. Answer: B – Joseph Juran emphasized continuous improvement, safety, and fitness for use. This

means the product should perform as expected in terms of functionality and should be safe for use by

the customer.

31. Answer: A – A Pareto diagram is used to display errors or problems in the order of frequency of

occurrence. A Run chart is a type of control chart. Scatter diagrams are used to determine if a

relationship between exits between different sets of data.

32. Answer: D – Using a fishbone diagram for root cause analysis is a tool or technique within the

process of Control Quality. Perform Quality Assurance is about verifying compliance with quality policies

and procedures. Process analysis is a tool and technique included within Perform Quality Assurance.

Refer to page,243 PMBOK ® Guide, 5th edition.

33. Answer: C – Expert judgment is not listed as a tool and technique for any of the Quality Management

processes. Refer to page 249 PMBOK ® Guide, 5th edition.

34. Answer: D – A quality audit is a review to determine if project activities comply with organizational

policies and procedures. Refer to page 247, PMBOK ® Guide, 5th edition.

35. Answer: A – Benchmarking is used to compare planned project practices with established best

practices to generate improvement ideas and as a basis for reviewing performance. Benefit/Cost

analysis determines if a project is worth accepting and implementing. Flow charting displays a process.

Pareto diagrams display problems or errors. Refer to page 239, PMBOK ® Guide, 5th edition.

HR Planning

1. Answer C: Acquisition is a tool or technique in the process Acquire Project Team.

2. Answer C: Project performance appraisal is carried out during the Manage Project Team process.

PMBOK 5th Ed., Page 282.

3. Answer B: Lessons learned on organizational structures are used as inputs to the Plan Human

Resources Management process. However, these are Organizational Process Assets and not Enterprise

Environmental Factors. PMBOK 5th Ed., Page 260.

4. Answer C: The Resource Histogram is a tool for charting human resources and illustrates the number

of hours that a person, department or entire project team will be needed each week or month over the

course of the project. The chart can include line that represents the maximum number of hours from a

particular resource. This can be used for a resource leveling strategy. PMBOK 5th Ed., Page 265.

5. Answer B: Conflict Management is a tool and technique of the Manage Project Team Process. The

Control Procurements process has Claims Administration that somewhat relates to conflict

management. PMBOK 5th Ed., Page 282.

6. Answer C: A manager with the “hands-off” attitude toward the project work and the team is

considered “Laissez Fair”.



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7. Answer B: The final steps of problem solving include: implement a decision, review it, and confirm

that the decision solved the problem.

8. Answer D: Problem solving (also referred to as collaborating) normally takes more time, but it gets

buy-in from everyone, generating a more lasting solution.

9. Answer B: Since the project objectives are stated in the project charter, and it is the sponsor who

issues the project charter, helping to prevent unnecessary changes to project objectives is the correct

answer.

10. Answer A: The Resource Breakdown Structure (RBS) is a hierarchical list of resources related by

category and resource type that is used to facilitate planning and controlling of the resource until small

enough to be used in conjunction with the Work Breakdown Structure (WBS) to allow the work to be

planned, monitored and controlled. PMBOK 5th Ed., Page 261.

11. Answer C: A Resource Breakdown Structure is helpful in tracking project costs and can be aligned

with organization‟s accounting system. It can contain resource categories other than human resources.


12. Answer C: Co-Location also referred as “Tight Matrix” involves in placing many or all the most active

project team members in the same physical location to enhance their ability to perform as a team.


13. Answer D: Doing limited testing before integration and finishing testing after integration is an

example of compromising. This is the best way for the project manager to resolve the conflict in this

situation.

14. Answer A: Team performance assessments evaluate the project team’s effectiveness as a whole.

Project performance appraisals deal with how each team member is performing on the project.

15. Answer A: Theory Y is the belief that people can direct their own efforts.

16. Answer: D – In the functional organizational structure, priorities are established by the functional

manager. Projects are considered to be less important than functional work. Refer to page 22, PMBOK®

Guide, 5th edition.

17. Answer: D - The team normally goes through these stages of development. Forming - team gets

formed, Storming - Disagreements start to emerge, Norming - They learn to reconcile and work as a unit,

Performing - They start delivering results

18. Answer: C – The understanding of power and politics enables the project manager to develop the

appropriate approaches and techniques to gain trust and influence project stakeholders. Influencing

skills will affect the formal reporting process, upward communication, and writing style.

19. Answer: A – In the absence of other information, you have to assume that this is a functional or

matrix organization and in such an organization the resources belong to functions.



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20. Answer: C – In a balanced organization matrix, the authority of the project manager and the

authority of the functional manager are basically equal which may result in some conflict especially

when resource assignments are being delegated. Refer to Page 22, PMBOK ® Guide, 5th edition.

21. Answer: C – Among the given options, the project manager's authority is lowest in a weak matrix

organization.

22. Answer: C – Compromise. In this form of conflict management the parties involved agree to give up

something to gain something. This is referred to as a win/lose and lose/win situation. Forcing involves

authority and a one sided decision. Smoothing or accommodating refers to discussions that are focused

only on what each side is in agreement with or in congruence. Collaboration results in a win/win

situation for all parties.

23. Answer: C – The third level of Maslow’s Hierarchy of Needs is the need for social connections or

belonging. Herzberg differentiated between factors that may cause dissatisfaction and conditions or

situations that would motivate people.

24. Answer: B – The responsibility assignment matrix specifies who is playing what role for various

activities. Work packages are elements of the work breakdown structure. Cost accounts are associated

packages. Resource pools describe resource skills and availability. Refer to page 262 PMBOK ® Guide,

5th edition.

25. Answer: A – In the projectized structure the project manager has direct control of the project team

and the team is dedicated to the project. The project manager has the ability to establish more effective

and meaningful work relationships with the team members.

26. Answer: B – Collective bargaining is associated with unions and generally there will be specific

conditions and restricts that may constrain some actions or prevent the use of certain approaches or

procedures.

27. Answer: D – Theory X (Douglas McGregor) managers believe that people must be closely supervised

in ensure that work is completed. Theory Y managers utilize a participative approach. Theory Z (Ouchi)

refers to a concept that worker collectively support higher level organizational goals. Hygienic

motivation is a fabricated term.

28. Answer: C – Acquisition is a tool or technique in the process Acquire Project Team

29. Answer: D – Storming follows the Forming stage and generally includes a significant amount of

conflict as team members discuss and identify areas or disagreement. Refer to page 276 PMBOK ®

Guide, 5th edition.

30. Answer: B – Acquire Project Team is the process of determining resource requirements, determining

availability of resources and acquiring resources through negotiation or appropriate organizational

processes. Refer to page 267 PMBOK ® Guide, 5th edition.

31. Answer: B – In the projectized structure the project manager is provided with nearly full authority to

manage the project and the project resources.



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32. Answer: B – Generally project conflicts should be resolved at the lowest levels or authority whenever

possible. In some cases conflict requires the involvement of the project sponsor or executive especially

when there is an impasse regarding resource assignments. Customer and contractors would not, in most

cases become involved in internal resource management disputes.

33. Answer: A - Theory X. Mcgregor's Theory X suggests that workers need to be watched every minute

as they will not deliver results on their own.

34. Answer: C – A manager with a “hands-off” attitude toward the project work and the team is

considered “Laissez Fair.”

35. Answer: B – Referent authority is the power that comes from personal charm and charisma. It has

many meanings but it is generally referred to as power derived from a perceived connection with people

of higher levels of authority. Coercive power is a form of penalty power. Formal power is associated with

position of rank.

Communication Planning

1. Answer D: Did you include the Project Manager as part of the communication channels? Since there

are actually five stakeholders therefore there are ten channels of communication. The question is

asking how many channels of communication you have with a team of five people. The formula is (n x

(n-1) / 2 or (8 x 7) / 2 = 28.

2. Answer: C – The communications model emphasizes awareness about developing the appropriate

message to be delivered, the potentials barriers that may be encountered and the importance of a

feedback loop to improve delivery and understanding of a message.

3. Answer B: The project manager is an integrator - in the sense that he integrates the output of all the

processes and channels them in the direction of meeting the project's requirements. This is the primary

driver for communications.

4. Answer B: Because of the differences in culture and the distance between team members, formal

written communications is needed.

5. Answer D: Working over various regions and cultures in the world you need to have an understanding

of both basic definitions and areas of cultural impact. As project managers, you need to have good

communication skills and a willingness to adapt to other cultures.

6. Answer D: All reports can have Earned Value Management (EVM) information.

7. Answer: B – Earned value analysis report. It provides information about cost and schedule variances

and also includes the forecast for the total budget.

8. Answer D: This issue should be over, but since there were so many meetings and arguments about the

requirements being removed, it is unlikely the issue will be eliminated by the stakeholders. Since it has

not come up again and the project was started six months ago, spending time in a meeting is excessive.

The other choices are easier, have less impact on the project, and are therefore things that could be

done.



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9. Answer A: 93% of the message in nonverbal communications.

10. Answer C: The major result of communications blockers and miscommunications as a whole is

conflict.

11. Answer A: An Information management system refers to the facilities, procedures and processes

that are used to collect, store, and distribute information.

12. Answer D: Communications planning is including in the planning process which is generally

completed before execution. Updates to the project plan, including the communication plan, will occur

during the entire project life cycle. Refer to page 290 PMBOK® Guide 5th edition.

13. Answer A: Communications technology is a tool and technique and not the output of the manage

communications process.

14. Answer C: Use the formula # of channels = N * (N-1) / 2 First team: 12 (12-1) / 2 = 66 Second team:

17 (17-1) / 2 = 136 Team difference: 136 – 66 = 70

Note: In similar questions you may have to consider that the project manager is not included in the

actual count of team members and may have to be added to the count to determine the number of

channels. Example if you have a team of 12, the project manager would be added making the count 13

for calculating the number of channels.

15. Answer A: Informal verbal is the correct method of communications. We need to assume this is the

first offense since it was not specified in the question. If it happens again then the correct

communication method is formal written.

16. Answer: C – The communications model emphasizes awareness about developing the appropriate

message to be delivered, the potentials barriers that may be encountered and the importance of a

feedback loop to improve delivery and understanding of a message.

17. Answer: B – Earned value analysis report. It provides information about cost and schedule variances

and also includes the forecast for the total budget.

18. Answer: C - 16 * 15/2

19. Answer: B – Communications planning is including in the planning process which is generally

completed before execution. Updates to the project plan, including the communications plan, will occur

during the entire project life cycle. Refer to page 290 PMBOK ® Guide, 5th edition.

20. Answer: A – Communications requirements analysis determines the information needs of the

stakeholders and identifies information that is most critical to success or failure. Refer to page 291,


21. Answer: B The project manager is an integrator -in the sense that he integrates the output of all the

processes and channels them in the direction of meeting the project's requirements. This is the primary

driver for communications.

22. Answer: A – Information management systems refers to the facilities, procedures and processes that

are used to collect, store, and distribute information.



23

23. Answer: A – The project status report is included in Report Performance outputs. Status reports

address the current condition of a project including risks, and issues. Progress reports refer to work that

has been completed during a reporting period. Forecasts refer to future scheduled work.

24. Answer: B - Number of communication channels = n ( n - 1)/2; i.e. 11 * 10/2 = 55

25. Answer: B – CPI is a calculation associated with Earned Value Analysis that indicates the efficiency

with which project monetary resources are expended. Refer to page 219. PMBOK ® Guide, 5th edition.

26. Answer: C – Use the formula: # of Channels = N*(N-1) / 2 = 10(10-1)/ 2 = 45 = 13(13-1)/ 2 = 78 78 -

45 = 33 (Note, in similar questions you may have to consider that the project manager is not included in

the actual count of team members and may have to be added to the count to determine the number of

channels. Example if you have a team of 10, the project manager would be added making the count 11

for calculating the number of channels.)

27. Answer: C – Areas of common interest and experience will contribute to the effectiveness of the

communications process. Areas of responsibility or function may create communications barriers.

Personality and perception screens may distort the message.

28. Answer: D-The audience should be tailored by who is interested and capable of contributing to the

meeting. Not necessarily inviting the largest number of people.

29. Answer: C – Urgency is not included in the basic communications model but should be considered

when determining the method of communications to be used. Refer to page 294, PMBOK ® Guide, 5th

edition.

30. Answer: A - Communications technology is a tool and technique and not the output of the manage

communications process.

31. Answer: C - Noise is anything that causes disruption in the message being transmitted and affects

the interpretation of the message correctly.

32. Answer: D – Enterprise environmental factors are a key input to the plan communications process.

Refer to page 289, PMBOK ® Guide, 5th edition. Reporting systems is a tool or technique within the

Report Performance process. Interpersonal skills are associated with the Manage Stakeholder

Expectations process. Project performance reports are an output of the Report Performance Process.

Risk Management

1. Answer: A - A fixed bid project has lesser risk for the firm that gives high-risk work on contract.



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2.

3. Answer: A – One of the risk strategies available to you is avoidance.

4. Answer: A - (55% x US$550,000) – (20% x US$100,000) = US$275,000 – US$20,000

5. Answer: B – Identification of risk is an ongoing effort throughout the project.

6. Answer: B – You don't determine probability of risks until completing qualitative and quantitative risk

analysis so the first iterations of your list of identified risks may not have probability on them.

7. Answer: B – A contingency reserve is budget that was in the cost baseline is allocated to identify risks

that have been assessed quantitatively.

8. Answer: C – Project risks are identified during the Identify Risk process.

9 Answer: B – You can choose to accept positive risks as an acceptable risk response.

10. Answer: C – Beta, Normal, and Triangular distributions are all used in quantitative risk analysis.

Obtuse distribution is not a term referenced within the PMBOK guide.

11. Answer: A – Buying insurance is a process of transferring the impact of the risk to another party.

12. Answer: D – Risk audit is the process of evaluating the effectiveness of risk response plans.

13. Answer: A – In this case the risk has occurred and created an impact on the project so there is no

need to begin formal evaluation processes. Your risk response plan would identify that a workaround is

the best option for unanticipated risks.

14. Answer: C – SWOT stands for strengths, weaknesses, opportunities and threats.



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15.

16. Answer: D – The risk register is an output of the Identify Risks process. Refer to page 313 PMBOK ®

Guide, 5th edition.

17. Answer: C – Risk audits are considered to be a tool or technique in the Monitor and Control Risk

process. Refer to page 349, PMBOK ® Guide, 5th edition, Risk Management Overview.

18. Answer: B – The Delphi technique utilizes input from subject matter experts who remain anonymous

to other experts involved in specific research or problem resolution. Refer to page 324 PMBOK ® Guide,

5th edition and to page 108.

19. Answer: A – Qualitative risk analysis utilizes the experience of subject matter experts, functional

managers, best practices, and previous project records. It is a rapid and low cost approach to risk

analysis. The Probability/Impact matrix used the knowledge and familiarity of the project team and

subject matter experts to determine likelihood and impact of a project risk event. Refer to page 327,


20. Answer: D – Assumptions are information items that should be verified. They are not generally

considered to be based on factual data. Constraints are limitations that should be considered when

developing project plans. The product description provides details about the complexity of the product

to be delivered. Risk categories assist is detailed risk identification and may be utilized with a Risk

Breakdown Structure (RBS). Refer to page 332, PMBOK ® Guide, 5th edition.

21. Answer: A – Monte Carlo simulation is associated with Quantitative Risk Analysis and uses iterative

simulations to determine project outcomes. Refer to page 319, PMBOK ® Guide, 5th edition.

22. Answer: D – The risks that remain after implementing the risk responses are called residual risks.



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23. Answer: C – The cause and effect diagram is also known as a fishbone or Ishikawa diagram (after its

developer Kaoru Ishikawa). Refer to page 325 and 236, PMBOK ® Guide, 5th edition. System flows are

associated with flow charts. Network diagrams display predecessor and successor relationships.

24. Answer: A – Assumptions analysis is associated with the tools and techniques of risk identification.

25. Answer: D – Perform quantitative risk analysis. Explanation to the process is: In quantitative risk

analysis, the team tries to quantify the probability and impact to the extent it can.

26. Answer: C – Risk ratings are determined by the product of probability and impact (or consequence)

when using qualitative analysis and to determine expected monetary value when utilizing a decision tree

(quantitative analysis). Refer to page 318, PMBOK ® Guide, 5th edition.

27. Answer: A – The use of modeling and simulations such as a Monte Carlo simulation generate

information through iterations. Project information at the activity level is chosen at random during the

process and produces data that illustrates the likelihood of achieving specific cost or schedule targets.

Refer to page 336, PMBOK ® Guide, 5th edition.

28. Answer: B – Transferring risk does not eliminate the risk. It shifts the risk to a more qualified entity

or to a third party. Liability for the risk is accepted by the entity or third party at an agreed upon cost.

Risk avoidance refers to risks that should be eliminated by changing strategy. Mitigation is associated

with reduction of probability and or impact. Acceptance indicates that the risk is well with the

capabilities of the project team or key stakeholders.

29. Answer: D – Residual risks are included in the outputs of the Plan Risk Responses process and are

expected to remain as threats. Their probability and impact have been reduced through mitigation.

Primary risks are included in the initial risk identification process are generally most obvious. Secondary

risks are those risks that result from the decisions about how to manage primary risks. Cumulative risk is

a combination or collective expected value of the effect of multiple risks.

30. Answer: D – Exploit is a strategy for opportunities under the tools and techniques of the Plan Risk

Responses process. It is associated with managing opportunity or risks that may have a positive impact

on a project. Refer to page 349. PMBOK ® Guide, 5th edition.

31. Answer: C – A risk event is the actual occurrence of the risk. Example – equipment failure. Risk

probability is the likelihood that a risk event may occur. Impact refers to the consequence of the

occurrence of the risk event in terms of cost, time, scope, etc.

32. Answer: B – Transfer generally involves the shifting of a risk from one party to another. It does not

illuminate or reduce the risk. Insurance is a common form of transfer of risk. Refer to page 344, PMBOK

® Guide, 5th edition.

33. Answer: D – The risk management process requires input from all key stakeholders including the

project team. Use of a stakeholder register assists in the proper identification of stakeholders and in

obtaining their input. Refer to page 319, PMBOK ® Guide, 5th edition.



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34. Answer: A – Risk avoidance is a technique that is used when a change to the plan eliminates a risk or

threat entirely. Risks can be avoided through effective and thorough requirements management and

communication or the use of subject matter experts.

Procurement Management

1. Answer: D – Change requests are not inputs to the Control Procurements process. The other choices

are valid inputs to this process.

2. Answer: A – It looks as if the vendor is asking for a cost-plus-fixed-fee contract. However, by asking for

a fixed $12,500, the vendor is actually asking for a fixed-price contract. The cost and fee are just the

components the vendor has estimated to come up with a final price.

3. Answer: B – The Validate Scope process formalizes the acceptance of the completed project

deliverables and thus supports the Close Project or Phase process.

4. Answer: B – Bidder conferences are also called contractor conferences or vendor conferences. Their

purpose is to provide all vendors with an understanding of the project requirements and to give all

vendors equal time to get their questions answered.

5. Answer: D – Fixed-assessment is not a category of contracts.

6. Answer: A – Agreements are legal and formal documents between buyers and sellers.

7. Answer: A – The configuration management system is not a tool and technique of the Control

Procurement process. The other choices are valid tools and techniques of this process.

8. Answer: B – The logical order of this knowledge area is to Plan, then Conduct, then Control and Close.

9. Answer: A – The term seller is a very formal way of describing a variety of more usual descriptions.

This one of those situations where you may need to translate a formal the PMBOK Guide term into one

you use more regularly.

10. Answer: B – The firm fixed price is the most common form of procurement contract.

11. Answer: C – Although it is not exactly to the letter of the contract, you are going to have much more

trouble if the seller cannot make the payroll and cannot complete the contract because their employees

will not work without pay. The best thing would be to change the contract in some way that is mutually

beneficial. This is not really a procurement question but an ethical one although there is a considerable

overlap.

12. Answer: B – The Conduct Procurement process is where you put into practice the process of

acquiring external contractors outlined in your procurement management plan.

13. Answer: D – A contract is a formal written document and all correspondence about the contract

should also be completed in a formal written format.



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14. Answer: A – To calculate the point of total assumption you need to use the following formula:

((Ceiling Price – Target Price)/Buyers share rotation) + Target Cost) which gives a point of total

assumption of $125,000.

15. Answer: D – During procurement management processes you need to be aware that any question on

the PMP exam could indicate your company as either a buyer or a seller of product or services.

16. Answer: C – A waiver is a voluntary relinquishment of a right or an entitlement.

17. Answer: D – Change requests are generally an output of a process.

18. Answer: A – Contract payment systems, claims administration, and contract change control are all

included in the Administer procurements process.

19. Answer: C – Termination for convenience is a contract clause that permits the buyer close a contract

at any time for any reason. Generally there will be specific conditions associated with the execution of

this clause. Breach of contract refers to a failure to deliver a bargained for and agreed upon contractual

condition.

20. Answer: A – The Firm Fixed Price or Lump Sum contract places the responsibility to deal with the risk

of a cost overrun with the seller. Cost plus contracts shift the cost risks to the buyer.

21. Answer: D – Target cost = 300,000 Target fee = 40,000 Sharing ratio = 80/20 which means the seller

assumes 20% of the cost overrun or 20% of -80,000 = 16,000. Target fee = 40,000 -16,000 = 24,000 The

cost plus incentive fee contract shares the cost savings but could also result in reduced fees to the seller

if a cost savings is not achieved.

22. Answer: B – A letter of intent is an agreement to begin work and release some funding to avoid

potentially serious schedule delays to meet a negotiated delivery date while final approvals of the

definitive contract are obtained.

23. Answer: B – A contract is a negotiated agreement that is considered to be for a legal purpose and

includes the legal obligations of the seller to deliver the agreed upon products or services. Contracts

include a consideration or payment for services.

24. Answer: B – Prior to reviewing detailed proposals a buyer may review the qualifications of sellers

who have indicated an interest to bid. Pre-screening of qualifications will ensure that negotiations are

focused on sellers who can perform the required work. A weighting system is generally utilized to score

qualified sellers after proposals have been submitted.

25. Answer: B – The Bidder’s conference provides an opportunity for the buyer to provide all potential

sellers with information to allow them to determine if they should continue with the proposal process.

26. Answer: C – The project scope statement is generally developed after the Statement of work and

Contract has been reviewed and approved.

27. Answer: A – In a cost reimbursable contract the buyer generally does not have finalized

requirements. The buyer has higher cost risk, since the seller has their costs covered.



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28. Answer: C – The Force Majeure clause is intended to protect the seller from any liabilities resulting in

natural disasters. Example of a force majeure clause in a contract: “No Party shall be liable for any

failure to perform its obligations where such failure is as a result of Acts of Nature (including fire, flood,

earthquake, storm, hurricane or other natural disaster)”. Penalty clauses and Liquidated damages are

associated with a failure to meet a contractual obligation.

29. Answer: A – Statements of work (SoW) is a high level description of work that the buyer issues to

enable the seller develop an understanding of the scope.

30. Answer: A – Privity of contract is a relationship that exists only between the parties to the contract,

most commonly a contract that provides goods or services (a contract of sale). A bilateral agreement is a

binding contract between the two parties that have agreed to mutually acceptable terms.

31. Answer: A – In a cost reimbursable contract, the seller is guaranteed to be reimbursed for every item

of cost, so the risk of cost escalation primarily lies with the buyer.

32. Answer: B – Target cost = 150,000 Actual cost = 130,000 Savings = 20,000 Share to the seller 20%

of 20,000 = 4000 15,000 + 4000 = 19,000 Total project cost for the buyer = 130,000 + 19,000 = 149,000

33. Answer: B – Fixed price. The Fixed price or lump-sum contract places the risk on the seller. The seller

will generally include a contingency in the contract to assist in minimizing the risk of reduced profits.

34. Answer: B – Generally the process for resolving contractual disputes is described in the contract

itself and usually includes designated representatives from each party involved who are authorized to

resolve contract issues. Refer to page 384, PMBOK ® Guide, 5th edition – Claims administration.

35. Answer: D – The cost-plus-percentage-of-cost or CPPC contract transfers all cost to the buyer and

any increase in costs will result in an increase in the fee to the seller. It also incentivizes the seller to be

inefficient. This places significant risk with the buyer and requires close cost management.

Professional & Social Responsibility

1. Answer A: According to the PMI Code of Ethics and Professional Conduct, project managers must

take ownership of the decisions they make or fail to make. PMI Code of Ethics and Professional

Responsibility Page 2, Professional Responsibility.

2. Answer D: One of the mandatory standards in the PMI Code of Ethics and Professional Conduct is

respect. A project manager must listen to others‟ point of view and understand them. However before

asking the junior project manager for evidence you must ask your functional manger to provide

evidence to support his or her allegations. You can suspend the junior project manager or report him or

her to PMI if there is sufficient evidence of his or her guilt. PMI Code of Ethics and Professional

Responsibility, Page 3, Professional Responsibility.



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3. Answer B: Fairness is one of the mandatory standards in the PMI Code of Ethics and Professional

Conduct. Fairness means not showing favoritism or prejudice. PMBOK 5th edition, PMI Code of Ethics

and Professional Responsibility Page 114, Professional Responsibility, Page 5 Project Scope

Management.

4. Answer A: Communications has been identified as one of the single biggest reasons for project

success or failure. Effective communication within the project team and stakeholders is essential.

PMBOK 5th edition, Page 515, Project Communications Management.

5. Answer A: Although the PMI Code of Ethics and Professional Conduct does not allow gift taking,

project managers should respect the norms and customs of others as long as they do not show

favoritism based on those norms. PMI Code of Ethics and Professional Responsibility, Page 3,

Professional responsibility.

6. Answer D: As a project manager, you have a responsibility to disclose to the interview panel that

interviewing your classmate could represent a potential conflict of interest. It is up to the panel to

decide on the best course of action, which might include excusing you from the interview process. PMI

Code of Ethics and Professional Responsibility, Page 2, Professional Responsibility.

7. Answer D: You have a professional obligation to ensure people have the right amount of training to

complete their job.

8. Answer D: To accept any form of payment would be unethical. Your only choice is to refuse the

payment and let your project sponsor or manager know that it was offered.

9. Answer A: You should inform the other party that the meeting has been postponed for at least three

days. You must act ethically at all times and clearly there is no way you can act in good faith if the

meeting goes ahead.

10. Answer D: At no time can you pay a bribe. A bribe is an illegal payment regardless of accepted

customs

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